Thomas Mikolasko, Registered Principal formerly with HFP Capital Markets, LLC (HFP) of New York, New York, was fined $75,000 and suspended for 18 months by the Financial Industry Regulatory Authority (FINRA) for his participation in the sale of Senior Secured Zero Coupon Notes which were sold to HFP customers for the entity Metals Millings and Mining, LLC (MMM). Mr. Mikolasko was an investment banker with HFP and was involved in the firm’s sale of $3 million of MMM Notes which have defaulted, leaving investors with neither their principal repaid nor the promised 100% return on their investment.
According to FINRA’s findings, Mr. Mikolasko participated in the due diligence (or lack thereof in this case) performed by HFP with respect to the sales of the offering and, therefore, should have known that there were multiple red flags and the need for further due diligence. Further, the firm’s investment committee did not even approve the offering, a fact that Mr. Mikolasko allegedly knew or should have known. Additionally, Mr. Mikolasko allegedly helped facilitate the sales of the Notes by signing MMM Notes and Repurchase Agreements as the supposed “Managing Member” of MMM, a position which he did not hold and an authority which he did not have.
FINRA’s findings state that not only Mr. Mikolasko but HFP negligently misrepresented and omitted material facts to Note investors. HFP former CEO, Vincent Puma, was primarily responsible for the involvement of HFP in the MMM offering, allegedly making personal use of the proceeds from the offering for a personal loan and failing to disclose the fact that he was the managing member of an entity owning 20% interest in MMM. Mr. Puma has since been permanently barred by FINRA.
Because of Thomas Mikolasko’s failure to conduct proper due diligence and his negligent misrepresentations and omissions concerning the MMM Notes, FINRA has fined him $75,000 and suspended him from associating with any member firm in any capacity for 18 months.
Have you suffered losses in an HFP investment? Have you suffered losses in your MMM Note? Was Thomas Mikolasko your investment advisor? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is accepting clients with valid claims against Mr. Mikolasko and HFP Capital Markets who may have engaged in misconduct and caused investors’ losses.
The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over , Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at firstname.lastname@example.org for answers to any of your questions about this blog post and/or any related matter.