Broker Joe Hede Charged By SEC In Connection With Sham Belize Fund Investments
Investor Alert! The United States Securities and Exchange Commission charged securities broker Minish Joe Hede (CRD: 2389098, New York, New York) with violating securities laws on what the Commission claims to be a sham investment in Belize Fund. Not only that, but FINRA barred the former Paulson Investment Company broker in 2017 for refusing to respond to FINRA requests. Moreover, seven or more investors disputed the sales practices of the securities broker. Here’s what you need to know.
SEC Indicates That Joe Hede Caused Millions In Investor Losses
First of all, SEC brought a civil complaint against Joe Hede and another broker in August 2020. Basically, the Commission alleged that Hede was selling away meaning that he potentially sold investments that his employing broker did not offer or authorize him to sell. The broker and another defendant purportedly sold promissory notes issued by Belize Infrastructure Fund, I LLC behind their employer’s back and acted as unregistered brokers in the process. Notably, the Commission claimed that Belize Fund is a scam. Hede allegedly helped cause 21 investors to purchase more than $9 million in promissory notes. All of those investors reportedly lost their money while the broker earned hundreds of thousands in commissions. SEC’s Complaint is ongoing.
FINRA Bars Hede
Back in November 2017, FINRA asked Joe Hede for information. Complying with this request was a must for the broker to avoid a suspension or bar. But the broker opted not to comply with FINRA’s request. Because of this, on February 13, 2018, FINRA indefinitely barred him in all capacities. This means that Hede is not allowed to be a securities broker for practically every major brokerage firm in the United States.
Client Alleges That Joe Hede Concealed Information About Private Placements
Notably, a client of Paulson Investment Company LLC brought a FINRA Arbitration Claim against Joe Hede in November 2019. Particularly, the client stressed that Hede did not disclose important information about private placements. While it is uncertain whether those investments concern Belize Fund, the clients alleged that they sustained losses on DPPs or LPs which are often considered private placements. Evidently, the client demanded $1,015,000 in damages in this ongoing matter.
Hede Supposedly Sold Unregistered, Unapproved Investments
Also, a client of Paulson Investment Company disputed Joe Hede’s sales practices in a lawsuit from March of 2019. It seems that the broker might have sold the client a promissory note that was unregistered, unapproved and illegitimate. For this reason, Paulson Investment Company opted to settle this matter through making a $225,000 payment to the client. Accordingly, this matter settled in February 2020.
Did Joe Hede Sell You Inappropriate Investments?
Did you purchase improper investments because of Joe Hede? If so, get in touch with Soreide Law Group at (888) 760-6552 where you can speak with experienced lawyers about a possible recovery. Keep in mind that Soreide Law Group represents clients on a contingency fee basis and advances all costs. We have recovered millions of dollars for investors who have suffered losses from the misconduct of financial advisors and securities brokers. Note that Hede denies all allegations of any sales practice violations that have been asserted by clients and securities regulators.