Clark Alexander Reinhard (CRD #2224876, Registered Representative, Westfield, New Jersey) submitted a Letter of Acceptance, Waiver and Consent in which he was suspended from association with any FINRA member in any capacity for 10 weeks. In light of Reinhard’s financial status, no monetary sanctions were imposed. Without admitting or denying the findings, Reinhard consented to the described sanction and to the entry of findings that he sold interests in a hedge fund using a private placement memorandum and subscription documents that contained false and misleading information. The findings stated that Reinhard also used a marketing brochure that failed to provide a sound basis for evaluating a potential investment in the hedge fund, and failed to explain that hypothetical returns did not reflect applicable fees and charges. The findings also stated that the brochure compared hedge funds and mutual funds but presented an incomplete and unbalanced comparison of the two products, and failed to disclose Reinhard’s firm’s name. The findings also included that Reinhard entered into settlement agreements with investors that contained a confidentiality clause that required each of the investors to keep the terms of the release strictly confidential and contained no provision allowing the investors to discuss the settlement terms with FINRA and other regulators.(FINRA Case #2005000323702)We take cases on a purely contingency fee basis against brokerage firms who employ brokers committing misconduct of this nature. Please contact us for a free evaluation.