E.F. Hutton America, one of the most iconic players in financial firm industry, will move it headquarters to Springfield.
Here’s some notable facts about the company and its founder.
- Founder E.F. Hutton: Edward Francis Hutton was born in 1875 in New York. His father, James Laws Hutton was originally from Jefferson County in Ohio. E.F Hutton’s second wife, Marjorie Merriweather Post, heiress to the General Foods company, was known for her famous houses. One of their homes, Mar-a-Lago, located in Palm Beach, Fla., was purchased and renovated by Republican Presidential nominee Donald Trump. The home is listed on the National Register of Historical Places and is designated as a National Historical Landmark.
- E.F. Hutton & Co. founded: The original firm was founded in 1904 in San Francisco. E.F. Hutton would remain the company’s chairman until his death in 1962.
Controversy: In the 1980s, EF Hutton was caught in an alleged check kiting scheme where they were accused of writing checks greater than what they had on hand at one bank, then depositing it at another bank for the same amount. This would lead to gains of additional funds for the individual branches. Hutton reportedly would receive an estimated $250 million per day to use in investments interest free. In 1985, Hutton agreed to a plea deal with the U.S. government where they would pay back more than $10 million in fines and restitution.
However, company leaders stressed EF Hutton America is a newly independent company that was incorporated in Colorado in 2007, and isn’t connected to any previous problems.
A group of former company executives and family members of the EF Hutton’s founder purchased the naming rights to the firm in 2014. Company officials also stressed none of the current management or employees were in any way connected with the previous problems.
- The company was acquired by Shearson in 1987: The company was purchased by Shearson Lehman/American Express and in 1988, the new company became Shearson Lehman Hutton Inc.
- Revival from Recession: During the Great Recession, the E.F. Hutton brand was sold off and merged with different companies. In 2008, the current management group took over, which included E.F. Hutton’s grandson, Stanley Hutton Rumbough. Their newest service, Gateway, connects customers to independent financial advisers.