FINRA Suspends Solomon Wei-En Hua For One Year
Solomon Wei-En Hua (CRD #: 6168816), a broker formerly registered with Woodbury Financial Services, has been suspended by FINRA, according to his BrokerCheck record, accessed on December 13, 2022. Keep reading if you want to know more about Solomon Wei-En Hua’s alleged conduct as a broker.
On September 16, 2022, Solomon Wei-En Hua consented to the entry of findings that he allegedly recommended new issue preferred securities (NIPs) to clients without a reasonable basis to believe these securities were suitable between July 27, 2016, and March 13, 2018.
According to a Letter of Acceptance, Waiver & Consent (AWC), Solomon Wei-En Hua allegedly sold 81 clients approximately $9 million of NIPs during this period and received $61,543.07 in commissions. He allegedly failed to conduct adequate diligence to obtain an understanding of NIPs potential risks and rewards both generally speaking and with regard to the specific NIPs he recommended.
Solomon Wei-En Hua allegedly mistakenly believed NIPs had guaranteed interest rates and dividend payments and could serve as a substitute for money market or savings accounts. He allegedly also failed to inform clients of the true risks associated with NIPs, including the risks associated with NIPs sold by specific issuers.
Alleged Misleading Claims
From July 27, 2016 to April 28, 2017, Solomon Wei-En Hua allegedly solicited purchases of NIPs via emails to 20 current and potential clients. These emails allegedly contained “unwarranted and misleading” claims and failed to provide investors with a fair and balanced assessment of these NIPs, including by failing to discuss their risks.
Additionally, Solomon Wei-En Hua allegedly also recommended two variable annuities to clients and altered issuer documents to indicate an increase in interest rates without a basis for doing so.
Alleged Failure to Preserve Records
Lastly, the AWC alleged that Solomon Wei-En Hua used his personal cell phone for business communications with a client between March 2017 and June 2018. He allegedly failed to disclose or provide these messages to his firm, Wells Fargo Clearing Services, and allegedly inaccurately indicated on a firm compliance questionnaire that he had not used text messages for business communications with clients.
The AWC concluded that these allegations constituted violations of FINRA Rules 2111, 2210(d)(1)(A) and (B), 4511, and 2010.
FINRA Rule 2111
FINRA Rule 2111 defines suitable investments as those that fit an investor’s profile. These profiles describe an investor’s risk tolerance, tax status, and financial goals.
Investors who believe their losses are the result of unsuitable investment recommendations may be able to recover their funds by seeking out FINRA arbitration.
FINRA Rule 2210
FINRA Rule 2210(d)(1)(A) requires FINRA members to base all communications with the public on the principles of fair dealing and good faith, and to provide investors with a sound basis for evaluating investments.
FINRA Rule 2210(d)(1)(B) prohibits the use of false, promissory, and misleading statements in communications with the public.
FINRA Rule 4511
FINRA Rule 4511 requires that firms maintain accurate books and records.
FINRA Rule 2010
FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.
Solomon Wei-En Hua consented to the following sanctions:
- $15,000 fine
- $61,543.07 disgorgement, plus interest
- 1-year suspension
His suspension began on October 17, 2022, and will end on October 16, 2023.
You can read the full AWC here.
Resignation from Wells Fargo Clearing Services
On May 22, 2018, Solomon Wei-En Hua resigned from Wells Fargo Clearing Services during an internal investigation into allegations regarding his handling of the account opening process, communication with clients, and trading activity.
Solomon Wei-En Hua has passed the following exams:
- Series 66 – Uniform Combined State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 7 – General Securities Representative Examination
He has also worked for the following firms:
- Woodbury Financial Services (CRD#:421)
- Wells Fargo Clearing Services (CRD#:19616)
- Merrill Lynch, Pierce, Fenner & Smith (CRD#:7691)
Kurta Law Can Help
If you worked with Solomon Wei-En Hua and you have concerns about your investments, please contact us today at 877-600-0098 or firstname.lastname@example.org 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.