UNITED STATES SECURITIES AND EXCHANGE COMMISSION

SEC Admin Release 34-78772/IA Release 4522/September 6, 2016: 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 Karl E. Hahn. On October 18, 2011, the New Hampshire Bureau of Securities Regulation ("Bureau") and Respondent executed a Consent Order (INV-2010000015). The Bureau permanently revoked Respondent's broker-dealer representative license with Oppenheimer & Co., Inc. and barred him from any securities licensure in New Hampshire. The Consent Order constitutes a final order of a State securities commission. SEC Admin Release 34-78895, IA Release 40-4533, September 21, 2016 (CORRECTED ORDER INSTITUTING ADMINISTRATIVE PROCEEDINGS): 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 Karl E. Hahn ("Respondent"). On October 18, 2011, the New Hampshire Bureau of Securities Regulation ("Bureau") and Respondent executed a Consent Order (INV-2010000015). The Bureau permanently revoked Respondent's broker-dealer representative license with Oppenheimer & Co., Inc. and barred him from any securities licensure in New Hampshire. The Consent Order constitutes a final order of a State securities commission. Respondent agreed to findings of fact in the Consent Order which established violations of the securities laws. First, in 2008-2009, Respondent introduced three of his customers to his neighbor, an insurance agent, to purchase high-value life insurance policies. As a result of this introduction and the subsequent purchase of policies by his customers, Respondent's father, who lived with Respondent and otherwise had no involvement in the transaction, received $600,000 in commissions. Respondent did not disclose his father's receipt of the commissions to his customers, causing a conflict of interest about which his customers should have been made aware. In addition, Respondent, from March 2009 through April 2010, outside of his employment from Deutsche Bank and Oppenheimer, fraudulently induced a customer to make a $2,285,000 investment in a fictitious real estate investment, in which the customer lost his entire investment. In January 2011, while under oath, Respondent made material misstatements and concealed information from the Bureau about his involvement with this outside real estate investment.

Order

Bar (Permanent)

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

2/3/2017

any offering of a penny stock

2/3/2017

FINRA

RESPONDENT HAHN FAILED TO COMPLY WITH AN ARBITRATION AWARD OR SETTLEMENT AGREEMENT OR TO SATISFACTORILY RESPOND TO A FINRA REQUEST TO PROVIDE INFORMATION CONCERNING THE STATUS OF COMPLIANCE.

LETTER

Suspension

ANY CAPACITY

N/A

8/15/2013

PURSUANT TO ARTICLE VI, SECTION 3 OF FINRA BY-LAWS, AND FINRA RULE 9554, RESPONDENT HAHN IS SUSPENDED AUGUST 15, 2013 FOR FAILURE TO COMPLY WITH AN ARBITRATION AWARD OR SETTLEMENT AGREEMENT OR TO SATISFACTORILY RESPOND TO A FINRA REQUEST TO PROVIDE INFORMATION CONCERNING THE STATUS OF COMPLIANCE.

FINRA

RESPONDENT HAHN FAILED TO RESPOND TO FINRA REQUEST FOR INFORMATION.

LETTER

Bar (Permanent)

All Capacities

Indefinite

3/16/2012

PURSUANT TO FINRA RULE 9552(H) AND IN ACCORDANCE WITH FINRA'S INTENT TO SUSPEND AND NOTICE OF SUSPENSION LETTERS DATED DECEMBER 13, 2011 AND JANUARY 6, 2012, RESPECTIVELY, ON MARCH 16, 2012 RESPONDENT HAHN IS BARRED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY. RESPONDENT HAHN FAILED TO REQUEST TERMINATION OF HIS SUSPENSION WITHIN THREE MONTHS OF THE DATE OF THE NOTICE OF INTENT TO SUSPEND; THEREFORE, HE IS AUTOMATICALLY BARRED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY.

Fraud; Misrepresentations; Concealment and Omissions; Negligent Misrepresentation and Omission; Breach of Fiduciary Duty; Professional Negligence; and violation of Massachusetts Regulation of Business Practice and Consumer Protection Act.

$2,100,000.00

$934,193.38

CLAIMANT ALLEGES THAT HIS INVESTMENTS IN CERTAIN LIFE INSURANCE PRODUCTS AND AN ANNUITY PRODUCT WERE MISREPRESENTED TO HIM AND UNSUITABLE. CLAIMANT ALSO ALLEGES CLAIMS OF FRAUD, CHURNING, AND BREACH OF FIDUCIARY DUTY. ACTIVITY PERIOD WAS AUGUST 2008 THROUGH JANUARY 2010

$4,355,000.00

$10,500,000.00

The Award has not been paid.

NEW HAMPSHIRE BUREAU OF SECURITIES REGULATION

STATE ALLEGED THAT MR. HAHN SOLICITED 2.285 MILLION DOLLARS FROM HIS CLIENT FOR THE PURPOSES OF A REAL ESTATE INVESTMENT AWAY FROM HIS EMPLOYER. STATE ALSO ALLEGES THAT MR. HAHN'S FATHER RECEIVED COMMISSIONS FOR INSURANCE TRANSACTIONS WITH MR. HAHN'S CLIENTS AND MR. HAHN DID NOT DISCLOSE THIS TO HIS EMPLOYER.

Consent

Bar (Permanent)

ALL SECURITIES-RELATED LICENSURE IN NEW HAMPSHIRE

LIFETIME BAR

LIFETIME BAR.

RESTITUTION IS CURRENTLY BEING DEFERRED UNTIL SUCH TIME THAT MR. HAHN'S FEDERAL CRIMINAL PROCEEDING CONCLUDES. IF THIS OFFICE IS UNSATISFIED WITH ANY RESTITUTION THAT MAY BE AWARDED, THIS OFFICE MAY RE-OPEN THE MATTER SOLELY FOR RESTITUTION. MR. HAHN, AS PART OF THIS CONSENT, DOES NOT CONTEST A RESTITUTION AWARD OF 2.285 MILLION DOLLARS.