Christopher Lee Hibbard (also known as Chris Hibbard) of Louisville Kentucky a stockbroker formerly registered with Merrill Lynch Pierce Fenner Smith Incorporated is the subject of a customer initiated investment related complaint which has been resolved on October 24, 2019 for $175,000.00 in damages based upon accusations that (1) the customer was poorly advised (2) transactions were unsuitable given the customer’s investment profile (3) false statements were made about investments (4) the customer’s account had been churned by the stockbroker and (5) the customer’s funds were converted between July 1, 2010 and January 1, 2018.
On April 16, 2021, Hibbard was the subject of an Order from the United States Securities & Exchange Commission stating that:
On June 30, 2020, Hibbard pled guilty to one count of investment advisor fraud in violation of Title 15, United States Code, Sections 80b-6 and 80b-17, and nine counts of wire fraud in violation of Title 18, United States Code, Section 1343 before the United States District Court for the Western District of Kentucky, in United States v. Christopher L. Hibbard, Case No. 3:18-CR-182-CRS. On December 16, 2020, a judgment in the criminal case was entered against Respondent. He was sentenced to a prison term of 97 months followed by three years of supervised release and a special assessment of $1,000.
In connection with that plea, Hibbard admitted that between approximately February 9, 2007 and December 29, 2008, he made, or caused to be made, at least 65 Automated Clearing House (“ACH”) or other wire transfers from the brokerage account of an individual in the total amount of approximately $1,226,995, and that he misappropriated and used a substantial portion of the individual’s money for his own personal use. Furthermore, Hibbard admitted that he presented the individual with fraudulent brokerage statements on a regular basis to lull the individual into believing that the account contained as much as $4 million. Hibbard also admitted that between January 10, 2011 and December 20, 2017, he initiated more than 300 unauthorized ACH transfers from client accounts under his management to an American Express account he controlled, and that he caused the transfers to be made without the knowledge, permission, or other authorization of the account holder(s), thereby misappropriating and embezzling more than $3 million in client monies and using the funds for personal expenditures. Furthermore, Hibbard admitted that to effectuate his scheme to defraud, he engaged in unauthorized trading and liquidation of clients’ investments, made unauthorized withdrawals from client annuity accounts, and committed acts of forgery.
Financial Industry Regulatory Authority (FINRA) Public Disclosure indicates that Hibbard is the subject of nine more customer initiated investment related disputes pertaining to allegations of his bad business practices during the period in which he was employed by securities broker dealers including Merrill Lynch. Specifically, on April 16, 2018, a customer filed an investment related complaint pertaining to Hibbard’s conduct in which the customer requested unspecified damages supported by allegations that when Hibbard was employed by Merrill Lynch, fraudulent actions were taken with the customer’s assets which led the customer to suffer unwarranted losses.
Hibbard is additionally referenced in a customer initiated investment related complaint on October 24, 2018 where the customer sought unspecified damages founded on accusations that the customer’s cash management account funds had been misappropriated or stolen when Hibbard was employed by Merrill Lynch. Also, a customer initiated investment related complaint pertaining to Hibbard’s conduct has been settled for $3,600,000.00 in damages on June 6, 2019 supported by allegations that when Hibbard was employed by Merrill Lynch, misleading statements were made by the stockbroker pertaining to the risks and drawbacks of investments, the customer’s investment instructions were not followed by the stockbroker, investment recommendations and variable annuities transactions failed to be suitable or authorized by the customer, and a theft had been committed.
FINRA Public Disclosure also reveals that Hibbard has been barred from associating with any FINRA member in any capacity based upon allegations that the stockbroker neglected to respond to FINRA’s request for information about his activities. FINRA Case No. 2018057148601 (May 10, 2018). Also, Hibbard is the subject of an investigation initiated by the United States Attorney’s Office on April 2, 2018 into accusations that Hibbard was stole from his customers
Hibbard was discharged by Merrill Lynch on January 8, 2018 based upon allegations of the stockbroker stealing from customers and effecting unauthorized transactions.
