Gary Wayne Hammond, a Charlotte, NC advisor with MML Investor Services has been barred by regulators. Please call 1-866-817-0201 to speak to a private attorney for a free and confidential initial consultation about loss recovery.
The Financial Industry Regulatory Authority (FINRA) is a regulator under the oversight of the Securities and Exchange Commission. FINRA alleged that Hammond referred investors to businesses of his half-brother in exchange for a commission. The businesses of his half-brother were Ponzi-type schemes.
Hammond’s activity is referred to as “selling away.” When a broker recommends an investment not offered or vetted by his employer to obtain a heightened commission or to share in the fraudulent proceeds of that investment. The lack of vetting allows a company to run as a fraud since there is no review by a brokerage firm as to financials and operations. Such due diligence by a brokerage is essential to verify that the representations of the company are correct.
MML, like all brokerage firms, have duties to prevent its advisors from selling away. Audits and other mechanisms are required to be conducted on the operations of advisors by their brokerage. This is to verify that the advisors, such as Hammond, are not participating in outside business activity or recommending private offerings. Situations like the one Hammond put his investors rarely happen when such supervisory procedures are met.
Jeffrey Pederson has handled numerous such cases involving selling away. Call for a consultation.