Hugo E. Urrea Arrested for Securities Fraud

Based on an investigation conducted by the Securities Division of the Louisiana Office of Financial Institutions and the Louisiana Attorney General’s Office, Hugo E. Urrea of Mandeville was arrested on August 31, 2011 in connection with the fraudulent sale of securities.  Urrea has been charged with 11 counts of felony theft, 11 counts of acting as an unregistered dealer, salesman, and investment adviser, and 9 counts of making material misstatements in the sale of securities.  Urrea is a former broker, but has not been registered to do business in Louisiana since 2006.  He was previously cited for acting as an unregistered investment adviser in 2009, resulting in a Consent Order issued by the Commissioner of Securities on September 22, 2009.  The current charges allege that Urrea solicited approximately $419,000 from 23 individuals to either invest the funds or to provide investment advice.  Urrea is alleged to have used these funds for his personal benefit and to return funds to other investors.  The felony theft charges carry a possible sentence of up to 10 years in prison and a $3,000 fine for each count, while the counts related to unregistered activity and making material misstatements carry a possible sentence of up to 5 years in prison and a $10,000 fine for each count.