Securities Lawyers Blog
The law offices of Gana Weinstein LLP are currently investigating claims that advisor Kerry Hoffman (Hoffman) engaged in undisclosed outside business activities (OBAs) and investment sales that were not approved by his brokerage firm. Hoffman, formerly registered with LPL Financial LLC (LPL Financial) and Union Capital Company (Union Capital) was subject to charges of securities fraud by The Securities and Exchange Commission (SEC) according to records kept by The Financial Industry Regulatory Authority (FINRA). In addition, Hoffman disclosed two customer complaints and three employment termination for cause.
In July 2019 the SEC charged Hoffman along with Thomas Conwell (Conwell) for fraudulently selling securities to retail investors. The SEC’s complaint alleges that from July 2015 through July 2018, Conwell and Hoffman raised over $3.3 million from approximately 46 investors through the sale of unregistered GT Media, Inc. securities. The SEC alleged that Conwell is no stranger to securities fraud and was previously enjoined by the SEC and criminally convicted for stealing money from investors. In the case of GT Media, the SEC alleged that investors received numerous false representations including that two Fortune 500 companies were seeking to acquire GT Media and that GT Media would soon conduct an initial public offering. The SEC claims that Conwell misappropriated $161,500 from investors for his his personal expenses. The SEC also alleged that Hoffman solicited 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.