Originally Syndicated on May 16, 2024 @ 12:57 pm
The Arizona Corporation Commission has issued an order requiring Pam Hopman and PGH Advisors, LLC to manage obligations that are a result of fraudulent acts. Additionally, they are forced to pay restitution for $410,790, in addition to the penalty of $35,000. Additionally, the Commission has revoked the investment adviser license of PGH Advisors, LLC as well as Pam Hopman’s license as an investment advisor representative. Both of these permits were issued by the Commission.
After conducting an inquiry, the Commission discovered that Pam Hopman and PGH Advisors, LLC had engaged in severe wrongdoing. It was discovered that they had pushed stocks from Deeproot and its subsidiaries to consumers under the premise of life settlement products, and the total amount of money they had given away was at least $1,562,392. Earlier charges that Deeproot was functioning as a Ponzi scheme had been made by the Securities and Exchange Commission (SEC).
In addition, it was discovered that Hopman, PGH Advisors, LLC, and another agent had sold unregistered stocks from Premier Global Corporation to PGH advising customers, with the total amount of these sales amounting to at least $10,040,526. An unsecured promissory note with interest was made available to investors for twelve months. The Oklahoma Department of Securities had expressed concerns that were comparable to those that were made with Premier Global Corporation.
There were countless occasions in which there was a complete absence of transparency. The information about commissions collected by Pam Hopman and PGH Advisors, LLC from advertising these unregistered investment products to investors was not disclosed to the investors.
In addition, the Commission brought attention to the enormous conflict of interest associated with these sales commissions. Hopman’s capacity to offer objective financial advice was hindered as a result of this conflict, which put the interests of his customers in contradiction to his need to receive money.
The conclusions of the Commission have been accepted by all of the parties concerned, and they have also given their permission to a settlement that includes the fines and penalties that have been outlined to end this situation.
Who is Pam Hopman?
Although Pam Hopman is the CEO of three distinct businesses—The Hopman Group LLC, PGH Advisors LLC, and Hopman Tax Services—there are concerns over the possibility of conflicts of interest and the lack of transparency in her business practices. It is unclear if customers are getting objective counsel or whether suggestions are impacted by the aim to maximize profits across all enterprises due to the structure of having several organizations under her control. This raises doubts regarding the latter.
There is also criticism about the amount to which solutions are personalized to match the precise financial goals and desires of each customer, although she claims to have a profound understanding of investments, insurance, and taxes. Considering the results of regulatory investigations into PGH Advisors LLC and Hopman Tax Services, there are concerns about the honesty of the advice that is being offered and whether or not it is putting the customers’ best interests first.
Clients who are looking for financial advice may be exposed to possible dangers as a result of the interrelated structure of Pam Hopman’s enterprises and the regulatory scrutiny they have been subjected to.
About The Hopman Group:
There has been no accreditation issued to The Hopman Group by the Better Business Bureau [BBB]. You can see their ratings, complaints, and reviews on the Better Business Bureau website.
A licensed financial advisory business that is monitored by the state and is committed to keeping its fiduciary obligation of putting the best interests of its customers first is known as PGH Advisors LLC. As a result of the trust and satisfaction of a significant number of customers, the firm has developed its capabilities to cater to the monetary requirements of individuals at every stage of their lives, irrespective of their gender.
A financial adviser in Tucson is to blame for the Ponzi schemes that N4T investors lost money on:
Although Cindy Bryant had put a lot of effort into saving for retirement over the years, she was surprised to learn that she might lose everything with just one signature. $95,000 was the amount that she spent on her investment with Deeproot Funds, which is now being sued by the Securities and Exchange Commission (SEC) for allegedly operating as a Ponzi scheme.
Since he is so heartbroken about the loss, Bryant has a hard time falling asleep at night. According to allegations made by the Securities and Exchange Commission (SEC), Robert Mueller, the primary member of Deeproot, is suspected of squandering investor funds for personal reasons and utilizing the firm as his bank.
Despite the grave allegations, Deeproot and Mueller are not being prosecuted for their actions. On the other hand, investors like Bryant have little prospect of getting their money back now that Deeproot has filed for bankruptcy.
During the year 2019, Bryant put her money in Deeproot on behalf of the Hopman Group and Pamela Hopman, who is the financial adviser for PGH Advisors. Bryant contributed her money to the Hopman Group.
Bryant believes that Hopman ought to have conducted a more thorough investigation into the financial venture. Hopman’s legal team has written her a letter saying that it may not be successful to sue Hopman since Hopman had damages from Deeproot as well. Although she has not yet filed a lawsuit against Hopman, Hopeman’s legal team has provided her with this information.
