Former Wachovia/Wells Fargo Broker Barred by FINRA; Millions Recovered in Losses

The following appeared on FINRA's website's 'Disciplinary Actions, November, 2011:

Tom Douglas Hamsher (CRD #1708793, Registered Supervisor, Webb City, Missouri)

submitted a Letter of Acceptance, Waiver and Consent in which he was barred from association with any FINRA member in any capacity. Without admitting or denying the findings, Hamsher consented to the described sanction and to the entry of findings that he made misrepresentations and omitted to disclose material facts to many of his customers in connection with the purchase or sale of preferred securities of financial institutions, in conversations and correspondence with multiple member firm customers who purchased the securities on Hamsher’s recommendation. The findings stated that after Hamsher’s resignation, the firm subsequently settled claims from many of Hamsher’s customers, including allegations of material misrepresentations and omissions involving preferred securities of financial institutions, for aggregate payments of approximately $8.9 million.

(FINRA Case #2009018421001)

This ends the FINRA website's information.

Tom Hamsher, a former Wachovia Securities, LLC, and Wells Fargo Securities, LLC, broker, was accused of making false statements in connection with the sale of the Federal National Mortgage Association or "Fannie Mae" ("FNMA") and the Federal Home Loan Mortgage corporation or "Freddie Mac" ("FMCC"). Hamsher falsely represented that the preferred securities were "bonds," and that when they matured, the customers would recover their initial investment.

It has been reported that Hamsher falsely represented that the preferred securities were backed by the full faith and credit of the United States government, which misled investors into believing that their principal was guaranteed against loss. It has been reported that Wachovia and Wells Fargo paid approximately $8.9 million to settle their customer claims based upon Hamsher’s false statements.

Soreide Law Group, PLLC is currently investigating the sale of the preferred securities of financial institutions, including many cases against Wachovia Securities, L.L.C. and Wells Fargo Securities, L.L.C.