Rickey Hughes Involved in Annuity Dispute
Rickey Hughes (CRD #:2725975), a registered broker and investment advisor with Infinex Investments, is involved in an annuity dispute, according to his BrokerCheck record, accessed on December 6, 2021.
Investor Allegations
On October 5, 2021, an investor filed a dispute against Rickey Hughes for allegedly recommending an unsuitable annuity and misrepresenting the fees/commissions.
The client further claims:
- He is too old for an annuity and the surrender period is too long
- The assets were previously tax-deferred and do not need annuity tax deferral
- Does not recall suggesting he needed a death benefit
- Did not know about the fees/commissions & withdrawal provisions
The investor sought $664,000 but the dispute was denied. Investors should know that they are still able to recover their investments following a denial.
A financial advisor who recommends a security or investment is subject to ethical standards. Such rules include:
FINRA Rule 2111: Suitability
By recommending an unsuitable annuity, Rickey Hughes allegedly violated FINRA rule 2111. FINRA Rule 2111 requires brokers to consider the following factors before recommending an investment:
- Age
- Financial situation and needs
- Tax status
- Investment objectives
- Investment experience
- Risk tolerance
If an investor suffers financial losses as a result of an unsuitable recommendation, the broker’s firm may be liable for such losses.
FINRA Rule 2020: Use of Manipulative, Deceptive or Other Fraudulent Devices
By allegedly omitting the annuity fees/ commissions to the customer, Rickey Hughes violated FINRA rule 2020.
FINRA Rule 2020 prohibits brokerage firms and stockbrokers from making material misrepresentations or inducing people into buying investments with false statements about their potential benefits.
Any of the following can be considered as misrepresentation or omission
-
- Inadequate due diligence concerning security offerings
- Failure to disclose all material risks
- Failure to disclose all transaction costs
- Unrealistic presumptions for investment projections
- Inaccurate investment performance calculation
Misrepresentations and omissions concerning material facts in investment recommendations deprive investors of the information they need to assess risks associated with a particular investment.
FINRA Rule 2010: Standards of Commercial Honor and Principles of Trade
Rickey Hughes’ alleged unethical conduct also violates FINRA Rule 2010, which states that brokers must uphold high standards of commercial honor.
Background Information
Rickey Hughes has passed the following exams:
-
- Series 66 – Uniform Combined State Law Examination
- Series 65 – Uniform Investment Adviser Law Examination
- Series 63 – Uniform Securities Agent State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 7 – General Securities Representative Examination
- Series 6 – Investment Company Products/Variable Contracts Representative Examination
Rickey Hughes is a registered broker in 14 states. He is also a registered investment advisor in North Carolina.
Besides Infinex Investments, Rickey Hughes has also worked with:
- Uvest Financial Services Group (CRD#:13787)
- Edward Jones (CRD#:250)
- First Citizens Investor Services (CRD#:44430)
- Fortis Investors (CRD#:421)
Kurta Law Can Help
If you have worked with Rickey Hughes and have concerns about your investments, don’t hesitate to contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.
For nearly 20 years, Kurta Law has advocated for investors 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.