Finra panel orders Woodbury to pay customers $1.1 million

Finra panel orders Woodbury to pay customers $1.1 million
Arbitration panel says firm failed to supervise former broker's unsuitable transactions.
JUN 26, 2018

A Financial Industry Regulatory Authority Inc. arbitration panel has ruled that Woodbury Financial Services must pay $970,107.21 in compensatory damages and $121,468 in interest to two clients as a result of the firm's failure to supervise a former broker. The clients, Kris and Sandy Dielman, charged that the firm breached its fiduciary duty, was negligent and engaged in fraud and deceit in connection with selling them investments in several companies, variable annuities and unspecified A-share mutual funds. The Finra panel found that Woodbury permitted the execution of the unsuitable transactions as a result of its failure to supervise former broker Robert Hayes Hoffmann, who was affiliated with Woodbury from 2008 to 2017. Because Mr. Hoffman filed for bankruptcy in February of this year, the panel did not rule on any of the claims against him. According to his BrokerCheck record, Mr. Hoffman had eight disclosures over a 17-year career in the securities industry. Before Woodbury, he worked for Northwestern Mutual Investment Services and Robert W. Baird & Co. Inc.

Latest News

The 2025 InvestmentNews Awards Excellence Awardees revealed
The 2025 InvestmentNews Awards Excellence Awardees revealed

From outstanding individuals to innovative organizations, find out who made the final shortlist for top honors at the IN awards, now in its second year.

Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty
Top RIA Cresset warns of 'inevitable' recession amid tariff uncertainty

Cresset's Susie Cranston is expecting an economic recession, but says her $65 billion RIA sees "great opportunity" to keep investing in a down market.

Edward Jones joins the crowd to sell more alternative investments
Edward Jones joins the crowd to sell more alternative investments

“There’s a big pull to alternative investments right now because of volatility of the stock market,” Kevin Gannon, CEO of Robert A. Stanger & Co., said.

Record RIA M&A activity marks strong start to 2025
Record RIA M&A activity marks strong start to 2025

Sellers shift focus: It's not about succession anymore.

IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients
IB+ Data Hub offers strategic edge for U.S. wealth advisors and RIAs advising business clients

Platform being adopted by independent-minded advisors who see insurance as a core pillar of their business.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.