Previously registered broker Mark Hopkins is the subject of a pending civil action initiated against him by the United States Securities and Exchange Commission (SEC) on the allegation of fraud and misappropriation of clients’ funds, according to an investigation by lawyer Alan Rosca.
Investors lawyer Alan Rosca, of Rosca Scarlato LLC law firm is investigating conduct related to the pending civil action instituted against Mark Lewton Hopkins by SEC on the allegation of fraud and misappropriation of clients’ funds.
Ex broker Mark Hopkins was last in the employment of American Portfolios Financial Services between the period of July 2, 2009 and December 20, 2018. In December 2018 Hopkins was permitted to resign following allegations that the broker accepted funds for an investment away from the firm’s books. In addition, it was alleged that Hopkins failed to update the list of outside business activities and that he failed to report a judgment.
Mark L. Hopkins was alleged to have been in the employment of the firm when he carried out the acts leading to the pending civil action.
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Mark Hopkins Is Defendant in a Pending Civil Action by the SEC
The investor lawyer reviewed publicly available information and found that Mark Hopkins was named a defendant in the pending action instituted by the SEC in July 2020. According to the reports on his FINRA brokercheck page, he has also been previously named defendant in other regulatory actions.
According to the Complaint filed by SEC before the District Court of the Eastern District of Michigan, SEC is alleging that Mark Hopkins misappropriated about $1.15 million from at least five customers of his firm.
As reported on the complaint, it was alleged that Mark Hopkins made representations to the customers that he would invest their funds in an investment program at a local credit union but he did not do that. It was alleged that there was actually no such investment. Mark Hopkins allegedly deposited the funds into a personal account at the credit union and he misappropriated the funds.
As a result of these actions, SEC is alleging that Mark Hopkins has violated various states and federal securities legislation and they are seeking a permanent injunction against him which will refrain him from future violations of the laws. This is in addition to the SEC seeking an order requiring Mark Hopkins to pay disgorgements and other civil penalties.
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Mark Hopkins Has Previously Been the Subject of Regulatory Actions
A regulatory action was initiated against him by the Michigan financial regulatory authority on the allegations that Mark Lewton Hopkins made omissions of material facts in connection with the offer or sale of securities. It was alleged that the omitted facts were necessary to make other statements made by the previously registered broker not misleading.
The allegations further stated that Hopkins recommended the liquidation of some securities to an investor, to be reinvested in a credit union investment on behalf of the investor, but it was alleged that former broker Mark Hopkins did not disclose to the investor that the funds would be invested in an account they had no control over.
This action was settled through a Consent Agreement and Order which required Mark Lewton Hopkins to pay $2,500 in civil penalties.
Mark Hopkins was also barred by FINRA in a regulatory action settled on May 15, 2019. According to the brokercheck report, the action was initiated on the allegation that Hopkins refused to comply with FINRA’s request to produce documents and information requested in connection with an investigation against him. Without admitting or denying the findings, he allegedly consented to the sanctions which barred him indefinitely in all capacities.
Hopkins Has Been Subject of Customer Disputes
Disclosures in his Brokercheck report show that former broker Mark Hopkins was involved in two customer disputes that ended in settlement.
A dispute filed in March 2019 alleged that while he was registered with American Portfolios Financial Services, Mark Lewton Hopkins solicited funds for an investment away from his firm. The customer requested $400,000 in alleged damages and according to a March 22, 2021 update the dispute was settled for $400,000.
A second dispute was filed with FINRA in July 2019, on the allegations that former broker Mark Hopkins solicited $500,000 for an investment away from his American Portfolios Financial Services. This dispute was settled in September 2020 for $175,000.
Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints or allegations mentioned in this article, unless otherwise indicated. Any reader should also read the original sources hyperlinked in this blog for accuracy, including any BrokerCheck report and/or record of any disciplinary or regulatory action. Those sources are incorporated by reference into the text of this blog, and are the governing materials in case of any inconsistencies or typos in this blog.
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Investor Lawyers Investigating
The investor lawyer of the Rosca Scarlato LLC law firm expertly advises and represents investors who are victims of broker or investment-related fraud and other misconducts and is currently investigating conduct related to Mark Hopkins’ pending civil action by SEC on the allegation of fraud and misappropriation of funds.
It is important to note that the firm takes most cases of this type on a contingency fee basis and advances the case costs, and only gets paid for their fees and costs out of money recovered for clients. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, has represented thousands of victimized investors across the country and around the world in cases ranging from arbitrations to class actions.
Investors who believe they lost money as a result of former broker Mark Lewton Hopkins’ alleged acceptance of customer funds for an investment without obtaining pre-approval from American Portfolios Financial Services may contact attorney Alan Rosca for a free no-obligation evaluation of their recovery options, at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.
