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William Hobby Facing New Six-Figure Investor Disputes

Oct 8, 2021 Financial Disclosure

William Hobby (CRD #: 2240076), a former broker registered with UBS Financial Services, is facing bankruptcy, according to his BrokerCheck record, accessed on September 27, 2021. There are also numerous investment disputes that alleged William Hobby recommended unsuitable investments.

On July 10, 2021, a bankruptcy appeared on William Hobby's record. 

Unsuitable Investment Allegations

FINRA Rule 2111 defines suitable investments as securities that fit an investor’s profile. An investor’s profile includes information about their risk tolerance, financial goals, and age. Investors who rely on their brokers for recommendations may be able to recover their losses through FINRA arbitration.

  • William Hobby faced three investor disputes alleging unsuitable investment recommendations during 2019. On October 30, 2019, an investor alleged that he recommended risky, volatile, and unsuitable investments. The investor further alleged that he over-concentrated unsuitable securities in their portfolio. The investor sought $480,162.64; the dispute settled for $229,000.
  • On April 12, 2019, an investor alleged that William Hobby recommended unsuitable investments and changed their investor’s risk tolerance profile without their authorization. They further alleged that he exercised discretion without written authorization. The investor sought $788,512; the dispute settled for $130,000.
  • On October 9, 2018, an investor alleged that due to her age, William Hobby should not have labeled her as an aggressive investor. She further alleged that she suffered losses she could not afford. The dispute was settled for $24,000.
  • There are another two investor disputes that allege he recommended unsuitable investments. These disputes were collectively settled for $430,000.

On September 18, 2018, UBS Financial Services fired William Hobby following allegations that he exercised discretion in a client account without written authorization.

Other Investment Disputes

During 2004, four disputes alleged William Hobby improperly handled securities accounts. There are seven similar disputes settled between 2002 and 2003.

Background Information

William Hobby has passed the following exams:

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

He has worked for the following firms:

  • UBS Financial Services (CRD #: 8174)
  • Morgan Stanley Smith Barney (CRD #: 149777)
  • Morgan Stanley (CRD #: 8209)
  • CitiGroup Global Markets (CRD #: 7059)
  • Chatfield Dean & Co. (CRD #: 14714)

Kurta Law Can Help

If you worked with William Hobby and you have concerns about your investments, contact Kurta Law today. Call 877-600-0098 or email info@kurtalawfirm.com.