Former Woodbury Financial Services, Inc. Broker, Ronald Hannes, Barred By FINRA For Failing To Cooperate With FINRA Investigation Regarding The Conversion Of Client Assets
Ronald Hannes (CRD # 1462241) was a Financial Advisor at Woodbury Financial Services, Inc. in Spokane, WA. Ronald Hannes has been in the securities industry since 1986 and was registered at Fortis Investors, Inc., Amev Investors, Inc., and BLN Investment Corp.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), on February 13, 2020, Ronald Hannes was barred by FINRA after failing to cooperate with the a FINRA investigation regarding whether he converted client funds. According to the FINRA sanction:
“Without admitting or denying the findings, Hannes 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.”
For a copy of the FINRA sanction, click here
In December 2019, Woodbury Financial Services, Inc. discharged Ronald Hannes alleging “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 addition, on March 25, 2020, Ronald Hannes was the subject of a regulatory enforcement proceeding in the state of Washington. According to the summary order “the Securities Division entered a Statement of Charges and Notice of Intent to Enter Order to Cease and Desist, Deny Future Registrations, Impose Fines, and Charge Costs (“Statement of Charges”) against Respondent Ronald Walter Hannes (“Hannes,” CRD #1462241). In the Statement of Charges, the Securities Division alleges that Hannes 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.”
During his career, Ronald Hannes has also been the subject of a customer complaint, alleging sales practice misconduct:
• December 2019—” Customers allege that in 2013 they paid off representative’s credit card.” The matter settled for $128,827.06.
For a copy of Ronald Hannes’ CRD, click here
Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.
The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at 800.931.8452 or by email at firstname.lastname@example.org.