A former advisor pleaded guilty to a fraud scheme that cost clients $6 million but bought him a Range Rover, according to
Roger Hudspeth, 48, used some of the stolen cash to purchase a the car and pay for other personal expenses, according to the U.S. Attorney's Office for Eastern District of Virginia.
The former Norfolk, Virginia-based advisor not only sold unregistered investments as part of the scheme, but misled his clients about those investments, prosecutors charge. Yet it’s not the first time Hudspeth has been censured. Regulators fined him on at least two other occasions for various offenses.
In the most-recent case, an associate of Hudspeth, not named in the court documents, created and controlled investments, which were high risk and illiquid. The associate, however, had been banned from the industry by FINRA for unspecified fraudulent activities, according to prosecutors.
From 2012 to 2015, Hudspeth sold his associate's investments to his wealth management clients, many of whom were retirees. The former independent advisor found some of these clients through seminars he offered on maximizing Social Security benefits, prosecutors say.
CEO Ron Kruszewski received praise for leading the firm's wealth management unit to a record for revenue, despite costly legal setbacks.
As Vice President, Underwriting Research and Development, Jackie Waas is involved in investigating and developing underwriting innovations, with an emphasis on concept development, research, presenting new ideas, and participating in concept validation activities.
She started her career with RGA in 2018 as Director of Underwriting Services, where she supported direct-to-consumer accelerated offerings, including assisting with the auditing of the e-underwriting program and helping develop digital health scores while supporting the Digital Health Data team.
Prior to joining RGA, Jackie was an Underwriting Business Consultant and automated underwriting systems subject matter expert with Legal & General America for four years after working in an underwriting capacity with the company for nine years. She also had five years of underwriting experience with AXA Equitable and formerly worked as a marketing manager for Steele Rubber Products.
Jackie received a Bachelor of Arts with a major in communications and a minor in psychology from Lenoir-Rhyne University in North Carolina. She is a Certified Fellow of the Academy of Life Underwriting, a Fellow of the Life Management Institute, and a Fellow of the Financial Services Institute. She is also an Associate, Reinsurance Administration; Associate, Insurance Agency Administration; and an Associate, Insurance Regulatory Compliance. Jackie also holds the Professional, Customer Service Institute designation, and she is a member of the Association of Home Office Underwriters.
Guizhou Hu is Vice President, VP, Head of Risk Analytics at RGA, where he supports global RGA underwriting initiatives and produces internal and external thought leadership pieces based on RGA's in-depth risk analytics. Before joining RGA in 2018, Guizhou served as Vice President, Chief Decision Analytics, for Gen Re and as a Senior Vice President for BioSignia Inc. Guizhou holds a medical degree from Beijing Medical University and a Ph.D. in Philosophy from Cornell University.
Hudspeth joined the industry in 2001, having worked at several independent BDs, including Royal Alliance and Next Financial, according to FINRA BrokerCheck records. He later ran his own firm, Dominion Investment Advisors.
Regulatory authorities in Virginia revoked Hudspeth's licenses and permanently closed Dominion Investment Advisors in early 2016, according to prosecutors.
But that was not the first time he was under the regulatory spotlight.
In 2005, Virginia's Bureau of Insurance fined him $1,000 for misrepresenting the terms of insurance policies, according to BrokerCheck records. In 2009, FINRA fined him $5,000 and suspended him for 30 days for selling REITs without possessing the correct license.
And Virginia's securities regulator fined him again in 2013 for failing to report a disciplinary sanction. The penalty that time was $1,000.
Having pleaded guilty in federal court earlier this month, Hudspeth now faces a maximum penalty of 15 years in prison. He is scheduled to be sentenced on January 22, 2018, according to the U.S. Attorney's Office.
Neither he nor his attorney could be reached for immediate comment.
