Barred Woodbury Financial Services Broker Accused of Misrepresentations and Fraud
If you are an investor who lost money while Robert Hayes Hoffman was your financial representative, our broker misconduct lawyers at Shepherd Smith Edwards and Kantas (SSEK Law Firm) would like to talk to you. Hoffman was barred by the Financial Industry Regulatory Authority (FINRA) in 2017 and the Indiana Securities Division in 2018. He was a Woodbury Financial Services broker from 2006 and 2017. After that, for less than a year, he was a Thurston, Springer, Miller, Herd & Titak broker until the FINRA bar.
Hoffman’s BrokerCheck record notes that he has already been the subject of at least three customer disputes. One claim, alleging unsuitability, misrepresentations, breach of fiduciary duty, and selling away, was settled for $250K. Another customer dispute, which made similar allegations, including churning, was settled for over $1M. A third dispute, which accused Hoffman of recommending a variable annuity that was not only unsuitable for the claimant but also resulted in tax consequences for her, was settled for nearly $48K.
FINRA’s bar against Hoffman came after he refused to appear to provide testimony in the self-regulatory’s probe into the allegations made by his customers. With 17 years in the industry, prior to working as a Woodbury broker Hoffman was a registered representative with Northwestern Mutual Investment Services, and Robert W. Baird & Co.
Inadequate Supervision
Brokerage firms have a duty to properly supervise their brokers to prevent incidents of fraud or negligence. They also must properly train their registered representatives and make sure that all policies and procedures are in place and implemented to protect investors. When failure to do any of this results in broker fraud, the broker-dealer can be held liable by customers seeking to recover losses and damages.
SSEK Law Firm Investigates Woodbury Brokers and GPB Claims
Our investor lawyers at SSEK Law Firm are looking into investor fraud claims not just involving Hoffman but also other Woodbury Financial Services brokers. The brokerage firm, which is headquartered in Minnesota, has 28 disclosures on its BrokerCheck record, including 20 regulatory events and 7 arbitration cases and it has paid settlements to customers for failing to properly supervise its brokers, including Hoffman.
SSEK Law Firm is also meeting with Woodbury customers who were sold GPB private placements by the firm’s representatives. Woodbury is one of more than 60 broker-dealers who sold these investments that are now being tied to an alleged $1.8B Ponzi scam involving issuer GPB Capital Holdings. The asset management firm invests in auto dealerships and waste management. Over the past year, thousands of investors have been left grappling with losses they suffered from investing in one of several GPB Funds, which have drastically plunged in value.
GPB Investor Fraud
Our GPB investor lawyers have been hard at work filing FINRA arbitration claims on behalf of our clients against the broker-dealers that sold these private placements to them. While investors continue to fight to get back their money from their GPB investment, brokerage firms and their brokers have walked off with over $160M commissions. Contact SSEK Law Firm to schedule your free, no-obligation case assessment today.