Patrick Michael Hudson, a broker formerly with RBC Capital Markets LLC before he was discharged in 2015, has been suspended for borrowing money from several clients and entering into promissory notes with firm customers without the financial firm’s knowledge.
RBC Capital Markets of Baltimore employed Hudson (CRD# 2082798) from 2002 until 2015. The firm discharged the financial advisor after discovering broker misconduct. Hudson reportedly sold $490,000 in promissory notes, a type of security transaction, without the firm’s knowledge and in direct violation of their policies and industry standards.
Hudson was suspended by FINRA in August 2017 for six months and has also agreed to pay civil and administration fines of $10,000.
What is Broker Misconduct?
Investors should be able to trust their brokers, but there are ever increasing ways a broker can break legal and ethical investing rules. This includes securities fraud, misrepresenting or failing to disclose facts, excessive trading to generate commission fees, unauthorized trading, and failing to follow client instructions.
All investors need to be on the lookout for warning signs that they may become victims of broker misconduct. If an investor knows the warning signs of fraud and can verify the information they receive from their broker, they can protect themselves from crippling financial losses.
If you are concerned that you have been the victim of broker misconduct, call the experienced attorneys at Meyer Wilson today.