Solomon Wei-En Hua of West Covina, California, a stockbroker registered with Wells Fargo Clearing Services LLC has been fined $15,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity for one year based upon allegations that Hua made unsuitable investment recommendations to his customers. FINRA Enforcement (AWC) No. 2018058988301 (Sept. 16, 2022).
According to the AWC, from July 27, 2016, to March 13, 2018, while he was associated with Wells Fargo Clearing Services LLC, Hua recommended New Issue Preferred (“NIP”) securities to customers while lacking a reasonable basis to believe that they were suitable. Specifically, Hua recommended $9,000,000.00 of NIPs to 81 customers. However, before recommending the NIPs, Hua failed to conduct sufficient due diligence on the potential rewards and risks of the securities. Hua operated under the mistaken belief that the NIPs were safe and suitable for conservative investors. In reality, the securities posed significant risks to investors and carried the risk of losing the entire principal. Hua received $61,543.07 in commissions due to recommending the unsuitable investments.
Hua was also found to have made misleading and unwarranted communications with customers. Specifically, Hua sent emails to 20 customers and potential customers where he solicited the purchase of NIPs. The correspondence contained misleading and unwarranted claims and failed to provide a balanced and fair assessment of the securities. As a result, Hua violated FINRA Rules 2010, 2111, and 2210(d)(1)(A).
FINRA Public Disclosure shows that Hua is referenced in customer initiated investment related disputes concerning Hua’s conduct while associated with securities broker dealers, including Wells Fargo Advisors LLC. On November 27, 2018, a customer initiated investment related complaint involving Hua’s conduct was settled for $16,204.88 in damages based upon allegations that Hua made omissions in connection with the recommendation and sale of certain securities.
On January 3, 2019, a customer initiated investment related complaint involving Hua’s conduct was settled for $16,394.62 in damages based upon allegations that Hua made omissions or misrepresenations in connection with the recommendation and sale of common stocks and other securities during the period Hua was associated with Wells Fargo. Another similar claim, involving Hua’s conduct was settled for $21,789.35 on January 9, 2019.
On May 22, 2018, Hua was permitted to resign from Wells Fargo Clearing Services during internal review relating to concerns about handling of account opening process, communication with clients and trading.
From May 22, 2018 to October 14, 2022, Wei-En Hua was associated with Woodbury Financial Services Inc. in Diamond Bar, California.
