Federal prosecutors alleged that between July 2015 and December 2015, Dwayne C. Hans submitted bids to the Defense Logistics Agency ("DLA") for contracts in the names of two different companies he created, and he was awarded 52 contracts worth about $533,000 on which he was paid about $12,000. In early 2016, Hans created numerous bank accounts in the name of a U.S. financial institution and he then modified payment information for that institution in order to redirect about $1.52 million payments a U.S. government agency intended to transfer to that institution but his actions were detected before he could withdraw/transfer said funds. Hans also caused the electronic transfer of about $134,000 from two corporate bank accounts at the institution and used the proceeds to purchase stock, invest in real estate, and pay utility bills. Finally, Hans fraudulently attempted to secure $1.6 million from the Pension Benefit Guaranty Corporation in the form of bogus expenses for three pension plans that did not exist and had no such reimbursable expenses. Hans pled guilty in the United States District Court for the Eastern District of New York to one count each of wire fraud and computer intrusion and was sentenced to 36 months' imprisonment and ordered to pay $134,000.00 in restitution.
Not being particularly fond of the times that I live in, I am a student of Ancient Greek and Ancient Roman history. In presenting today's BrokeAndBroker.com Blog's coverage of a FINRA expungement arbitration, I am reminded of the Battle of Asculum, during which Pyrrhus of Greece defeated the Roman army. As far as defeats go, this was a lopsided on in which Pyrrhus sustained about half the losses of his enemy; however, his losses were still substantial and many of his field commanders were killed. As is famously ascribed to Pyrrhus ""If we are victorious in one more battle with the Romans, we shall be utterly ruined."
Fast forward about 2,300 or so years and we leave the bloody field of Asculum and arrive at the more sedate setting of a FINRA arbitration hearing room. After the stockbroker Claimant and two of his former firms do battle, the Claimant emerges with a victory that is Pyrrhic in nature. He won the recommended expungment of a customer complaint. Unfortunately, he lost the sought expungement of a second customer complaint and that lack of redress may not be permanently etched into his industry record -- what was once written in pencil now takes on the appearance of being carved in stone.