Written by The White Law Group• July 12, 2022• 6:22 pm• Blog, Current Investigations, Securities Fraud Articles

Financial Advisor Eric Hollifield reportedly faces Fraud Charges

SEC Reportedly Charges Ex- LPL Advisor Eric Hollifield with $1.7 M Fraud

According to a litigation release on July 1, the SEC has charged former LPL Financial advisor Eric Hollifield (CRD#: 3091319) with allegedly misappropriating at least $1.7 million from two advisory clients and one brokerage customer and using the funds to pay for personal expenses, including the purchase of a home in Winder, Georgia.

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The SEC’s complaint alleges that, beginning in January 2020, Hollifield transferred client assets without their permission to an outside business that he partially controlled and allegedly used the funds to pay his own personal expenses.

Hollifield purportedly used investor funds to purchase a 37-acre home in Winder, Georgia for approximately $1.7 million, according to the complaint. Hollifield allegedly transferred at least $425,000 of client funds through the outside business and used a portion of that money as a partial payment for the property, according to the complaint.

Hollifield also purportedly sold securities in a brokerage customer’s account and recommended that the customer transfer $1.24 million to another bank to accrue higher interest. Then after he received the customer’s permission for the transfer, Hollifield instead allegedly used the money to purchase his home, according to the complaint.

In separate settled administrative and cease-and-desist proceedings, the SEC charged Hamilton Investment Counsel, LLC, the investment adviser Hollifield co-owned, and the firm’s Chief Compliance Officer, for failing to implement the firm’s policies and procedures by inadequately responding to numerous red flags surrounding Hollifield’s outside business activities.

Filing a Claim against your Brokerage Firm

According to his broker record, Hollifield was reportedly affiliated with the following FINRA registered firms, among others, during his career in the securities industry:

10/14/2016 – 09/10/2021, LPL FINANCIAL LLC (CRD#:6413), DACULA, GA
09/19/2008 – 11/11/2016, STERNE AGEE FINANCIAL SERVICES, INC. (CRD#:18456), DACULA, GA

Hollifield’s broker report further indicates that the Financial Industry Regulatory Authority (FINRA) barred him from the securities industry in October 2021 after his former member firm, LPL Financial discharged him.

Potential Lawsuits to Recover Financial Losses

The White Law Group is investigating potential securities claims involving Eric Hollifield and the liability his employers may have for failure to supervise him.

When brokers and registered investment advisors violate securities laws, such as misappropriating funds, or making unsuitable investment recommendations, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington. We represent investors in all 50 states including Georgia. Our attorneys have recovered millions of dollars from many brokerage firms in the past.