Todd Arnold Havemeister, of Melbourne, Florida, a stockbroker formerly registered with Great Point Capital LLC, has been fined $10,000.00 and suspended for five months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because Havemeister made misleading communications to investors. Letter of Acceptance, Waiver, and Consent, No. 2022074921901 (March 19, 2024).
According to the AWC, Great Point Capital LLC filed a Uniform Notice of Securities Industry Registration (Form U5) on May 5, 2022, indicating that Havemeister was permitted to resign due to his false portrayal as a lead investment banker in charge of a capital raise, despite not being licensed for investment banking activities.
FINRA’s investigation into Havemeister’s conduct was initiated following the review of the Form U5 filed by Great Point Capital LLC. The regulator looked into whether Havemeister violated FINRA Rule 2210, which requires that communications with prospective investors are fair and balanced, provide a reasonable basis for evaluating securities, and do not contain misleading statements or omissions.
The AWC stated that between May 2019 and February 2022, Havemeister sent at least 48 emails and 11 LinkedIn messages to prospective investors, falsely claiming to be an investment banker. These communications included exaggerated and unwarranted claims about his role at Great Point and the investment opportunities he was promoting, misleading potential investors.
Additionally, FINRA stated that Havemeister failed to obtain approval from a qualified registered principal at Great Point for the distribution of communications regarding private placements to more than 25 retail investors within a 30 day period, as required by FINRA Rule 2210(b)(1)(A). During a 13-month period, Havemeister created and distributed emails concerning Offering 1 to approximately 3,000 prospective investors without approval. Similarly, he sent emails about Offering 2 to a large number of potential investors, making unsubstantiated claims about the offering’s prospects and performance without providing a factual basis or disclosing risks.
According to the AWC, Havemeister’s communications regarding Offering 2 violated FINRA Rule 2210(d)(1)(A), as they contained exaggerated claims and failed to disclose the illiquid and speculative nature of the investment. Also, he made prohibited projections of investment performance, violating FINRA Rule 2210(d)(1)(F), by suggesting specific returns on investment without any factual basis or acknowledging the risks involved.
FINRA Public Disclosure shows that Havemeister is referenced in six customer initiated investment related disputes concerning Havemeister’s conduct while associated with securities broker dealers. On May 13, 2005, a customer initiated investment related NASD securities arbitration claim involving Havemeister’s conduct was settled for $35,000.00 in damages based upon allegations that Havemeister engaged in unauthorized trading when Havemeister was associated with FSC Securities Corporation. NASD Arbitration No. 02-05288.
On April 4, 2002, another customer filed an investment related complaint involving Havemeister’s conduct in which the customer requested compensatory damages based upon allegations that Havemeister engaged in unauthorized trading in speculative stocks during the time that Havemeister was associated with FSC Securities Corporation.
On July 29, 2004, another customer initiated investment related complaint involving Havemeister’s conduct was settled for $25,000.00 in damages based upon allegations that Havemeister engaged in unauthorized trading in speculative over-the-counter equities.
Havemeister was also the subject of a securities arbitration claim in which the customer was awarded $100,000.00 in compensatory damages because Havemeister or Empire Financial Group Inc. and Jesup Lamont Securities Corp. was held liable for sales practice violations. FINRA Arbitration No. 09-02695 (March 22, 2010). The Statement of Claim alleged that Havemeister made misrepresentations of material fact and breached his fiduciary duties in connection with the sale of promissory notes when Havemeister was associated with Empire Financial Group Inc. and Jesup Lamont Securities Corp.
On February 27, 2014, a securities arbitration claim involving Havemeister’s conduct was settled for $70,000.00 in damages based upon allegations that Havemeister committed fraud and made misrepresentations of material fact in connection with the sale of private placements during the period that Havemeister was associated with Pointe Capital (JHS Capital Advisors). FINRA Arbitration No. 12-03798.
Havemeister was associated with Great Point Capital LLC in Melbourne, Florida from August 21, 2018, to May 5, 2022.
