FINRA Bars Former Charlotte, North Carolina Financial Advisor
The Financial Industry Regulatory Authority (FINRA) arbitration has permanently barred Gary Wayne Hammond, an ex-North Carolina broker, following allegations that he took part in more than $1.6M in private securities transactions without having given written notice to his then-firm. The transactions appear to involve limited liability companies run by Hammond’s half-brother, who is accused of operating Ponzi scams.
Hammond worked in the industry for 21 years, most recently as a Horner, Townsend, and Kent broker, where he worked for four months in 2017 and right before that with MML Investors Services, where he was a registered representative for two months.
According to BrokerCheck, prior to that, he was a broker with both Metropolitan Life Insurance and MSI Financial Services for 17 years. MSI Financial Services was acquired by MML Investors Services in 2017.
At Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com), we are speaking to former customers of ex-North Carolina broker Gary Hammond who suffered significant losses while working with him. Contact us at (800) 259-9010 to request your free, no-obligation case consultation.
Hammond Was Fired Following Selling Away Allegations
Gary Hammond was fired following an internal review over selling away allegations and his purported handling of a customer complaint. Selling away involves a broker recommending that a client buy products that a firm hasn’t approved.
As FINRA’s own probe found, these transactions involved companies run by his half-brother, whom he recommended to investors. Hammond earned money from the referrals even as he may have purportedly involved 10 customers, who invested over $1M, in his brother’s Ponzi frauds.
The self-regulatory organization (SRO) contends that Hammond falsely answered questions when asked whether he took part in private securities transactions or was paid referral fees outside of his then-brokerage firm. He accepted and consented to FINRA’s bar without admitting to or denying the findings.
Customer Disputes That Accuse Ex-North Carolina Broker of Securities Fraud
There are nine customer disputes on Gary Hammond’s BrokerCheck record, including:
- 7/2019: The claimants alleged fraud involving private securities recommendations. They sought $25K in damages. The investor claim was settled for $680,000.
- 3/2019: In this still pending broker negligence case involving private securities, the claimants are seeking $25K in damages.
- 1/2019: This investor fraud claim was settled for $86K.
- 12/2018: The claimants had alleged investor fraud related to private securities transactions and sought $25K in damages. The broker negligence case was settled for $1.19M.
- 10/2018: This securities fraud claim was settled for $975,000.
- 5/2018: In yet another investor fraud claim over private securities, the claimant in this still-pending case is seeking $25K in damages.
- 2/2018: This unsuitable investment fraud case was closed due to a lack of action.
- 8/2017: This unsuitability case involving variable annuities was denied.
- 8/2017: This broker fraud claim requested $690K in damages but was withdrawn.
- 5/2016: This unsuitable investment recommendation case was denied.
Other broker-dealers where Hammond used to work prior to MSI Financial Services include Park Avenue Securities and Guardian Investor Services Corp. He also is a former registered investment advisor.
Experienced Broker-Dealer Negligence Law Firm
If you suffered investment losses while working with a broker, you may still have time to file a FINRA arbitration claim to recover damages. You also may have grounds for holding the brokerage firm where the registered representative worked liable for their failure to properly supervise this individual.
SSEK Law Firm has recovered many millions of dollars on investors’ behalf and we work with clients nationwide. Contact us today.