Ross Owen Haugen – and the firm that employs him or her – is regulated by the Financial Industry Regulatory Authority (FINRA).
If you are like most people, before you go out to dinner at a new restaurant, you probably take a quick look at the reviews. This makes sense; you are going to pay for an expensive dinner, and you need to be sure that you are getting a good value.
Yet, when choosing a financial advisor, many people fail to conduct this same level of due diligence. Before turning over access to your money, you need to be sure that you have found a financial advisor that you can trust. Here, our audit report, including details of allegations, complaints, and sanctions will help you decide whether or not to invest with Ross Owen Haugen.
The stock market is a device for transferring money from the impatient to the patient… Warren Buffet
BrokerComplaints.com is currently investigating allegations related to Ross Owen Haugen. We provide a free platform for investors to help them in their claims against negligent brokers and brokerage firms.
About Ross Haugen
Ross Owen Haugen is an Investment Adviser. Ross Owen Haugen’s Central Registration Depository (CRD) number is 1286021 and the FINRA Profile can be found at – https://brokercheck.finra.org/individual/summary/1286021.
Click here to download a Detailed Audit Report for Ross Owen Haugen.
Ross Owen Haugen has previously been reprimanded and has disclosures and/or client dispute(s) listed at FINRA BrokerCheck.
Accusations and Disclosures
You can find below, a quick snapshot of Ross Owen Haugen’s regulatory actions, arbitrations, and complaints.
DISCLOSURE 1 –
- Event Date: 9/1/2010
- Disclosure Type: Criminal
- Disclosure Resolution: Final Disposition
- Disclosure Detail :: Criminal Charges :: Charges: CONSPIRACY TO COMMIT THEFT OF PROPERTY
- Disposition: PENDING
DISCLOSURE 2 –
- Event Date: 9/1/2010
- Disclosure Type: Criminal
- Disclosure Resolution: Final Disposition
- Disclosure Detail :: Criminal Charges :: Charges: ACTING AS UNREGISTERED AGENT
- Disposition: PENDING Charges: FRAUDULENT PRACTICES
- Disposition: PENDING Charges: UNLAWFUL CUSTODY OF CLIENT FUNDS BY IA
- Disposition: PENDING Charges: SALE OF UNREGISTERED SECURITIES
- Disposition: PENDING
DISCLOSURE 3 –
- Event Date: 5/20/2010
- Disclosure Type: Criminal
- Disclosure Resolution: Final Disposition
- Disclosure Detail :: Criminal Charges :: Charges: ACTING AS UNREGISTERED AGENT
- Disposition: PENDING Charges: FRAUDULENT PRACTICES
- Disposition: PENDING Charges: SALE OF UNREGISTERED SECURITIES
- Disposition: PENDING Charges: THEFT OF PROPERTY
- Disposition: PENDING
DISCLOSURE 4 –
- Event Date: 5/14/2010
- Disclosure Type: Criminal
- Disclosure Resolution: Final Disposition
- Disclosure Detail :: Criminal Charges :: Charges: THEFT OF PROPERTY
- Disposition: PENDING
- Amended Charges: CONSPIRACY TO COMMIT THEFT OF PROPERTY
- Amended Charge Type: FELONY
- Amended Charge Disposition: PENDING Charges: FRAUDULENT PRACTICES
- Disposition: PENDING
- Amended Charges: FRAUDULENT PRACTICES
- Amended Charge Type: FELONY
- Amended Charge Disposition: PENDING
DISCLOSURE 5 –
- Event Date: 5/20/2009
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA:
- Initiated By: NORTH DAKOTA
- Allegations: UNREGISTERED AGENT OFFERING SECURITIES IN VARIOUS COADUM FUNDS USING A FRUADULENT SCHEME.
