Kevin Graetz Charged In SEC Lawsuit

Securities Broker Kevin Graetz Allegedly Sold Scam Belize Fund Investment

Investor Alert! The Securities and Exchange Commission (“SEC”) announced charges against barred broker Kevin Richard Graetz (CRD#: 1935982, New York, New York) for his role in purportedly selling sham Belize Infrastructure Fund I promissory notes. Additionally, the Financial Industry Regulatory Authority (“FINRA”) shows that 9 investors took aim at Graetz through lawsuits or FINRA Arbitration Claims. Notably, these complaints allege sales practice violations. It appears that the broker possibly acted negligently and deceptively towards investors. Here’s more about the allegations against him.

SEC Charges Kevin Graetz With Selling Bad Promissory Notes In Belize Infrastructure Fund I

Mainly, SEC’s Complaint alleges that Kevin Graetz and defendant Minish Hede sold unregistered and unapproved investments. Apparently, those investments consisted of promissory notes in Belize Infrastructure Fund I, LLC. Specifically, the Commission contends that Belize Fund is a sham investment and that it caused investors to lose approximately $9,600,000. Notably, SEC argued that Graetz violated securities laws by going against Paulson Investment Company’s policies which prohibited brokers from selling securities without permission. Also, SEC indicated that Belize Fund’s principal pled guilty to a criminal indictment in connection with the scam investment. It appears that Graetz profited substantially while clients lost their money. This matter is ongoing.

Client Indicates That Investments Were Illegitimate

Evidently, a client of Paulson Investment Company came forward in March 2019 to contest Kevin Graetz’s sales practices. It seems that Graetz sold the client an unregistered and illegitimate investment. This investment was also not approved by Paulson Investment Company, the client indicated. All told, Paulson Investment Company paid the client $225,000 to settle the matter. Accordingly, this matter closed February 2020.

FINRA Bars Graetz

BrokerCheck shows that as of February 13, 2018, FINRA barred Kevin Graetz. This means that Graetz cannot be a securities broker with nearly every major financial institution in the United States. The main reason for FINRA’s bar was Graetz’s lack of cooperation with a request for information. It is unclear whether FINRA’s inquiry related to Belize Fund investments though it came after Paulson Investment Company disaffiliated with Graetz for client disputes alleging negligence and other sales practice violations.

Client Indicates Negligence, Misrepresentation In Dispute About Graetz

BrokerCheck shows that a client disputed Kevin Graetz’s sales practices in April 2017. Namely, in this FINRA Arbitration Claim, the client alleged to have been deceived on promissory notes that they purchased by or through Graetz. Secondly, the client indicated that Graetz misrepresented information about the investments and was unjustly enriched. As a result, Paulson Investment Company paid the client $165,000 to settle the matter in September 2018.

Losses From Investing In Promissory Notes Through Graetz?

Have you experienced losses by investing in promissory notes sold by Kevin Graetz? If so, reach out to Soreide Law Group at (888) 760-6552 and speak with experienced counsel concerning a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The law firm has recovered millions of dollars for clients who have incurred losses due to the actions of securities brokers and financial advisors. BrokerCheck indicates that Graetz denies allegations of his sales practice violations.