UNITED STATES SECURITIES AND EXCHANGE COMMISSION

SEC Admin Release 34-88848, May 11, 2020: The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Section 203(f) of the Investment Advisers Act of 1940 ("Advisers Act") against Lawrence E. Hagedorn. On November 19, 2019, Hagedorn pleaded guilty to four counts of intentional violation of a state securities regulation pertaining to dishonest and unethical practices of broker-dealers, a felony, before the District Court, Sedgwick County, Kansas, in State of Kansas v. Lawrence E. Hagedorn, Case No. 2019-CR-000402. On February 7, 2020, a judgment of conviction was entered against Hagedorn whereby he was sentenced to 12 months of imprisonment, but allowed serve his sentence through two years of probation in lieu of incarceration, and ordered to pay restitution of $102,500.

Order

Bar (Permanent)

broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or NRSRO

Indefinite

5/11/2020

Participating in any offering of a penny stock

Indefinite

5/11/2020

Penny Stock Bar

Criminal Violation of Securities Regulations [K.S.A. 17-12a508(a)(1); K.A.R. 81-3-6(e)(22)]

Theft by Deception [K.S.A. 21-5801(a)(2)(2013)]

Office of the Kansas Securities Commissioner

Respondent violated K.A.R. 81-3-6(e)(22) by borrowing money from customers.

Order

Bar (Permanent)

All capacities

6/11/2019

Civil and Administrative Penalty(ies)/Fine(s)

$50,000.00

Restitution

$102,500.00

Customer is alleging that Mr. Hagedorn borrowed $10000 from her that has not been repaid. The customer alleges she loaned Mr. Hagedorn the money by accessing the cash value in her life insurance policy. FINRA previously inquired of Mr. Hagedorns filing ID 2995409 and Star ID 20170556541. Mr. Hagedorn was terminated in September 2017 for violation of firm policy.

$10,000.00

FINRA

Respondent Lawrence Hagedorn failed to respond to FINRA request for information.

Letter

Bar (Permanent)

All Capacities

Indefinite

2/26/2018

Pursuant to FINRA Rule 9552(h) and in accordance with FINRA's Notice of Suspension and Suspension from Association letters dated November 22, 2017 and December 18, 2017, respectively, on February 26, 2018, Hagedorn is barred from association with any FINRA member in any capacity. Respondent failed to request termination of his suspension within three months of the date of the Notice of Suspension; therefore, he is automatically barred from association with any FINRA member in any capacity.

The O.N. Equity Sales Company

Discharged

Representative admitted to borrowing money from customers in violation of firm policy.

CLIENT ALLEGES THAT REP FAILED TO ACT IN A TIMELY MANNER, THEREBY DENYING HER THE RIGHT TO EXERCISE THE FREE LOOK OPTION. REQUESTING REIMBURSEMENT OF THE SURRENDER CHARGES INCURRED.

$78,000.00

20-DAY FREE LOOK WAS EXERCISED BY CLIENT - NO SURRENDER CHARGES WERE INCURRED. REVIEW DID NOT SUPPORT ALLEGATIONS.

CLIENTS ALLEGE THEY RECEIVED INAPPROPRIATE ADVICE TO FINANCE THE PURCHASE OF VARIABLE LIFE POLICIES USING FUNDS FROM THEIR IRAS.

$7,200.00

$7,200.00

CLIENTS APPLIED FOR 2 VARIABLE ADJUSTABLE LIFE POLICIES AND WERE PRESENTED WITH THE OPTION OF PAYING FOR THESE POLICIES BY WITHDRAWING FUNDS FROM THEIR IRAS UNDER SECTION 72T OF THE IRS CODE. CLIENTS MADE THE DECISION TO PROCEED WITH ESTABLISHING THE IRA WITHDRAWALS, BUT LATER HAD CONCERNS. MINNESOTA LIFE REFUNDED ALL PREMIUMS PAID AND CANCELLED THE POLICIES.