Hugo Hernandez Barred by FINRA: Former MML Investors Services Broker Refused Testimony Amid Misappropriation Allegations
The Financial Industry Regulatory Authority (FINRA) has reportedly barred Hugo Hernandez (CRD# 6446187), a former broker and investment adviser, after he refused to appear for on-the-record testimony during a regulatory investigation involving serious misconduct allegations.
Hernandez was most recently registered with MML Investors Services, LLC in El Paso, Texas, where he worked from 2017 through 2024. He was previously registered with NYLIFE Securities LLC from 2015 to 2017.
FINRA Investigation and Rule 8210 Violation
According to FINRA’s Acceptance, Waiver & Consent (AWC), on January 5, 2026, FINRA formally requested that Hernandez provide on-the-record testimony pursuant to FINRA Rule 8210. The request stemmed from an investigation into whether Hernandez:
-
Failed to return customer investment funds
-
Engaged in undisclosed private securities transactions
-
Participated in undisclosed outside business activities (OBAs)
-
Borrowed money from customers, a practice strictly prohibited under FINRA rules
Despite acknowledging receipt of FINRA’s request during a January 12, 2026 phone call, Hernandez refused to appear for testimony at any time. FINRA found that this refusal violated FINRA Rules 8210 and 2010, which require registered representatives to cooperate fully with regulatory investigations.
Permanent FINRA Bar
As a result of his refusal to cooperate:
-
Sanction: Permanent Bar
-
Effective Date: January 23, 2026
-
Registration Capacities Affected: All
-
Duration: Indefinite
By consenting to the AWC, Hernandez accepted the findings without admitting or denying the allegations. Nonetheless, the bar permanently prohibits him from associating with any FINRA-member firm in any capacity.
Termination from MML Investors Services
FINRA records show that Hernandez was discharged by MML Investors Services, LLC on July 16, 2024, following allegations that he:
-
Engaged in prohibited loans with clients and prospective clients
-
Participated in undisclosed outside business activities
-
Took part in an unapproved private securities transaction
These alleged activities raise significant concerns regarding supervision, disclosure, and investor protection.
Customer Dispute Involving Alleged Misappropriation
In addition to the regulatory action, Hernandez was the subject of a customer dispute that settled on June 25, 2024.
Key Allegations:
-
A customer alleged that Hernandez solicited $20,000 in February 2024 in connection with an alternative investment
-
Hernandez allegedly promised repayment within 90 days with a 15% return
-
The customer claimed repayment checks bounced, totaling $23,000
-
The investor alleged misappropriation of funds
Resolution:
-
Settlement Amount: $29,550
-
Damages Requested: $23,000
FINRA records identify this matter as Case #202406260159.
Why FINRA Rule 8210 Matters to Investors
FINRA Rule 8210 is one of the regulator’s most powerful enforcement tools. When a broker refuses to testify or provide documents, FINRA cannot fully assess potential investor harm—leaving a permanent bar as one of the strongest remedies available.
For investors, a refusal to cooperate often signals serious underlying misconduct, including possible misappropriation, undisclosed investments, or personal financial dealings with clients.
Investor Losses and Legal Options
If you invested with Hugo Hernandez or through MML Investors Services, and experienced losses involving:
-
Loans to an advisor
-
Private or alternative investments
-
Unreturned funds
-
Undisclosed outside business activities
you may have legal options through FINRA arbitration, including claims against the broker-dealer for failure to supervise.
How The White Law Group Can Help
The White Law Group represents investors nationwide in FINRA arbitration claims involving broker misconduct, including misappropriation, private securities transactions, and supervisory failures at brokerage firms such as MML Investors Services.
Call 888-637-5510 for a free consultation
No recovery, no legal fee
