Erez Law is currently investigating former RBC Capital Markets, LLC financial advisor Patrick Hudson (CRD# 2082798) regarding outside private securities transactions. Hudson was registered with RBC Capital Markets, LLC in Baltimore, Maryland from 2002 to 2015, before he was terminated regarding, “From U5 filing: Mr. Hudson borrowed money from several clients and made investments in multiple outside businesses without firm knowledge or approval in direct violation of firm policies and industry standards. Mr. Hudson did not follow the firm’s procedure regarding verification of deposits, nor did he obtain supervisory approval and retain copies of such forms of correspondence.”
In August 2017, Hudson was suspended by FINRA for six months and sanctioned to civil and administrative penalties and fines of $10,000 after he consented to the sanctions and to the entry of findings that he participated in private securities transactions, in the form of promissory notes, without providing prior written notice to his member firm. According to the Acceptance, Waiver & Consent (AWC), Hudson entered into $490,000 in promissory notes away from the firm, as part of his outside real estate business, with customers of RBC Capital Markets. According to the AWC, the purpose of these notes was to provide a vehicle for the individuals to invest in certain local real estate projects in which Hudson was a participant, and he did not seek or obtain written approval from his firm for any of the note transactions. Hudson also created and managed Maryland limited liability companies to further his outside real estate business, and he created and actively advanced the business interests of seven outside real estate investment companies for which he served in a managerial capacity. Additionally, Hudson failed to follow his firm’s procedures regarding verification of customer assets.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, RBC Capital Markets, LLC may be liable for investment or other losses suffered by Hudson’s customers.
Erez Law represents investors in the United States for claims against former RBC Capital Markets, LLC financial advisor Patrick Hudson, who is alleged to participate in private securities transactions. If you were a client of RBC Capital Markets, LLC or another firm, and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.