- Resolution: DEFAULT ORDER – CRIMINAL ACTION
- Sanction Details :: Sanctions: Cease and Desist
DISCLOSURE 6 –
- Event Date: 2/26/2009
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA:
- Initiated By: UNITED STATES SECURITIES AND EXCHANGE COMMISSION
- Allegations: SEC ADMINISTRATIVE RELEASE 34-59458, IA RELEASE 40-2847, FEBRUARY 26, 2009: THE SECURITIES AND EXCHANGE COMMISSION (COMMISSION) DEEMS IT APPROPRIATE AND IN THE PUBLIC INTEREST THAT PUBLIC ADMINISTRATIVE BE, AND HEREBY ARE, INSTITUTED PURSUANT TO SECTION 15(B) OF THE SECURITIES EXCHANGE ACT OF 1934 AND SECTION 203(F) OF THE INVESTMENT ADVISERS ACT OF 1940 AGAINST ROSS OWEN HAUGEN BASED UPON THE ENTRY OF A FEBRUARY 5, 2009 ORDER PERMANENTLY ENJOINING HIM FROM FUTURE VIOLATIONS OF SECTION 17(A) OF THE SECURITIES ACT OF 1933 AND SECTIONS 10(B) AND 15(A) OF THE EXCHANGE ACT AND RULE 10B-5 THEREUNDER IN SEC VS. ROSS OWEN HAUGEN, CIVIL ACTION NO. 1:09-CV-0129-ODE, IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF GEORGIA.
- Resolution: Order
- Sanction Details :: Sanctions: Bar (Permanent)
- Sanction Details :: Registration Capacities Affected: FROM ASSOCIATION WITH ANY BROKER-DEALER OR INVESTMENT ADVISER
- Duration: Indefinite
- Start Date: 2/26/2009
DISCLOSURE 7 –
- Event Date: 1/16/2009
- Disclosure Type: Civil
- Disclosure Resolution: Final
- Disclosure Detail :: Initiated By: UNITED STATES SECURITIES AND EXCHANGE COMMISSION
- Allegations: SEC LITIGATION RELEASE 20859, JANUARY 21, 2009: THE SEC FILED A COMPLAINT AGAINST ROSS OWEN HAUGEN, ALLEGING THAT HE VIOLATED SECTION 17(A) OF THE SECURITIES ACT OF 1933 AND SECTIONS 10(B) AND 15(A) OF THE SECURITIES EXCHANGE ACT OF 1934 AND RULE 10B-5 THEREUNDER. THE COMPLAINT ALLEGES THAT HAUGEN, AS VICE PRESIDENT OF SALES AND THE PRIMARY SALESMAN OF SECURITIES SOLD IN THE OFFERING FRAUD THAT IS THE SUBJECT MATTER OF A COMPANION CASE, CIVIL CASE 1:08-CV-0011-ODE IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF GEORGIA, ATLANTA DIVISION, ENGAGED IN FRAUD IN CONJUNCTION WITH A SERIES OF FOUR SECURITIES OFFERINGS. THE COMPLAINT IN THE COMPANION CASE ALLEGES THAT DEFENDANTS IN THE OFFERINGS FALSELY REPRESENTED TO INVESTORS THAT THEY WOULD RECEIVE A RETURN OF 3 TO 6% PER MONTH, MISREPRESENTED THAT THEIR PRINCIPAL WAS PROTECTED AND NEVER LEFT THE ESCROW ACCOUNT, AND FAILED TO DISCLOSE THAT THE DEFENDANTS MADE LOANS TO THEMSELVES FROM THE INVESTOR PROCEEDS. THE COMPLAINT ALLEGES THAT, IN REALITY, THE DEFENDANTS TRANSFERRED THE MAJORITY OF THE FUNDS TO A COMPANY WHICH IN TURNS APPEARS TO HAVE PLACED THE FUNDS IN A BERMUDA HEDGE FUN