FINRA Suspends Securities Broker from Florida for Five Months for Violations Regarding Private Placements
Todd Arnold Havemeister (CRD #1942953) is a registered investment adviser. From August of 2018 to May of 2022, Mr. Havemeister was a representative of Great Point Capital, LLC in Melbourne, Florida. In 2022, he was permitted to resign from that brokerage after allegedly misrepresenting himself in retail communications.
Notably, the Financial Industry Regulatory Authority (FINRA) took enforcement action against this broker. Mr. Havemeister was fined $10,000 and suspended for five months for violations related to private placement investments. Here, our Miami private placement securities losses attorney provides an overview of the enforcement action.
Suspended Broker: Todd Arnold Havemeister Formerly of Great Point Capital, LLC
After broker Todd Arnold Havemeister was permitted to resign from Great Point Capital, LLC, FINRA launched its own investigation into potential securities violations. Upon review, the regulatory body determined that Mr. Havemeister sent a number of different communications to potential investors related to private placement investment opportunities. In doing so, FINRA determined that this Florida broker violated the industry requirements set forth by Rule 2210(D). That FINRA regulation set strict content rules for private placement solicitations.
More specifically, FINRA determined that the representations made within these communications to investors were “misleading, unwarranted, exaggerated, and omitted explanations of the risks of the offerings.” As such, the communications did not meet the regulatory standard of providing a fair and balanced presentation of an investment opportunity to investors. FINRA determined that more than two dozen retail investors received the violative communications within a 30 day period.
Understanding Private Placement Investments
What is a private placement investment? Broadly defined, a private placement is a financial offering that is not available on public markets. Most often, it is an opportunity that is aimed at a select group of investors—typically an institutional investor or a qualified investor. As these investments are not traditional public offerings, they bypass many of the regulatory requirements of public securities. While private placements can offer unique opportunities, they carry higher risks. FINRA regulations require securities brokers to follow certain rules when touting private placements, including ensuring that they are reasonably suitable for their investors.
Broker Sanctions: Fine and Suspension
Without admitting to or denying any of the specific allegations raised by the agency, former Great Point Capital, LLC broker Todd Arnold Havemeister consented to the proposed penalties from FINRA. Mr. Havemeister has agreed to pay a $10,000 fine. Additionally, he consented to a five month suspension from the securities industry. As stated by FINRA’s BrokerCheck tool, the suspension is set to last until August 31st, 2024.
Contact Our Florida Private Placement Broker Negligence Attorney Today
At Carlson & Associates, P.A., our Florida investment fraud lawyers have the skills and experience to handle cases involving private placement investments. If you or your loved one suffered investment losses in a private placement, please do not hesitate to contact our firm today to set up a confidential initial consultation with a securities law attorney.
Source:
brokercheck.finra.org/individual/summary/1942953