Broker barred by FINRA

By Staff | October 4, 2011 | Last updated on October 4, 2011
1 min read

Wells Fargo broker Tom D. Hamsher has been permanently barred by FINRA from working for any member firm for violations related to the sale of securities issued by financial institutions including Fannie Mae and Freddie Mac.

From 2006 to 2008, Hamsher misrepresented and omitted material facts in communications with customers who on his advice purchased the securities. Following Hamsher’s March 2009 resignation, his firm settled about $8.9 million in customer claims.

The misrepresentations included the claim that preferred securities issued by Freddie and Fannie were bonds, giving customers the false impression these investments weren’t as risky as stocks. Hamsher also claimed the securities were backed by the federal government, which misled investors into believing their principal was guaranteed against loss.

Advisor.ca staff

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.