The Securities and Exchange Commission (SEC) has charged former LPL Financial broker Kerry Hoffman (CRD#: 1061740) with securities fraud. He allegedly sold unregistered securities of GT Media, Inc. according to the SEC’s press release and his BrokerCheck record accessed on September 5, 2019. On July 1, 2019, the SEC charged Kerry Hoffman with securities fraud, alleging that he, along with his childhood friend Thomas V. Cromwell (who was barred from the securities industry in 2000 and later served time in prison for fraud) defrauded 46 investors of $3.3 million by convincing them to buy unregistered securities of GT Media, which produces motherhood-related lifestyle content as Joy of Mom.
According to the SEC’s complaint, “Of the 850,000 in investments Hoffman solicited on behalf of GT Media, $700,000 came from three of his advisory clients…including a widow who was Hoffman’s largest client.” Kerry Hoffman allegedly lied to his firm, telling them that he had no other outside business activities and had not offered any private securities transactions. Two weeks after the SEC filed these fraud charges against Kerry Hoffman, on July 17, 2019, claimants alleged that this broker sold them an unregistered security. They are seeking $550,000 in damages.
In addition to these recent developments, there are other disclosures on Kerry Hoffman’s BrokerCheck. On June 28, 2019, he was permitted to resign from Union Capital Company. The allegation was “failure to fully disclose.” That was not the only time he left a firm amid allegations of misconduct. He voluntarily resigned from LPL Financial on September 7, 2018 after he “held a private investment and executed an agreement to act as a Consultant to a company without disclosing or obtaining prior approval from LPL On November 8, 2007, he was discharged from UBS Financial Services Inc. after “an employee alleged that Mr. Hoffman entered trades without obtaining proper written authorization.” In his broker comment, Kerry Hoffman asserts, “Customer verified he believed proper written authorization was on file. Transition related occurance [sic]. UBS bought McDonald Investments. Client and broker believed written authorization was with prior firm. Once identified, written authorization was again obtained for the file.”
While he is currently not affiliated with a broker-dealer, over his 34-year career as a broker, Kerry Hoffman has worked for 13 firms:
- Union Capital Company (CRD#: 110301) of Chicago, Illinois
- LPL Financial LLC (CRD#: 6413) of Mundelein, Illinois
- Raymond James & Associates, Inc. (CRD#: 705) of Mishawaka, Indiana
- UBS Financial Services Inc. (CRD#: 8174) of Mishawaka, Indiana
- McDonald Investments Inc. (CRD#: 566) of Mishawaka, Indiana
- First Union Securities, Inc. (CRD#: 19616) of St. Louis, Missouri
- Old Discount Corporation (CRD#: 5979) of Detroit, Michigan
- Oppenheimer & Co., Inc. (CRD#: 630) of Chicago, Illinois
- Rodman & Renshaw Inc. (CRD#: 724)
- Dean Witter Reynolds Inc. (CRD#: 7556)
- Graystone Nash, Inc. (CRD#: 10635)
- Sherwood Capital, Inc. (CRD#: 10474)
- First Jersey Securities, Inc. (CRD#: 6621)
If Kerry Hoffman was your broker or if you have questions about the SEC’s investigation into the sale of unregistered securities of GT Media, Inc., please don’t hesitate to contact a securities attorney. Call (877) 238-4175 or email firstname.lastname@example.org for your free consultation.