According to Financial Advisor Magazine, former Lincoln Financial Advisors broker, Hugh R. Hunsinger, Jr., was sentenced to 5 years in prison for defrauding his parents out of more than $1.3 million. According to the report, between 2005 and 2011, Hunsinger systemically transferred the funds from the accounts he managed on behalf of his parents to his own accounts and used the money for personal expenses. Hunsinger was ordered to pay back the $1.3 million in restitution but it is unclear if he has the money to do so.
According to a Financial Industry Regulatory Authority (FINRA) complaint, Hunsinger caused over 80 transfers, generally in $15,000 increments on a monthly basis. Hunsinger led his parents to believe that the transfers were being used to make a series of payments in an annuity he recommended. Unfortunately, Hunsinger never made the investment despite having his parents fill out the annuity application. FINRA has barred Hunsinger from working in the securities industry.
The foregoing information, which is publicly available, has been provided by The White Law Group.
Too often Investors blindly trust their financial professional, especially when that person is a family member or friend. They often have no idea what happened until it’s too late and their hard earned cash has been spent by someone else. However, they still may be able to recover their investment losses through FINRA dispute resolution. When FINRA registered brokers violate security regulations the brokerage firm that employs them may be liable for negligent supervision and responsible for investment losses.
For more information on researching the background of your financial professional visit our blog post, here.
The White Law Group is dedicated to the representation of investors in claims against their financial adviser and brokerage firm. If you believe that you have been the victim of securities fraud and would like to discuss your litigation options, please call The White Law Group at (312)238-9650 for a free consultation.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.
To learn more about The White Law Group, visit www.WhiteSecuritiesLaw.com.