Written by The White Law Group• February 26, 2024• 1:05 am• Blog, Securities Fraud Articles

Ronald Hannes Charged with Defrauding investors

Ronald Hannes, Woodbury Advisor, Charged with Defrauding investors of $2.9 Million, featured by top securities fraud attorneys, the White Law Group

Ronald Hannes, Woodbury Advisor, Sentenced

Ronald Walter Hannes of Spokane, Washington, was reportedly sentenced for Investment Advisor Fraud this week, according to a press release on February 22, 2024. The owner of Hannes Financial Services, Inc, Hannes provided brokerage services under Woodbury Financial Services.

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After customer complaints, Woodbury Financial Services reprotedly terminated his employment in December 2019, followed by a FINRA bar. The FBI investigated reportedly Hannes for allegations that he was defrauding at least 21 investors by persuading them to invest in fictitious high-yield bonds.

Hannes allegedly claimed to have pre-purchased the bonds. He purportedly provided fake account documents to victims. Between April 2012 and March 2020, around 288 checks totaling over three million dollars were written to Hannes or associated entities, according to the charges.

Hannes reportedly received five years of probation and must sell his assets, including his home, to pay restitution to investors.

Criminal Charges

The criminal charges reportedly follow an investigation by the Washington Department of Financial Institutions in which Hannes agreed to pay a fine of $45,000 and not seek employment as an advisor in the future.

The original investigation reportedly includes testimony from a married couple that purportedly invested with Hannes and alleged that checks they had paid him dating back to 2012 were not listed on Woodbury accounts. The couple reportedly told investigators that Hannes lied by allegedly telling them that the money had been used to purchase life insurance.

FINRA BrokerCheck – Ronald Hannes

According to Hannes FINRA BrokerCheck profile, Woodbury reportedly fired Hannes in December 2019 and in February 2020 FINRA reportedly barred him from working in the securities industry. His profile indicates 1 customer complaint in 2019 that notes “Customers allege that in 2013 they paid off representative’s credit card.”

Hannes was reportedly affiliated with the following firms during his career in the securities industry, among others:

01/31/1994 – 12/18/2019, WOODBURY FINANCIAL SERVICES, INC. (CRD#:421), SPOKANE, WA,
01/30/1990 – 12/31/1993, FORTIS INVESTORS, INC. (CRD#:421), OAKDALE, MN

Recovery of Investment Losses

The White Law Group continues to investigate potential securities claims involving Ronald Hannes and the liability his employers may have for failure to properly supervise him.

When brokers and registered investment advisors violate securities laws, such as making unsuitable investment recommendations or unauthorized trades, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington.

We represent investors in all 50 states including Washington. Our attorneys have recovered millions of dollars from many brokerage firms in the past.