Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker/adviser Gary Hammond (CRD # 2660432) was recently barred from the securities industry by FINRA’s Department of Enforcement. The sanction occurred as a result of an investigation into private placement securities offerings.
The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Hammond.
Registration Background for Gary Hammond
Mr. Hammond first became registered in the securities industry in 1995. He was most recently registered with Charlotte, NC based Horner, Townsend & Kent, Inc. (CRD # 4031) from August 2017 to December 2017. His prior registrations include MML Investors Services, LLC (CRD # 10409) from March 2017 to May 2017 and MSI Financial Services, Inc. (CRD # 14251) from August 2000 to March 2017.
FINRA’s Allegations Against Gary Hammond
According to FINRA Letter of Acceptance, Waiver and Consent (AWC) dated January 19, 2021, Mr. Hammond consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “Between February and October 2016, while associated with MSI Financial Services, [Mr.] Hammond participated in at least 14 private securities transactions totaling $1,638,000 without providing written notice to his firm”;
- “The transactions, totaling $1,638,000, involved investments in three limited liability companies controlled by [Mr.] Hammond’s half-brother”;
- “Two of the limited liability company investments turned out to be Ponzi schemes.
- [Mr.] Hammond 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 above referenced private securities transactions to his firm, in a June 13, 2016 compliance questionnaire, [Mr.] Hammond falsely answered questions about whether he participated in private securities transactions or received referral fees outside of his firm”; and
- By virtue of his actions, Mr. Hammond violated FINRA Rule 3280, regarding private securities transactions and FINRA Rule 2010, regarding principles of trade and standards of commercial honor.
FINRA Sanctions Gary Hammond
As a result of such violations and in addition to the above described findings and conclusions, FINRA’s January 19, 2021 AWC also indicates that Mr. Hammond consented to the following sanction(s):
- A bar from association with any FINRA member in all capacities.
Gary Hammond Has A History of Customer Complaints
In addition to the findings of FINRA’s Department of Enforcement, FINRA BrokerCheck for Mr. Hammond reveals he has a history of customer complaints and/or customer initiated arbitrations, including but not limited to:
- On June 28, 2019 a customer initiated civil suit was filed in North Carolina Superior Court, Mecklenburg County, naming Mr. Hammond as defendant for alleged actions that occurred while he was associated with MSI Financial Services, Inc. The customers/plaintiffs alleged unfair and deceptive trade practices and state securities fraud regarding Mr. Hammond’s recommendation to invest in private securities. The customers/plaintiffs further alleged damages in excess of $25,000.00. On December 9, 2020, the suit was settled in the amount of $680,000.00.
- On December 12, 2018 a customer initiated civil suit was filed in North Carolina Superior Court, Mecklenburg County, naming Mr. Hammond as defendant for alleged actions that occurred while he was associated with MSI Financial Services, Inc. The customers/plaintiffs alleged unfair and deceptive trade practices and state securities fraud regarding Mr. Hammond’s recommendation to invest in private securities. The customers/plaintiffs further alleged damages in excess of $25,000.00. On December 18, 2020, the suit was settled in the amount of $1,190,000.00.
- On December 28, 2018 a customer initiated civil suit was filed in North Carolina Superior Court, Mecklenburg County, naming Mr. Hammond as defendant for alleged actions that occurred while he was associated with MSI Financial Services, Inc. The customers/plaintiffs alleged unfair and deceptive trade practices and state securities fraud regarding Mr. Hammond’s recommendation to invest in private securities. The customers/plaintiffs further alleged damages in excess of $25,000.00. On December 10, 2020, the suit was settled in the amount of $86,000.00.
- On October 22, 2018, process was served on Mr. Hammond naming him as a defendant in a customer initiated a civil suit in North Carolina Superior Court, Mecklenburg County. The suit alleged conduct that occurred while he was associated with MSI Financial Services, Inc. The customers/plaintiffs alleged unfair and deceptive trade practices and state securities fraud regarding Mr. Hammond’s recommendation to invest in private securities. The customers/plaintiffs further alleged damages in excess of $25,000.00. On December 3, 2020, the suit was settled in the amount of $975,000.00, of which Mr. Hammond was personally responsible for $175,000.00.
If you or someone you know has or had a brokerage account with Gary Hammond and/or MSI Financial Services, Inc. and have concerns regarding losses in your investments, including private placement securities or possible sales practice violations including fraud, you may be entitled to recover lost funds. The Law Office of Kevin J. Deloatch, Esq. has an extensive securities law practice and over 30 years of experience on Wall Street. Call today at (646) 792-2156 for a free consultation. The time to file your claim may be limited so you should call today to avoid delay.