Several lawsuits have been filed against Hopman and PGH Advisors because of their participation with the Deeproot company. According to the allegations made by a family from Tucson, who are being represented by lawyers Gail Boliver and Anthony Bingham, a financial adviser who was working under Hopman’s supervision convinced them to invest one hundred thousand dollars in Deeproot. In this particular instance, it does not seem that the financial advisors fulfilled their duty of fiduciary responsibility to conduct a comprehensive investigation of the investments they represent.
The complaint filed by the SEC revealed that Deeproot had not purchased a life insurance policy since September 2017, although it was still receiving millions of dollars. This indicates that Deeproot’s investment in life insurance viaticals was a risky one. These were warning signs that any reasonable financial practitioner ought to have seen, according to the opinions of legal experts.
Marc Fitapelli, an attorney who represents several clients who have placed investments in Deeproot, asserts that Hopman violated her fiduciary obligations to those clients and that there were evident signals of difficulties.
Cindy Bryant is now focusing her efforts on restocking her retirement assets via a combination of dogged determination and laborious work.
Pam Hopman Moves to Repair Reputation After Scandal:
The reputation of Pam Hopman, a respectable financial adviser in the unpredictable world of finance, has been irreparably damaged as a result of the controversy that she is presently embroiled in. Hopman is now recognized as the person who has been accused of engaging in a scam that cost her clients more than ten million dollars. She is also known as the person who has betrayed and misled her consumers.
Details of her dishonest strategies are coming to light, which is causing shockwaves to spread across the sector. These revelations have brought to light ethical and trust problems in the context of financial relationships. In her heroic efforts to repair the harm done to her image, Hopman is now engaged in a losing struggle that will decide the course of her destiny.
Commission Findings and Background Information:
The Arizona Corporation Commission conducted a thorough investigation into Pam Hopman and her company, PGH Advisors LLC, which resulted in severe fines. This serves as a forceful critique of Hopman’s dishonest behavior concerning the sales of unregistered securities. The enormity of her misconduct is shown by the hefty penalties and restitution, which total more than $500,000.
Hopman’s capacity to lawfully take advantage of naive customers was also terminated as a direct consequence of her dishonest activities since the event led to the termination of both her company’s license and her license as an investment advisor representative.
The Deceptive Schemes:
Promoting securities from Deeproot and its affiliated companies was mostly the responsibility of Hopman and PGH Advisors. Given that Deeproot was accused by the Securities and Exchange Commission of operating as a Ponzi scheme, serious questions have been raised about Hopman’s judgment and her willingness to take a financial risk with her customers.
Following investigations, it was discovered that Hopman had received at least $10 million for the sale of unsecured and unregistered promissory notes to Premier Global Corp. Hopman’s business is now involved in legal battles after being accused of orchestrating a Ponzi scheme that duped over 500 investors in 19 states, which is a worrying indication of the extent of the company’s deceit.
The Repercussions and Efforts to Control Image:
As the controversy continues, it is unlikely that investors’ lost money will be recovered. Mark Dinell, the chief of the ACC’s Securities Division, was aware of the challenges associated with recovering funds from the federal and state lawsuits involving Deeproot and Premier Global.
Despite the mounting evidence around her, Pam Hopman has made a concerted attempt to manage her image. She even sells her property to assist pay the penalties and damages that have been mandated via claims from her lawyer, portraying herself as simply another victim. These are only a few of her activities; in an attempt to move beyond her past and rebuild her image, she is actively disseminating positive information online.
The incident has had a significant influence on her life, and she faces a difficult and perilous path to restoring her reputation. The story of Hopman provides a sobering reminder of the challenges associated with maintaining one’s image and the persistent consequences of dishonest conduct, even if the effectiveness of her methods for managing her reputation remains debatable.
Conclusion
Finally, Pam Hopman and PGH Advisors, LLC demonstrate the dangers of financial sector dishonesty. The Arizona Corporation Commission’s inquiry found their acts severe, resulting in penalties, reparations, and license revocation.
Hopman’s promotion of securities from Deeproot, a Ponzi scam, and her sale of unregistered securities to investors violate ethical and fiduciary norms.
Despite Hopman’s attempts to control her image and limit the scandal’s effects, investors have suffered large losses, and court fights are imminent. Financial advising services need openness, honesty, and regulatory compliance, as shown by the case.
As Pam Hopman recovers from the scandal, it highlights the long-term effects of dishonesty and the difficulties of regaining banking sector confidence.
