Hugo Hernandez (CRD# 6446187), formerly a broker registered with MML Investors Services, misappropriated customer funds, according to a recent investor dispute. MDF Law is currently investigating the former El Paso, Texas professional for similar conduct. If you have concerns regarding your investments with Mr. Hernandez, call MDF Law today for a free consultation.
More information about the representative’s conduct follows below. This post is based on a September 5, 2024 review of his BrokerCheck record, a Financial Industry Regulatory Authority (FINRA) resource.
Pending Complaint Alleges Unpaid Loans
In June 2024 an investor filed a dispute involving Mr. Hernandez. The dispute alleges that in January 2024, the customer met with Mr. Hernandez about an alternative investment. The customer then paid him $20,000, according to the dispute, with the agreement that he would repay the funds “within 90 days, with a 15% return.” Despite this agreement, the complaint alleges, Mr. Hernandez did not pay back the customer, “and the checks given to the complainant have bounced, totaling $23,000.” The complainant “feels this is a misappropriation of investment funds,” a disclosure on Mr. Hernandez’s BrokerCheck report describes. The dispute, which remains pending, seeks $23,000 in damages.
Why Did MML Fire Hernandez?
MML Investors Services, also known as MassMutual, fired Mr. Hernandez in July 2024, according to his BrokerCheck record. As a disclosure on his profile describes, the firm terminated him over allegations that he participated in prohibited loans with clients and potential clients. He also allegedly participated in “business activities and an unapproved private securities transaction,” according to the disclosure.
Understanding FINRA Rule 3240
FINRA Rule 3240 lays out the circumstances under which brokers can borrow money from their clients. According to this vital securities industry rule, they may take loans from customers if their firms have rules governing lending arrangements, and if the agreement meets specific conditions: the customer is an immediate family member of the broker; the customer is a financial institution that provides loans (or other financing) in its regular course of business, acting in its regular course of business; the broker and customer are both registered representatives of the same firm; or the loan derives from a personal relationship with the customer or a business arrangement outside their broker-customer relationship. In addition to meeting these conditions, Rule 3240 makes clear that brokers must inform their member firms about loan arrangements and receive approval, excepting certain loans involving family members.
FINRA: Hernandez Last Based in El Paso
Hugo Hernandez started his career as a broker when he joined NYLife Securities in 2015. He left that firm in 2017, registering with MML Investors Services. He remained at MML until his termination in 2024. With eight years of experience as a broker under his belt, he has completed four industry exams, including the Series 65 and the Series 6. Since his firing from MML, he has not registered as a broker or an investment advisor.
MDF Law Has Your Back
MDF Law’s experienced attorneys have recovered more than $100 million in lost funds for the victims of broker fraud. If you have complaints about your work with Hugo Hernandez, contact us to discuss your circumstances. We currently offer free consultations across the US, and we take cases on a contingency basis: clients only pay a fee if they collect a recovery. You may have a limited time to file a claim, so we urge you to avoid. Call 800-767-8040 to chat with an attorney today.