Arbitration process

Arthur Stewart Hoffman (also known as Art Hoffman) of Glendale Arizona a stockbroker formerly registered with Ameriprise Financial Services is referenced in a customer initiated investment related FINRA securities arbitration claim in which the customer sought $172,688.03 in damages founded on allegations that they had been advised by Hoffman to invest in Zima Global Ventures LLC (Zima Digital Assets) during the time that he was associated with Ameriprise Financial Services. Financial Industry Regulatory Authority (FINRA) Arbitration No. 20-01955 (June 22, 2020). The claim alleges that the investment was a fraudulent Ponzi scheme that caused the customer to experience damages.

This is not the first time that Hoffman has been accused of sales practice violations regarding his activities at a securities broker dealer. FINRA Public Disclosure confirms that on October 25, 2018, a customer initiated investment related FINRA securities arbitration claim concerning Hoffman’s conduct was resolved for $329,500.00 in damages based upon accusations that misrepresentations had been made to the customer concerning leveraged exchange traded funds and that Wedbush Securities failed to supervise Hoffman. FINRA Arbitration No. 16-02367. The claim alleges a breach of a fiduciary duty and fraudulent concealment by the stockbroker.

Hoffman has been barred from associating with any FINRA member in any capacity supported by findings that he failed to cooperate with FINRA investigators during the period that they were reviewing if he violated Ameriprise Financial Services’ policies on private securities transactions and outside business activities. Letter of Acceptance Waiver and Consent No. 2020066342101 (May 13, 2020).

According to the AWC, FINRA was made aware from Ameriprise that Hoffman had been suspended for violating company policies concerning outside activities and private securities transactions. The stockbroker was discharged on May 13, 2020 for this reason. Hoffman was asked by FINRA to provide documents and information, but he refused. FINRA determined that his obstruction of the investigation constituted the violation of FINRA Rules 2010 and 8210.

Hoffman was registered with Ameriprise Financial Services between November 18, 2016 and May 13, 2020.