SoCal Broker Solomon Wei-En Hua Sanctioned $75,000 for Suitability Failures and Client Miscommunication

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FINRA fined and suspended Woodbury Financial Services (Diamond Bar, CA) and former Wells Fargo (West Covina) broker Solomon Wei-En Hua for recommending securities without a basis to believe they were suitable for customers, and for sending unwarranted and misleading communications regarding new issue preferred securities also known as "NIPs."

In AWC #2018058988301, investigators determined that Hua (CRD #6168816) sold $9 million worth of NIPs to 81 customers without a reasonable basis as to his recommendations, and while making unwarranted claims as to the products' benefits and risks.  He earned $61,543.07 in commissions for selling the New Issue Preferred securities.

The document states that although Hua erroneously informed customers the investments were "safe" for investors with conservative risk tolerances, investigators determined that the securities were not in fact "safe", didn't carry the benefits Hua claimed they did, and posed substantial risk to investors, including the risk of losing one's entire invested principal.

FINRA also sanctioned Hua for sending solicitations and other correspondence to clients that contained these misleading statements pertaining to the NIPs Hua sold. Hua was also sanctioned for conducting business away from the firm, by using his personal cell phone to participate in text message conversations with a client, outside the supervisory auspices of the firm.

After resigning from Wells Fargo in 2018 during an investigation into the aforementioned allegations, Hua joined Woodbury Financial in Diamond Bar, where he remains to this day. Hua's BrokerCheck file indicates additional affiliations with Nexgen Wealth Management and work as an insurance agent.

Hua since settled three customer disputes alleging damages related to the unsuitable NIP transactions, including the allegation that Hua advised customers that a recommended NIP would not lose value, only for the preferred stock's value to decrease.

If you invested with former Wells Fargo and current Woodbury Financial broker Solomon Wei-En Hua in Southern California or with any investment adviser who unsuitably recommended preferred or other potentially risky securities despite your conservative risk tolerance and this trading strategy in contravention of your investment objectives has proven harmful to your investments or interests, please call an experienced FINRA arbitration attorney at The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.