Kerry Lee Hoffman of Mundelein Illinois a stockbroker formerly registered with LPL Financial LLC has been barred by Securities and Exchange Commission (SEC) from being a stockbroker or investment adviser representative and barred from associating with securities firms across the country according to an Order based on allegations of Hoffman violating securities laws relating to promissory notes and stock issued by GT Media. Administrative Proceeding File No. 3-20201 (Jan. 11, 2021).
The Order shows that on January 8, 2021, a final judgement had been entered against Hoffman that requires him to commit no future violations of Securities Exchange Act of 1933 Section 17(a)(2) and 17(a)(3), Securities Exchange Act of 1934 Section 15(a), and Investment Advisers Act of 1940 Section 206(2). Civil Action No. 19-cv-4409.
In the Complaint SEC filed against him which led to this judgement, Hoffman was accused of making unauthorized sales of GT Media promissory notes and stock to advisory customers between August of 2015 and January of 2018. This allegedly concerned the accounts that customers held outside of LPL Financial. Hoffman allegedly received compensation from GT Media for this.
The Complaint contains allegations of Hoffman loaning funds to GT Media where those loans had been repaid by GT Media using customer funds. There was allegedly no point in which Hoffman told his advisory customers about the conflicts of interests relating to his arrangements with GT Media. Hoffman was also accused by SEC of being an unregistered broker for these transactions.
FINRA Public Disclosure shows that Hoffman has been identified in eight customer initiated investment related disputes regarding accusations of his misconduct while registered with LPL Financial. On October 6, 2020, a customer initiated investment related FINRA securities arbitration claim concerning Hoffman’s conduct was resolved for $301,500.00 in damages based upon allegations that a fraudulent and unregistered security had been sold to the customer by Hoffman when he was registered with LPL Financial. FINRA Arbitration No. 19-01913.
On October 6, 2020, another customer initiated investment related FINRA securities arbitration claim regarding Hoffman’s activities was settled for $219,843.75 founded on accusations that an unsuitable investment had been recommended by Hoffman resulting in damages between June of 2015 and March of 2017. FINRA Arbitration No. 19-03026.
Another customer initiated investment related FINRA securities arbitration claim involving Hoffman’s conduct was resolved for $92,292.50 in damages based on allegations of unsuitable advice by Hoffman at LPL Financial. FINRA Arbitration No. 19-02634 (Oct. 6, 2020).
On October 6, 2020, an additional customer initiated investment related FINRA securities arbitration claim concerning Hoffman’s activities was settled for $105,860.00 in damages supported by accusations of Hoffman making a bad investment recommendation to the customer concerning stocks between 2016 and 2018. FINRA Arbitration No. 19-03749 (Oct. 6, 2020).
Hoffman is also referenced in a customer initiated investment related FINRA securities arbitration claim which was resolved for $56,950.00 in damages founded on allegations that transactions executed by Hoffman while at LPL financial were not suitable for the customer and caused them to experience damages. FINRA Arbitration No. 20-01678 (Oct. 6, 2020).
On December 10, 2020, another customer filed an investment related complaint involving Hoffman’s activities in which the customer sought $75,000.00 in damages based upon accusations of the advisor selling unregistered securities from 2016 to 2018 resulting in losses.
Hoffman’s stockbroker registration with LPL Financial has been terminated as of September 7, 2018 supported by allegations of Hoffman’s unauthorized consulting arrangements with a company while registered with the securities broker dealer. His stockbroker registration with Union Capital Company was terminated on June 28, 2019 founded on alleged nondisclosures.
