Ex-broker ordered to pay $550K for bilking investors with modest incomes ​

SEC obtains default judgment on reckless trading of leveraged ETFs and ETNs, theft from unsophisticated investors

Oct 2, 2017 @ 1:54 pm

By InvestmentNews

The Securities and Exchange Commission has obtained a final judgment by default against former broker Demitrios Hallas, who was charged with "knowingly or recklessly trading unsuitable investment products" in the accounts of five customers and stealing more than $170,000 from one of them.

The Sept. 27 decision ordered Mr. Hallas to pay $549,987.64 in disgorgement, prejudgment interest and civil penalties. The SEC alleged that instead of investing funds on customers' behalf, he deposited them into his own bank accounts and spent the money on personal expenses.

According to the SEC's initial announcement of the charges in April, the products included leveraged exchange-traded funds and exchange-traded notes. That announcement also alleged that Mr. Hallas' clients included unsophisticated investors with modest incomes.

Mr. Hallas began his securities career in 2001 at First Union Securities, according to Finra's BrokerCheck website. He worked at 11 firms through 2015 — including three times at Chase Investment Services.

He failed to respond to a request for information from the Financial Industry Regulatory Authority in March 2016 and was suspended. He was barred in June 2016.


What do you think?

View comments

Recommended for you

Featured video


4 secrets to adviser growth; Financial planning

Growing your practice can be difficult, but advisers you aren’t alone. Growth is hard for everyone. John Anderson and Raef Lee of SEI talk about how financial planning can help take your practice from good to great.

Latest news & opinion

Midwestern magic? RIA assets soared nearly 30% there last year

Theories for what's driving the growth spurt abound, but it surpassed all other regions of the country.

8 apps advisers love for getting stuff done

We reached out to advisers to find out which apps they are using to run their business more efficiently.

10 tax moves to squeeze in before the year ends

Here are some tax moves clients can still make before year-end.

Richard Neal: the new face driving retirement policy in Washington

As he becomes head of the House Ways and Means Committee, Rep. Richard Neal (D-Mass.) is poised to make some big changes.


Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

Ad blocker detected. Please whitelist us or give premium a try.


Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print