Advisor Alert: Our Attorneys Are Investigating Arthur Stewart Hoffman For Investment Fraud
Did You Lose Money Because of Arthur (Art) Hoffman?
Filed: January 18, 2024
Arthur Hoffman (also known as Art Hoffman) has been the subject of three (3) regulatory events, one (1) civil event, four (4) customer complaints, and one (1) termination event. As an investor, you may be entitled to compensation for losses accrued due to mismanagement of your investments.
Let’s begin our Patil Law Advisor Alert with a summary report on Arthur Stewart Hoffman.
Who Is Arthur Stewart Hoffman?
- Advisor Name: Arthur Stewart Hoffman
- Aliases: Art S Hoffman
- CRD: 3193754
- Location: Glendale, Arizona
- Current Employer: No Longer Allowed to Practice in the Securities Industry
- Previous Firms: Ameriprise Financial Services, LLC, Wedbush Securities Inc., and Merrill Lynch, Pierce, Fenner & Smith Incorporated
- Number of Known Customer Complaints: 4
- Number of Known Regulatory Events: 3
- Number of Known Civil Events: 1
- Number of Known Termination Events: 1
- Can Arthur Hoffman Be Sued: Yes, in Private Arbitration
- Can Arthur Hoffman’s Employers Be Sued For Failing to Supervise Actions: Yes, in Private Arbitration
- Highest Damages Allegation: $1,000,000
- Highest Settlement: $329,500
If you have suffered investment losses by Arthur Hoffman, we strongly encourage you to exercise your rights to experienced legal representation. Recover what is owed to you by retaining a failure to supervise lawyer. Reach out to the legal team at Patil Law, P.C. via the secure online form or call the firm directly toll-free at 1-800-950-6553.
Customer Complaints Filed Against Arthur (Art) Hoffman For Broker Misconduct
As of this publication date, Arthur Hoffman has been the subject of 3 regulatory events, 4 customer disputes, 1 civil event, and 1 termination event. Let’s review them below.
In September 2022, United States Securities and Exchange Commission initiated a regulatory action against or in reference to Arthur Hoffman for allegedly defrauding eight clients by failing to disclose compensation he received from a private issuer while recommending the issuer’s securities to those clients, and, in at least one instance, misrepresenting the extent of the compensation he received from the issuer.
In February 2022, Arizona Corporation Commission – Securities Division initiated a regulatory action against or in reference to Arthur Hoffman for soliciting individuals, including Ameriprise clients, to invest in securities in the form of investment contracts issued by ZIMA Digital Assets, LLC (“Zima”), an alleged Ponzi scheme and investment product not approved to sell by Ameriprise.
In February 2022, a civil event was initiated against or in reference to Arthur Hoffman. The Securities and Exchange Commission alleged that Mr. Hoffman branched his fiduciary duty to and defrauded his advisory clients by soliciting investments in Membership Units without disclosing his financial conflicts of interest and, in one instance, by misrepresenting the compensation he received from a company and falsely claiming that it was limited by his role as an adviser of his firm. Hoffman also defrauded his advisory clients by hiding his company-related activities from his firm and thereby preventing the firm from hatling his activity of recommending securities to clients that were not permitted by the firm’s policies and procedures, including by using an email address outside of the firm’s supervision to communicate with clients about the company, providing false and misleading information to the firm about his outside business activities, providing false and misleading information to the firm about wire transfers from clients to the company, and persuading two clients not to discuss his involvement in recommending the Membership Units when the firm contacted those clients about their wires transfers.
In November 2021, a FINRA arbitration was filed against or in reference to Arthur Hoffman by a customer of Ameriprise Financial Services, LLC alleging that Mr. Hoffman recommended that the client invest $70k in an outside investment called Zima Digital Assets, LLC on January 25, 2020. Per the customer, he lost over $100,001 because of Mr. Hoffman’s actions. On February 22, 2023, Mr. Hoffman settled the claim for $35,000, and some or all of this amount may have been paid by Mr. Hoffman’s employer and/or insurance carrier.
In April 2021, a FINRA arbitration was filed against or in reference to Arthur Hoffman by multiple customers of Ameriprise Financial Services, LLC alleging that Mr. Hoffman recommended an unsuitable outside investment in Zima Digital Assets. Per the customers, they lost over $358,183 because of Mr. Hoffman’s actions. On September 19, 2022, Mr. Hoffman settled the claim for $50,000, and some or all of this amount may have been paid by Mr. Hoffman’s employer and/or insurance carrier.
In June 2020, a FINRA arbitration was filed against or in reference to Arthur Hoffman by multiple customers of Ameriprise Financial Services, LLC alleging that beginning on about 4/23/19, Mr. Hoffman recommended the claimants invest $172,688.03 in Zima Global Ventures, LLC a/k/a Zima Digital Assets (“Zima”), an alleged fraudulent Ponzi scheme promising unrealistic investment returns. Per the customers, they lost over $172,688.03 because of Mr. Hoffman’s actions. On January 18, 2022, Mr. Hoffman settled the claim for $49,500, and some or all of this amount may have been paid by Mr. Hoffman’s employer and/or insurance carrier.
In May 2020, Ameriprise Financial Services, LLC terminated Arthur Hoffman for company policy violations related to outside business activities and private securities transactions.
In May 2020, FINRA initiated a regulatory action against or in reference to Arthur Hoffman for failing to provide documents and information requested by FINRA.
In February 2016, a FINRA arbitration was filed against or in reference to Arthur Hoffman by a customers of Wedbush Securities Inc. alleging Arizona securities fraud; fraud in provision of investment advisory services, common law fraud and misrepresentation; breach of fiduciary duties; fraudulent concealment; negligent misrepresentation; negligence; negligent supervision; and document turnover and accounting. Per the customer, he/she lost over $1,000,000 because of Mr. Hoffman’s actions. On October 25, 2022, Mr. Hoffman settled the claim for $329,500, and some or all of this amount may have been paid by Mr. Hoffman’s employer and/or insurance carrier.
How To File A Claim Against Arthur (Art) Hoffman (previously with Ameriprise Financial Services, LLC, Wedbush Securities Inc., and Merrill Lynch, Pierce, Fenner & Smith Incorporated) To Get Your Money Back
If you have questions about Art Hoffman, Ameriprise Financial Services, LLC, Wedbush Securities Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, or the management or performance of your accounts, please contact Attorney Patil for a free initial consultation via email or toll free at 1-800-950-6553.