Christopher Moran Allegedly Failed to Supervise Sales of Notes Offered by Economic Development Finance Corporation

investor rights attorneyBetween March of 2006 and July 2007, Christopher Moran allegedly failed to supervise Miles Bahl and Conrad Huss regarding the solicitation and sale of over $3 million worth of promissory notes in a private offering to 17 of Bahl’s customers, the FINRA Department of Enforcement alleges.

In addition, the FINRA Department of Enforcement further notes, Christopher Moran managed to completely fail to supervise the offering and sale of said notes whilst Bahl, Huss, and Moran were all associated with their former member firm, du Pasquier & Co., Inc.

The aforementioned notes were issued by Economic Development Finance Corporation (EDFC), a real estate development company formed in 2002 in Massachusetts, FINRA’s Department of Enforcement notes. What is more, around August 2007, FINRA reports, EDFC defaulted under the notes, and with only one exception, EDFC failed to pay Bahl’s customers the principal due and owing under the EDFC Notes, resulting in significant losses to many customers.

Bahl and Huss “Recklessly Misrepresented” True Nature of EDFC Notes, Allegedly

Regarding the sale of the EDFC Notes, Bahl and Huss “recklessly misrepresented” to their customers that the EDFC Notes were fully secured by an EDFC pledge of the proceeds from the sale of so-called historic rehabilitation tax credits (HRTCs), the FINRA Department of Enforcement alleges.

In addition, Bahl and Huss allegedly provided investors with documents in which EDFC falsely stated that the EDFC Notes were in fact secured by proceeds from the HRTCs, FINRA reports. What is more, Bahl and Huss used said materials to market the EDFC Notes to prospective investors, recklessly disregarding information indicating that EDFC’s statements were false.

In the end, FINRA reports, Bahl and Huss violated the Exchange Act, and Moran allegedly violated NASD Conduct Rules.

Investment Recovery Attorneys Investigating

The Peiffer Rosca Wolf investment recovery attorneys often represent investors who lose money as a result of investment misconduct. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.

Investors who believe they lost money as a result of investment fraud or misconduct may contact the investment recovery attorneys at Peiffer Rosca Wolf, Alan Rosca or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 888-998-0520.

Broker: Christopher Moran

Status: INVESTIGATED by Peiffer Rosca.

For brokercheck report and additional info click here!

Broker: Miles Bahl

Status: INVESTIGATED by Peiffer Rosca.

For brokercheck report and additional info click here!

Broker: Conrad Huss

Status: INVESTIGATED by Peiffer Rosca.

For brokercheck report and additional info click here!

Alan Rosca (1160 Posts)

Alan is a securities lawyer. He also teaches Securities Regulation at the Cleveland-Marshall College of Law. He focuses his legal practice on complex commercial and financial litigation and arbitration, particularly in the areas of securities and investment fraud. His office is in Cleveland, Ohio.


In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent blogs regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases.