Brian Hussey, a former registered representative with Ameriprise Financial Services, Inc. (Ameriprise) submitted a Letter of Acceptance, Waiver and Consent (AWC) in which he was suspended for seven months by the Financial Industry Regulatory Authority (FINRA) for making unsuitable recommendations that his customer sell 100% of her IRA’s mutual fund positions and invest the proceeds in penny stocks, which resulted in market losses of $58,572 to his customer.
According to FINRA, Brian John Hussey, Jr., of Zephyrhills, Florida, recommended that his customer sell 100% of the mutual fund positions in her IRA accounts and invest the money in two penny stocks related to the marijuana business. Because this unsuitable recommendation was in contravention of his member firm’s policies, Mr. Hussey mismarked 16 solicited trades as unsolicited to avoid the firm’s detection. Within five months of his unsuitable recommendation to sell his customer’s mutual fund positions, his customer was 100% concentrated in the marijuana-related penny stocks. The customer complained to Ameriprise, alleging market losses in her accounts of $58,572, and the firm settled the complaint. Mr. Hussey, however, is obligated to pay back the firm.
Without admitting or denying FINRA’s findings, Mr. Hussey was suspended from association with any FINRA member for seven months. No monetary sanctions were imposed due to Mr. Hussey’s financial status. The suspension is in effect from June 18 through January 17, 2019.
Stockbrokers have been known to engage in many practices that may violate industry and firm rules, practices, and procedures. In order to protect investors from stockbroker misconduct, FINRA rules require brokerage firms to establish and implement a supervisory system. The implementation of these industry rules requires supervisors to monitor their employees to ensure compliance with federal and state securities laws, securities industry rules and regulations, and the brokerage firm’s own policies and procedures. If broker-dealers and/or their supervisors fail to establish and implement these protective measures, they may be liable to investors for damages which flow from the broker’s misconduct. Therefore, investors who have suffered losses stemming from unsuitable recommendations, unsuitable trades and/or other misconduct by their broker can file claims to recover damages against broker-dealers, like Ameriprise, which should consistently oversee its brokers’ activities in order to prevent the above-described misconduct.
Have you suffered losses in your Ameriprise account due to unsuitable trades and/or unsuitable recommendations by your broker? Was Brian Hussey your stockbroker? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is accepting clients with valid claims against Ameriprise stockbrokers who may have engaged in broker misconduct and caused investors’ losses.
The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 35 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at firstname.lastname@example.org for answers to any of your questions about this blog post and/or any related matter.