Michael Hainsworth Sanctioned in Connection with Sending Misleading Emails to Investors
Michael Hainsworth was sanctioned by securities regulators in connection with claims that he sent emails to potential investors that were misleading, according to the Financial Industry Regulatory Authority (FINRA). Hainsworth was fined $10,000 and suspended for 30 days from the securities industry.
Hainsworth sent emails to potential investors in a non-exchange traded real estate investment trust (REIT) that were misleading, not fair and balanced, and failed to provide a sound basis for evaluating the facts, according to FINRA.
Hainsworth sent a misleading email to an investor by comparing the REIT he was promoting to a fixed income investment, such as a bond, according to regulators. Hainsworth misled the investor by stating that the REIT would mature on a specified date, but failed to mention that any future liquidity event was not guaranteed, according FINRA. Hainsworth also failed to disclose that it was possible that all, or a portion, of the distribution from the REIT could be a return of principle, as opposed to a return on principal.
Hainsworth also sent an email to an investor that misrepresented the composition of the REIT’s real estate portfolio, according to FINRA. Hainsworth claimed the REIT purchased several ski resorts, golf courses and marinas at bargain basement prices, but this was misleading because the vast majority of the REIT’s properties were purchased prior to 2008, according to regulators.
Hainsworth consented to the sanctions without denying or admitting FINRA’s factual findings.
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 victims 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.