Michael Braun Allegedly Failed to Disclose Conflicts of Interest

Michael Braun (CRD# 4197374[1]), formerly an investment adviser registered with Hamlin Capital Advisors, failed to disclose conflicts of interest, according to a recent sanction. MDF Law is investigating the former BB&T Securities broker for similar conduct. If you have concerns about investments in your accounts, contact us for a free, confidential consultation.

To learn more about the allegations against Mr. Braun, continue reading this post. The information below is sourced from a December 11, 2024 review of his BrokerCheck profile, a Financial Industry Regulatory Authority record.

SEC Sanction Concerns Hamlin Capital Advisors

On October 24, 2024, the Securities and Exchange Commission announced the settlement of charges with Mr. Braun and Hamlin Capital Advisors. At the time, he was the firm’s Managing Director. According to an official release[2] by the SEC, the charges alleged that he failed to timely and fully disclose material conflicts of interest connected with municipal bond offerings to charter school clients. He also allegedly violated Municipal Securities Rulemaking Board rules. 

As alleged, between 2017 and 2022, Hamlin and Mr. Braun advised its charter school clients “on the issuance of municipal bond offerings totaling over $500 million.” However, the firm had “purchased either all or a substantial portion” of the bonds it offered; it also acted “as compensated bondholder representative.” Although this relationship resulted in a material conflict of interest, it did not disclose this conflict “until several days or sometimes weeks” after it began advising the schools on the offerings. 

Michael Braun Failed to Disclose Conflicts, SEC Alleged

The SEC further alleged that when the firm disclosed this conflict, its disclosure was inadequate. Per the release, it disclosed that it could receive fees, but not that it had a financial incentive in opposition with its clients’ interests. It also allegedly failed to disclose the nature or potential consequences of this conflict, or what it might do to mitigate such. Mr. Braun, according to the SEC, “provided the advice to the clients and was responsible for providing the conflicts disclosure.”

As a result of these findings, the SEC censured Mr. Braun and Hamlin Capital Advisors. It specifically found that he violated MSRB rules as well as the Exchange Act. The firm agreed to pay a penalty of $200,000, while Mr. Braun agreed to a penalty of $75,000. 

SEC: Broker Last Based in Dublin, Ohio

Mr. Braun launched his career as a broker in 2002, when he registered with Butler Wick & Company. In 2004 he joined Red Capital Markets, which he left later that year for B.C. Ziegler & Company. He joined his most recent broker-dealer firm, BB&T Securities, in 2013, departing its Charlotte, North Carolina office in 2014. According to an SEC order[4], he joined Hamlin Capital Advisors in 2014 and was based in Dublin, Ohio. He was the firm’s Managing Director and held the Series 50 license.

Michael Braun Complaints? Call MDF Law

Have you lost money on investments recommended by Michael Braun or Hamlin Advisors? MDF Law may be able to help you secure a recovery. Our broker fraud attorneys[5] have proven experience recovering millions in investment losses. We offer free consultations nationwide: call 800-767-8040 to discuss your circumstances today.