FINRA

RESPONDENT HUNSINGER FAILED TO COMPLY WITH AN ARBITRATION AWARD OR SETTLEMENT AGREEMENT OR TO SATISFACTORILY RESPOND TO A FINRA REQUEST TO PROVIDE INFORMATION CONCERNING THE STATUS OF COMPLIANCE.

LETTER

Suspension

ANY CAPACITY

N/A

11/20/2014

PURSUANT TO ARTICLE VI, SECTION 3 OF FINRA BY-LAWS, AND FINRA RULE 9554, RESPONDENT HUNSINGER IS SUSPENDED ON NOVEMBER 20, 2014 FOR FAILURE TO COMPLY WITH AN ARBITRATION AWARD OR SETTLEMENT AGREEMENT OR TO SATISFACTORILY RESPOND TO A FINRA REQUEST TO PROVIDE INFORMATION CONCERNING THE STATUS OF COMPLIANCE.

NEW JERSEY BUREAU OF SECURITIES

ON AUGUST 6, 2013, HUNSINGER PLED GUILTY TO THEFT BY UNLAWFUL TAKING OR DISPOSITION, SECOND DEGREE, IN VIOLATION OF N.J.S.A. 2C:20-3A, AND ADMITTED TO THE UNLAWFUL TAKING OF $1,354,496.44.

Order

Bar (Permanent)

ALL CAPACITIES

2/19/2014

ORDERED THAT HUGH R. HUNSINGER, JR. BE, AND HEREBY IS, SUMMARILY BARRED, PURSUANT TO N.J.S.A. 49:3-56(K), FROM BEING A PARTNER, OFFICER OR DIRECTOR OF AN ISSUER, BROKER-DEALER OR INVESTMENT ADVISER, OR FROM OCCUPYING A SIMILAR STATUS OR PERFORMING A SIMILAR FUNCTION OR FROM DIRECTLY OR INDIRECTLY CONTROLLING OR BEING CONTROLLED BY AN ISSUER, BROKER-DEALER OR INVESTMENT ADVISER, OR FROM ACTING AS A BROKER-DEALER, AGENT OR INVESTMENT ADVISER IN NEW JERSEY; AND IT IS FURTHER ORDERED THAT EXEMPTIONS TO CERTAIN SECURITIES TRANSACTIONS PROVIDED BY N.J.S.A. 49:3-50 ARE HEREBY DENIED; AND IT IS FURTHER ORDERED THAT THE EXEMPTIONS TO THE REGISTRATION REQUIREMENTS PROVIDED BY N.J.S.A. 49:3-56 ARE HEREBY DENIED.

FINRA

WILLFULLY VIOLATED SECTION 10(B) OF THE SECURITIES EXCHANGE ACT OF 1934 AND RULE 10B-5 THEREUNDER, FINRA RULES 2010, 2020, NASD RULES 2110, 2120, VIOLATED FINRA RULES 2010, 2150, 8210, NASD RULES 2110, 2330(A): HUNSINGER MISAPPROPRIATED AND CONVERTED A TOTAL OF $1,452,503.57 ON MULTIPLE OCCASIONS FROM THE ACCOUNTS OF TWO CUSTOMERS, HIS ELDERLY AND UNSOPHISTICATED PARENTS. 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. HUNSINGER RECOMMENDED THAT HIS PARENTS INVEST IN A DEFERRED COMBINATION VARIABLE AND FIXED ANNUITY TO BE ISSUED BY A COMPANY. HE 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. HIS PARENTS AGREED TO HUNSINGER'S RECOMMENDATION AND BELIEVED THAT HE WAS SELLING SECURITIES FROM THEIR ACCOUNTS TO PURCHASE THE ANNUITY. HUNSINGER ACTED WITH SCIENTER IN FALSELY REPRESENTING THAT HE HAD PURCHASED THE ANNUITY OF BEHALF OF HIS PARENTS. HUNSINGER FAILED TO RESPOND TO FINRA REQUESTS FOR INFORMATION AND DOCUMENTS RELATED TO AN INVESTIGATION.

