A Financial Industry Regulatory Authority (FINRA) arbitration panel ordered a former employee of Merrill Lynch, Deutsche Bank, and Oppenheimer & Co. to pay nearly $11 million to an investor who alleged his broker, Karl Hahn, misrepresented securities and made excessive trades.
The investor’s case against the former broker Karl Hahn, stems from transactions involving covered calls, a variable annuity and other investments. The investor filed the case in 2011, also named Bank of America Corp.’s Merrill Lynch unit, Deutsche Bank Securities Inc., a unit of Deutsche Bank AG and Oppenheimer & Co.
Karl Hahn worked at the three firms consecutively for approximately seven years between 2004 and 2011, according to FINRA's BrokerCheck. The case against Merrill was settled, while those against Deutsche Bank and Oppenheimer were dismissed. Hahn’s alleged conduct toward the investor took place while the broker worked at all three of the firms.
The FINRA arbitrators awarded the investor approximately $4.1 million in compensatory damages and $6.4 million in punitive damages, according to the ruling. This is the second decision against Hahn in two months. FINRA arbitrators, held Deutsche Bank and Hahn jointly responsible in February in a $934,000 ruling on behalf of a couple and their trusts, who he allegedly swindled in a multi million-dollar insurance deal.
According to FINRA's BrokerCheck, Karl Hahn was previously registered with FINRA at the following brokerage firms:
OPPENHEIMER & CO. INC.
CRD# 249
PORTSMOUTH, NH
06/2009 - 03/2011
DEUTSCHE BANK SECURITIES INC.
CRD# 2525
BOSTON, MA
02/2008 - 06/2009
MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
CRD# 7691
PORTSMOUTH, NH
09/2004 - 02/2008
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