Ronald Walter Hannes

Attorneys at ChapmanAlbin are investigating fraudulent investment practices linked to Ronald Walter Hannes, a former financial advisor accused of defrauding clients of over $2.9 million. The Securities and Exchange Commission (SEC) recently took action against Hannes, barring him from the financial industry following his guilty plea to investment advisor fraud.

Hannes, operating as a registered representative from 1986 to 2019, was found to have engaged in a long-term fraudulent scheme from 2003 to 2019. During this period, he convinced clients to write checks to his company, Hannes Financial Services, Inc., for what he claimed were high-rate, tax-free bond investments. However, these so-called investments were a sham—there were no bonds or securities involved. Hannes used the funds for undisclosed purposes, affecting at least 19 clients.

In 2020, the State of Washington’s Department of Financial Institutions Securities Division issued a Consent Order against Hannes. This order outlined violations of the state’s anti-fraud statutes and prohibited Hannes from registering as an investment advisor or broker-dealer in the future. The findings also revealed dishonest and unethical business practices, further supporting the case for investor fraud.

On July 18, 2023, Hannes pleaded guilty to Investment Advisor Fraud in federal court. By February 2024, he was sentenced to five years of probation and ordered to pay over $3.1 million in restitution. As part of his plea, Hannes admitted to misleading clients and falsifying checks to conceal his fraudulent actions.

Following these developments, the SEC imposed severe sanctions, barring Hannes from participating in any securities-related business, including acting as a broker or investment advisor. He is also prohibited from participating in any offerings of penny stocks. These measures aim to protect future investors from the same deceptive practices.

If you or someone you know has been a victim of Ronald Walter Hannes or has suffered financial losses related to his fraudulent practices, contact ChapmanAlbin today. Our team is dedicated to helping victims of investment fraud recover their losses. We offer free consultations to evaluate your case and discuss your legal options.