Investors potentially incurred losses because of securities broker Frederick Earl Hohensee (also known as Fred Hohensee and Freddy Hohensee) [CRD: 1431948, Elkhorn, Wisconsin], given the publicly available information found on Financial Industry Regulatory Authority (FINRA) BrokerCheck. Frederick Hohensee has worked for Abacus Investments Inc. since March 3, 1994, and Hohensee Financial Services Inc. since February 20, 1995. Investors are encouraged to continue reading to discover more about disclosures involving Frederick Hohensee.
FINRA Sanctioned Fred Hohensee For Violation Of FINRA Rules
Particularly, on April 7, 2026, FINRA issued Case: 2023079674901 sanctioning Frederick Hohensee. Specifically, Hohensee was suspended for six weeks in all capacities and fined $10,000. Notably, FINRA alleged that Hohensee willfully violated Regulation Best Interest’s Care Obligation and FINRA Rule 2010 by recommending structured notes without having a reasonable basis to believe the recommendations were in the clients’ best interests.
Frederick Hohensee Allegedly Made Unsuitable Recommendations In Structured Notes
According to FINRA, between April 2022 and July 2023, Hohensee recommended 18 structured notes to two retirees, including one senior investor, despite their low-risk tolerances, liquidity needs, and limited investment experience. FINRA stated that the structured notes carried substantial risks because they lacked principal protection, were not exchange-listed, and could stop paying interest if reference assets declined below specified levels. The regulator also alleged that the products had maturities of at least five years. This made them unsuitable for investors with short-term liquidity needs.
FINRA further alleged that Hohensee recommended that the clients invest substantial portions of their net worth into the structured notes despite the products’ complexity and risks. Following declines in the equity markets, several of the notes reportedly lost significant value, while some issuers stopped making interest payments. FINRA claimed that Hohensee earned commissions from the sales. He allegedly failed to adequately consider whether the recommendations aligned with the clients’ investment profiles and financial circumstances.
Specifically, a client of Abacus Investments Inc. disputed Frederick Hohensee’s sales practices, according to a complaint dated September 27, 2023. It appears that Hohensee allegedly caused the client to sustain poor performance on structured notes. Supposedly, the client made those investments between June 2022 and August 2023. Consequently, the client sought compensation from Abacus Investments Inc. or Hohensee in the amount of $50,000 in this matter. The complaint was ultimately denied on April 12, 2024.
Were You Impacted By Financial Advisor / Securities Broker Frederick Hohensee?
Are you concerned about investments you made through Frederick Hohensee? Get in touch with Soreide Law Group online or at (888) 760-6552. Consult with a securities attorney about a potential recovery of your investment losses. Soreide Law Group has recovered losses for clients throughout the country. Also, our securities lawyers handle cases on a contingency fee basis and advance all costs. Hohensee and brokerage firms Hohensee worked for deny accusations of sales practice violations.
