Brian John Hussey Jr. of Tampa Florida a stockbroker formerly employed by Ameriprise Financial Services Inc. has been suspended for seven months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he made unsuitable investment recommendations to a customer and falsified Ameriprise’s records and books. Letter of Acceptance Waiver and Consent No. 2017053342601 (May 21, 2018).
According to the AWC, in February of 2014, Hussey recommended that customer TP liquidate one hundred percent of TP’s mutual fund positions held within TP’s individual retirement accounts, and place the proceeds in Hemp, Inc. and Fusion Pharm, Inc. Apparently, those transactions had been solicited by Hussey even though the firm prohibited penny stocks from being solicited. The AWC stated that by July of 2014, one-hundred percent of TP’s investment portfolio had been invested in Hemp, Inc. and Fusion Pharm, Inc.
The AWC additionally stated that Ameriprise inquired into Hussey’s trading activity in TP’s individual retirement account, causing Hussey to recommend in 2014 that TP move her investment portfolio to an outside brokerage firm, CS. Hussey reportedly procured TP’s online credentials to actively trade in TP’s account at CS. For example, between August of 2014 and May of 2016, trades were aggressively placed by Hussey in TP’s account on a discretionary basis, where Hussey would trade Hemp, Inc., Fusion Pharm, Inc. and energy-sector securities on a short-term basis. Throughout this time, Hussey’s discretionary trading was apparently never made known to CS or Ameriprise. The AWC revealed that in May 2016, after TP incurred $58,572.00 in losses, TP lodged a complaint.
FINRA cited Hussey for placing the near entirety of TP’s net worth in penny stocks. FINRA viewed Hussey’s trading as inconsistent with TP’s financial situation and investment objectives. Hussey’s speculative securities recommendations evidently caused Hussey to incur catastrophic losses. FINRA found Hussey’s unsuitable concentration of TP’s assets in speculative securities to be violative of FINRA Rules 2010 and 2111.
The AWC additionally stated that between February 12, 2014 and July 17, 2014, sixteen trades had been mismarked by Hussey as having been unsolicited. Evidently, the trades were mismarked by Hussey because he knew that that Ameriprise prohibited penny stock solicitations. Consequently, FINRA found that Hussey’s conduct was violative of FINRA Rules 2010 and 4511.
Moreover, the AWC stated that between August of 2014 and May of 2016, discretionary authority had been exercised by Hussey in TP’s outside accounts by way of Hussey’s use of TP’s credentials to access TP’s account and place trades. FINRA found that Hussey violated FINRA Rule 2010 and National Association of Securities Dealers (NASD) Rule 3050(c) based upon his failure to notify CS and Ameriprise about his exercise of discretion in TP’s account.
FINRA Public Disclosure reveals that on January 5, 2017, a customer initiated investment related complaint regarding Hussey’s conduct was resolved for $67,019.24 in damages founded on accusations that while Hussey was associated with Ameriprise, he executed penny stock and equity transactions in the customer’s investment account that were not suitable for the customer.
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