Securities Lawyers Blog

According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker Arthur Hoffman (Hoffman), previously associated with Ameriprise Financial Services, LLC, has at least one disclosable event. These events include one regulatory event, alleging that Hoffman recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.

FINRA BrokerCheck shows a final customer complaint on September 15, 2022.

The Securities and Exchange Commission (‘Commission’) deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted pursuant to Section 15(b) of the Securities Exchange Act of 1934 (‘Exchange Act’) and Section 203(f) of the Investment Advisers Act of 1940 (‘Advisers Act’) against Arthur S. Hoffman (‘Respondent’). On August 8, 2022, a final judgment was entered by consent against Hoffman, permanently enjoining him from future violations of Section 17(a) of the Securities Act of 1933 (‘Securities Act’), Section 10(b) of the Exchange Act and Rule 10b-5 thereunder, and Sections 206(1) and 206(2) of the Advisers Act, in the civil action entitled Securities and Exchange Commission v. Arthur S. Hoffman, Civil Action No. 2:22-cv-00296 in the United States District Court for the District of Arizona. The Commission’s complaint alleged that, while an associated person of a registered investment adviser and registered broker-dealer firm, Hoffman defrauded eight clients by failing to disclose compensation he received from a private issuer while recommending the issuer’s securities to those clients, and, in at least one instance, misrepresenting the extent of the compensation he received from the issuer. The complaint alleged that Hoffman also took steps to conceal his misconduct from his associated firm’s supervision, and to mislead his clients about that firm’s role in supervising his recommendations. The complaint further alleged that Hoffman’s deception led clients to invest a total of more than $650,000 with the private issuer, and that clients lost over $610,000 as a result of those investments.