Meyer Wilson is now investigating claims against former BancWest Investment Services, Inc. and U.S. Bancorp Investments, Inc. broker John S. Hudnall (CRD# 4200298).
According to the Financial Industry Regulation Authority (FINRA) Department of Enforcement, from May 2012 to July 2014, Hudnall allegedly participated in unapproved and undisclosed private securities transactions. He is also accused of offering customers of the firm unapproved and undisclosed financial sales promotions, as well as recommending and selling a variable annuity product considered unsuitable for the customers. When FINRA requested information from Hudnall regarding the alleged violations, FINRA says that Hudnall provided false information.
In 2012, while with BancWest, Hudnall allegedly split a $400,000 REIT investment to try to avoid his brokerage firm’s concentration guidelines. According to the allegations, the first portion was $40,000 which Hudnall supposedly submitted to his brokerage firm for supervisory review and approval. The larger portion, $360,000, was allegedly submitted directly to a REIT sponsor with the brokerage firm’s review or approval. FINRA claims that this was allegedly done to circumvent the firm’s concentration guidelines, as the total investment would have exceeded the allowed transaction amount.
The order alleged that Hudnall offered unapproved sales promotions while registered with BancWest between April 2011 and July 2012. He is accused of offering and paying two customers monetary incentives from his own account in an attempt to have them hold fixed annuity contracts for at least one year prior to surrendering the contracts. According to FINRA, this allegedly allowed Hudnall to retain the commissions that would have been lost if the customer had surrendered the contracts before the one-year mark.
In July 2014, while Hudnall was registered with U.S. Bancorp, he allegedly sold unsuitable annuities that increased liquidity risk while offering less investment options and flexibility. When questioned about this transaction in May 2013, Hudnall allegedly provided false information.
Our securities fraud attorneys are currently investigating allegations involving former broker John S. Hudnall. If Hudnall was your broker and you suffered investment losses, you may be able to recover them. Call us today to discuss your potential claim in a free consultation.