Woodbury Financial Services, Inc. Broker Ronald Hannes Investment Loss Options
Posted on Tuesday, September 8th, 2020 at 6:57 pm
There are options for customers who suffered investment losses due to recommendations by Woodbury Financial Services, Inc. broker Ronald Hannes (CRD# 1462241). Hannes was registered Woodbury Financial Services, Inc. in Spokane, Washington from 1994 to 2019, when he was terminated regarding, “the firm received notice from a client that funds were paid to the representative for purchase of a life insurance contract that were not forwarded to the life insurance company.”
In March 2020, the Securities Division of Washington entered a Statement of Charges against Hannes, alleging that he “violated the Securities Act of Washington by employing a scheme to defraud his clients by selling unregistered, fictitious investments, concealing these sales from his broker-dealer, and falsifying documents in response to the broker-dealer’s internal investigation. The Securities Division further alleges that Hannes defrauded at least nineteen clients of at least $2.9 million. The Statement of Charges gives notice of the Securities Division’s intent to enter an order to cease and desist from violations of the Securities Act of Washington, to impose a fine of $100,000, to charge investigative costs of $5,000, and to deny any of Hannes’s future investment adviser representative or securities salesperson applications for registration. Hannes has the right to request a hearing on the Statement of Charges.”
In February 2020, FINRA barred Hannes after he “consented to the sanction and to the entry of findings that he failed to produce documents and information requested by FINRA during its investigation into allegations that he converted customer funds. The findings stated that Hannes’ member firm terminated his association with it and disclosed that it received notice from a client that funds were paid to Hannes for purchase of a life insurance contract that were not forwarded to the life insurance company.”
Hannes has been the subject of one customer complaint, according to his CRD report:
December 2019. “Customers allege that in 2013 they paid off representative’s credit card.” The customer sought $7,267.50 in damages and the case was settled for $128,827.06.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Woodbury Financial Services, Inc. may be liable for investment or other losses suffered by Hannes’ customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.