U.S. Department of Justice
U.S. Attorney’s Office
Western District of Texas

October 15, 2008

Shana Jones, Special Assistant
Daryl Fields, Public Information Officer
(210) 384-7440

LOCAL STOCKBROKER INDICTED

The United States Attorney’s Office announced today that Bruce E. Hammonds, of Boerne and San Antonio, Texas, was indicted by a federal grand jury in San Antonio on securities and wire fraud charges.

The indictment charging Hammonds alleges that as early as August 2006, and continuing until on or about September 22, 2008, he devised a scheme to defraud investors. Specifically, the government alleges that Hammonds was insolvent and was using investor funds to pay his expenses rather than investing them as he had been retained by investors to do.

In addition to the criminal charges against him, the government is seeking a money judgment against Mr. Hammonds in the amount of $1,057,131.93, representing the amount of proceeds obtained directly or indirectly as a result of his alleged criminal activity.

Mr. Hammonds was arrested on a criminal complaint on September 22, 2008, and was released on bond on September 26, 2008.

This matter was investigated by the Federal Bureau of Investigation and the Texas State Securities Board. It is being prosecuted for the government by Assistant United States Attorney Bill Harris and Special Assistant United States Attorney Rhonda Rogers.

An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendant is presumed innocent unless and until convicted through due process of law.