Daniel Lee Hudson of Great Falls, Montana and former registered representative with Bellevue, Washington-based Pruco Securities, LLC, submitted a Letter of Acceptance, Waiver and Consent in which he consented to the Financial Industry Regulatory Authority’s (FINRA) findings that he established Natural Resources Gateway Group, Inc. (NRGG) a wind energy development company in which he was the sole owner and officer without first notifying his firm or receiving prior approval. Further, FINRAs findings stated that Mr. Hudson facilitated the investment of $104,000 by individuals, some of whom were Pruco Securities’ customers, in NRGG. These transactions were again made without the approval of Pruco Securities and in violation of the firm’s policies and procedures regarding outside business activities and private securities transactions. Mr. Hudson was fined $5,000 and suspended from association with any FINRA member in any capacity for six months. The suspension is in effect from February 18, 2014 through August 17, 2014.
Stockbrokers and registered representatives have been known to engage in many types of practices in violation of industry and firm rules, practices, and procedures. In order to protect customers from stockbroker misconduct, FINRA rules require broker-dealers to establish and implement a reasonable supervisory system. The implementation of the rules require supervisors to monitor employees to ensure they comply with federal and state securities laws, securities industry rules and regulations, as well as the brokerage firm’s own policies and procedures. If broker-dealers and their supervisors do not establish and implement these protective measures, they may be a liable to investors for damages flowing from the misconduct. As a result, investors who have suffered losses because of their financial advisor or stockbroker’s unlawful and/or unauthorized activity can bring forth claims to recover damages against broker-dealers like Pruco Securities which should consistently oversee its stockbrokers in order to prevent the above-described prohibited conduct.
Have you suffered losses in your investment account due to your stockbroker’s misconduct? 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 stockbrokers for unsuitable recommendations, misrepresentations, and/or unauthorized, illegal activity.
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 , 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 post a comment, call (800) 732-2889, send Mr. Pearce an email at email@example.com, and/or visit our website at www.secatty.com for answers to any of your questions about this blog post and/or any related matter.