- July 16, 2020
- Cadaret Grant & Co.
Steven Hoffman (CRD # 813555) is a Financial Advisor at Cadaret, Grant & Co., Inc. in Boca Raton, FL. Steven Hoffman has been in the securities industry since 1975 and previously worked at Descap Securities, Inc. and First Investors Corporation.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), since April 2006, Steven Hoffman was the subject of five (5) customer complaints, alleging sales practice misconduct:
• December 2019—”Allegations of unsuitable investment.” Alleged damages are $51,307.67 and the matter remains pending.
• February 2017—”The two sons of [Customer] brought this proceeding long after the deaths of their parents alleging that certain annuities purchased by their parents as far back as 2006 were unsuitable for their parents and that I engaged in annuity switching. They also alleged that certain income securities transferred to Cadaret Grant in 2014 and a few income securities purchased through Cadaret Grant were unsuitable for their parents. While the children also claimed that misrepresentations were made to their parents regarding these products, neither was present at the time the securities were explained and sold to their parents. I denied all of Claimants’ allegations, and maintain that the investments at issue were suitable (and consistent with their written stated objectives) and were not misrepresented. I also asserted that the few annuity changes that were made over the years were warranted and provided the [Customer] with added benefits. While Claimants alleged that their parents realized compensatory damages of $250,000 (and $100,000 in punitive damages) as a result of the trades at issue, in fact, the [Customer] realized a net profit in excess of $450,000.” The matter was settled for $27,500.00.
• July 2015—”CLIENT COMPLAINING ABOUT POOR INVESTMENT RETURNS.” The matter was closed without action.
• October 2011—”ALLEGED UNSUITABLE INVESTMENT RECOMMENDATIONS.” The matter was settled for $47,000.00.
• April 2006—”ALLEGED UNSUITABLE RECOMMENDATIONS DURING THE MARKET DECLINE OF 2003 WHEN LOSSES OCCURRED IN CUSTOMER ACCOUNT.” The matter was settled for $45,000.00.
For a copy of Kevin Hoffman’s CRD, click https://brokercheck.finra.org/individual/summary/813555#disclosuresSection
Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.
Reasonable basis suitability requires that a recommended investment or investment strategy be suitable or appropriate for at least some investors. Reasonable basis suitability requires an advisor to conduct adequate due diligence so that he or she can determine the risks and rewards of the investment or investment strategy.
Quantitative suitability requires a brokerage firm or financial advisor with actual or de facto control over a customer’s account to have a reasonable basis for believing that a series of recommended transactions – even if suitable when viewed in isolation – is not excessive and unsuitable for the customer when taken together in light of the customer’s investment profile. No single test defines excessive activity, but factors such as the turnover rate, the cost-equity ratio, and the use of in-and-out trading in a customer’s account may provide a basis for a finding that a member or associated person has violated the quantitative suitability obligation.
Customer-specific suitability requires that a member or associated person have a reasonable basis to believe that the recommendation is suitable for a particular customer based on that customer’s investment profile. Among the criteria that a financial advisor must evaluate to satisfy his or her customer-specific suitability obligations include the investor’s:
• Other investments
• Financial situation and needs
• Tax status
• Investment objectives
• Time horizon
• Liquidity needs
• Risk tolerance
• Any other information disclosed by the customer
The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at 800.931.8452 or by email at firstname.lastname@example.org.