Kerry Lee Hoffman of Chicago Illinois a stockbroker formerly associated with LPL Financial LLC has been referenced in a customer initiated investment related arbitration claim in which the customer requested $100,000.00 in damages supported by allegations that the customer had been advised by Hoffman to invest in unregistered securities during the period in which the stockbroker was employed by LPL Financial. Financial Industry Regulatory Authority (FINRA) Arbitration No. 20-01678 (May 29, 2020).
FINRA Public Disclosure reveals that Hoffman has been identified in six additional customer initiated investment related disputes concerning accusations of his misconduct at LPL Financial. On July 17, 2019, a customer filed an investment related complaint in reference to Hoffman’s conduct where the customer sought $550,000.00 in damages based upon accusations that the customer was placed into an unregistered and fraudulent security by Hoffman in 2017.
On October 7, 2019, a customer filed an investment related complaint involving Hoffman’s conduct in which the customer requested $420,000.00 in damages based upon allegations of bad advice by Hoffman between June of 2015 and March of 2017. Hoffman is also the subject of a customer initiated investment related arbitration claim where the customer sought $170,000.00 in damages founded on accusations that Hoffman steered the customer towards purchasing a non-registered security that failed to be suitable for the customer. FINRA Arbitration No. 19-02634 (Oct. 16, 2019).
On December 31, 2019, another customer filed an investment related arbitration claim pertaining to Hoffman’s conduct in which the customer requested $320,000.00 in damages supported by allegations of inappropriate equities transactions that were facilitated by Hoffman between 2016 and 2018 during the period that Hoffman was employed by LPL Financial. FINRA Arbitration No. 19-03749.
Hoffman has been charged by Securities and Exchange Commission (SEC) with defrauding investors through the sale of GT Media securities. United States Securities and Exchange Commission v. Thomas V. Conwell and Kerry L. Hoffman Civil Action No. 19-cv-4409 (July 1, 2019).
According to the Complaint, Hoffman and Conwell were hired by GT Media to sell its securities. Between August of 2015 and July of 2018, $500,000.00 in GT Media stock and $350,000.00 in GT Media convertible promissory notes were allegedly offered and sold by Hoffman to five customers. The Complaint stated that the sales were effected away from Hoffman’s employment and that he received $50,000.00 in commissions.
The Complaint also alleged that short-term loans that were made by Hoffman to GT Media had been repaid with investor funds. SEC alleged that customers were not apprised by Hoffman about his conflicts of interest in this regard. The regulator indicated that one of Hoffman’s LPL Financial customers who invested in GT Media was not made aware from Hoffman that the company would be using her funds to repay a loan that Hoffman made to the company. SEC alleged that Hoffman’s conduct was violative of Securities Exchange Act of 1934 Section 10(b), SEC Rule 10b-5, Securities Act of 1933 Sections 5(a) and 17(a) and Investment Advisers Act of 1940 Sections 206(1) and 206(2).
Hoffman was discharged by LPL Financial on October 17, 2018 founded on accusations of his arrangement with GT Media.
