Mark Hopkins, Formerly of American Portfolios Financial Services in Michigan, Charged by SEC with Misappropriating Client Funds

Mark Hopkins of Grand Blanc Michigan allegedly misappropriated over $1 million from his clients.

The Sonn Law Group is investigating allegations that Mark Hopkins misappropriated client funds. If you or a family member has suffered losses investing, we want to discuss your case. Please contact us today for a free review of your case.

Mark Hopkins (CRD# 2653473)  was registered with American Portfolios Financial Services in Grand Blanc Michigan from 2009 until 2018 when he was permitted to resign following allegations that he accepted customer funds for an investment not in the books for American Portfolios without obtaining pre-approval. Previously, Hopkins was a broker with LPL Financial from 1997 until 2009.

The SEC filed a complaint against Hopkins alleging that beginning in 2017, Mark Hopkins raised at least $1.15 million from at least five customers of the brokerage firm for what he claimed was an investment program at a local credit union. Hopkins allegedly told the customers that investment would return 6% or 7% profit.

Despite these claims by Hopkins, the complaint alleged that the investment program never existed and Hopkins misappropriated the funds to his own account. The complaint also alleged that Hopkins falsified account statements in order to cover up the misconduct. 

In 2018, Mark Hopkins’s firm became aware that a check from a pair of customers was sent to the credit union rather than directly to the broker-dealer, the SEC claimed in the complaint. The firm told Hopkins to return the funds to the couple. In August 2018, Hopkins allegedly presented the customers with a fake cashier’s check for $400,000.00, disclosing the firm’s desire that he return the money.

Mark Hopkins told the customers that he recommended they keep the money in the credit union, according to the complaint. Because these investors purportedly trusted Hopkins, they signed a document that falsely stated that Hopkins had returned their money. 

Mark Hopkins has six other disclosures on his BrokerCheck profile.

Mark Hopkins BrokerCheck Disclosures
July 2020 Civil

• Initiated By: United States Securities and Exchange Commission
• Allegations: “The Securities and Exchange Commission (the “Commission”), for its Complaint against Hopkins, alleges that he misappropriated of at least $1.15 million from at least five customers of the brokerage with which he was associated. Hopkins represented that he would invest their funds in an investment program at a local credit union, when in actuality no such program existed. Rather than investing the customer funds, Hopkins deposited them into an account he controlled at the credit union and misappropriated them. By engaging in this conduct, Hopkins violated Sections 17(a)(1), (2), and (3) of the Securities Act of 1933 (“Securities Act”); and Section 10(b) of the Securities Exchange Act of 1934 (“Exchange Act”) and Rule 10b-5(a), (b), and (c) thereunder.”

Mark Hopkins BrokerCheck Disclosures
November 2019 Regulatory Judgment

• Initiated By: Michigan
• Allegations: “Respondent Mark Hopkins, in connection with the offer or sale of securities, omitted a material fact necessary to make other statements made not misleading when he recommended that XXX liquidate securities to be invested in a credit union investment on XXX behalf, but omitted to state that the liquidated funds would not be invested in an account over which XXX had any ownership or control, contrary to section 501 of the Securities Act, MCL 451.2501.”
• Resolution: Consent Agreement Order
• Sanctions: Civil and Administrative Penalty(ies)/Fine(s)
• Amount: $2,500.00

Mark Hopkins BrokerCheck Disclosures
July 2019 Customer Dispute

• Status: Pending
• Allegations: “It is alleged that Hopkins solicited $500,000 purportedly for an investment away from APFS and utilized the funds for his own purposes.”
• Damage Amount Requested: $500,000.00

Mark Hopkins BrokerCheck Disclosures
May 2019 Regulatory Judgment

• Initiated By: FINRA
• Allegations: “Without admitting or denying the findings, Hopkins consented to the sanction and to the entry of findings that he refused to produce documents and information requested by FINRA in connection with its investigation relating to the issues disclosed in his Form U5.”
• Resolution: Acceptance, Waiver & Consent(AWC)
• Sanctions: Bar
• Registration Capacities Affected: All Capacities
• Duration: Indefinite
• Start Date: 5/15/2019

Mark Hopkins BrokerCheck Disclosures
March 2019 Customer Dispute

• Status: Pending
• Allegations: “Registered Representative solicited funds for an investment away from the broker-dealer at a credit union. The credit union has no account FBO [REDACTED]. RR presented a copy of an altered bank check as evidence of his ability to repay.”
• Damage Amount Requested: $400,000.00

Mark Hopkins BrokerCheck Disclosures
December 2016 Financial

• Type: Compromise
• Disposition: Satisfied/Released

Mark Hopkins BrokerCheck Disclosures
August 2008 Customer Dispute

• Status: Denied
• Allegations: “Customer alleged that purchase of REIT in October 2006 was unsuitable and requested return of original investment.”
• Damage Amount Requested: $7,125.00

Losses Investing with Mark Hopkins? Contact Sonn Law Today

Under FINRA rules, a brokerage firm is responsible for supervising the activity of its brokers and may be subject to liability for their actions. If you suffered losses after investing with Mark Hopkins or American Portfolios Financial Services, you may have a claim. Contact Sonn Law Group today for a free consultation.