Hoplon Financial Group Founder and CEO Daniel Vasquez Sr. Charged with Fraud Regarding Pooled Investment Fund
Posted on Tuesday, February 6th, 2018 at 12:24 pm
Erez Law is interested in speaking with investors who may have suffered losses due to investments with Hoplon Financial Group Founder and CEO Daniel Vasquez Sr. (CRD# 3141463) regarding losses sustained from a pooled investment fund. Vasquez was registered with Cetera Advisors LLC in Irvine, California from 2013 to 2016 and with Investors Capital Corp. in Irvine, California from 2011 to 2013. Dan Vasquez was the founder of Hoplon Financial Group, a financial services firm in Irvine, California. Gilbert Fluetsch was the firm’s COO.
In March 2020, the Securities and Exchange Commission (SEC) opened an investigation into Vasquez, alleging that he and his firm Hoplon Financial Group committed fraud with the assistance of Hoplon’s COO Fluetsch. According to the SEC complaint, “In 2011, Vazquez and Hoplon created the New Economic Opportunities Fund I, LLC (“NEON”) vehicle to pool investors’ funds ostensibly for the purpose of purchasing and flipping residential real estate properties. Vazquez then misused substantial amounts of NEON funds, resulting in a total loss to investors.”
In January 2018, the Securities and Exchange Commission (SEC) announced fraud charges against Vazquez and Fluetsch for lying to investors in a real estate-related securities offering fraud. According to the complaint, an investment adviser and its CEO, Vasquez, created the New Economic Opportunities Fund I, LLC (listed on the NASDAQ as NEON) to pool investor funds to purchase and flip residential real estate properties. It is alleged that between 2011 and 2014, the duo sold memberships to the fund and raised $2.18 million from 27 investors based on misrepresentations about how much compensation they would take. Much of the invested money came from investors’ individual retirement accounts (IRAs). The complaint alleges that most of the funds were used to pay unrelated business or personal expenses, such as business expenses, credit card debt, home improvements and luxury automobiles. Approximately $780,000 was misappropriated since January 2013.
In September 2016, Vasquez was barred by FINRA after he failed to request termination of his suspension within three months of the date of the Notice of Suspension.
Vasquez has been the subject of nine customer complaints between 2002 and 2017, three of which were denied, according to his CRD report:
July 2017. “Clients, who are relatives, have alleged various causes of action, including unsuitability, selling away, and losses related to purported investments made between September 2010 and May 2013. The complaint also alleged that client(s) made personal loans to the RR between 2013 and 2015 which have not been fully repaid.” The customer sought $500,000 in damages and the case was settled for $75,000.
June 2017. “Clients have alleged various causes of action resulting in investment losses from allegedly unsuitably investment activity dating back to 2012 and spanning two broker-dealers.” The customer sought $230,000 in damages and the case was settled for $50,000.
February 2017. “Fraud, Deceit, Misrepresentations, and omission of Material Facts, Negligence, Breach of Fiduciary Duty, Suitability.” The customer sought $127,825 in damages and the case was settled for $14,000.00.
December 2016. “Claimant is alleging that advisor recommended unsuitable investments.” The customer is seeking $150,000 in damages and the case is currently pending.
August 2016. “Unsuitable investments, excessive trading, omission of material information, breach of fiduciary duties, negligence, violation of FINRA rules.” The customer sought $107,392 in damages and the case was settled for $65,000.
April 2016. “Unsuitable investments and unauthorized trades which led to portfolio losses.” The case is currently pending.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Hoplon Financial Group Chief may be liable for investment or other losses suffered by Vasquez’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.