FINRA Reportedly Bars Kevin Hobbs of PFS Investments from the Securities Industry
According to public documents, the Financial Industry Regulatory Authority (FINRA) has barred former PFS Investments broker Kevin Andrew Hobbs (CRD#: 4267482) from associating with any FINRA member at any time. FINRA, the self-regulator who oversees financial advisors and broker-dealers, was reportedly investigating Hobbs and his compliance with FINRA Rule 3280 concerning his participation in private securities transactions.
FINRA was reportedly investigating allegations that Hobbs traded away from his member firm in a customer’s third-party brokerage account. FINRA requested Hobbs to identify all individuals for whom he had effected a securities transaction in an account other than at his firm. Hobbs allegedly provided an inaccurate response that failed to identify at least one other individual whose account he had traded away from his firm. The findings also stated that Hobbs participated in numerous private securities transactions without prior written disclosure to, or approval from, his firm.
FINRA Rule 3280 Private Securities Transactions of an Associated Person
With certain exceptions, financial advisors are not allowed to participate in private securities transactions (“selling away”). In some circumstances, these transactions are allowed if the professional provides written notice to the firm first and discloses whether or not he or she will receive compensation for the proposed transaction.
Typically, when a broker is “selling away,” the investments are in the form of private placements or other non-public investments, and often these are investments that the broker has some pecuniary interest in. Such an investment is generally a violation of securities rules because the brokerage firm has not researched the risks of the investment or approved the investment for sale to its clients, and the broker is selling the investment without the knowledge of his employer.
According to his broker report, Hobbs was reportedly affiliated with PFS INVESTMENTS INC. (CRD#:10111) in Lake Worth, Florida from 2001 until October 2022.
Hobbs reportedly has six customer complaints filed against him indicated by his broker record. Allegations include “unsuitable investment recommendations in non-PFS Investments Inc. broker accounts,” among others.
FINRA Attorneys to Recover Investment Losses
When brokers violate securities laws, such as making unauthorized transactions or unsuitable investments, 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.
If you have suffered losses investing with Kevin Hobbs, the securities attorneys at the White Law Group may be able to help you. For a free consultation with a securities attorney, please call (888) 637-5510.
The foregoing information, which is all publicly available, is being provided by The White Law Group.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Seattle, Washington. For more information, please visit our website, whitesecuritieslaw.com.
Tags: FINRA 3280, Investment loss attorney, Kevin Hobbs FINRA, Kevin Hobbs investigation, Kevin Hobbs investment losses, Kevin Hobbs lawsuit, Kevin Hobbs recovery options, securities fraud attorney, selling away Last modified: March 13, 2023