Tim Hemingway Suspended over ETN Recommendations
Tim Hemingway (CRD# 5013252), a broker registered with Smith Brown & Groover, improperly recommended an exchange-traded note, according to a recent disciplinary action. MDF Law is investigating the Macon, Georgia-based financial professional for similar conduct. We encourage investors with concerns about their accounts to reach out for a free, confidential discussion about their case.
To learn more about Mr. Hemingway’s history as a broker, continue reading this post. The information below is sourced from his BrokerCheck record, a Financial Industry Regulatory Authority profile reviewed on January 22, 2025.
Why Did FINRA Suspend Tim Hemingway?
On November 6, 2024, FINRA undertook a disciplinary action against Mr. Hemingway. As it alleged, he recommended a trading strategy to certain customers without fully understanding its features or risks. He also allegedly failed to fully understand the ETN in which the strategy primarily invested. As a result, FINRA found, he “did not have a reasonable basis to recommend the strategy to any customer.”
In addition to the above, FINRA alleged that he failed to conduct his own due diligence on the strategy or the ETN. Among other things, he didn’t fully understand the strategy’s workings or its risks. “For example,” FINRA concluded, “he did not understand the risk/reward profile of the ETN or the conditions under which the ETN could lose all its value.”
As a result of these findings, FINRA suspended him from registering with any member firm in any capacity for four months. It also issued him a fine of $7,500. His suspension commenced on December 2, 2024 and will end on April 1, 2025.
Firm Settled Hemingway Disputes
In 2019, two parties of investors filed disputes involving Mr. Hemingway that his member firm settled. These claims included allegations that he breached his fiduciary duty and unsuitably used discretion. Both stemmed from investments in a volatility-linked product. His member firm settled the disputes for more than $686,000.
FINRA: Broker Based in Macon, Georgia
Mr. Hemingway launched his career as a broker when he registered with Smith Brown & Groover in 2005. He has remained at the firm since, based at its office in Macon, Georgia. With 19 years of experience as a broker, he has completed four industry exams, including the Series 65 and the Series 63. Due to the recent FINRA disciplinary action against him, he is under suspension until April 2025.
ETN Losses? Call MDF Law for a Free Consultation
MDF Law’s seasoned team of investment fraud attorneys has recovered more than $100 million in lost funds for our clients. If you suffered losses on ETN or other investments recommended by Tim Hemingway, contact our team to discuss your options. We offer free consultations to investors across the US, and we accept cases on contingency. Your window to file an arbitration claim may be limited, so don’t delay: call 800-767-8040 for a free consultation today.