Elias “Herbert” Hafen, Former Morgan Stanley Broker, Barred for Defrauding Clients

Elias “Herbert” Hafen Defrauded his clients out of hundreds of thousands of dollars

Sonn Law is investigating Former Morgan Stanley Broker Elias Hafen. We represent investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us at 866–827–3202, or complete our contact form for a free consultation.

Elias Hafen (CRD# 867068), who also went by Herbert Hafen, is a previously registered broker and investment adviser. From 2009 to 2018, Mr. Hafen was a registered representative with Morgan Stanley, based in New York, NY, before working for six months at Wells Fargo Clearing Services in 2018.

On August 21, 2018, Mr. Hafen was discharged from Wells Fargo following his admission that he entered into financial arrangements with clients that were not approved by the firm.

In September 2019, a FINRA regulatory investigation originally filed in February 2019 concluded. The regulator found that Mr. Hafen had defrauded his clients out of hundreds of thousands of dollars, and therefore barred him from acting in any capacity within the securities industry.

According to the investigation, during his time at Morgan Stanley Mr. Hafen claimed to at least 11 of his clients that he had access to a high-yield investment fund with guaranteed returns. This fund was not affiliated with the firm.

During the course of the fraud, Mr. Hafen created fake “Investor’s Statements” to present to his clients about the status of their funds. The investment fund that Mr. Hafen claimed to have access to, however, did not actually exist. The investments he received from his clients instead went towards his own personal uses, including the acquisition of expensive artwork.

In addition to being barred from the industry, Mr. Hafen also pleaded guilty to one count of investment advisor fraud and faces up to five years in prison.

According to his BrokerCheck file, there was one customer dispute filed against Mr. Hafen in September 2018. It alleged that Mr. Hafen misappropriated client’s funds from between July 2011 and January 2018, and was eventually settled for $430,000.

Mr. Hafen was in the securities industry since 1979, where he started with Merrill Lynch.

Jeffrey R. Sonn is an experienced investor losses attorney. If you suffered losses because a financial professional or corporate executive misappropriated funds, Mr. Sonn will protect your rights and interests. Please do not hesitate to contact the Sonn Law Group today for a free review of your claim.