Bill Carlton & Hans Hernandez Charged in Cherry-Picking Schemes
Bill Carlton (CRD# 1215541) and Hans Hernandez (CRD# 2109614), formerly brokers registered with Cetera Advisors and First Allied Securities, defrauded their customers, according to Securities and Exchange Commission charges. MDF Law is investigating the financial professionals for similar conduct. If you have concerns about investments in your accounts, contact us for a free and confidential consultation with an attorney.
SEC Charges: Bill Carlton and Hans Hernandez Cherry-Picked Investments
On September 27, 2024, the SEC published a litigation release detailing its charges against Mr. Carlton and Mr. Hernandez. The brokers conducted “separate multi-year cherry-picking schemes that defrauded their clients,” according to the SEC. “Cherry-picking” refers to a practice in which brokers allocate personal trades to favored customers or their own accounts.
“By watching the price movements in their personal accounts before deciding whether to keep trades for themselves or allocate the trades to their clients,” the SEC alleged, “Carlton and Hernandez each allegedly disproportionately allocated profitable trades to their personal accounts and unprofitable trades to their clients’ accounts.”
SEC Alleges Millions in Illicit Profits
As part of their alleged cherry-picking schemes, the brokers allegedly generated illicit profits in their accounts. Mr. Carlton allegedly generated around $5.3 million in such illicit profits, while Mr. Hernandez allegedly generated more than $1 million.
The SEC has charged each broker with violations of antifraud provisions of the Securities Exchange Act of 1934 and the Investment Advisers Act of 1940. It seeks “permanent injunctions, disgorgement with prejudgment interest, and civil penalties.” It has also entered cease-and-desist orders for compliance failures against their former firms, Cetera Investment Advisers and First Allied Securities.
FINRA: Brokers Last Based in Washington and New Jersey
Mr. Carlton started working as a broker in 1983, according to his FINRA BrokerCheck profile, reviewed on November 9, 2024. Over the course of his career, he worked at firms including Lehman Brothers, Prudential Securities, First Allied Securities, and Cetera Advisors. Since departing Cetera’s Bellevue, Washington office in January 2024, he has not registered as a broker or an investment adviser.
Mr. Hernandez started working as a broker in 1994, according to a November 9, 2024 review of his BrokerCheck profile. His career has included tenures at Westfield Financial Corporation, Edward Jones, and First Allied Securities. He worked at Cetera Advisors in Princeton, New Jersey from 2022 until 2023, and has remained unregistered since his departure.
MDF Law Advocates for Investors Like You
Did you lose money on investments recommended by Bill Carlton or Hans Hernandez? MDF Law can help you get it back. Call our seasoned investment fraud attorneys today for a free consultation about your case. Our clients only pay a fee if they recover lost funds. You may have a limited window to pursue losses, so don’t delay: contact MDF Law at 800-767-8040 today.