• November 8, 2023
• O.N. Equity Sales

Joseph Hanson (CRD#: 5109237) was a registered broker and investment advisor.

Broker’s Background

He entered the securities industry in 2006. He previously worked for the O.N Equity Sales Company; Metlife Securities Inc.; and Metropolitan Life Insurance Company.

Allegations of Misconduct

According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in November 2023, without admitting or denying the findings, Hanson consented to the sanctions and to the entry of findings that he willfully failed to amend his Form U4 to disclose that he had been charged with sixteen felonies. The findings stated that Hanson was arrested in the Commonwealth of Virginia. Subsequently, a grand jury returned an indictment charging Hanson with the felonies and then he was arraigned, all while he was associated with his member firm. Although Hanson was aware that he had been charged with these felonies, he never amended his Form U4 to disclose the felony charges and never disclosed the felony charges to the firm. Later, the firm discovered that Hanson had been charged with multiple felonies and discharged Hanson.

As a result, Hanson was sanctioned with an eight-month suspension and $5,000 in civil and administrative penalties/fines.

In addition, Joseph Hanson has been the subject of several other disclosures, which include the following:

• November 2022— “Criminal Charges: INDECENT ACT W/CHILD CUSTODIAN; SODOMY; SX-OBJ:VIC; AGG SEX BATTERY;ATTEMPT RAPE; ABUSE CHILD, DISREGARD LIFE; STRANGLE: WOUND/INJURY RESULTS.”
• February 2012—“REGISTERED REPRESENTATIVE RESIGNED WHILE UNDER INVESTIGATION FOR SELLING VARIABLE ANNUITIES OUTSIDE OF THE FIRM IN VIOLATION OF FIRM POLICY.”
• May 2008—“CUSTOMER ALLEGES THAT WHEN SHE PURCHASED A VARIABLE ANNUITY IN MAY 2007 THE REPRESENTATIVE OMITTED IMPORTANT INFORMATION THAT WOULD HAVE INFLUENCED HER DECISION TO TRANSFER HER ASSETS. NO SPECIFIC COMPENSATORY DAMAGES WERE ALLEGED. The customer dispute was settled for $12,269.
• November 2006—“CLIENT ALLEGES THAT HE WAS MISLED INTO PURCHASING TWO VARIABLE ANNUITY CONTRACTS IN JUNE OF 2006.” The customer dispute was denied.

For a copy of Joseph Hansons FINRA BrokerCheck, click here.

 

We Help Investors Recover Investment Losses

Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.

 

Reasonable basis suitability requires that a recommended investment or investment strategy be suitable or appropriate for at least some investors. Reasonable basis suitability requires an advisor to conduct adequate due diligence so that he or she can determine the risks and rewards of the investment or investment strategy.

 

Quantitative suitability requires a brokerage firm or financial advisor with actual or de facto control over a customer’s account to have a reasonable basis for believing that a series of recommended transactions – even if suitable when viewed in isolation – is not excessive and unsuitable for the customer when taken together in light of the customer’s investment profile. No single test defines excessive activity, but factors such as the turnover rate, the cost-equity ratio, and the use of in-and-out trading in a customer’s account may provide a basis for a finding that a member or associated person has violated the quantitative suitability obligation.

 

Customer-specific suitability requires that a member or associated person have a reasonable basis to believe that the recommendation is suitable for a particular customer based on that customer’s investment profile. Among the criteria that a financial advisor must evaluate to satisfy his or her customer-specific suitability obligations include the investor’s age, tax status, time horizon, liquidity needs, and risk tolerance; a client’s other investments, financial situation and needs, investment objectives, and any other information disclosed by the customer should also be considered.

 

The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at (800) 931-8452 or by email at mwolper@wolperlawfirm.com.