FINRA Bars Broker for Allegedly Referring Investors to Ponzi Schemes

By February 8, 2021 Uncategorized

FINRA barred former MML Investors Services broker Gary Wayne Hammond for allegedly having participated in fourteen private securities transactions without providing notice to his firm, as detailed in a recent news article.

The alleged private securities transactions involved investments in three companies controlled by Mr. Hammond’s half-brother, two of which are alleged to have been Ponzi schemes. Mr. Hammond referred investors to his half-brother in exchange for a referral fee, generally 6 percent of the funds invested. Mr. Hammond’s clients invested more than $1.6 million in his half-brother’s businesses, with a total of $1 million being invested in the alleged Ponzi schemes.

Mr. Hammond consented to the bar but has not admitted or denied FINRA’s findings.

Fishman Haygood Securities Fraud lawyers have experience bringing claims relating to investment losses in products that turned out to be Ponzi schemes. If you have suffered losses, we may be able to help. Please contact us to discuss your potential claim.