FINRA Reportedly Bars Broker Gary Hammond for Allegations of Fraudulent Securities Sales
According to the Financial Industry Regulatory Authority (FINRA), the regulator has barred Gary Wayne Hammond (Gary Hammond) of Charlotte, NC, from the securities industry after allegations of fraudulent private securities transactions.
Between February and October 2016, while associated with MSI Financial Services, Hammond participated in at least 14 private securities transactions totaling $1,638,000 without providing written notice to his firm.
FINRA’s findings state that the transactions involved investments in three limited liability companies controlled by Hammond’s half-brother. According to FINRA, Hammond participated in these transactions by allegedly referring investors to his half-brother, attending meetings about the investments and receiving compensation for his referrals. According to FINRA, the compensation was generally six percent of the funds raised, though was lower in some instances where Hammond’s half-brother had a preexisting relationship with an investor. Two of the limited liability company investments turned out to be an alleged Ponzi scheme.
Hammond purportedly referred ten customers, who invested a total of $1,019,000, to these two fraudulent investments. In addition to failing to disclose his participation in the private securities transactions to his firm, in a June 13, 2016 compliance questionnaire, Hammond reportedly falsely answered questions about whether he participated in private securities transactions or received referral fees outside of his firm.
According to his FINRA broker profile, Hammond was registered with MSI Financial Services in Charlotte, NC from 2010 until he was reportedly discharged in April 2017 “in connection with an internal review relating to violation of company policy as to the handling of a customer complaint and selling away.”
Hammond reportedly has 10 customer complaints filed against him since 2016, with two still pending. Allegations include unsuitable investments and “Unfair and Deceptive Trade Practices and State Securities Fraud regarding the advisor’s recommendation to invest in private securities,” among others.
For FINRA’s full findings see FINRA Case NO. 2017054137002.
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The White Law Group is investigating potential securities fraud claims involving Gary Hammond and the liability his former employer, MSI Financial may have for failing to properly supervise him.
Those investors that incurred losses investing with Hammond may be able to recover those losses through the FINRA arbitration process.
Under FINRA rules and regulations, Broker-Dealers are responsible for supervising the actions of those advisors registered with their firm, and therefore may be held liable for the actions of their Broker(s).
If you suffered investment losses with Gary Hammond, the securities attorneys at The White Law Group may be able to help you. Please call 888-637-5510 for a free consultation, or visit us on the web at www.whitesecuritieslaw.com.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois.