Kevin Andrew Hobbs, Formerly of PFS Investments, Barred by FINRA Following Allegations of Trading Away

INVESTORS: Former PFS Investments broker Kevin Andrew Hobbs was barred by FINRA following allegations of trading away.

Kevin Andrew Hobbs (CRD: 4267482) was registered as a broker with PFS Investments from 2001 until 2022. Hobbs has no other securities experience.

Hobbs has seven disclosures on his BrokerCheck report. One customer dispute filed against Hobbs was denied and one was withdrawn.

March 2023 Regulatory Judgment

Status: Final

Initiated By: FINRA

Allegations: Without admitting or denying the findings, Hobbs consented to the sanction and to the entry of findings that he provided an inaccurate response to FINRA’s request for documents and information in connection with its investigation of allegations that he traded away from his member firm in a customer’s third-party brokerage account. The findings stated that FINRA requested Hobbs to identify all individuals for whom he had effected a securities transaction in an account other than at his firm. This information was material to FINRA’s investigation. Hobbs provided an inaccurate response that failed to identify at least one other individual whose account he had traded away from his firm. The findings also stated that Hobbs participated in numerous private securities transactions without prior written disclosure to, or approval from, his firm.

Resolution: Acceptance, Waiver & Consent (AWC)

Bar: Bar (Permanent)

Registration Capacities Affected: All Capacities

Duration: Indefinite

Start Date: 3/9/2023

January 2023 Customer Dispute

Status: Pending

Allegations: The statement of claim alleges the associated person made unsuitable investment recommendations in the customer’s non-PFS Investments Inc. accounts.

Damage Amount Requested: $500,000.00

September 2022 Customer Dispute

Status: Pending

Allegations: Consumers allege that Mr. Hobbs is responsible for losses of $800,000 in non-PFSI accounts.

Damage Amount Requested: $800,000.00

September 2021 Customer Dispute

Status: Settled

Allegations: The statement of claim alleges the associated person made unsuitable investment recommendations in the customer’s non-PFS Investments Inc. accounts.

Damage Amount Requested: $537,000.00

Settlement Amount: $375,000.00

April 2012 Customer Dispute

Status: Settled

Allegations: Alleged misstatements related to employees’ decision to transfer from non-PFSI related defined benefit plan to non-PFSI defined contribution plan.

Settlement Amount: $280,860.00

Broker Comment: A law firm brought a number of cookie-cutter cases against PFS Investments, Inc. (PFSI), and several of its registered representatives, that PFSI believes were specious and barred by the application statute of limitations, including this one against me. After winning several court cases on statute of limitations issues, to avoid incurring enormous legal fees and cost to defend the rest of the arbitration and court cases to a successful conclusion, PFSI settled with all the remaining claimants and I was not required to contribute to the settlement. The settlement benefits are in the nature of deferred monthly payments that begin in 2024.

The Sonn Law Group is currently investigating allegations surrounding Kevin Andrew Hobbs. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.