WARNING! Impending Investigation: RICHARD HUGHES of Wilmington, IL
Richard Hughes, formerly of Wells Fargo, Suspended Eight Months from Securities Industry
Have you lost money with financial advisor Richard Hughes of Wilmington, Illinois? We are investigating allegations made by FINRA, the Financial Industry Regulatory Authority, against Richard Stephen Hughes. FINRA suspended Hughes from the securities industry for eight months and fined him $10,000 after he was alleged to have engaged in short-term trading of Unit Investment Trusts (or UITs) in customer accounts.
UITs are not designed for short-term trading because of their commissions and costs of trading. Between April 2015 and May 2016, Richard Hughes recommended on several occasions that his customers sell their UITs and then purchase new, different UITs, often to elderly customers. FINRA alleged this to be unsuitable in view of the frequency and costs of trading, which can be as high as 3.95%.
FINRA further alleged that Hughes gave his customers a script that he created. Hughes created the script with responses that Hughes wanted his supervisors to hear, in an effort to obscure the truth. A supervisor from his former firm, Wells Fargo, contacted a client about the UIT trading, and Hughes gave the customer his script, which contained false information.
Richard Hughes was a financial advisor and registered representative of Wells Fargo from October 2011 to October 2016. Hughes was also affiliated with Summit Brokerage Services from November 2016 to June 2018. He worked at branch offices in Wilmington, Illinois. Hughes has been the subject of at least two customer complaints.
Brokerage firms like Wells Fargo have a responsibility to adequately supervise all representatives who are registered through their firm. Brokerage firms also must take steps to ensure that their financial advisors follow all securities rules and regulations, as well as internal firm policies. When brokerage firms fail to adequately supervise their registered representatives, they may be liable for investment losses sustained by customers.
Israels & Neuman PLC is a securities and investment fraud law firm with offices in Denver, Colorado; Ann Arbor, Michigan; and Seattle, Washington. We represent investors in FINRA arbitration in all 50 states, including over 150 investors in the past from throughout the Chicagoland area, Northern Illinois, and Central Illinois.
Attorney David Neuman was born in Berwyn, Illinois and grew up in the western suburbs in Addison. He earned a degree in Finance at the University of Illinois in Urbana-Champaign before earning his law degree at Northern Illinois University in DeKalb, Illinois. Mr. Neuman also previously worked for a number of Chicago area law firms, including firms in St. Charles, Geneva, Chicago, and Barrington. He also previously lived in the Ravenswood neighborhood on the north side of Chicago.
Click to view: Hughes, Richard FINRA AWC
Click to view: Hughes, Richard BrokerCheck 9.6.18
If you lost money with Richard Hughes or Wells Fargo, please CONTACT US at 720-599-3505 for a free evaluation of your case.
Israels & Neuman, PLC is a private law firm and is not affiliated with any government or law enforcement agency. Any investigation referenced in this blog is independent in nature and is being conducted by our law firm privately, not in conjunction with any government or law enforcement agency. All information contained in this blog should be deemed statements of opinion derived from the author’s review of public records, not statements of fact. This blog is advertising material and does not create an attorney client relationship, nor does it constitute legal advice. Everyone’s situation is different and the question of whether or not you have a claim will vary on a case-by-case basis. In contingent representation, clients may still be liable for costs.
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