Decision

Bar (Permanent)

All Capacities

Indefinite

11/12/2013

Restitution

$1,452,503.57

DEFAULT DECISION RENDERED OCTOBER 15, 2013 WHEREIN HUNSINGER IS BARRED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY FOR EACH OF THE FOLLOWING VIOLATIONS: CONVERTING CUSTOMER FUNDS, IN VIOLATION OF NASD RULES 2330(A) AND 2110, AND FINRA RULES 2150 AND 2010; ENGAGING IN SECURITIES FRAUD, IN VIOLATION OF SECTION 10(B) OF THE SECURITIES EXCHANGE ACT OF 1934, RULE 10B-5 THEREUNDER, NASD RULES 2120 AND 2110 AND FINRA RULES 2020 AND 2110; AND FAILING TO PROVIDE REQUESTED INFORMATION, IN VIOLATION OF FINRA RULES 8210 AND 2010. HUNSINGER IS ORDERED TO PAY RESTITUTION IN THE PRINCIPAL AMOUNT OF $1,452,503.57, PLUS INTEREST. IN THE EVENT THE CUSTOMERS CANNOT BE LOCATED, UNPAID RESTITUTION (WITH INTEREST) SHOULD BE PAID TO THE APPROPRIATE ESCHEAT, UNCLAIMED-PROPERTY, OR ABANDONED-PROPERTY FUND FOR THE STATE OF THE CUSTOMERS' LAST KNOWN ADDRESS. SATISFACTORY PROOF OF PAYMENT OF THE RESTITUTION (WITH INTEREST), OR OF REASONABLE AND DOCUMENTED EFFORTS UNDERTAKEN TO EFFECT RESTITUTION (WITH INTEREST), SHALL BE PROVIDED TO FINRA NO LATER THAN 90 DAYS AFTER THE DATE WHEN THIS DECISION BECOMES FINAL. THE DECISION IS FINAL NOVEMBER 12, 2013.

CLIENTS ALLEGE MULTIPLE CLAIMS INCLUDING, BUT NOT LIMITED TO THEFT, FRAUD, ELDER ABUSE, NEGLIGENCE, MISREPRESENTATIONS, FAILURE TO DELIVER SECURITIES AND INSURANCE PRODUCTS AND VIOLATIONS OF STATE AND FEDERAL LAWS AND REGULATIONS REGARDING THE REPRESENTATIVE'S ACTIONS BEGINNING IN DECEMBER 2003.

$2,423,619.00

The Award has not been paid.

NASD

NASD RULE 2110 - ROBERT H. HUNSINGER ORDERED AND USED BUSINESS STATIONERY, INCLUDING LETTERHEAD, ENVELOPES AND BUSINESS CARDS, CONTAINING PROFESSIONAL DESIGNATIONS OF: CHARTERED FINANCIAL CONSULTANT, CERTIFIED FINANCIAL PLANNER, AND CERTIFIED LIFE UNDERWRITER ALTHOUGH HE NEVER QUALIFIED FOR THE DESIGNATIONS; AND PROVIDED BUSINESS CARDS CONTAINING THE DESIGNATIONS HE DID NOT POSSESS TO A PUBLIC CUSTOMER AND PROVIDED THE SAME CUSTOMER WITH A LIFE INSURANCE SALES ILLUSTRATION IN WHICH HUNSINGER CLAIMED TO HAVE THESE PROFESSIONAL DESIGNATIONS ON EACH PAGE OF THE ILLUSTRATION.

Acceptance, Waiver & Consent(AWC)

Civil and Administrative Penalty(ies)/Fine(s)

Suspension

WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, HUNSINGER CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS; THEREFORE, HE IS FINED $5,000 AND SUSPENDED FROM ASSOCIATION WITH ANY NASD MEMBER IN ANY CAPACITY FOR 30 BUSINESS DAYS. THE SUSPENSION WILL COMMENCE ON NOVEMBER 15, 2004 AND CONCLUDE AT THE CLOSE OF BUSINESS ON DECEMBER 28, 2004. FINES PAID.

THIS MATTER WAS A CLERICAL ERROR.WE MOVED OUR OFFICES AND MY ADMINISTRATIVE ASSISTANT INADVERTENTLY ORDERED INACCURATE STATIONARY.MY BROKER DEALER POLICY WAS TO REVIEW THE STATIONARY ORDER FOR ACCURACY PRIOR TO SENDING IT OUT.I THOUGHY THEY HAD SO I DID NOT INITIALLY REVIEW IT TO MY DETRIMENT.THE SATIONARY WAS USED FOR ONE MAILING TO ONE CLIENT. NO HARM RESULTED FROM THIS ACTIVITY FOR THE CLIENT