John James Hoidas, of Skokie, Illinois, a stockbroker registered with Uhlmann Price Securities LLC (UPS), has been fined $40,000.00 and suspended for 18 months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because Hoidas made unsuitable recommendations and caused the securities broker dealer to maintain false records or books. Letter of Acceptance, Waiver, and Consent No. 2019061216402 (July 7, 2023).
On August 25, 2021, Uhlmann Price Securities submitted a Form U5, indicating that Hoidas was no longer registered with the securities broker dealer, as it received a complaint about Hoidas relating to the sales of private placements.
According to the AWC, from January 6, 2017, to February 7, 2018, Hoidas proposed and sold GPB Holdings II securities to three customers. These GPB Capital Holdings LLC products were not appropriate for their financial circumstances.
The AWC stated that Customer A, 48 years old, invested $50,000.00 in Holdings II in September of 2017, and $150,000 more in February 2018, despite not meeting the criteria as an accredited investor required for those investments. The investments exceeded the company’s own guidelines and were unsuitable, according to the AWC.
FINRA noted that Customer B, 52 years old, invested a total of $450,000 in Holdings II. While Customer B met the financial requirements for such investments, they were unemployed and sought only stable, cash-like investments. The investments broke the company’s own rules and were unsuitable, FINRA stated.
Also, Customer C, 44 years old, invested $50,000 in Holdings II. With a limited amount of investing experience, a low-risk preference, and not meeting the financial requirements for such investments, FINRA indicated that this investment was also unsuitable.
Hoidas violated FINRA Rules 2010 and 2111.
The AWC also stated that while working at UPS, Hoidas was not allowed to borrow money from customers. Yet, in July of 2018, he borrowed $10,000.00 from a customer without informing the securities broker dealer. After Hoidas didn’t pay back the loan, the customer made a complaint to UPS. He violated FINRA Rules 2010 and 3240.
FINRA Public Disclosure shows that Hoidas was referenced in ten customer initiated investment related disputes concerning Hoidas’ conduct while associated with securities broker dealers. On August 31, 2020, a customer initiated investment related complaint involving Hoidas’ conduct was settled for $12,500.00 in damages based upon allegations that Hoidas made unsuitable recommendations of closed end funds, given the customer’s investment knowledge and risk tolerance when Hoidas was associated with Uhlmann Price Securities LLC.
On June 24, 2021, another customer initiated investment related complaint involving Hoidas’ conduct was settled for $11,500.00 in damages based upon allegations that Hoidas made unsuitable recommendations of Renovate America, GPB Capital Holdings, LLC, and other private placements during the time that Hoidas was associated with Uhlmann Price Securities LLC.
Hoidas was also referenced in a customer initiated investment related complaint that was settled on January 19, 2022, for $40,000.00 in damages based upon allegations that Hoidas engaged in unsuitable trading in GPB investments.
On January 27, 2022, a customer initiated investment related FINRA securities arbitration claim involving Hoidas’ conduct was settled for $110,000.00 in damages based upon allegations that Hoidas made unsuitable recommendations of private placements. FINRA Arbitration No. 21-00760.
Hoidas was also referenced in a customer initiated investment related FINRA securities arbitration claim that was settled for $185,000.00 in damages based upon allegations that Hoidas engaged in unsuitable trading in private placements. FINRA Arbitration No. 21-01834 (May 20, 2022).
On August 3, 2022, a customer initiated investment related FINRA securities arbitration claim involving Hoidas’ conduct was settled for $32,500.00 in damages resulting from the sale of private placements. FINRA Arbitration No. 21-03094.
Hoidas was associated with Uhlmann Price Securities LLC from September 10, 2013, to February 20, 2020. He was associated with American Trust Investment Services Inc. as a stockbroker between April 24, 2020, and May 13, 2021.
