NOTE: Stipulations of Fact and Consent to Penalty (SFC); Offers of Settlement (OS); and Letters of Acceptance Waiver, and Consent (AWC) are entered into by Respondents without admitting or denying the allegations, but consent is given to the described sanctions & to the entry of findings. Additionally, for AWCs, if FINRA has reason to believe a violation has occurred and the member or associated person does not dispute the violation, FINRA may prepare and request that the member or associated person execute a letter accepting a finding of violation, consenting to the imposition of sanctions, and agreeing to waive such member's or associated person's right to a hearing before a hearing panel, and any right of appeal to the National Adjudicatory Council, the SEC, and the courts, or to otherwise challenge the validity of the letter, if the letter is accepted. The letter shall describe the act or practice engaged in or omitted, the rule, regulation, or statutory provision violated, and the sanction or sanctions to be imposed.

Bruce Edward Hammonds
OS/2008013990501

Hammonds fraudulently induced his member firm’s customers and other investors to liquidate their positions or withdraw funds from their accounts and invest in excess of $1 million in a Ponzi scheme he orchestrated. Hammonds formed a partnership, and opened a partnership account that firm supervisors approved, but Hammond never disclosed the firm account on the firm’s electronic compliance disclosure system as an account in which he had an interest.

Hammonds told his customers and investors that his member firm would manage their investments, and he misrepresented the investment returns and the type of products  (indexed funds, futures contracts or securities) the partnership would invest in. He misappropriated the funds, using them to pay for personal expenses as well as to pay investor returns typical of Ponzi scheme. Hammonds provided customers and investors with fictitious account statements reporting growth in their investments.

Bruce Edward Hammonds : Barred

Tags: Ponzi