FINRA

Without admitting or denying the findings, Hussey consented to the sanction and to the entry of findings that he made unsuitable recommendations to a customer that she sell 100 percent of the mutual fund positions in her IRA accounts and invest the proceeds in penny stocks focused on the marijuana business, Fusion Pharm, Inc. ("FSPM") and Hemp, Inc. ("HEMP"). The findings stated that the transactions were solicited in violation of the member firm's policies prohibiting the solicitation of penny stocks. Thus, in order to effect the transactions, Hussey mismarked solicited trades as unsolicited in the customer's accounts to avoid the firm's policy preventing its representatives from soliciting the purchase of penny stocks. Moreover, the SEC issued an Order suspending all trading in FSPM's stock. Hussey had already heavily invested the customer's accounts in FSPM. Three days after trading resumed in FSPM, Hussey purchased an additional $22,679.50 in FSPM stock in the account. After the firm made inquiries regarding the trading activity in the customer's IRAs and to avoid future compliance issues, Hussey's recommended that the customer moved her account to another FINRA member firm, where Hussey, with the customer's permission, engaged in discretionary trading of her account using her login credentials. Specifically, Hussey exercised de facto discretion to trade the customer's account at the third party firm. Hussey did not disclose his exercise of discretion or his discretionary authority in this third party account to his firm or the executing member firm. The customer complained to Hussey's firm, asserting $58,572 of market losses in her accounts with the firm and the third party firm account, in addition to damages from the lost opportunity to participate in market gains. Hussey's firm settled for $67,019.24, which he is obligated to pay back to the firm. In addition, given the customer's age, limited liquid net worth, and lack of investment experience, concentrating nearly all of her assets into two thinly-traded penny stocks was inconsistent with her investment objectives and financial situation. The findings also stated that as stated above, Hussey mismarked order tickets for trades as unsolicited when, in fact, he solicited the trades and therefore causes his firm to maintain false and inaccurate books and records.

Acceptance, Waiver & Consent(AWC)

Suspension

All capacities

seven months

6/18/2018

1/17/2019

In light of Hussey's financial status, no monetary sanction has been imposed.

The client alleged the advisor recommended investments that were unsuitable.

$88,728.00

$67,019.24

Compromise

Discharged