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Convicted stock broker reports to federal prison

January 13, 2000|By MARLO BARNHART

Former Hagerstown stockbroker William Singer Hatcher Sr. reported to the Federal Correctional Institution in Cumberland, Md., Tuesday to begin serving a 21-month sentence for misappropriating funds of three of his clients, including his father and his stepmother.

A spokesman for the U.S. Bureau of Prisons in Annapolis Thursday confirmed Hatcher was at the institution chosen after his sentencing Nov. 19 in U.S. District Court in Baltimore.

Hatcher, 40, of 135 Broadway, had been allowed to remain free until the prison bureau determined which federal institution he was to report to within the next 40 to 60 days, according to Dale Kelberman of the U.S. Attorney's office who prosecuted the case.

Hatcher, who pleaded guilty in September to one count of mail fraud, also has been ordered to make $900,000 restitution to 12 people who loaned him money so he could repay the clients he defrauded, Kelberman said in November.

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Two months ago, Christine M. Hatcher filed a $500,000 lawsuit in Washington County Circuit Court against her stepson and the investment company he worked for, alleging she was defrauded out of hundreds of thousands of dollars over more than a decade.

The suit alleges William Hatcher sold securities that Christine Hatcher owned and converted them to his own use. The suit also alleges that Ferris Baker Watts, for whom William Hatcher worked for 15 years, should have discovered the fraud.

Christine Hatcher, 69, inherited securities from family members in the 1970s. She owned more than $800,000 in shares of IBM, Texaco Corp., Sears and other companies, according to the suit.

The suit alleges that William Hatcher sold those shares from 1985 to 1987, and from 1988 and 1990 in his own account that he set up in the name William Singer Hatcher.

No date has been set for that civil hearing.

William Hatcher resigned from the firm in December 1998.

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