U.S. Recovers $325,000 for Victims of Former Investment Adviser’s Fraud Scheme

The U.S. Attorney’s Office has recovered more than $325,000 for victims of a fraudulent investment scheme operated by a former registered securities representative and investment adviser, highlighting continued enforcement efforts to recover assets even years after financial crimes occur.

According to the U.S. Attorney’s Office for the District of Montana, the recovered funds came from Thomas Brown Hammond, who was convicted in 2012 for theft from an employee benefit plan in the Eastern District of California. Hammond was sentenced to four years and nine months in federal prison and ordered to pay $536,521 in restitution to 14 victims.

Prosecutors said Hammond used his position as an investment professional to attract investors into a fraudulent private portfolio. Instead of investing the funds as promised, he allegedly transferred the money into a business account and used it for personal expenses.

Following his release from prison, Hammond relocated to Montana and remained under federal supervision. Recently, after receiving a significant inheritance, the U.S. Attorney’s Office obtained a court-authorized garnishment of non-exempt funds from a financial institution and secured $332,703.97 for distribution to affected victims.

Federal authorities noted that restitution orders can remain enforceable for up to 20 years after a defendant’s release from custody, allowing agencies to continue pursuing recovery efforts long after criminal convictions.

The case underscores regulators’ continued focus on holding financial professionals accountable for misusing investor funds. While Hammond’s conviction dates back more than a decade, authorities said the recovery demonstrates that enforcement actions can continue beyond sentencing to provide compensation for victims of financial fraud.