Lawrence Hagedorn, a previously registered broker and previously registered investment adviser, was barred by the United States Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) for allegations ranging from dishonest and unethical broker practices to refusal to comply with FINRA investigation, according to an investigation by investor rights advocate, Alan Rosca.
Investor rights advocates of Rosca Scarlato LLC law firm, including Alan Rosca, are investigating conduct related to the bar of former broker Lawrence Hagedorn by both the SEC and FINRA on the allegations of dishonest and unethical broker practices among others.
Lawrence Hagedorn was last in the employment of The O.N. Equity Sales Company, a FINRA member firm, between the period of July 2007 and September 2017. He was in the employment of the firm when he allegedly committed the acts leading to the bar by the regulatory authorities.
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Lawrence Hagedorn Was the Subject of Regulatory Actions Leading to His Bar by SEC and FINRA
Publicly available information reviewed by the investor rights advocate discloses that former broker Lawrence Hagedorn was the subject of regulatory actions instituted against him by various regulatory authorities including SEC and FINRA between November 2017 and May 2020 leading to his bar from being a broker or investment adviser in any capacity.
According to the reports on his FINRA Brokercheck page, the earliest regulatory action against Lawrence Hagedorn was instituted by FINRA on November 22, 2017. The regulatory action was instituted on the allegations that the Hagedorn refused to comply and respond to FINRA’s request for information. The FINRA’s request for information was coming on the heels of the termination of his employment by his previous firm in September 2017. The firm terminated his employment on the allegation of his violation of company policy by borrowing money from customers.
FINRA allegedly barred the broker pursuant to the FINRA Rule 9552(h) which requires the broker to request the termination of his suspension by FINRA after being suspended for refusing to provide the information requested by FINRA, as reported. As a result of this, he was barred indefinitely in all capacities starting from end of February 2018.
After the FINRA regulatory action, former broker Lawrence Hagedorn was also the defendant in a regulatory action initiated by the Office of the Kansas Securities Commissioner on January 29, 2019. The Office of the Kansas Securities Commissioner barred Lawrence Hagedorn on the allegation that he borrowed money from his customers in turn violating state securities law. He was barred in all capacities starting from June 11, 2019 and he was required to pay $50,000 in civil and administrative penalties and $102,500 in restitution as reported on the brokercheck page.
On February 15, 2019, a criminal action was instituted against the barred broker on two charges. The first charge was the charge of theft by deception which was punishable under K.S.A 21-5801(a)(2) (2013). The second charge was on the allegation of criminal violation of Securities Regulations which was allegedly against the provisions of K.S.A 18-12a508(a)91); K.A.R 81-3-6(e)(22). Following this criminal action, the SEC instituted a regulatory action against the barred broker on May 11, 2020.
According to the reports, the SEC deemed it appropriate to institute this public administrative proceeding against Lawrence Hagedorn after he pleaded guilty to four counts of intentional violation of state securities regulation pertaining to dishonest and unethical practices of a broker, a felony, before the District Court, Sedgwick County, Kansas and was sentenced to 12 months imprisonment but allowed to serve it through two years of probation in lieu of incarceration.
This proceeding was instituted pursuant to Section 15(b) of the Securities and Exchange Act of 1934 among others. He was subsequently barred from registering as a broker, dealer, investment adviser and participating in any offering of any penny stock indefinitely.
Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints or allegations mentioned in this article, unless otherwise indicated. Any reader should also read the original sources hyperlinked in this blog for accuracy, including any BrokerCheck report and/or record of any disciplinary or regulatory action. Those sources are incorporated by reference into the text of this blog, and are the governing materials in case of any inconsistencies or typos in this blog.
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Securities Lawyer Investigating
The Rosca Scarlato LLC law firm represents investors who lose money as a result of investment-related fraud or misconduct and is currently investigating conduct related to former broker Lawrence Hagedorn’s bar by both the SEC and FINRA for allegedly dishonest and unethical broker practices among others.
The firm takes most cases of this type on a contingency fee basis and advances the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions.
Investors who believe they lost money as a result of conducts related Lawrence Hagedorn’s bar by both the SEC and FINRA for allegedly dishonest and unethical broker practices among others, may contact attorney Alan Rosca for a free no-obligation evaluation of their recovery options, at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.