(CRD #1431948, Oconomowoc, Wisconsin)

April 7, 2026 – An AWC was issued in which Frederick Earl Hohensee was fined $10,000, suspended from association with any FINRA member in all capacities for six weeks, and ordered to pay $7,530, plus interest, in restitution to customers. Without admitting or denying the findings, Hohensee consented to the sanctions and to the entry of findings that he willfully violated the Care Obligation of Reg BI by recommending that two customers, one of whom was a senior, invest in structured notes without having a reasonable basis to believe the recommendations were in the customers’ best interests based on their investment profiles. The findings stated that the notes that Hohensee sold to the customers offered no principal protection. Further, each of the notes had a maturity of at least five years, and 12 of the 18 notes missed at least some interest payments once the value of the reference assets declined below a specified level. 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. Hohensee recommended that each customer invest a substantial portion of their respective net worth in the structured notes despite their risks. Hohensee 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. Hohensee earned $7,530 in commissions from the sale of the structured notes. Following a decline in the equity markets, the structured notes’ value fell significantly, and the issuers of certain notes, including twelve of the notes at issue here, stopped paying interest. The issuers subsequently redeemed 13 of the structured notes at par, but the customers still own five notes. The suspension was in effect from May 4, 2026, through June 14, 2026. (FINRA Case #2023079674901) If you have suffered losses as a result of Frederick Earl Hohensee's act and/or actions, we would like to hear from you. We are currently investigating claims on behalf of clients who have suffered significant losses in their portfolios that are managed by Frederick Earl Hohensee. The Schwartz Law Firm represents investors in claims against financial advisors and their firms. If you have questions about your potential claim or need assistance from an investment fraud lawyer, please contact us at 866-330-6707 or email Matthew Schwartz directly at mschwartz@tslfirm.com.