The law firm of Oakes & Fosher is presently investigating the alleged misconduct of former securities broker Kerry Hoffman. According to his publicly available FINRA BrokerCheck report, Kerry Hoffman has been terminated from a securities firm and has been sanctioned by the Securities and Exchange Commission.
Kerry Hoffman operated most recently as an Illinois based securities broker. He worked in the securities industry for thirty-four years. During his career, he was registered with thirteen different securities firms. He is no longer working as a registered securities broker in any fashion.
His Registrations
- First Jersey Securities (1982-1987)
- Sherwood Capital (1987)
- Graystone Nash, Inc. (1987-1988)
- Dean Witter Reynolds (1988-1989)
- Rodman & Renshaw (1990)
- Olde Discount Corporation (1990-1997)
- Oppenheimer & Co. (1995)
- First Union Securities (1997-2000)
- McDonald Investments (2000-2007)
- UBS Financial Services (2007)
- Raymond James & Associates (2007-2010)
- LPL Financial (2010-2018)
- Union Capital Company (2018-2019)
The Allegations
- In November 2007, Kerry Hoffman was terminated from his position at UBS Financial Services following allegations that he entered trades without obtaining proper written authorization.
- In July 2019, Kerry Hoffman was officially sanctioned by the United States Securities and Exchange Commission. The findings in this matter state that he raised over $3.3 million from 46 investors for a privately traded, unregistered security known as GT Media. Kerry Hoffman allegedly solicited these funds without disclosing the fact that he was receiving financial compensation from GT Media to do so. According to the findings, Kerry Hoffman also lent GT Media money that was being repaid to him by using these invested funds.
- In July 2019, investors who had been afflicted by the alleged fraudulent investment mentioned above filed a claim against LPL Financial. This case is currently pending. They are seeking $550,000 in damages.
What Does This Mean?
Securities brokers like Kerry Hoffman are not allowed to engage in private securities transactions of any kind without first obtaining authorization from their member firm. This is because of the conflicts of interest that may occur. Securities brokers might recommend privately traded, unregistered securities to investors because they have a financial stake in that security, or because they are receiving cash kickbacks to do so, or simply because they receive an incredibly high commission from the investor when doing so.
The Securities and Exchange Commission’s findings state that Kerry Hoffman had a significant conflict of interest when recommending GT Media to investors. Conflicts of interest on the part of the broker can often lead to investors becoming invested in securities that are highly unsuitable for them. Securities firms want to prevent this type of thing from happening and thus require their registered securities brokers to disclose any and all involvement in private securities activities. Usually, when securities brokers do not disclose this information to their member firm, it is because they already know they will not approve of it.
While GT Media may not have been designed as a fraudulent investment, Kerry Hoffman’s alleged conflicts of interest definitely led to fraudulent activity. Kerry Hoffman was allegedly soliciting funds to be invested in GT Media who was then funneling it right back to him through cash kickbacks and loan repayment. This is the type of activity that can easily occur when investing in privately traded securities.
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 Kerry 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.
