The law firm of Oakes & Fosher is currently investigating the alleged misconduct of securities broker Gary Wayne Hammond. According to his publicly available FINRA BrokerCheck report, Gary Hammond had been the subject of multiple customer disputes over the course of his career.
Gary Hammond was a North Carolina-based securities broker who worked in the securities industry for twenty one years. During his career, he was registered with six different securities firms. He is not currently practicing as a securities broker in any fashion.
His Registrations
- Guardian Investor Services (1995-1999)
- Park Avenue Securities (1999-2000)
- Metropolitan Life Insurance (2000-2007)
- MSI Financial Services (2000-2017)
- MML Investor Services (2017-2017)
- Hornor, Townsend & Kent (2017-2017)
The Allegations
- In October 2018, a customer alleged that Gary Hammond engaged in deceptive trade practices and state securities fraud regarding the advisor’s recommendation to invest in private securities. This case was settled for $975,000 in damages.
- In December 2018, a customer alleged that Hammond engaged in deceptive trade practices and state securities fraud regarding the advisor’s recommendation to invest in private securities. This case was settled for $1,190,000 in damages.
- In January 2019, a customer alleged that Hammond engaged in unfair and deceptive trade practices and state securities fraud regarding the advisor’s recommendation to invest in a fictitious entity. This case was settled for $86,000 in damages.
- In March 2019, a customer alleged that Hammond engaged in deceptive trade practices and state securities fraud regarding the advisor’s recommendation to invest in private securities. This case was settled for $20,000 in damages.
- In July 2019, a customer alleged that Hammond engaged in deceptive trade practices and state securities fraud regarding the advisor’s recommendation to invest in private securities. This case was settled for $680,000 in damages.
- In January 2021, Hammond was officially sanctioned by FINRA following allegations that he had participated in private securities transactions totaling $1,638,000. The findings stated that the transactions involved investments in limited liability companies controlled by Hammond’s half-brother, and that Hammond participated in these transactions by referring investors, attending meetings about the investments, and receiving compensation for his referrals. Two of the limited liability company investments turned out to be Ponzi schemes. As a result of these findings, Hammond was barred from acting as a securities broker in all capacities indefinitely.
What Does This Mean?
Securities brokers are not allowed to engage in business ventures outside their member firm’s scope without first disclosing the extent of their involvement to said member firm. This is because outside business activities can often cause significant conflicts of interest for securities brokers. Less than scrupulous securities brokers might find themselves recommending private investments to their member firm customers because they have a financial stake in the security, because they are receiving cash incentives from a third party to do so, or simply because they receive an incredibly high commission when the transaction is executed. This was allegedly the case with Gary Hammond, using his position with his clients to make a profit off of referral commissions. Conflicts of interest might cause brokers to recommend these private investments to customers that are not financially suited for them. Securities firms want to prevent this type of thing from taking place and thus require all of its brokers to disclose this information prior to engagement. This is because it gives firms the opportunity to decide if an actual conflict of interest exists or if any investor might be harmed by the broker’s actions.
Oakes & Fosher Can Help
Many investors are unaware of the legal recourse available to them after losing money due to securities broker fraud and/or negligence. The truth is that investors who have lost money due to this fraud or negligence may actually be entitled to damages.
Oakes & Fosher dedicates its entire legal practice to helping investors across the nation. If you, or someone you know, have lost money investing with Gary Hammond, please contact Oakes & Fosher for a free and private consultation. Oakes & Fosher handles cases on a contingency basis, which means there are no fees charged unless we collect for you.
