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The Securities Arbitration Law Firm of KlaymanToskes (www.klaymantoskes.com) announced today that it is investigating HFP Capital Markets (“HFP”) relating to the supervision of former HFP broker Thomas O. Mikolasko (“Mikolasko”) who allegedly caused material misrepresentations and omissions of material facts to be made in connection with the sale of “Senior Secured Zero Coupon Notes” in an entity known as “Metals, Millings and Mining, LLC”
According to an Order Accepting Offer of Settlement issued by the Financial Industry Regulatory Authority (“FINRA”), “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 negligently caused material misrepresentations and omissions of material facts to be made in connection with the firm’s sales of the offering. Mikolasko also 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.” Based on Mikolasko’s alleged conduct, he was fined $75,000, and suspended from associating with any FINRA member firm in all capacities for 18 months.
From November 2008 to September 2011, Mikolasko was registered with HFP Capital Markets. Under FINRA Rules, HFP was obligated to properly supervise the activities of Mikolasko during the time he was registered with the brokerage firm. Accordingly, HFP may be liable for failing to supervise Mikolasko’s activities while registered at the firm.
If you have information relating to this investigation, please contact Steven D. Toskes, Esquire or Jahan K. Manasseh, Esquire of KlaymanToskes, at 888-997-9956.