U.S. Attorney’s Office recovers more than $325,000 for fraud victims

BILLINGS - The U.S. Attorney's Office recently recovered more than $325,000 for victims of a California man who defrauded 14 victims of more than a half-million dollars, Acting U.S. Attorney Mark Steger Smith said.

The recovery dates back to a case from 2012. Thomas Brown Hammond was convicted that year of theft from an employee benefit plan in the Eastern District of California. The court sentenced him to four years and nine months in federal prison, followed by three years of supervised release, and ordered Hammond to pay $536,521 to the 14 victims. Following his release from Bureau of Prisons custody, Hammond moved to Montana and served his period of supervised release under the custody of U.S. Probation & Pretrial Services with the District of Montana.

Recently, Hammond received a substantial distribution from an inheritance. The U.S. Attorney's Office garnished nonexempt funds from the financial institution and will distribute $332,703.97 to Hammond's victims.

Even though Hammond was convicted more than a decade ago, federal law empowers the U.S. Attorney's Office to collect restitution judgments for 20 years after a defendant's release from prison. The U.S. Attorney's Office actively enforces restitution collection for the benefit of victims for the entire collection period, which can lead to substantial recovery for victims years or even decades after conviction.

Hammond was a registered securities representative and investment advisor. At Hammond's criminal trial, the government presented evidence that Hammond induced his victims to invest in his fraudulent private portfolio. Instead of actually investing, Hammond deposited the funds into a standard business account and withdrew the money for personal expenses. At the sentencing, Judge John A. Mendez called Hammond's actions "inexcusable."