Frederick Earl Hohensee (CRD #1431948) Has Regulatory and Customer Dispute Disclosures on FINRA BrokerCheck

Frederick Earl Hohensee (CRD #1431948) is currently associated with Abacus Investments, Inc. and Hohensee Financial Services, Inc. FINRA BrokerCheck also shows that his FINRA registration categories at Abacus Investments, Inc. are suspended. We reviewed his BrokerCheck report on May 12, 2026. It reflects one regulatory event and one customer dispute. If you invested with Frederick Hohensee and have concerns, keep reading.

BrokerCheck link: BrokerCheck

BrokerCheck report: BrokerCheck Report (PDF)

Regulatory Action(s)

Frederick Hohensee’s FINRA BrokerCheck Report reflects one regulatory disclosure. A summary of the regulatory action is below:

On April 7, 2026, Frederick Hohensee FINRA BrokerCheck shows that FINRA finalized an Acceptance, Waiver, and Consent. The case involved recommendations of structured notes to two retired customers. AWC records state that Hohensee willfully violated the Care Obligation of Reg BI. FINRA found that he did not have a reasonable basis to believe the recommendations were in the customers’ best interests.

Frederick Hohensee FINRA BrokerCheck states that the notes had no principal protection. It also states that each note had a maturity of at least five years. FINRA found that the customers had low risk tolerances and short-term liquidity needs. They also had no prior experience with complex products like structured notes.

The sanctions included a six-week suspension in all capacities, a $10,000 fine, and $7,530 in restitution plus interest. The suspension runs from May 4, 2026, through June 14, 2026. Hohensee’s broker statement says he entered into the AWC without admitting or denying FINRA’s allegations.

Investor Disputes / Customer Complaints

Frederick Hohensee’s FINRA BrokerCheck Report reflects one customer dispute disclosure. A summary of the dispute is below:

On September 27, 2023, a customer alleged losses from a drop in value from June 2022 through August 2023. Frederick Hohensee FINRA BrokerCheck lists the product as structured notes and the requested damages as $50,000. The matter was filed as a simplified arbitration under docket number 23-02514. The dispute was denied on April 12, 2024, and Hohensee’s broker statement says the complaint was denied in full.

Rule Summary #1: FINRA Rule 2010

FINRA Rule 2010 requires high standards of commercial honor and just and equitable principles of trade. This rule often appears in matters involving conduct that falls below industry standards.

Rule Summary #2: FINRA Rule 2111 (Suitability)

FINRA Rule 2111 (Suitability) requires a reasonable basis for a recommendation based on the customer’s profile. Disputes involving structured notes may raise questions about risk tolerance, liquidity needs, time horizon, and product complexity.

Why This Matters to Investors (Regulation Best Interest)

Regulation Best Interest (Reg BI) is a U.S. securities regulation. It strengthens the standard of conduct that broker-dealers owe to retail investors. It applies when they recommend securities transactions or investment strategies. The U.S. Securities and Exchange Commission adopted Reg BI. It became effective on June 30, 2020. Reg BI aims to protect investors while preserving access to brokerage products and services.

Reg BI requires broker-dealers and financial advisors to act in a retail customer’s best interest at the time of a recommendation. They must not place their own financial or other interests ahead of the customer’s. This standard is higher than the older “suitability” rule. Suitability meant a recommendation only had to be appropriate. It did not have to be the best option or free of conflicts.

Reg BI has four key obligations:

Disclosure Obligation – Broker-dealers must disclose material facts about the relationship and the recommendation. This includes fees, the scope of services, and conflicts of interest.

Care Obligation – Broker-dealers must use reasonable diligence, care, and skill. They must consider costs, risks, and alternatives when making a recommendation.

Conflict of Interest Obligation – Firms must identify conflicts of interest. They must disclose them and mitigate or eliminate them. This includes conflicts that create incentives to favor one product over another.

Compliance Obligation – Firms must maintain policies and procedures. Those policies should be designed to ensure compliance with Reg BI as a whole.

Reg BI applies to each recommendation. It is not a continuous duty like the fiduciary standard for registered investment advisers. Even so, it narrows the gap. It puts more focus on costs, conflicts, and investor-focused decision-making.

Overall, Regulation Best Interest promotes transparency. It also aims to improve the quality of investment recommendations. It is designed to reinforce trust between retail investors and broker-dealers in the U.S. securities markets.

Background Information (from BrokerCheck)

Based on his FINRA BrokerCheck report, Frederick Hohensee:

Is currently associated with Abacus Investments, Inc. and Hohensee Financial Services, Inc.

Has passed the Securities Industry Essentials (SIE) exam. Frederick Hohensee has passed Series 7, Series 99TO, Series 14, Series 24, and Series 4. He has also passed Series 63.

Was previously registered with firms that include First Securities Corporation, Dean Witter Reynolds Inc., Investacorp, Inc., and Offerman & Co., Inc.

Kurta Law Can Help

If you have worked with Frederick Hohensee, Kurta Law may be able to help. The firm can review your concerns and explain possible legal options. To speak with Kurta Law, call 877-600-0098 or email info@kurtalawfirm.com.

Helpful resources: Unsuitable Investments | Securities Attorney

For nearly 20 years, Kurta Law has advocated for investors. The firm helps hold financial professionals accountable. Our firm represents clients nationwide in securities arbitration and related disputes. An attorney can review the facts and explain possible next steps.