Former Wells Fargo and Morgan Stanley broker Elias Herbert Hafen has been sentenced to 30 months in prison for having defrauded his clients out of more than $1.6 million. Mr. Hafen, of New York, previously pled guilty to one count of investment adviser fraud.
From 2011 until 2018, according to the U.S. Attorney’s Office for the Southern District of New York, Mr. Hafen engaged in a scheme to defraud 11 of his clients into believing that he had access to a high-yield investment fund with guaranteed returns. He told them the fund was not affiliated with Morgan Stanley, where he worked from 2008 to 2018.
On Mr. Hafen’s advice, these clients transferred approximately $1.6 million directly to his personal bank account for investment in the purported investment fund, the U.S. Attorney’s Office said in a release. He also created fictitious “Investor’s Statements” that bore the name of a nonexistent investment company and purported to detail the status of his victims’ investments.
In 2018, Mr. Hafen moved from Morgan Stanley to Wells Fargo, which fired him in August 2018 after he admitted into entering into financial arrangements with clients who were not approved by the firm. The Financial Industry Regulatory Authority Inc. barred him from the securities industry in October 2018.
Mr. Hafen began his securities career in 1979 at Merrill Lynch and worked at five firms before joining Morgan Stanley.
Mara Glassel and Julie Fox will co-lead the fast-growing hybrid RIA’s ultra-high-net-worth and private wealth businesses.
The banking giant's wealth arm extends its revenue streak as it pushes to exit consent orders weighing on growth since 2020.
New Allspring research finds 401(k) participants want guidance on income and rollovers, not just portfolio automation.
Aging homeowners hold record housing wealth - but most advisors still aren't bringing it into retirement plans
$1.7M invested from an inheritance. Then the phone went dead.
Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.
As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor
