Gary Hammond, Former North Carolina Broker, Barred by FINRA Following Allegations of Participating in Private Securities Transactions Without Written Notice

Hammond is also accused of providing false information on a firm compliance questionnaire.

Gary Hammond (CRD#: 2660432) was registered as a broker Hornor, Townsend & Kent in Charlotte, NC, from August 2017 until December 2017. Previously, Hammond was registered as a broker with MLL Investors Services from March 2017 until May 2017 and with MSI Financial Services from August 2000 until March 2017.

Hammond has twelve disclosures on his BrokerCheck report. One customer dispute was closed with no action taken, one was withdrawn, and two were denied.

January 2021 Regulatory Judgment

• Status: Final
• Initiated By: FINRA
• Allegations: Without admitting or denying the findings, Hammond consented to the sanction and to the entry of findings that he participated in private securities transactions totaling $1,638,000 without providing written notice to his member firm. The findings stated that the transactions involved investments in limited liability companies controlled by Hammond’s half-brother. Hammond participated in these transactions by referring investors to his half-brother, attending meetings about the investments and receiving compensation for his referrals. Two of the limited liability company investments turned out to be Ponzi schemes. Hammond referred customers, who invested a total of $1,019,000, to these fraudulent investments. Additionally, in a firm compliance questionnaire, Hammond falsely answered questions about whether he participated in private securities transactions or received referral fees outside of his firm.
• Resolution: Acceptance, Waiver & Consent (AWC)
• Sanctions: Bar
• Registration Capacities Affected: All capacities
• Duration: Indefinite
• Start Date: 1/19/2021

July 2019 Customer Dispute

• Status: Settled
• Allegations: Plaintiffs allege unfair and deceptive trade practices and state securities fraud regarding the advisor’s recommendation to invest in private securities commencing 2012.
• Damage Amount Requested: $25,000.01
• Settlement Amount: $680,000.00

March 2019 Customer Dispute

• Status: Pending
• Allegations: Plaintiffs allege unfair and deceptive trade practices and state securities fraud regarding the advisor’s recommendation to invest in private securities commencing in 2005 and 2016.
• Damage Amount Requested: $25,000.01

January 2019 Customer Dispute

• Status: Settled
• Allegations: Plaintiffs allege unfair and deceptive trade practices, state securities fraud regarding an investment into a fictitious entity, in 2008, approximately.
• Damage Amount Requested: $25,000.01
• Settlement Amount: $86,000.00

December 2018 Customer Dispute

• Status: Settled
• Allegations: Plaintiffs allege unfair and deceptive trade practices and state securities fraud regarding the advisor’s recommendation to invest in private securities commencing 1999.
• Damage Amount Requested: $25,000.01
• Settlement Amount: $1,190,000.00

October 2018 Customer Dispute

• Status: Settled
• Allegations: Plaintiffs allege unfair and deceptive trade practices and state securities fraud regarding the advisor’s recommendation to invest in private securities, commencing 2000.
• Settlement Amount: $975,000.00

May 2018 Customer Dispute

• Status: Pending
• Allegations: Plaintiffs allege unfair and deceptive trade practices and state securities fraud regarding the advisor’s recommendation to invest in private securities commencing 2014.
• Damage Amount Requested: $25,000.01

April 2017 Employment Separation After Allegations

• Firm Name: MML Investors Services, LLC
• Termination Type: Discharged
• Allegations: Terminated in connection with an internal review relating to violation of company policy as to the handling of a customer complaint and selling away.
• Broker Comment: Please refer to broker check. Please refer to letter of explanation. I am currently working with my attorney to expunge U5.

Contact Us Today

The Sonn Law Group is currently investigating allegations surrounding Gary Hammond. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.