Fri Hensley & Company, Nicholas Fry Investigated by Securities Lawyers
Fry Hensley and Company (FHC) and its president, Nicholas L. Fry, are being investigated by the Peiffer Wolf securities lawyers in following sanctions by the Securities and Exchange Commission (SEC) for allegedly failing to disclose to their clients significant conflicts of interest from which they profited at their clients’ expense.
Fry Hensley and Company and Fry obtained undisclosed compensation in the form of payments from inflated commissions, markups and markdowns charged to their clients by the broker-dealer that FHC and Fry recommended that their clients use from January 2007 to October 2011, according to a cease and desist order issued by the SEC.
Fry set the amount of the transaction charges clients paid for equity securities trades and typically set them much higher than he could have, according to the SEC. Fry’s wife received credit for 50% of the transaction charges paid by FHC’s advisory clients and the broker-dealer credited Fry’s wife with more than $775,669.09 from inflated transaction charges, according to the SEC.
Nicholas Fry used hundreds of thousands of dollars from the inflated transaction charges to support FHC, which was otherwise insolvent, according to facts alleged by the SEC. FHC also allegedly received undisclosed services from the broker-dealer partly in exchange for the inflated transaction charges.
FHC agreed to be censured and Fry is prohibited from serving in an official capacity with a registered investment company as part of the agreement to settle the alleged rules violations.
The Peiffer Wolf securities attorneys often represent investors who lose money as a result of Ponzi schemes, investment fraud, or stockbroker misconduct. They are currently investigating the possibility of assisting investors with the recovery of their losses. 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 securities lawyers at Peiffer Wolf, Jason Kane or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 585-310-5140.