FINRA Recently Barred Arthur Hoffman From Practicing as a Broker or Investment Adviser After He Failed to Produce Requested Regulatory Documents
A Letter of Acceptance, Waiver and Consent (AWC) filed by FINRA on May 5, 2020, shows that the respondent, broker Arthur Stuart Hoffman (aka Art S Hoffman) agreed to his barring as a FINRA registered broker and investment adviser and to no longer affiliate with any member firm in the future. The organization’s disciplinary board agreed not to take any further regulatory action against the Arizona broker in exchange for his immediate expulsion from their membership.
Investor rights attorney Alan Rosca is currently reviewing the former broker’s FINRA Brokercheck Report. It shows that it wasn’t long after Hoffman agreed to his disbarment as an investment adviser and broker that one of his former Ameriprise Financial Services, LLC customers filed a dispute against him. That client accuses him of squandering $172,688.03 in an alleged cryptocurrency Ponzi scheme called Zima Global Ventures, LLC or Zima Digital Assets.
Cryptocurrency investor lawyers Alan Rosca and the other Rosca Scarlato LLCattorneys thoroughly investigate alleged broker fraud, fiduciary duty breaches and unsuitability claims. Rosca and the firm’s other attorneys are looking into any recent instances in which his former customers are claiming a loss of significant savings, whether they’re related to Zima Digital Assets or any other investment opportunity. Hoffman’s investors can reach Alan Rosca or his colleagues at 888-998-0530 or by email at arosca@rscounsel.law to discuss their experience working with the Arizona broker and potential remedies that they can pursue.
What Resulted in Arizona Broker Art S. Hoffman’s Expulsion from FINRA
Hoffman worked as a broker for Ameriprise Financial Services, LLC, for three years starting in 2016. The Glendale-based brokerage firm let him go from his role on May 13, 2020, for alleged violations of company policies to include engaging in private securities transactions and outside business activities. This discharge from his position with the company came eight days after he signed an AWC with FINRA. The former Arizona broker filed bankruptcy two days before FINRA expulsion went into effect on May 13, 2020.
The former broker’s FINRA Brokercheck Report and AWC both highlight how the regulatory agency launched their investigation into Hoffman’s actions soon after his member firm filed disclosure with them. Ameriprise Financial Services, LLC officials reportedly disclosed that they’d suspended Art Hoffman for violating company policies, including engaging in outside business and private securities transactions. The Brokercheck Report reflects that, although Hoffman ended up agreeing to his disbarment, he did not make any admissions or deny any of the allegations made against him.
One of Hoffman’s Customers Alleges That He Convinced Them to Invest Their Savings in a Cryptocurrency Ponzi Scheme
A further review of Arthur Hoffman’s FINRA Brokercheck Report reveals how he convinced one of his former Ameriprise Financial Services, LLC clients to invest $172,688.03 into Zima Global Ventures, an operation also known as Zima Digital Assets.
News reports show that federal agents arrested two of Zima’s owners earlier in 2020 after discovering that they’d been running what they believe is a Ponzi scheme. In the case so far, documents filed by the U.S. Attorney’s Office show that Zima’s owners reportedly coaxed investors, including two Major League Baseball (MLB) players, into investing as much as $7.5 million in their cryptocurrency scheme. The men allegedly told their investors that they’d engage in cryptocurrency trading, but reportedly never invested in it. Prosecutors allege that the men used the savings from investors to take lavish vacations, buy luxury cars and enjoy other extravagances instead.
Ponzi schemes often involve brokers promising investors unrealistic returns on their investments. It’s not uncommon for brokers to use newly invested funds to issue dividends to existing investors. Venture fund owners often have to consistently go out and find new investors so that their lack of investment strategy remains unearthed. It’s often when investors seek to cash out that they discover that no one ever invested their funds and can’t expect any returns.
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.
Arthur Hoffman’s Disbarment as Broker and Alleged Involvement in a Ponzi Scheme Aren’t The Only Customer Dispute He’s Faced During His Career
Hoffman had only worked for Ameriprise Financial Services, LLC, for three years when FINRA disbarred him as a registered broker and investment adviser. The Brokercheck Report chronicles how this was due to him recommending that a client invests in an alleged Ponzi scheme. The former Arizona broker worked at another Glendale-area brokerage Wedbush Securities for seven years before working for Ameriprise Financial Services, LLC. He worked in Sun City with Merill Lynch for six years, starting in 2003. He started his career working with Morgan Stanley DW Inc. in 1999.
A customer filed a dispute claiming losses of $1,000,000 during his final months while working at Wedbush Securities Inc. They accused him of having engaged in misrepresentation and investment advisory services fraud, having breached his fiduciary duties and engaged in negligence in turning over accounting documents. He ended up settling that 2016 case for $329,500.
How to Proceed As a Former Customer of Arthur Hoffman
Cryptocurrency investor lawyers at Rosca Scarlato regularly investigate brokers accused of impropriety and advocate for their alleged victims who claim significant losses due to their actions. Attorney Alan Rosca is currently reviewing Hoffman’s customers’ reports to determine if Arthur Hoffman may have engaged in breaches of any fiduciary duties to his clients.
You should reach out to Rosca Scarlato for a no-obligation, no-cost consultation. You can share details surrounding your experience working with former broker Arthur Hoffman and learn more about your respective rights. Please note that the attorneys at Rosca Scarlato LLC take most of their cases on a contingency basis, which means that the firm’s lawyers advance the costs associated with representing investors, do not require any money down, and only get paid for their fees and expenses at the conclusion of your case, if they are successful (expenses are calculated before fees are applied). If there is no recovery, the client typically does not owe anything. We only get paid if we win.
The phone number for attorney Alan Rosca and his firm’s other lawyers is 888-998-0530. You can reach the team of attorneys by filling out the contact form on this page or by emailing arosca@rscounsel.law if you have any additional information that you want to share about Hoffman and his activities.
