Stephen Johnathan Hoshimi of Dallas Texas a direct participation programs representative for Crescent Securities Group Inc. has been fined $5,000.00 and suspended for three months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity supported by consenting to findings that he engaged in outside business activities that were not timely disclosed to Crescent Securities Group Inc. Letter of Acceptance Waiver and Consent No. 2016050828902 (Apr. 20, 2018).
According to the AWC, in May of 2016, during the time that Hoshimi was employed by Crescent Securities, he started The Hoshimi Group – a website designed to advertise services to investment advisers, including insurance based solutions. Apparently, Hoshimi failed to inform the firm about the outside business activity until he had been questioned by it in August of 2016 in the course of an examination of his activities by FINRA. FINRA found that Hoshimi’s conduct was violative of FINRA Rules 2010 and 3270.
This is not the first time that Hoshimi has been sanctioned by FINRA for wrongdoing. In particular, on February 27, 2017, FINRA suspended Hoshimi in all capacities based upon accusations that he neglected to respond to FINRA personnel regarding his activities. Case No. 2016050828901 (Feb. 27, 2017).
Moreover, he has been suspended for six months from associating with any FINRA member in any capacity supported by consenting to findings that he sold away from the firm and engaged in undisclosed outside business activities while associated with Securities America, Inc. Letter of Acceptance Waiver and Consent No. 20080148553-01 (Nov. 29, 2011).
According to the AWC, between May of 2006 and December of 2006, Hoshimi took part in two customers’ life settlement transactions; customers’ variable life insurance policies were sold to brokers for $390,855.00. FINRA found that by Hoshimi selling away from the firm, he violated National Association of Securities Dealers (NASD) Rules 2110 and 3040. Moreover, between December of 2006 to May of 2008, Hoshimi reportedly took part in six additional transactions involving customers’ sales of fixed life insurance policies for $1,152,033, where Hoshimi was paid commissions totaling $325,422.00 in return for his work. FINRA concluded that Hoshimi’s conduct was violative of NASD Conduct Rule 3030.
FINRA Public Disclosure confirms that Hoshimi has been referenced in thirty-seven customer initiated investment related disputes containing allegations of his misconduct while employed with Securities America. For example, a customer initiated investment related arbitration claim regarding Hoshimi’s activities was resolved for $46,419.41 in damages based upon accusations that transactions were effected in the customer’s account that were not suitable for the customer, misrepresentations had been made to the customer, and fiduciary and contractual obligations were breached in reference to the customer’s alternative investment transactions. FINRA Arbitration No. 10-00586 (Sept. 29, 2011).
Additionally, a customer initiated investment related arbitration claim involving Hoshimi’s conduct was settled for $555,865.39 in damages founded on allegations of suitability and misrepresentation in regard to the customer’s medical capital transactions. FINRA Arbitration No. 11-01288 (Sept. 29, 2011). Another customer initiated investment related arbitration claim concerning Hoshimi’s activities was resolved for $487,403.76 in damages supported by accusations that the customer’s account was handled in a negligent manner, misrepresentations had been made, and the customer had been defrauded in reference to the customer’s limited partnership interest transactions. FINRA Arbitration No. 09-06150 (Sept. 29, 2011).
Thereafter, a customer initiated investment related arbitration claim regarding Hoshimi’s conduct was settled for $20,000.00 in damages based upon allegations of suitability, misrepresentation and negligence pertaining to the customer’s real estate investment trust holdings. FINRA Arbitration No. 13-02005 (May 29, 2014).
Hoshimi was terminated by Securities America, Inc. based upon accusations that he did not abide by Securities America’s procedures concerning life settlement transactions. Hoshimi was then terminated from Crescent Securities Group, Inc. on September 2, 2016 supported by allegations that he failed to inform the firm about outside business activities. Hoshimi has been associated with five different broker dealers, one of which has been expelled by securities regulators for violation of federal securities laws or is otherwise defunct.
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