E Herbert Hafen ( Also known as: HERBERT H HAFEN, ELIAS HERBERT HAFEN,E HERBERT NIGGEBRUGGE,ELIAS NIGGEBRUGGE) CRD#: 867068, who was formerly registered with Wells Fargo and Morgan Stanley in New York City, is now facing charges that he defrauded clients out of approximately $1.6 million.

According to the SEC’s complaint, from 2011 through 2018, E Herbert Hafen allegedly engaged in a scheme to defraud his clients. The complaint alleges that Hafen told his clients that he had an investment opportunity separate from those offered where he was employed, and it would pay an annual 6% return. The SEC’s complaint also alleges that E Herbert Hafen convinced his clients to withdraw their money from accounts held with the brokerages where he was registered, including liquidating stock holdings and personal retirement accounts.  The clients then deposited the funds into their personal bank accounts and transferred or wired the money to Hafen’s own personal bank account.

The SEC complaint further alleges that when E Herbert Hafen received his clients’ money, he did not invest it but used it for his own personal expenses, including payments on his house, car, and credit cards for himself and family members.

According to FINRA’s BrokerCheck, E Herbert Hafen has 3 Disclosures on his CRD report.  One of the Disclosures is a “Customer Dispute” from September of 2018 which alleged, “Client’s attorney alleged Financial Advisor misappropriated client’s funds – July 2011 – January 2018.” This Dispute settled for $430,000.00.  Another Disclosure was an “Employment Separation After Allegations.” Wells Fargo Clearing Services, LLC. discharged Hafen in August of 2018 following allegations that, “Mr. Hafen admitted to entering into financial arrangements with clients that were not approved by the firm.”

E Herbert Hafen had been in the securities industry for 39 years, and was barred by FINRA from acting as a broker or otherwise associating with a broker-dealer firm, on October 28, 2019. Hafen allegedly failed to respond to FINRA’s request for information. He was listed with 8 firms, the most recent listed below:

03/29/2018 – 09/13/2018  WELLS FARGO CLEARING SERVICES LLC – NEW YORK, NY

06/01/2009 – 04/03/2018  MORGAN STANLEY – NEW YORK, NY

According to the SEC charges, Hafen also faces criminal charges which were filed by the U.S. Attorney’s Office for the Southern District of New York.

If you’ve suffered investment losses due to the actions or recommendations by E Herbert Hafen, a broker formerly with WELLS FARGO CLEARING SERVICES LLC and MORGAN STANLEY, both of NEW YORK, NY, contact Soreide Law Group at no cost and speak to an experienced securities lawyer regarding the possible recovery of your financial losses through a FINRA arbitration at:  888-760-6552.

Soreide Law Group works on a contingency fee and represents our clients nationwide before FINRA.