Broker Investigation: Richard S. Hughes

Broker Investigation: Richard S. Hughes
Richard S. Hughes (CRD#: 1537720) was registered as a broker for more than 30 years. Most recently, Mr. Hughes worked at Summit Brokerage Services in Wilmington, Illinois (2016 to 2018). This broker has also been associated with several other firms, including Wells Fargo Advisors Financial Network and Edward Jones.

On September 5th, 2018, FINRA announced that Richard S. Hughes was being suspended from the securities industry for eight months. Without admitting or denying wrongdoing, Mr. Hughes consented to findings that he violated FINRA Rule 2111, which requires brokers to have a reasonable basis for all investment recommendations.

Broker Suspension: Ex-Wells Fargo Broker Richard S. Hughes

Between April of 2015 and May of 2016, FINRA alleges that former Wells Fargo broker Richard S. Hughes made unsuitable investment recommendations to an elderly investor. According to investigators, Mr. Hughes recommended short-term switches in Unit Investment Trusts (UITs) resulting in the client paying nearly $34,000 in wholly avoidable fees and commissions.

Prior to this disciplinary action, the brokerage firm (Wells Fargo) already agreed to pay the customer financial restitution for her damages. In addition to his eight-month suspension from the securities industry, Mr. Hughes also agreed to pay a $10,000 fine to FINRA.

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