Noted Fiduciary Advocate Now Under Investigation After Bounced Checks, Client Complaints

Thursday, November 10, 2011 08:00
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Noted Fiduciary Advocate Now Under Investigation After Bounced Checks, Client Complaints

Tags: fiduciaries

The Labor Department has opened an investigation on Matthew Hucheson, a retirement plan consultant previously known in Washington as a vocal and articulate advocate of the fiduciary code.

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Hucheson has testified in favor of the fiduciary code in Department of Labor hearings over the years and has toured the country to train fiduciaries.

 

Unfortunately, at least two of his clients -- small business owners -- claim that their 401(k) plans are missing well over $1 million

 

There are signs he might have gotten in over his head buying an Idaho ski resort, but his people argue that he's been under a lot of pressure lobbying for healthcare reform and other causes.

 

He's defaulted on loans and apparently failed to pay at least one employee, who is also suing.

 

Recent communications from him that Bloomberg uncovered seem depressed and worried about the state of the markets and the economy.

 

It's sad when these kinds of charges start circulating around a once-passionate defender of plan participants and retail investors in general. 

 

But it also proves that not even fiduciaries are perfect. Sometimes they get into trouble. And simply subscribing to the fiduciary standard and branding yourself as a fiduciary isn't always enough.

 

Comments (3)

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bramsay
This looks like another example showing the risks of private investments, particularly those not held at qualified custodians.

The SEC has identified this as an area where they should focus more effort, if only they'd get the money they need to actually do so.

bramsay , November 10, 2011
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magnolia
Are you referencing Matthew Hutcheson in Portland, Oregon?
magnolia , November 12, 2011
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ScottMartin
That's him, Magnolia.

Bramsay, I'm wondering whether an anti-private placement message might do more good if it comes from advisors. Advisors have made great strides educating investors about predatory sales loads and other bad product features. Might be time for good players in the industry to differentiate themselves as "back to basics" distributors of simple, liquid, transparent solutions.
ScottMartin , November 14, 2011

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