WHICH HAS YET TO BEGIN OPERATION, AND IN PRE-REIT CONVERTIBLE BONDS WHICH HAVE YET TO PROVIDE ANY RETURNS. FURTHERMORE, THE COMPLAINT ALLEGES THAT THE DEFENDANTS HAVE FALSELY REPRESENTED IN MONTHLY ACCOUNT STATEMENTS TO INVESTORS THAT THEY HAVE EARNED APPROXIMATELY 4% PER MONTH, AND THAT ALL OR MOST OF THEIR PRINCIPAL IS IN ESCROW. FINALLY, THE COMPLAINT ALLEGES THAT, WITHOUT DISCLOSURE TO INVESTORS, DEFENDANTS HAVE BORROWED IN EXCESS OF $3 MILLION OF, OR AGAINST, THE INVESTORS’ FUNDS AND HAVE DISBURSED $5 MILLION TO RELATED PARTIES. THE COMPLAINT ALLEGES THAT, FOR HIS PART, HAUGEN TOLD INVESTORS, FALSELY, THAT THEIR INVESTMENT PRINCIPAL WAS RISK FREE, INSURED AND NEVER LEFT THE FIRM’S ESCROW ACCOUNT OR WAS OTHERWISE GUARANTEED AGAINST LOSS, THAT HAUGEN KNEW THAT INVESTORS’ FUND WERE BEING INVESTED IN OFF-SHORE TRADING PROGRAMS, AND THAT DESPITES PRIVATE PLACEMENT MEMORANDA THAT REPRESENTED NO COMMISSION WOULD BE PAID, HAUGEN RECEIVED SUBSTANTIAL COMMISSIONS FROM INVESTOR FUNDS, AND RECRUITED OTHER SALESMAN AND RECEIVED A PORTION OF THEIR COMMISSIONS.
- Resolution: Judgment Rendered
- Sanction Details :: Sanctions: Civil and Administrative Penalty(ies)/Fine(s) Sanctions: Disgorgement
- Sanction Details :: Amount: $1,242,742.79 Sanctions: Injunction
DISCLOSURE 8 –
- Event Date: 12/4/2006
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA: 2005001763701
- DocketNumberAAO: 2005001763701
- Initiated By: NASD
- Allegations: NASD RULES 2110, 2310 – ROSS 0WEN HAUGEN RECOMMENDED PRIVATE PLACEMENTS AND PARTNERSHIP INTERESTS TO A PUBLIC CUSTOMER THAT WERE NOT SUITABLE FOR THE CUSTOMER IN LIGHT OF HER AGE, RISK TOLERANCE AND INVESTMENT OBJECTIVES.
- Resolution: Acceptance, Waiver & Consent(AWC)
- Sanction Details :: Sanctions: Monetary/Fine
- Sanction Details :: Amount: $5,000.00 Sanctions: Suspension
- Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, HAUGEN CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE, HE IS FINED $5,000 AND SUSPENDED FROM ASSOCIATION WITH ANY NASD MEMBER IN ANY CAPACITY FOR 10 BUSINESS DAYS. THE FINE IS DUE AND PAYABLE IMMEDIATELY UPON REASSOCIATION WITH A MEMBER FIRM FOLLOWING THE SUSPENSION OR BEFORE REQUESTING RELIEF FROM ANY STATUTORY DISQUALIFICATION RESULTING FROM THIS OR ANY OTHER EVENT OR PROCEEDING, WHICHEVER IS EARLIER. THE SUSPENSION IN ANY CAPACITY IS IN EFFECT FROM JANUARY 2, 2007 THROUGH JANUARY 16,2007.
DISCLOSURE 9 –
- Event Date: 9/6/2006
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA:
- Initiated By: NORTH DAKOTA
- Allegations: HAUGEN OFFERED AND SOLD SECURITIES THAT ARE UNSUITABLE.
