RON HANNES Sell You Bad Investments?

Washington Securities Division Indicates Ron Hannes Misused Clients Funds

The Soreide Law Group is investigating possible investor claims involving Ronald Walter Hannes (CRD#: 1462241, Spokane, Washington). Namely, the securities broker, who worked for Woodbury Financial Services from 1994 to 2019, is on the receiving end of a Washington Securities Division’s Statement of Charges alleging he swindled 19 clients out of $2,900,000. It appears that Hannes sold illegitimate investments to clients for years. Here’s more:

Washington Securities Division Charges Ron Hannes With Arranging Deceptive Scheme

Evidently, Washington Securities Division brought a Statement of Charges on March 25, 2020. The SOC contains allegations of Ron Hannes violating Securities Act of Washington in connection with his sale of unregistered and illegitimate investments. Apparently, Washington’s Securities Administrator suspects Hannes’ actions are grounds to deny his registration as a securities broker.

Hannes Allegedly Caused Clients To Make Checks Payable To Hannes Financial Services For Off-The-Book Investments

The Statement of Charges indicates that Ron Hannes engaged in an “extensive, long-term fraud” against Woodbury clients through persuading them to write out checks to Washington for-profit corporation Hannes Financial Services (“HFS”) for “off-the-books” investments. It appears that Hannes misrepresented to clients that he was able to get them a fixed rate investment paying 5-7 percent in either a unit investment trust or a bond. Supposedly, Hannes did not give investors offering documents or any other documents showing the existence of their investments.
Also, Ron Hannes supposedly made transactions away from Woodbury that were not inserted in the firm’s books and records. Apparently, Woodbury indicated that it did not know about Hannes’ actions. It appears that the firm discovered Hannes’ actions after a client moved investments outside of Woodbury and did not know why their investments through Hannes were not part of this process. Supposedly, Hannes provided Woodbury with checks that he wrote out to Hartford for clients’ life insurance contracts. However, the Statement of Charges shows that Hannes falsified these checks. Supposedly, money was not directed to clients’ policies. Allegedly, Hartford had no record of the checks.

Woodbury Indicates Ron Hannes Took $2,900,000 From Investors For Bond, UIT Investments

It appears that Woodbury disaffiliated with Ron Hannes on December 13, 2019 when it realized that others wrote checks to HFS regarding purchases of insurance products that had not been submitted to the insurance company. It seems that Hannes actually got 19 of his clients to buy bonds or UITs. Allegedly, because of how long Hannes executed his scheme, a number of his clients were not able to determine what they provided to him. Further, the Securities Division suggested that Hannes did not pay clients back. Evidently, this matter is ongoing.

FINRA Bars Ron Hannes

Moreover, FINRA moved to expel Hannes as securities broker through a February 13, 2020 Acceptance, Waiver and Consent which indicated that he violated FINRA rules by refusing to cooperate with an investigation. It appears that FINRA requested documents from Hannes in January 2020, but Hannes refused to comply. FINRA’s request comes after it learned that Hannes possibly converted funds from his clients at Woodbury.

Client Lodges Disputes Over Hannes

Evidently, a client of Woodbury brought a dispute about Ron Hannes on December 10, 2019. It appears that the client complained about the use of their funds to pay Hannes’s credit card. Supposedly, Hannes misappropriated this client’s money. Apparently, on February 14, 2020, Woodbury paid the client $128,827.06 to resolve this matter.

Losses From Woodbury Securities Broker Ron Hannes?

Have you experienced losses by investing with Ron Hannes? If so, contact Soreide Law Group at (888) 760-6552 and speak with experienced counsel about a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The law firm has recovered millions of dollars for clients who have suffered losses due to misconduct of securities brokers like Hannes and his employing brokerage firms.