FREDDY HOHENSEE Has a Denied Investor Complaint – May Recover Investor Losses
ABACUS INVESTMENTS, INC. Broker, FREDDY HOHENSEE Has a Denied Investor Complaint. The broker is now suspended, sanctioned and fined after FINRA allegations.
Call 800-500-4442 if you think that you have received unsuitable investment recommendations from your adviser.
FREDERICK EARL HOHENSEE (CRD#: 1431948), a registered broker for ABACUS INVESTMENTS, INC. in Dousman, WI, has a denied investor complaint.
According to FINRA BrokerCheck, complainant allegations are: Dates June 2022 through August 2023. Drop in values.
The complaint requested $50,000.00 for alleged damages but the claim was denied.
According to FINRA: An investment professional and their firm may decide that the customer’s complaint is unfounded and determine to “deny” the complaint. In such cases, the disposition on BrokerCheck will reflect “denied.”
A customer may then decide to seek compensation for damages by filing a claim in arbitration.
FINRA Suspends, Fines and Sanctions Hohensee
Without admitting or denying the findings, Hohensee consented to the sanctions and to the entry of findings that he willfully violated the Care Obligation of Reg BI by recommending that two customers, one of whom was a senior, invest in structured notes without having a reasonable basis to believe the recommendations were in the customers’ best interests based on their investment profiles.
The findings stated that the notes that Hohensee sold to the customers offered no principal protection. Further, each of the notes had a maturity of at least five years, and 12 of the 18 notes missed at least some interest payments once the value of the reference assets declined below a specified level. The notes were not listed on an exchange, a characteristic often associated with a potential lack of liquidity. Moreover, the notes’ prospectuses disclosed significant risks, including that the notes might stop paying interest if the value of the reference assets declined below a specified level and the customers might lose all or a substantial portion of their investments.
FINRA: The Customers Were Retirees
Both customers were retirees with low-risk tolerances and short-term liquidity needs. Neither customer had prior experience with complex investment products like structured notes. Hohensee recommended that each customer invest a substantial portion of their respective net worth in the structured notes despite their risks.
FINRA Alleges Structured Notes Were Not In Best Interest Of The Retirees
Hohensee failed to sufficiently consider these risks in light of the customers’ investment profiles and therefore lacked a reasonable basis to believe that the structured notes were in the best interest of either customer. Hohensee earned $7,530 in commissions from the sale of the structured notes. Following a decline in the equity markets, the structured notes’ value fell significantly, and the issuers of certain notes, including twelve of the notes at issue here, stopped paying interest. The issuers subsequently redeemed 13 of the structured notes at par, but the customers still own five notes.
Civil and Administrative Penalty(ies)/Fine(s): $10,000.00
Restitution: $7,530.oo
Suspension: 6 Weeks Start Date: 5/4/2026
Investors who feel they have been harmed by investment advice or have suffered financial losses are encouraged to contact the securities attorneys at Goodman & Nekvasil, P.A. to have their accounts reviewed and to determine whether they may be entitled to recover losses through FINRA arbitration.
ABACUS INVESTMENTS, INC. Broker, FREDDY HOHENSEE Has a Denied Investor Complaint. The broker is now suspended, sanctioned and fined after FINRA allegations.
Goodman & Nekvasil, P.A., is investigating brokers who may have unsuitably recommended investments to their clients.
St. Petersburg, Florida law firm Goodman & Nekvasil, P.A., has a national practice representing victimized investors. The firm continues to investigate brokerage firms that placed elderly retirees and other conservative investors in unsuitable investments.
Goodman & Nekvasil, P.A., has filed numerous cases against brokerage firms selling high-risk investments and has recovered more than $400 million dollars on behalf of victimized investors.
We allege in these cases that these investment recommendations were unsuitable for our clients in view of their financial situation, needs and investment objectives.
There is no charge for an evaluation of your case. We handle our cases on a contingency fee basis. This means that unless we recover money for you, we charge no attorney’s fee.
If you incurred losses on your investment and would like your case evaluated by a securities attorney, please contact us.
Some of the information in this blog post was obtained from FINRA on 4/15/26. If you believe this information was reported incorrectly, please contact our firm: 1-800-500-4442.