- Resolution: AGENT WITHDREW REGISTRATION
- Sanction Details ::
- Sanctions: AGENT WITHDREW WITH ORDER TO SUSPEND
DISCLOSURE 10 –
- Event Date: 8/13/2004
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA:
- Initiated By: NORTH DAKOTA
- Allegations: RESPONDENT CONDUCTED UNSUITABLE TRANSACTIONS IN PRIVATE PLACEMENT SECURITIES. RESPONDENT PUBLICLY ADVERTISED PRIVATE PLACEMENT SECURITIES. RESPONDENT SOLD PRIVATE PLACEMENT SECURITIES TO PERSONS WHO WERE NOT ACCREDITED AND WERE NOT SUFFICIENTLY KNOWLEDGABLE IN BUSINESS AND FINANCIAL MATTERS TO EVALUATE THE RISKS AND MERITS OF THE SUBJECT INVESTMENTS. RESPONDENT ENGAGED IN OTHER DISHONEST OR UNETHICAL PRACTICES.
- Resolution: AGENT WITHDREW REGISTRATION
- Sanction Details ::
- Sanctions: AGENT WITHDREW AND REVIEW CONCLUSION.
- Broker Comment: ALTHOUGH NORTH DAKOTA HAS INDICATED IN QUESTION 6 THAT THE PRINCIPAL PRODUCT TYPE WAS OPTIONS
- PURSUANT TO THEIR RESPONSE IN QUESTION 7, THE APPROPRIATE PRODUCT WAS PRIVATE PLACEMENTS, OR DIRECT PARTICIPATION PRODUCTS.
According to a study prepared for the FINRA Investor Education Foundation, 80 percent of American investors report that they have been solicited to participate in a fraud scheme, while 11 percent of American investors report that they personally lost money as a result of fraud.
FINRA notes that the rate of investment fraud is most likely much higher than it is reported. This is because many victims of financial advisor scams are too ashamed to come forward. Further, the study also found that a significant number of investors do not know how to spot common red flags of investment fraud. The least you should do is share your experience with other potential victims of investment scams.
Previous Associations
Under federal securities law and securities industry regulations, registered investment firms have a legal duty to supervise their financial advisors. Section 15(b)(4)(E) of the Securities and Exchange Act of 1934 makes a securities firm liable for the conduct of representatives.
- PURITAN SECURITIES, INC. (CRD#: 129502) :: 5/6/2005 – 9/5/2006 :: WAYZATA, MN
- CAPITAL GROWTH FINANCIAL, LLC (CRD#: 41040) :: 8/1/2002 – 1/19/2005 :: BOCA RATON, FL
- WACHOVIA SECURITIES, INC. (CRD#: 19616) :: 5/15/2001 – 8/5/2002 :: ST. LOUIS, MO
- MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED (CRD#: 7691) :: 9/5/1995 – 5/30/2001 :: NEW YORK, NY
- EDWARD D. JONES & CO., L.P. (CRD#: 250) :: 7/26/1984 – 9/6/1995 :: ST. LOUIS, MO
The duty to supervise securities representatives is a strong legal requirement. Registered investment firms must take many different steps to ensure that they are protecting their customers from irresponsible and criminal financial advisors.
Legit or Not?
Unfortunately, stockbroker fraud is more common than many investors would like to think. And yes, stockbrokers (including Ross Owen Haugen, but not limited to) can (and do) steal money from their clients. While it’s rare that a broker will literally steal his client’s money (though that does happen), typically the “theft” of investment funds comes in the form of other fraudulent violations of securities law and FINRA rules which leads to significant investment losses.
Sometimes investment losses occur because advisors, stockbrokers, and even brokerage firms, commit fraud. Massimo Vignelli
Investors generally understand that there are risks associated with buying and selling securities. The market can go up, and the market can go down. No matter how skilled of an investor you are, there are always risks. With that being said, sometimes investment losses cannot be blamed on simple back luck.
