NOTE: Stipulations of Fact and Consent to Penalty (SFC); Offers of Settlement (OS); and Letters of Acceptance Waiver, and Consent (AWC) are entered into by Respondents without admitting or denying the allegations, but consent is given to the described sanctions & to the entry of findings. Additionally, for AWCs, if FINRA has reason to believe a violation has occurred and the member or associated person does not dispute the violation, FINRA may prepare and request that the member or associated person execute a letter accepting a finding of violation, consenting to the imposition of sanctions, and agreeing to waive such member's or associated person's right to a hearing before a hearing panel, and any right of appeal to the National Adjudicatory Council, the SEC, and the courts, or to otherwise challenge the validity of the letter, if the letter is accepted. The letter shall describe the act or practice engaged in or omitted, the rule, regulation, or statutory provision violated, and the sanction or sanctions to be imposed.

Daniel Hope Hughes
AWC/2008012817301

Hughes engaged in outside business activities without providing prompt written notice to his member firm. Hughes and his wife formed an entity for the purpose of holding rental property and, in a series of transactions, the entity loaned a total of $40,000 to a payday loan operation for which the entity received $8,000 in interest payments. Hughes was introduced to the loan program by firm customers, and the entity, acting through Hughes, assigned its loan to a firm customer and did so at an $8,000 discount.

Daniel Hope Hughes : Fined $5,000; Suspended 10 days