The law firm of Oakes & Fosher is presently investigating the alleged misconduct of securities broker Arthur Hoffman. According to his publicly available FINRA BrokerCheck report, Arthur Hoffman has been the subject of  a customer dispute in his career.

Arthur Hoffman is an Arizona based securities broker. He has worked in the securities industry for twenty-one years. During his career, he has been registered with four different securities firms.

His Registrations

  • Morgan Stanley (1999-2003)
  • Merrill Lynch (2003-2009)
  • Wedbush Securities (2009-2016)
  • Ameriprise Financial Services (2016-2020)

The Allegations 

  • In February 2016, a customer alleged that Arthur Hoffman committed common law fraud, made material misrepresentations, breached his fiduciary duty, engaged in fraudulent concealment, made negligent misrepresentations, managed the customer’s account negligently, and more. This case was settled for $329,500 in damages.
  • In May 2020, Hoffman was officially sanctioned by FINRA for allegedly engaging in outside business activities and private securities transactions.  As a result of these findings barred from acting as a securities broker indefinitely.

What Does This Mean?

Securities brokers like Arthur Hoffman are not allowed to recommend privately traded securities outside the scope of their member firm without first disclosing it to said member firm. This is because private transactions can often create significant conflicts of interests for securities brokers. What this means is that brokers might find themselves recommending private securities because they have a financial stake in said security, or because they are receiving cash incentives from a third party, or simply because they are pursuing the incredibly high commissions brokers receive when executing private securities transactions. This can easily lead to brokers recommending these investments to customers even if the customer is not financially suited for it. Securities firms want to prevent this from happening and thus require their registered brokers to disclose their involvement prior to engagement. This is because it gives securities firms the opportunity to decide if an actual conflict of interest exists, or if any member firm customer will be harmed by the broker’s actions.

Oakes & Fosher Can Help

Many investors are unaware of the legal recourse available to them after losing money due to securities broker fraud and/or negligence. The truth is that investors who have lost money in this fashion may actually be entitled to damages.

Oakes & Fosher dedicates its entire legal practice to helping investors across the nation. If you, or someone you know, have lost money investing with Arthur Hoffman, please contact Oakes & Fosher for a free and private consultation. Oakes & Fosher handles cases on a contingency basis, which means there are no fees charged unless we collect for you.