Eric Shea Hollifield, of Dacula, Georgia, a stockbroker registered with LPL Financial LLC  is the subject of an enforcement action initiated by SEC in which the regulator is seeking sanctions against Hollifield based upon allegations that Hollifield committed securities fraud. Securities and Exchange Commission v. Eric S. Hollifield, Civil Action No. 2:22-CV-129-RWS (June 30, 2022).

According to the Complaint, in 2020, two customers of LPL Financial customer had been defrauded through Hollifield’s theft or misappropriation of their funds for his own use. Hollifield purportedly stole $1,700,000.00 from the customers so that he could buy a home. Hollifield allegedly had customers invest in “Century Warehouse Inc.,” which was in fact a that company that unbeknownst to customers, Hollifield controlled. The regulator alleges that the funds customers invested in Century Warehouse Inc. were almost immediately removed and relocated to Hollifield’s account for his own use. Hollifield also used other schemes to misappropriate money from his customers. Therefore, SEC alleges that Hollifield violated Securities and Exchange Act of 1934 Section 10(b), SEC Rule 10b-5, and Securities Act of 1933 Section 17(a).

Financial Industry Regulatory Authority (FINRA) Public Disclosure shows that Hollifield has been barred from associating with any FINRA member in any capacity because Hollifield failed to testify when FINRA investigated the stockbroker for potentially converting funds from an elderly investor. Letter of Acceptance, Waiver, and Consent No. 2021072558701 (October 7, 2021). According to the AWC, on September 29, 2021, Hollifield informed FINRA that he would not testify or provide information and documents relating to the investigation at any time. Therefore, he violated Rules 8210 and 2010.

Hollifield has also been barred as a stockbroker in the state of Georgia because Hollifield used customer funds “without authorization.” Order No. ENCE-221033 (January 5, 2022).

Public Disclosure shows that Hollifield is also referenced in a customer initiated investment related civil action in which the customer requested $1,240,000.00 in damages based upon allegations that Hollifield misappropriated funds in connection with the sale of investments when Hollifield was associated with Lincoln Financial Advisors Corporation. Civil Action No. 2:21-CV-268-RWS (February 28, 2022).

Hollifield was associated with LPL Financial LLC in Dacula, Georgia, as a stockbroker from October of 2016 to September of 2021. On August 12, 2021, LPL Financial LLC discharged Hollifield based upon allegations that Hollifield engaged in an undisclosed outside business activity.