Securities Lawyers Blog
According to records kept by The Financial Industry Regulatory Authority (FINRA) financial Broker John Hoidas (Hoidas), previously associated with American Trust Investment Services, INC., has at least one disclosable event. These events include one regulatory event, alleging that Hoidas recommended unsuitable investments in different investment products including debt securities among other allegations and complaints.
FINRA BrokerCheck shows a final customer complaint on July 07, 2023.
Without admitting or denying the findings, Hoidas consented to the sanctions and to the entry of findings that he made unsuitable recommendations in speculative alternative investments to customers of his member firm that were inconsistent with the customers’ investment profiles. The findings stated that Hoidas borrowed $10,000 from one of his firm customers without providing prior written notice or obtaining written approval from the firm. After Hoidas failed to repay the loan, the customer complained to the firm, which ultimately reached a settlement with the customer. The findings also stated that Hoidas also caused two member firms with which he was associated to maintain incomplete books and records. While registered through the firm, Hoidas communicated with at least two of his firm customers through text messages using his personal phone regarding securities-related business. Because the firm had not approved text messaging as a permissible electronic communications channel, it did not capture or maintain Hoidas’ text message communications as required. Separately, while registered through another firm, Hoidas entered into a commission-sharing agreement with another firm registered representative, which was not disclosed to, or approved by, the other firm. By receiving compensation through the unauthorized and undisclosed commission-sharing agreement, Hoidas caused the other firm to fail to comply with its recordkeeping obligations.