The law firm of Oakes & Fosher is presently investigating the possible misconduct of former securities broker Stephen Hoshimi. According to his publicly available FINRA BrokerCheck report, Stephen Hoshimi has been the subject of multiple customer disputes over the course of his career.

Stephen Hoshimi operated most recently as a Texas based securities broker. He worked in the securities industry for twenty-one years. During his career, he was registered with five different securities firms.

His Registrations

  • John Hancock Mutual Life Insurance Company (1989-1997)
  • Signator Investors (1989-1999)
  • Securities America (1999-2008)
  • Capwest Securities (2008-2010)
  • Crescent Securities Group (2015-2016)

The Allegations 

  • In July 2010, a customer alleged that Stephen Hoshimi recommended unsuitable securities that include Medical Capital and Provident Shale. The customer also alleged that Hoshimi misrepresented key details regarding these investments. This case was settled for $321,222 in damages.
  • In September 2011, a customer alleged that Stephen Hoshimi sold her investments that were unsuitable for her needs. She also alleged misrepresentation, negligence, and fraud. This case was eventually settled for $487,403.
  • He was sanctioned by FINRA later in 2011. The findings in this matter state that Stephen Hoshimi allegedly engaged in private securities transactions without the approval, or even providing written notice to, his member firm. For his alleged actions, he was suspended from acting as a securities broker in any fashion for a period of six months.
  • In July 2013, a customer alleged that Hoshimi recommended two non-traded REIT investments, and that both investments were unsuitable. The customer went on to allege misrepresentation, breach of contract, and negligence. This case was settled for $20,000.
  • In April of 2018, Stephen Hoshimi was once again sanctioned by FINRA. The findings in this matter state that he once again engaged in outside business activities without seeking the approval of, or even providing written notice to, his member firm–that firm being Crescent Securities. For his alleged actions, he was fined $5,000 and suspended from acting as a securities broker in any fashion for a period of three months. Two years prior to the official sanction, Crescent Securities had conducted their own investigation and terminated Stephen Hoshimi from his position at the company.

These are just some of the disputes that Stephen Hoshimi was at the center of.

What Does This Mean?

Almost all securities firms require their brokers to disclose all the outside business ventures they are involved in. This is because outside business ventures can create significant conflicts of interests with securities brokers. Some securities brokers become financially involved in privately traded securities and will in turn recommend said securities to investors at their member firm. This is why member firms require their brokers to disclose this information. Because it gives them the opportunity to analyze if a genuine conflict of interest might actually take place. Often times, when securities brokers fail to disclose their outside business ventures to their member firm, it is because they know that their member firm will not approve of it. However, securities firms need to adequately monitor their registered brokers so that they can catch this activity even when it goes undisclosed. Firms are not absolved from liability simply because the broker fails to forgo their involvement with any outside business ventures.

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 could 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 Stephen Hoshimi, 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.