BRUCE E HAMMONDS - Investment Adviser

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Firm

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Detailed ReportReport

BRUCE E HAMMONDS

BRUCE EDWARD HAMMONDS

CRD#: 5030215

Previous Investment Adviser

Previous Broker

BARRED BY FINRA OR THE SEC

FINRA has barred this individual from acting as a broker or otherwise associating with a broker-dealer firm.

The representative was previously registered both as an investment adviser and as a broker. Visit BrokerCheck for more information on this individual's Broker record. Go to BrokerCheck Site

Licenses

Licenses

0 Licenses

Registration History

Disclosure(s)

View By:

9/21/2009

Regulatory

Final

Initiated By

FINRA

Allegations

SECTION 10(B) OF THE SECURITIES EXCHANGE ACT OF 1934 AND RULE 10B-5 THEREUNDER, NASD RULES 2110, 2120 AND 2330: RESPONDENT BRUCE E. HAMMONDS FRAUDULENTLY INDUCED CUSTOMERS OF HIS MEMBER FIRM AND OTHER INDIVIDUALS TO LIQUIDATE THEIR ACCOUNTS AND INVEST IN EXCESS OF $1 MILLION IN A PONZI SCHEME. HAMMONDS CREATED A PARTNERSHIP AND TOLD HIS CUSTOMERS AND INVESTORS THAT THE PARTNERSHIP WOULD BE MANAGED BY HIS MEMBER FIRM. HAMMONDS MISREPRESENTED TO CUSTOMERS AND INVESTORS THE TYPE OF PRODUCTS THE PARTNERSHIP WOULD INVEST IN, AND THE INVESTMENT RETURNS. RATHER THAN INVEST THE MONEY RECEIVED FROM CUSTOMERS AND INVESTORS IN SECURITIES OR FUTURES CONTRACTS AS HE REPRESENTED, HAMMONDS MISAPPROPRIATED THE CUSTOMERS' AND INVESTORS' FUNDS, USING THE FUNDS TO PAY FOR PERSONAL EXPENSES AS WELL AS TO PAY INVESTORS IN THE PONZI SCHEME UNDER THE GUISE THAT THEY WERE RECEIVING RETURNS ON THEIR INVESTMENTS. IN FURTHERANCE OF THE SCHEME TO DEFRAUD, HAMMONDS PROVIDED CUSTOMERS AND INVESTORS WITH FICTITIOUS ACCOUNT STATEMENTS REPORTING GROWTH IN THEIR INVESTMENTS. IN CONNECTION WITH THE SALE OF SECURITIES THROUGH THE SCHEME, HAMMONDS DIRECTLY OR INDIRECTLY, BY THE USE OF MEANS OR INSTRUMENTALITIES OF INTERSTATE COMMERCE, OR THE MAILS, KNOWINGLY OR RECKLESSLY, (I) EMPLOYED DEVICES, SCHEMES, OR ARTIFICES TO DEFRAUD, (II) MADE UNTRUE STATEMENTS OF A MATERIAL FACT OR OMITTED TO STATE A MATERIAL FACT NECESSARY IN ORDER TO MAKE THE STATEMENTS MADE, IN LIGHT OF THE CIRCUMSTANCES UNDER WHICH THEY WERE MADE, NOT MISLEADING, CONCERNING THE PARTNERSHIP AND THE INVESTMENT OF FUNDS, OR (III) ENGAGED IN ACTS, PRACTICES, OR COURSES OF BUSINESS WHICH OPERATED OR WOULD OPERATE AS A FRAUD OR DECEIT UPON CUSTOMERS AND INVESTORS. HAMMONDS ALSO INDUCED CUSTOMERS AND INVESTORS TO PURCHASE SECURITIES BY MEANS OF ANY MANIPULATIVE, DECEPTIVE OR OTHER FRAUDULENT DEVICE OR CONTRIVANCE.

Resolution

Decision & Order of Offer of Settlement

Bar

Bar (Permanent)

Registration Capacities Affected

All Capacities

Duration

Indefinite

Start Date

12/28/2009

Regulator Statement

WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, HAMMONDS CONSENTED TO THE DESCRIBED SANCTION AND TO THE ENTRY OF FINDINGS; THEREFORE, HE IS BARRED FROM ASSOCIATION WITH ANY FINRA MEMBER IN ANY CAPACITY.

2/18/2009

Criminal

Final Disposition

Previous Registration(s)

th hidden text	th hidden text	Name	Location
IA	03/10/2006 - 06/26/2008	MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED (CRD#:7691)	SAN ANTONIO, TX

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED (CRD#:7691)

SAN ANTONIO, TX

03/10/2006 - 06/26/2008

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Broker

A brokerage firm, also called a broker-dealer, is in the business of buying and selling securities – stocks, bonds, mutual funds, and certain other investment products – on behalf of its customer (as broker), for its own bank (dealer), or both. Individuals who work for broker-dealers - the sales personnel are commonly referred to as brokers.

Investment Adviser

An investment adviser is paid for providing advice about securities to clients. In addition, some investment advisers manage investment portfolios and offer financial planning services.

Disclosures

Disclosures can be customer complaints or arbitrations, regulatory actions, employment terminations, bankruptcy filings and certain civil or criminal proceedings that they were a part of.