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Chris Hobart Faces Allegations of Negligence and Fraud

May 31, 2022 Regulatory Action

Chris Hobart (CRD #: 4469608), a former broker, is involved in several pending disputes, according to his BrokerCheck record, accessed on May 23, 2022. Read on to learn more about Chris Hobart’s conduct as a broker.

Alleged Violations of North Carolina State Regulations

On February 24, 2022, investors filed a complaint alleging Chris Hobart violated the North Carolina Securities Act and North Carolina General Statutes, as well as committing fraud and negligence in relation to unsuitable recommendations of alternative investments and fixed index annuities between 2012-2015. This dispute is currently pending.

North Carolina Securities Act

The North Carolina Securities Act (Chapter 78A of the North Carolina General Statutes) regulates many aspects of the sale of securities in North Carolina. It defines and prohibits many forms of fraudulent behavior, from the omission of information to market manipulation.

Investor Disputes

Two disputes, one filed in December 2020 and the other in February 2021, alleged that Chris Hobart breached his contract, committed negligence, and provided unsuitable investment recommendations. The investors seek a collective $175,000 in these pending disputes.

FINRA Rule 2111

FINRA Rule 2111 defines suitable investments as securities that fit an investor's profile. Brokers must consider the information in an investor's profile, such as the client’s other investments, tax status, and age, when making their recommendations.

  • A common type of unsuitable investment is one that is high risk and likely to lose money.
  • Illiquid securities may also qualify as unsuitable, because of their difficulty to sell and the high fees they tend to incur for investors who attempt to do so.
  • Securities can also be quantitatively unsuitable, which means that the brokes executed an excessive number of trades.

These requirements also apply to investment strategies. Over-concentration of securities in a particular sector, for instance, will typically violate this rule.

Investors can seek out FINRA arbitration to recover losses caused by unsuitable investment recommendations.

What is broker negligence?

Broker negligence can take many forms, including excessive or unauthorized trading, failure to supervise, and unsuitable investment recommendations. Investors can pursue FINRA arbitration if they believe their losses were caused by broker negligence.

Background Information

Chris Hobart has passed the following exams:

  • Series 63 - Uniform Securities Agent State Law Examination
  • Series 65 - Uniform Investment Adviser Law Examination
  • SIE - Securities Industry Essentials Examination
  • Series 7 - General Securities Representative Examination

Previously, he worked for the following firms:

  • G.F. Investment Services (CRD#:132939)
  • Kalos Capital (CRD#:44337)
  • Quest Capital Strategies (CRD#:16783)
  • Edward Jones (CRD#:250)

Kurta Law Can Help

If you worked with Chris Hobart and you have concerns about your investments, please contact us today at 877-600-0098 or for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want 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.