Kerry Hoffman, Formerly of LPL Financial, Sued by SEC for Selling $3.3 Million in Unregistered Securities

Hoffman is accused of selling unregistered GT Media, Inc. securities to 46 investors in at least twelve states.

The Sonn Law Group is investigating claims that former LPL Financial advisor Kerry Hoffman sold millions in unregistered securities. Under FINRA Rules, brokerage firms are liable for their brokers’ misconduct or negligence and investors may be able to their investment through FINRA arbitration. Contact Sonn Law Group today or call us at 866–827–3202 for a free consultation.

Former LPL Financial Broker Kerry Hoffman (CRD#:1061740) was sued by the SEC on July 1, 2019. The SEC’s complaint alleges that Hoffman raised over $3.3 million through the sale of unregistered GT Media securities. According to the complaint, Hoffman was hired as an adviser for GT Media in 2015 while continuing to act as a broker for LPL Financial. Following his employment with GT Media, he solicited some of his LPL clients to invest in GT Media securities. He failed to disclose his conflicts with GT Media, including his position as their advisor as well as compensation he received from GT Media.

During this time, Hoffman also made several short-term loans to GT Media totalling over $75,000. These loans were eventually repaid with GT Media investor funds.

Following the filing of the SEC suit, a customer brought a case against Hoffman alleging that Hoffman sold them unregistered securities. The complaint, which alleges damages of $550,000, remains pending.

LPL Financial terminated Hoffman’s employment in 2018 for failing to disclose his involvement with GT Media. Most recently, Hoffman was permitted to resign from Union Capital Company for failure to fully disclose.

The SEC complaint, which also names Hoffman’s business partner — Thomas Conwell — as a defendant, seeks injunctions against future securities law violations, disgorgement of the defendants’ ill-gotten gains, and civil penalties.

Jeffrey R. Sonn is an experienced investor losses attorney. If you suffered losses because a financial professional recommended that you invest in unsuitable products, Mr. Sonn will protect your rights and interests. Please do not hesitate to contact the Sonn Law Group today for a free review of your claim.