LPL Broker Kerry Hoffman Barred from the Securities Industry
According to an administrative order this week, the SEC has reportedly barred former LPL Financial advisor Kerry L. Hoffman of Chicago, IL for the sales of unregistered securities.
The SEC alleged that between July 2015 and July 2018, Hoffman and a friend raised more than $3.3 million from 46 investors through the sale of unregistered GT Media Inc. (Joy of Mom) securities.
The complaint also alleged that Hoffman received compensation from GT Media and made several short-term loans to GT Media when the company had run out of money. The regulator said that the loans were allegedly repaid to Hoffman using funds that the company received from one of Hoffman’s advisory clients.
Hoffman, who was reportedly compensated as an advisor to GT Media, was also receiving commissions on their investments in GT Media stock, and purportedly loaned money to GT Media, which he apparently failed to disclose to his advisory clients, according to the complaint. The complaint also alleged that Hoffman acted as an unregistered broker.
According to Hoffman’s broker check report, he was allegedly registered with LPL Financial in Mundelein, IL from February 2010 until he voluntarily resigned in October 2018 because he purportedly “Held a private investment and executed an agreement to act as a Consultant to a company without disclosing or obtaining prior approval from LPL. Assisted some family members and a few clients with making investments in same company.” Hoffman reportedly has 7 customer complaints on his broker record. Allegations include unsuitable investment recommendations, among others.
Filing a Complaint against your Brokerage Firm
Brokerage firms are required to adequately supervise their advisors. They must ensure they are complying with FINRA rules.
When brokers abuse client accounts and conduct transactions that violate securities laws, the brokerage firm they are working with may be liable for investment losses. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.
The brokerage firms can be held responsible for any losses in a FINRA arbitration claim if it is determined that they failed to properly supervise their agent.
If you are concerned about investments with Kerry Hoffman and LPL Financial, the securities attorneys at The White Law Group may be able to help you. For a free consultation with an attorney, please call (888) 637-5510.
The foregoing information, which is all publicly available, is being provided by The White Law Group.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois. For more information, please visit our website, www.whitesecuritieslaw.com.