Michael Braun Involved in SEC Action

Michael Braun (CRD #: 4197374), a broker formerly registered with BB&T Securities, was involved in an SEC action, according to his BrokerCheck record, accessed on November 5, 2024. Keep reading to learn more about his alleged conduct as a broker.

SEC Regulatory Action

On October 24, 2024, the Securities and Exchange Commission instituted cease-and-desist proceedings against Hamlin Capital Advisors, a registered municipal advisor, and its Managing Director, Michael Braun, alleging that they failed to timely and fully disclose the firm’s material conflicts of interest.

The SEC alleged that, from September 2017 to at least April 2022, Hamlin Capital Advisors and Michael Braun provided advice, directly or indirectly, to certain charter school clients relating to the issuance of municipal bond offerings. These offerings allegedly totaled more than $500 million in aggregate principal amount.

In these offerings, Hamlin Capital Advisors’ registered investment adviser affiliate, identified by the SEC as “Hamlin Affiliate,” allegedly purchased all or a significant portion of the bonds. Hamlin Affiliate allegedly also typically acted as a compensated bondholder representative.

According to the SEC, Hamlin Capital Advisors allegedly failed to disclose the material conflict of interest created by this relationship to its charter school clients for days or weeks after the firm began advising them on these bond offerings.

Further, these disclosures were allegedly inadequate because they failed to disclose the nature and implications of the financial incentive created by the relationship between these firms, and how Hamlin Capital Advisors would manage this conflict.

As the person allegedly providing this advice, Michael Braun was responsible for disclosing conflicts of interest. He and the firm allegedly failed to accurately describe the scope of Hamlin Capital Advisors’ municipal advisory services with regard to the municipal bonds being issued.

Lastly, the SEC alleged that Hamlin Capital Advisors’ written supervisory procedures were not reasonably designed to comply with applicable MSRB Rules and securities laws and regulations.

The SEC alleged that Michael Braun and Hamlin Capital Advisors violated Section 15B(c)(1) of the Securities Exchange Act of 1934 and MSRB Rules G-17 and G-42, and that Hamlin Capital Advisors violated Section 15B(c)(1) of the Securities Exchange Act and MSRB Rule G-44.

Securities Exchange Act of 1934

Section 15B(c)(1) of the Securities Exchange Act of 1934 bans brokers, dealers, and municipal securities dealers from manipulating or deceiving investors through fraudulent devices.

MSRB Rules

MSRB Rule G-17 requires brokers, dealers, and municipal securities dealers and advisors to engage in fair dealing and prohibits them from engaging in unfair and deceptive practices.

MSRB Rule G-42 requires municipal advisors to uphold certain standards of ethical conduct, uphold their duty of care towards clients, and disclose conflicts of interest to clients before or upon engaging in advisory activities.

MSRB Rule G-44 describes the supervisory obligations of municipal advisors.

Sanctions

The SEC censured Hamlin Capital Advisors and fined it $75,000.

Background Information

Michael Braun has passed the following exams:

• Series 63 – Uniform Securities Agent State Law Examination
• Series 7 – General Securities Representative Examination

He previously worked for the following firms:

• BB&T Securities (CRD#:142785)
• Moss Adams Capital (CRD#:47981)
• B. C. Ziegler and Company (CRD#:61)
• Red Capital Markets (CRD#:14840)
• Butler, Wick & Company (CRD#:120)

Kurta Law Can Help

If you worked with Michael Braun and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm that exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.