Kate Hudson Allegedly Recommended Unsuitable Insurance Policy

Kate Hudson (CRD #: 5508543), a broker registered with MML Investors Services, allegedly recommended unsuitable investments, according to her BrokerCheck record, accessed on June 21, 2023. Investors may have also engaged her services through Fortis Lux. Read on to learn more about her alleged conduct as a broker.

Investor Dispute

On April 24, 2023, an investor filed a dispute alleging that Kate Hudson sold him an unsuitable whole life insurance policy in 2021, and recommended unsuitable, high-commission, and high-expense products for his portfolio. This dispute was denied by the firm.

However, investors should know that firms can deny disputes without an external review. Investors may be able to recoup their losses by seeking out FINRA arbitration following a denial.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to recommend securities that adequately fit an investor’s financial goals. Brokers must consult the investor’s profile, which describes their age, tax status, and risk tolerance.

Investors who feel their losses were caused by unsuitable investment recommendations may be able to recover their funds through FINRA arbitration.

FINRA Suspension

On June 30, 2020, Kate Hudson consented to the entry of findings that she allegedly failed to amend her Uniform Application for Securities Industry Registration or Transfer (Form U4) to disclose felony charges in a timely manner.

According to a Letter of Acceptance, Waiver & Consent (AWC), Kate Hudson was allegedly charged with two felonies on August 4, 2013, which were later reduced to misdemeanor charges. On June 23, 2015, she was allegedly charged with two additional felony charges which were also reduced to misdemeanors.

Kate Hudson allegedly disclosed all of these charges on her Form U4 on April 15, 2019.

Further, she allegedly inaccurately certified on Foresters Financial Services’ 2015 annual compliance questionnaire that she had not been charged with any felony, misdemeanor, or other criminal offense since her last certification.

The AWC concluded that these allegations constituted violations of Article V, Section 2(c) of the FINRA By-Laws and FINRA Rules 1122 and 2010.

Article V, Section 2(c) of the FINRA By-Laws

Article V, Section 2(c) of FINRA’s By-Laws requires brokers to keep their application for registration up-to-date and to amend it within 30 days of learning the facts requiring an amendment.

FINRA Rule 1122

FINRA Rule 1122 requires brokers to keep their membership and registration documentation up-to-date and to correct any inaccuracies or misleading information in a timely manner.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

Sanctions

Kate Hudson consented to the following sanctions:

• $5,000 fine
• 2-month suspension

Her suspension ran from July 20 to September 19, 2020.

You can read a copy of the AWC here.

Criminal Charges

On June 23, 2015, Kate Hudson was charged with two criminal charges. One charge was dismissed and the other was reduced to a misdemeanor.

On August 4, 2013, she was charged with two criminal charges. She was convicted of one charge and the other was dismissed.

Background Information

Kate Hudson has passed the following exams:

• Series 63 – Uniform Securities Agent State Law Examination
• Series 7TO – General Securities Representative Examination
• SIE – Securities Industry Essentials Examination
• Series 6 – Investment Company Products/Variable Contracts Representative Examination

Kate Hudson is a registered broker in 12 states.

She has also worked for Foresters Financial Services (CRD#:305).

Kurta Law Can Help

If you worked with Kate Hudson and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.