Banned Woodbury Financial Broker Allegedly Sold Fake Investments, Converted Client Monies
Ronald Walter Hannes, a Spokane, Washington-based investment advisor and former Woodbury Financial Services broker, is accused by the Washington State Department of Financial Institutions of defrauding 19 clients of over $2.9M.
Hannes had operated out of Hannes Financial Services and he was also a registered Woodbury Financial Services broker for 25 years until 2019. He has 33 years of experience working in the industry. Hannes was fired by Woodbury Financial Services last December. Financial Industry Regulatory Authority (FINRA) barred him in February.
If Ronald Hannes was your financial advisor and you are wondering whether your investment losses may be due to stockbroker fraud or negligence, contact Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) today.
FINRA Barred Hannes Earlier This Year
According to his BrokerCheck Record, Ronald Hannes was let go by Woodbury Financial in 2019 after one client notified the firm that money paid to buy a life insurance contract was never forwarded to the insurer. Earlier this year, FINRA barred Hannes after he did not provide the documents and information it requested in an investigation into allegations that he had converted client funds.
In March 2020, Washington’s Securities Division accused Hannes of violating the state’s securities laws when he allegedly sought to defraud Woodbury Financial customers by selling them unregistered, fake investments and hiding these sales from the broker-dealer. He is accused of defrauding them of at least $2.9M. Hannes was ordered to pay a $100K fine.
There is currently one customer dispute on Hannes’ record. Although the claimant sought just over $7,200 in damages for the alleged use of customers’ funds by Hannes to pay off a credit card bill, the settlement reached was much higher at $128,827.
Other firms where Ronald Hannes was previously a registered broker include Fortis Investors, Amev Investors, and BLN Investment Corp.
It is quite common for a financial advisor to be registered with a local investment advisory firm and as a broker with a broker-dealer.
When a brokerage firm fails to properly supervise their registered representative or does not stop them from defrauding customers, those harmed may be able to pursue damages from both the broker and the financial firm. Call SSEK Law Firm at 800-259-9010 and request your free, no-obligation case consultation.