Fred Hohensee: FINRA Suspends Abacus Advisor

Oconomowoc, Wisconsin financial advisor Fred Hohensee (CRD# 1431948) was recently suspended and fined in connection with allegations involving the sale of structured note products. Financial Industry Regulatory Authority records show that he is registered as a broker with Abacus Investments and an advisor with Hohensee Financial Services.

A Letter of Acceptance, Waiver, and Consent (No. 2023079674901) describes FINRA’s disciplinary action against Mr. Hohensee. Filed in April 2026, it alleges he “recommended that two retail customers, one of whom was a senior, invest in eighteen structured notes without having a reasonable basis to believe the investments were in the best interest of each customer.” The letter notes that while some structured notes offer some level of principal protection, the notes in question had no principal protection, as well as a maturity of at least five years and “significant risks” disclosed in their prospectuses; this despite the fact that the customers had low risk tolerances and short term liquidity needs.

According to the letter, Mr. Hohensee “recommended that each customer invest a substantial portion of their respective net worth in the structured notes despite their risks,” and he “failed to sufficiently consider these risks in light of the customers’ investment profiles and therefore lacked a reasonable basis to believe that the structured notes were in the best interest of either customer.” He allegedly earned commissions totaling $7,530 in connection with the sales of the notes, whose value “fell significantly” and 12 of which stopped paying interest. Finding that he violated Regulation Best Interest and FINRA Rule 2010, FINRA suspended Mr. Hohensee for six weeks and ordered him to pay a fine of $10,000, plus $7,530 in interest.

According to the Financial Industry Regulatory Authority, Fred Hohensee holds 40 years of securities industry experience. Based in Oconomowoc, Wisconsin, he has been registered as a broker with Abacus Investments since 1994 and an advisor with Hohensee Financial Services since 1995. His past registrations include First Securities Corporation, Dean Witter Reynolds, Investacorp, and Offerman & Company. His credentials include the passage of seven securities industry qualifying exams: the Securities Industry Essentials Examination, or SIE; the Compliance Officer Examination, or Series 14; the General Securities Principal Examination, or Series 24; the Registered Options Principal Examination, or Series 4; the Operations Professional Exam, or Series 99TO; the General Securities Representative Examination, or Series 7; and the Uniform Securities Agent State Law Examination, or Series 63. He is licensed in Arizona, Florida, Illinois, Indiana, Texas, and Wisconsin. (Information current as of April 7, 2026.)

Carlson Law represents investors throughout the United States in claims against financial advisors and investment firms. If you or a loved one have suffered investment losses, please call us at 888-976-6111 or complete our contact form for a free and confidential consultation.