Broker Complaints: Hantz Financial Services, Inc. (CRD# 46047)

Fitapelli Kurta is interested in speaking to investors who lost money investing with Hantz Financial Services, Inc.

Hantz Financial Services is a broker-dealer firm registered with both the SEC Securities Exchange Commission) and FINRA (Financial industry Regulatory Authority). Hantz Financial Services main office is located in Southfield, Michigan. Hantz Financial Services has been in business since 1998 and they are incorporated in Michigan.

Hantz Financial Services has received several customer complaints and FINRA fines lately, some stemming from the sale of Real Estate Investment Trusts (REITs).

REITs are high risk investments in real estate that are not listed on any public stock exchange. REITs are typically used as a means of avoiding capital gain tax by way of a 1031 exchange. Brokerage firms, like Hantz Financial, entice customers to invest in these REITs promising high yields and low risk, but often investors find themselves trapped with only high losses and no dividends to show for their investment. Given their complex nature, broker-dealers must ensure their brokers are well equipped to advise their customers of the risks involved in such investments. When a brokerage firm, like Hantz Financial, fails to ensure their brokers are properly informing customer of risks involved with REITs and other investments, the firm is responsible for failure to supervise their brokers.

On January 31, 2014 Hatnz Financial was fined $75,000 by FINRA for failing to supervise the sale of non-publically traded REITs.

Of course in some cases, the behavior on the part of Hantz Financial brokers was more blatant and egregious than simply an unsuitable investment in a REIT. For example, on November 30, 2011 Hantz Financial was fined $60,000 for failing to supervise one of their brokers who embezzled approximately $2.6 million from customers.

On June 29, 2007 Hantz Financial was fined $350,000 for violating Section 2 of the Mortgage Broker, Lenders and Servicers Licensing Act regarding unlicensed mortgage origination activity.

On August 11, 2005 Hantz Financial was fined $675,000 for falsely representing itself to clients as an independent firm offering a range or product choices form a variety of suppliers. In realty Hantz Financial had only one supplier for each product category and directed most of their sales to those suppliers in exchange for millions of dollars in marketing fees or cash compensation. Hantz Financial Services also recommended thousands of their customers refinance their homes through one of their affiliates and sold limited partnership agreements to customers who did not meet minimum suitability requirements on net worth or income.  

If you or someone you know has lost money investing with Hantz Financial or on of its brokers, contact the law firm of Fitapelli Kurta today for your free consultation.