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Investors Claim Arthur Hoffman’s Investment Recommendation Led to Losses

Jan 24, 2022 Unsuitable Investments

Arthur Hoffman (CRD #:3193754), a broker formerly registered with Ameriprise Financial Services, is involved in three six-figure investor disputes, according to his BrokerCheck record, accessed on January 10, 2022. All of the unsuitable investment allegations stem from investments in Zima Digital Assets. 

Investor Allegations

Between 2020 and 2021, Arthur Hoffman was involved in three disputes accusing him of allegedly recommending unsuitable shares of Zima Digital Assets. Zima Digital Assets was a purported cryptocurrency investment fund. Authorities have alleged that it operated as a Ponzi scheme. 

According to FINRA Rule 2111, a broker must exercise due diligence and have an adequate reason for believing that an investment will also be suitable or beneficial for the investor. Investors who rely on their brokers for recommendations may be able to recover their losses through FINRA arbitration if their broker recommended an unsuitable investment. 

If you invested with Zima Digital Assets, do not hesitate to contact an experienced securities attorney as soon as possible. Kurta Law is a nationally recognized securities law firm with over 25 years of experience litigating securities fraud cases.

FINRA Bar

FINRA barred Arthur Hoffman on May 13, 2020, for allegedly failing to respond to requests for information. FINRA opened an investigation in response to a disclosure filed by Arthur Hoffman's member firm Ameriprise Financial Services, which stated that Arthur Hoffman had been suspended after violating company policies related to outside business activities and private securities transactions.

By refusing to produce the documents and information requested pursuant to FINRA Rule 8210, Arthur Hoffman violated FINRA Rules 8210 and 2010.

You can read a copy of the AWC here.

Employment Termination

On May 13, 2020, Ameriprise Financial Services fired Arthur Hoffman after allegedly violating company policies related to outside business activities and private securities transactions.

According to FINRA Rule 3270, FINRA requires that brokers provide written notice to their firms regarding their outside business activities. By engaging in an outside business activity without providing prior written notice to his firm, Arthur Hoffman violated FINRA Rules 3270 and 2010.

Arthur Hoffman has four businesses listed in the Outside Business Activity of his detailed BrokerCheck report, namely: 

  1. Real Estate owner 
  2. Owner: Custom woodworking/cutting board company
  3. CEO/Owner ICA Financial Services
  4. Consultant

Bankruptcy

On May 11, 2020, Arthur Hoffman filed for bankruptcy.

Investor Dispute

On February 16, 2016, Arthur Hoffman was involved in an investor dispute alleging fraud, breach of fiduciary duties, misrepresentation and omission of facts, and negligence. The case was settled for $329,500.

Background Information

Arthur Hoffman has passed the following exams:

  • Series 66 - Uniform Combined State Law Examination
  • SIE - Securities Industry Essentials Examination
  • Series 31 - Futures Managed Funds Examination
  • Series 7 - General Securities Representative Examination
  • Series 9 - General Securities Sales Supervisor - Options Module Examination
  • Series 10 - General Securities Sales Supervisor - General Module Examination

Other than Ameriprise Financial Services, Arthur Hoffman has also worked with the following firms:

  • Wedbush Securities (CRD#:877)
  • Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD#:7691)
  • Morgan Stanley DW (CRD#:7556)

 Kurta Law Can Help

If you lost money after working with Arthur Hoffman, don't hesitate to contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For nearly 20 years, Kurta Law has advocated for investors to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf. Please reach out if you have any questions about what steps to take next to recover your investment losses.