Investor Alert > Investment Loss Attorneys Investigate Former Paulson Investment Agents Minish “Joe” Hede And Kevin Graetz’s Alleged Involvement In A Belize Airport Ponzi Scheme Perpetrated by Brent Borland
Posted Aug 25, 2020
by Alan Rosca

Investment Loss Attorneys Investigate Former Paulson Investment Agents Minish “Joe” Hede And Kevin Graetz’s Alleged Involvement In A Belize Airport Ponzi Scheme Perpetrated by Brent Borland

Kevin Graetz and Joe Hede InvestigationA Recent U.S. Securities and Exchange Commission (SEC) Filing Chronicles Federal Law Enforcement and Regulators’ Investigation Into the Belize Infrastructure Fund LLC’s Operations

The SEC shed some additional light on their investigation into an alleged $22 million Belize airport project Ponzi scheme with their latest court filing United States District Court Southern District of New York last Friday, August 21 under review by investment loss attorney Alan Rosca.

That civil motion chronicles federal officials’ investigation into Brent Borland and his operation of Belize Infrastructure Fund LLC. The court filing also captures prosecutors’ attempts to establish a connection between the recently-convicted Borland, and former Paulson Investment Co. LLC registered agents Kevin Graetz and Minish “Joe” Hede. Federal prosecutors accuse the latter two of having sold as much as $9.6 million in fraudulent promissory notes that they allegedly told investors would fund the Belize airport project.

Investment loss attorney Alan Rosca and his fellow lawyers at Rosca Scarlato LLC often represent investors who wage broker impropriety allegations. Such or unethical or illicit activity may include unsuitability, fraud, negligence and fiduciary duty claims. Rosca and his colleagues are evaluating customer disputes against both Kevin Graetz and Minish “Joe” Hede. Either one of these registered agents’ investors should consult with Alan Rosca or another one of the firm’s other attorneys by emailing arosca@rscounsel.law or calling 888-998-0530 to share their experiences with these two men and to learn of their rights respective to them.

What Type of Impropriety the SEC Alleges That Former Paulson Investment Co. LLC Registered Agents Kevin Graetz and Joe Hede’s Engaged In?

The SEC’s latest filing highlights how neither Graetz nor Hede was a registered-dealer of Paulson Investment Co. LLC when they allegedly sold fraudulent promissory notes. The filing chronicles how the two men were registered representatives at the brokerage company at the time instead. The SEC notes that this is an important distinction as it’s reportedly against the defendants’ former employer’s company policy and a violation of Financial Industry Regulatory Authority Inc.’s regulations for them to sell any securities in the role that they had with Paulson.

SEC officials also noted that engaging in the “selling away” process also violates these policies or regulations. This concept refers to a broker’s sale of securities through a brokerage different from their registered affiliation. Such practices also violate the SEC’s Exchange Act.

Brent Borland Ponzi schemeHow Minish Hede and Kevin Graetz Allegedly Became Affiliated With Brent Borland and Belize Infrastructure Fund LLC?

Prosecutors that filed documents as part of the 2019 criminal case against Brent Borland captured how his relationship with registered agents reportedly started no later than 2014. Soon after, federal officials allege, Borland convinced registered agents to sell the promissory notes to their Paulson customers.

Court filings from the federal case against Borland in 2019 chronicle how he reportedly duped as many as 40 Belize Infrastructure Fund LLC investors out of almost $22 million. Borland ultimately pleaded guilty to conspiracy and fraud charges in early 2019. At the time, prosecutors alleged that at least $9.6 million in investments came from Paulson customers.

What Led to the SEC’s Civil Filing Against Minish “Joe” Hede and Kevin Graetz?

Discovery filed during the criminal case against Borland caused some of his alleged associates to emerge at the forefront. One filing captured how Graetz and Hede reportedly initially approached their bosses at Paulson about the prospect of selling the notes to the brokerage’s customers at the beginning of 2014, but how that venture fund’s leadership declined to do so after meeting with the Belize Fund’s head.

Federal officials determined that it wasn’t long after that unsuccessful encounter between Borland and their Paulson bosses that the two registered representatives began selling the notes to the firm’s customers behind their backs. They allegedly pocketed the commission for those sales.

Discovery filed as part of the case against Borland also captures how Graetz and Hede allegedly attempted to hide their potentially illicit activity from their employers by communicating with investors through alternate emails.

How Paulson Investment Co. LLC’s Leadership Reportedly Became Aware of Hede and Graetz’s Alleged Prohibited Sale of Promissory Notes

Court records also show that Paulson’s leadership reportedly first became aware of Hede and Graetz’s alleged violations of company policy when a customer reached out to them about their dealings with the registered representatives. Court records also show that the two men allegedly tried to deflect their employer’s suspicions at the time by claiming that Belize Infrastructure Fund LLC’s head Borland was illegally using their identities to sell the notes in question.

That customer complaint led Paulson to launch an investigation then fire the two registered representatives in April 2017. FINRA revoked both mens’ memberships in their organization around the same time as well.

Investment Loss Attorneys for losses in Belize Airport Ponzi schemeWhat Options You Have If Kevin Graetz or Minish “Joe” Hede Got You to Invest With Them?

The SEC’s filing in U.S. District Court on August 21 spells out how the federal agency is seeking to recover an unspecified amount in fines and damages, or disgorgement, on behalf of alleged unsuspecting investors.

Finally, it is essential to note that, as of the date of this article, there has not been a finding of liability as to the complaints mentioned in this article, unless otherwise indicated.

Rosca Scarlato’s investment loss attorneys have extensive experience advocating for clients who lost a portion of their assets after working with alleged deceptive brokers, investment advisers and other registered financial agents.

Investment loss attorney Alan Rosca is currently investigating both Kevin Graetz and Joe Hede. He plans to take legal action on behalf of any wronged investors should he identify any actionable impropriety. Please note that the attorneys at Rosca Scarlato LLC take most of their cases on a contingency basis, which means that the firm’s lawyers advance the costs associated with representing you after your case. We only get paid if you win.

Anyone who invested with Minish “Joe” Hede and Kevin Graetz should request a free, no-obligation consultation with a Rosca Scarlato LLC attorney to discuss their experiences with them and potential remedies they may be eligible to pursue. Attorney Alan Rosca and his fellow lawyers are eager to learn more about Graetz and Hede’s activities. They can be reached by email at arosca@rscounsel.law, phone at 888-998-0530 or via the contact form on this webpage.

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DISCLAIMER

In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow matters about which we report, and/or to publish subsequent updates regarding various developments that may occur in such matters. Readers are encouraged to conduct their own research regarding any such matters and any developments that may or may not have occurred in such matters. Also, the Brokercheck report linked to some of our blogs is the up-to-date version as of the date of accessing by the reader. The information in our blogs is current as of the date of the drafting of the blog, and given that sometimes certain past complaints may no longer be listed in newer Brokercheck reports, some of the events referenced in some of our blogs may later on be removed from newer Brokercheck reports. Visitors may check the most recent version of each brokercheck report at www.finra.org, and may contact FINRA for the earlier version of the Brokercheck report upon which various blogs may be based.

If you believe you lost money as a result of investment-related fraud or misconduct, please contact our law firm for a free, no-obligation evaluation of your recovery options.

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