Retirees to recoup their losses

Mass. wins settlement for Edison pensioners

William Howes remembers the last stock market crash all too well.

It was 2001, and the Boston Edison Co. retiree had lost most of his pension, a six-figure sum, at the hands of a broker who invested his money too aggressively. In fact, the broker, Howard "Buck" McHugh of A.G. Edwards & Sons Inc., lost at least $1.8 million entrusted to him by two dozen Boston Edison retirees whom he had cold-called relentlessly until they agreed to be his clients.

Howes, 75, and the other former Boston Edison workers will finally get all their money back, following a settlement yesterday by the Massachusetts Securities Division with A.G. Edwards's owner, Wachovia Securities. Howes, who had to go back to work part time after losing the money, said he is still shaken by the experience.

"It's an awful feeling," said Howes, who worked for 40 years as a troubleshooter at the company that's now part of NStar. "It was hard for me to live with it, and it still is."

McHugh pressured the retirees so aggressively, according to the state's complaint, that Boston Edison's chief executive at the time sent a letter to employees warning them about the broker.

A spokesman for Charlotte, N.C.-based Wachovia said the matter took place long before the banking company's 2007 purchase of A.G. Edwards, and added, "We're pleased to put it past us." Wachovia recently agreed to be acquired by Wells Fargo & Co.

McHugh, who last worked for Edwards in Carlsbad, Calif., is no longer a broker, according to the Securities Division. He could not be reached for comment.

Secretary of State William F. Galvin, who oversees the Securities Division, called the Edwards situation a cautionary tale for retirees and others worried about their investments in the current environment of plunging stocks and a slumping economy.

"There's a panic out there," Galvin said. "There are unsophisticated retirees who are caught in a shocking situation, with losses in their 401(k) accounts."

Galvin said the division has recently received complaints about a number of people or entities peddling advice to retirees and others who have lost money in the market this year.

The state said it will keep the case open for another 30 days should other former Boston Edison workers who lost money with McHugh come forward.

Beth Healy can be reached at bhealy@globe.com.