- September 8, 2019
- LPL Financial
Kerry Hoffman (CRD # 1061740) was a Financial Advisor at LPL Financial in Mundelein, Illinois. Kerry Hoffman has been in the securities industry since 1982 and previously worked at Raymond James and UBS Financial Services.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), on July 1, 2019, the Securities Exchange Commission (SEC) filed an enforcement action against Kerry Hoffman, alleging “that Hoffman raised over $3.3 million from approximately 46 investors through the sale of unregistered GT Media, Inc. securities. According to the complaint, Hoffman solicited certain of his advisory clients to invest in GT Media securities without disclosing his financial conflicts of interest, including his compensation from GT Media and his short-term loans to GT Media that were repaid using investor funds.”
The SEC enforcement action comes on the heels of LPL terminating his employment in 2018 for failing to disclose his participation in GT Media. Subsequent to the filing of the SEC enforcement action, a customer filed a complaint, alleging that Kerry Hoffman, predicated on his sale of the unregistered GT Media securities. The complaint, which alleges damages of $550,000, remains pending.
For a copy of Kerry Hoffman’s CRD, click https://brokercheck.finra.org/individual/summary/1061740#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.
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