Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker/advisor, Frederick Hohensee (CRD # 1431948) was recently suspended from the securities industry by FINRA’s Department of Enforcement after an investigation into Regulation Best Interest violation (Reg BI).
The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Hohensee.
Registration Background for Frederick Hohensee
Mr. Hohensee first became registered in the securities industry in 1985. He is currently registered with Douston, WI based broker-dealer Abacus Investments, Inc. (CRD # 35127) and with Oconomowoc, WI based investment advisor Hohensee Financial Services, Inc (CRD # 113381). He was previously registered with First Securities Corporation (CRD # 10081) from December 1990 to March 1994, Dean Witter Reynolds Inc. (CRD # 7556) from December 1990 to December 1990, and Investacorp, Inc. (CRD # 7684) from May 1989 to November 1990.
FINRA’s Allegations Against Frederick Hohensee
According to the FINRA Letter of Acceptance, Waiver and Consent (AWC) dated April 7, 2026 (No. 2023079674901), Mr. Hohensee consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
“Between April 2022 and July 2023, [Mr.] Hohensee recommended that two retail customers, one of whom was a senior, invest in eighteen structured notes without having a reasonable basis to believe the investments were in the best interest of each customer”;- “While some structured notes offer full or partial protection of the principal invested, the notes that [Mr.] Hohensee sold to the two customers offered no principal protection”;
- “Additionally, while some structured notes have relatively short maturities, measured in months, others might extend for ten years or more”;
- “The notes were not listed on an exchange, a characteristic often associated with a potential lack of liquidity. Moreover, the notes’ prospectuses disclosed significant risks, including that the notes might stop paying interest if the value of the reference assets declined below a specified level and the customers might lose all or a substantial portion of their investments”;
- “Both customers were retirees with low risk tolerances and short-term liquidity needs. Neither customer had prior experience with complex investment products like structured notes”;
- “[Mr.] Hohensee recommended that each customer invest a substantial portion of their respective net worth in the structured notes despite their risks. He failed to sufficiently consider these risks in light of the customers’ investment profiles and therefore lacked a reasonable basis to believe that the structured notes were in the best interest of either customer”; and
- By virtue of his actions, Mr. Hohensee violated Exchange Act Rule 15l-1(a)(1), regarding acting in the best interest of the customer, and FINRA Rule 2010 regarding standards of commercial honor and principles of trade.
FINRA Sanctions Frederick Hohensee from Securities Industry
As a result of such violations and in addition to the above-described findings and conclusions, FINRA’s April 7, 2026 AWC also indicates that Mr. Hohensee consented to the following sanction(s):
- a six-week suspension from association with any FINRA member in all capacities;
- a fine in the amount of $10,000.00; and
- restitution in the amount of $7,530.00 plus interest.
Frederick Hohensee Has a Prior History of Securities Industry Customer Complaints
In addition to Mr. Hohensee being suspended by FINRA from the securities industry regarding various sales practice violations, FINRA BrokerCheck for Mr. Hohensee reveals that he has a history of customer complaints and/or customer-initiated arbitrations, including but not necessarily limited to the following:
- On September 20, 2023, a customer-initiated arbitration was commenced against Mr. Hohensee regarding alleged actions that occurred while he was associated with Abacus Investments, Inc. The allegation(s) related to the drop in value of their structured notes. The customer further alleged damages in the amount of $50,000.00. The customer’s claim(s) was/were denied.
Have You Lost Money with Frederick Hohensee?
If you or someone you know has or had a brokerage account with Mr. Frederick Hohensee and have concerns regarding losses in your investments or possible sales practice violations including fraud or negligence, you may be entitled to recover lost funds. The Law Office of Kevin J. Deloatch, Esq. has an extensive securities law practice and over 30 years of experience on Wall Street. Call today at (646) 792-2156 for a free consultation. The time to file your claim may be limited so you should call today to avoid delay.
