The Financial Industry Regulatory Authority (FINRA) is the largest independent regulator for all securities firms doing business in the United States. FINRA's chief role is to protect investors by maintaining the fairness of the U.S. capital markets.
All stockbrokers and broker dealers (brokerage firms) are required to be licensed by and subject to the rules and regulations of FINRA. Each month FINRA publishes disciplinary actions against brokers and broker dealers. Discipline can range from monetary fines and suspensions, or in extreme cases, revocation of licensing and a bar from the securities industry.
See the FINRA website for current and historical disciplinary actions.
Hugh Robert Hunsinger Jr. (CRD #2179745, Registered Representative, Pinebrook, New Jersey) was named a respondent in a FINRA complaint alleging that he misappropriated and converted a total of $1,452,503.57 from the accounts of his elderly and unsophisticated parents. The complaint alleges that his parents never authorized the transfer of funds. To hide his misappropriation, Hunsinger told his parents that he was selling securities they owned to invest in new insurance or securities products. Instead, Hunsinger deposited the funds into bank accounts he controlled. The complaint also alleges that Hunsinger
recommended that his parents invest in a deferred combination variable and fixed annuity to be issued by a company. Hunsinger provided his parents with documents that purported to be designed for one of them and that contained information, based on a historical illustration, concerning withdrawals, contract values, cash surrender, average annual
returns and standard death benefit. The complaint further alleges that Hunsinger's parents agreed to his recommendation and believed that he was selling securities from their accounts to purchase the annuity. In addition, the complaint alleges that in subsequent meetings, Hunsinger reiterated to his parents, orally and in writing, that he had purchased the annuity, and later provided them with additional documents reflecting the purported initial premium for the annuity. Hunsinger caused securities to be sold in their accounts but never purchased the annuity. Moreover, the complaint alleges that Hunsinger willfully violated Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, FINRA Rules 2010 and 2020, and NASD Rules 2110 and 2120. Hunsinger acted with scienter in falsely representing that he had purchased the annuity on behalf of his parents.
Furthermore, the complaint alleges that Hunsinger failed to respond to FINRA requests for information and documents related to its investigation. (FINRA Case #2011030045101)
According to FINRA BrokerCheck Records Hunsinger is not currently registered. He was most recently registered at the following brokerage firm:
Lincoln Financial Advisors Corporation
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Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.