There are 10 major types of complaints we receive against Investment Brokers –
- Outright Theft (Conversion of Funds)
- Unauthorized Trading
- Misrepresentation or Omission of Material Facts
- Excessive Trading (Churning)
- Lack of Diversification
- Unsuitable Investment Recommendations
- Failure to Disclose a Personal Conflict of Interest
- Front Running of Transactions
- Breakpoint Sale Violations
- Negligent Portfolio Management
Do your due diligence before investing. Public records are available for everybody to review and decide on the safest bet.
How to Protect Yourself
We, as citizens, place a great deal of trust in the financial advisors who are tasked with helping us achieve and maintain financial security. Most of the time financial advisors and stockbrokers are honest folks who work diligently in their client’s best interests. However, on occasion financial advisors and the brokerage firms who employ them mess up and cause serious financial harm to their clients. Sometimes these losses are caused by simple negligence. Other times fraud or other serious misconduct is to blame.
Here are 5 signs that your broker needs to be reported –
- Breach of Fiduciary Duty: Under the Investment Advisers Act of 1940, certain investment professionals, known as registered investment advisors (RIAs), owe fiduciary obligations to their customers. Your investment broker must always look out for your best interests. If you lost money because of your broker’s breach of fiduciary duty, you may be entitled to compensation for the full value of your damages.
- Unsuitable Investments: Many financial advisors are not fiduciaries. Instead, they are held to the suitability standard. These stockbrokers and financial advisors can only sell and recommend financial products that are appropriate for a customer’s unique investment profile. If you lost money in unsuitable investments, you should consider reporting them.
- Material Misrepresentations or Omissions: Brokers have a duty to make fair and honest representations to their clients. If they fail to do so, and an investor loses money due to a misrepresentation or a material omission, the broker may be liable for the investor’s losses.
- Lack of Diversification: Brokers must also act with the appropriate level of professional skill. Pushing a customer into over-concentrated investments is highly risky. Brokers can be held liable for losses sustained because of an investor’s inappropriate lack of diversification.
- Excessive Trading (Churning): Stockbrokers and financial advisors must have a well-grounded, reasonable basis to execute all trades. Unfortunately, there are cases in which brokers will frequently trade on a customer’s account, simply to increase their own fees. This unlawful practice is known as churning.
- Unauthorized Trading: Brokers must have the proper legal authority to make transactions on behalf of a client. If you lost money because your broker made trades that you never approved of, you may have been the victim of unauthorized trading. You should consult with an experienced attorney.
Report Ross Haugen
In order to prevail in an investment fraud lawsuit or FINRA arbitration cases, you must be able to assert a viable ‘cause of action’.
Ross Owen Haugen – and the firm that employs this broker – is regulated by the Financial Industry Regulatory Authority (FINRA). FINRA provides an online form to allow investors to file a formal complaint against their financial advisor, stockbroker, or brokerage firm.
Click here to go to FINRA’s Online Complaint Form →
This form will ask you for specific information related to your complaint. Be prepared by gathering the following:
- Name and symbol for the investment product in question.
- The CRD number (1286021) for the broker – Ross Owen Haugen
- Your complete contact information.
Remember, it is advised to report your broker to FINRA, only after you have exhausted all of your other remedies and carefully prepared a compelling complaint. Once you file a complaint against your broker at FINRA, your case will be bound by FINRA’s rules and the arbitration panel’s eventual decision. The time clock will start, and your complaint will be served on your broker or broker-dealer.
The views and opinions expressed in these articles are those of the source BrokerComplaints.com and do not necessarily reflect the official position of ‘The Skeptic Files,’ which shall not be held liable for any inaccuracies presented. The information provided within this article is for general informational purposes only. While we try to keep the information up-to-date and correct, there are no representations or warranties, express or implied, about the completeness, accuracy, reliability, suitability or availability of the information in this article for any purpose.
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To view the original article at BrokerComplaints.com, you can visit https://brokercomplaints.com/report/ross-owen-haugen/.
