In a recent disciplinary action announcement, FINRA announced that Douglas Eric Hampton (CRD #2797816, Uniontown, Ohio) submitted a Letter of Acceptance, Waiver and Consent in which he was barred from association with any FINRA member in any capacity. Without admitting or denying the findings, Hampton consented to the sanction and to the entry of findings that he paid a total of $523,622, via wire transfer or personal check, to the Chief Financial Officer and Deputy Treasurer (CFO/DT) in the Office of the Treasurer of the State of Ohio, and to two other conspirators or entities they controlled, in exchange for state brokerage business that the CFO/DT directed to Hampton.
The findings stated that Hampton submitted a Request for Information for Broker/Dealer Services to the Office of the Treasurer, where a selection committee headed by the CFO/DT reviewed and approved it. Thereafter, Hampton conducted his first trade as an authorized broker on behalf of the State. In exchange for additional securities business, Hampton agreed to pay the CFO/DT and the two conspirators from commission proceeds that he received from trading securities for the State of Ohio. Hampton received over $3.2 million in commissions from executing 360 securities trades on behalf of accounts belonging to the Office of the Treasurer. Hampton’s conduct resulted in a willful violation of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. Hampton pled guilty to felony conspiracy to defraud the United States.
For the full FINRA findings, see FINRA case #2013038259901.
According to his FINRA Broker Report, Hampton was employed by First Allied Securities from December 2008 through July 2013.
The foregoing information, which is all provided on FINRA’s website, is being provided by The White Law Group. The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Vero Beach, Florida.
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