Woodbury to Pay Back $1.1 Million Over Unsuitable Sales
A Finra panel has ordered Woodbury Financial Services to pay back two clients $1.1 million for failing to supervise a former broker who made unsuitable trades in the clients’ accounts, according to an award letter from Finra’s Office of Dispute Resolution.
Woodbury must pay Kris and Sandy Dielman $970,107 in compensatory damages and $121,468 in pre-judgment interest, the panel ruled. The claimants alleged breach of fiduciary duty, negligence, fraud and deceit in connection with investments in several companies, an Indiana military building, variable annuities and A-share mutual funds, according to the award document. Kris Dielman played nine seasons in the NFL with the San Diego Chargers.
But the panel made no determination on Robert Hayes Hoffmann, who was a broker with Woodbury from 2008 to 2017 and is a co-respondent with Woodbury in the Dielmans’ claim.
Hoffmann filed for bankruptcy in February, and according to the U.S. Bankruptcy Code all claims against him are therefore indefinitely stayed, according to the award document.
In January, the Indiana Securities Division permanently barred Hoffman, according to his BrokerCheck profile.
In November, Hoffman agreed to a Finra bar after he refused to show up for a hearing as part of an investigation into unauthorized and excessive trading and unsuitable recommendations, according to BrokerCheck.