- May 18, 2022
- MML Investors Services
Hector Flores (CRD#: 6637802) is a previously registered Broker.
He entered the securities industry in 2017 and previously worked for MML Investors Services, LLC; and NYLife Securities, LLC.
Current And Past Allegations Of Conduct Leading To Investment Loss
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in February 2022, Hector Flores was suspended by FINRA from acting in all capacities indefinitely, until required information is provided to FINRA or the suspension converts to a bar. The FINRA allegation states, “Respondent Flores failed to respond to FINRA requests for information.” In addition, the regulatory action states, “Pursuant to FINRA Rule 9552 and in accordance with FINRA’s Notice of Suspension letter dated February 11, 2022, Flores is suspended on March 7, 2022, from associating with any FINRA member firm in all capacities. If Flores fails to request termination of the suspension within three months of the date of the Notice of Suspension, he will automatically be barred on May 16, 2022 from association with any FINRA member in all capacities pursuant to FINRA Rule 9552(h).”
In addition, Hector Flores has been the subject of nine disclosures, including one that remains pending, including the following:
- November 2021 — “It is alleged that in or around January 2020, the complainant signed paperwork with the rep to make investments in mutual funds and life insurance, making two deposits into an account as instructed by the rep, in order to fund these accounts. The complainant alleges that she later learned that the mutual fund account didn’t exist, the life insurance policies had lapsed for non-payment and the rep had kept the money. The complainant alleges that the rep didn’t apply her money as promised and she was defrauded.” The customer dispute is pending. Damages of $750,000 are requested.
- March 2021 — “Customer alleges the Survivorship Variable Universal Life insurance policy he purchased in June 2018 was intended to benefit his son upon the customer’s passing; however the policy was not established in this manner and therefore would not benefit his son.” The customer dispute was settled for $12,000.
- December 2020 — “Registered Representative was permitted to resign while under internal review for undisclosed outside business activities.” Hector Flores resigned from MML Investors Services, LLC.
- August 2018 — A civil judgment/lien in the amount of $1,420 was levied against Hector Flores.
- September 2009 — “THEFT PROP>$20< $500 BY CHECK – CHECK #3390- $21.29.” Criminal charges against Hector Flores were dismissed.
- August 2009 — “THEFT PROP>$20 < $500 BY CHECK – CHECK #3386 – $24.96.” Hector Flores was convicted of criminal charges.
- November 2007 — “THEFT BY CHECK-$59.24 (CHECK #3467).” Criminal charges against Hector Flores were dismissed.
- April 2002 — “THEFT OF SERVICES $20< $500.” Hector Flores pleaded guilty.
- April 2005 — A civil judgment/lien in the amount of $1,437.00 was levied against Hector Flores.
For a copy of Hector Flores’s FINRA BrokerCheck, click here.
We Help Investors Recover Investment Losses
The Financial Industry Regulatory Authority (FINRA) strictly prohibits financial advisors from “selling away” or selling securities and investments to clients that are not offered by the brokerage firm with which they are employed. For example, it is illegal and a violation of industry rules for a financial advisor to recommend or even suggest that a client invest in the financial advisor’s own business or a business operated by his or her friends or family. It is not necessary that the financial advisor earn any compensation for recommending an outside investment
FINRA Rule 3280 provides: “No person associated with a member shall participate in any manner in a private securities transaction except in accordance with the requirements of this Rule. Prior to participating in any private securities transaction, an associated person shall provide written notice to the member with which he is associated describing in detail the proposed transaction and the person’s proposed role therein and stating whether he has received or may receive selling compensation in connection with the transaction; provided however that, in the case of a series of related transactions in which no selling compensation has been or will be received, an associated person may provide a single written notice.”
The purpose behind this prohibition is to ensure that a financial advisor only offers to sell securities that have been vetted by his or her employer brokerage firm through a rigorous due diligence process. Most brokerage firms have an approved list of investments, products, and research that can be provided or made available to clients. Any deviation by the financial advisor from the approved product list may constitute selling away.
The Wolper Law Firm, P.A. represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, P.A., 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 email@example.com.