Investor Lawyers Blog
Securities fraud attorneys are currently investigating claims on behalf of investors who suffered significant losses as a result of doing business with Thomas O. Mikolasko, a former HFP Capital Markets broker. Specifically, the investigations are looking into whether HFP Capital Markets provided adequate supervision over Mikolasko when he allegedly caused certain material omissions and misrepresentations of material facts to be made regarding the sale of “Senior Secured Zero Coupon Notes.”
The Financial Industry Regulatory Authority (FINRA) issued an Order Accepting Offer of Settlement which stated, “Mikolasko was an investment banker at HFP who engaged in activity to facilitate the firm’s sale of $3 million in ‘Senior Secured Zero Coupon Notes’ sold to 58 customers of HFP for an entity known as Metals Millings and Mining LLC (‘MMM’). The notes defaulted and investors were not repaid either principal or a promised 100 percent return. Mikolasko allegedly caused material misrepresentations and omissions of material facts to be made in connection with the firm’s sales of the offering. Mikolasko also allegedly participated in various roles to facilitate the offering even though he knew or should have known that HFP had conducted inadequate due diligence concerning the offering and that the due diligence the firm had conducted identified significant ‘red flags’ as to the facts and circumstances of the offering.”
Mikolasko was suspended for 18 months from associating in any capacity with any FINRA member firm and fined $75,000 for his alleged conduct. However, stock fraud lawyers say that clients of Mikolasko may be able to recover losses through securities arbitration.
According to securities fraud attorneys, FINRA rules have established that firms must properly supervise brokers’ activities while they are registered with the firm. Because Mikolasko was registered with HFP Capital Markets at the time of his alleged misconduct — from November 2008 until September 2011 — HFP Capital Markets could be held responsible for his activities and, thus, could be ordered to compensate his clients for losses sustained for the period he was registered with the firm.
If you suffered significant losses as a result of your dealings with Mikolasko, you may have a valid securities arbitration claim. To find out more about your legal rights and options, contact a stock fraud lawyer at Law Office of Christopher J. Gray, P.C. at (866) 966-9598 for a no-cost, confidential consultation.