In the mid-2000s, Kris Dielman was a star offensive lineman for the NFL’s San Diego Chargers. He played in the league for nine seasons and was selected for the Pro Bowl four different times. Unfortunately, Mr. Dielman has now suffered a fate similar to that of many high net worth investors: he has been the victim of investment fraud.
On June 25th, 2018, a FINRA Arbitration panel based in San Diego, California awarded Kris Dielman and his wife Sandy Dielman nearly $1.1 million in financial compensation from their former brokerage firm Woodbury Financial Services. This dispute case related to Woodbury Financial’s alleged failure to supervise broker Robert Hayes Hoffmann (CRD#: 4008798). In 2017, Mr. Hoffman was barred from the securities industry by FINRA for knowingly failing to cooperate into an investigation into alleged misconduct.
In this specific FINRA arbitration proceeding, the Dielmans asserted several different causes of action against Woodbury Financial and its former broker Robert Hayes Hoffman. Specifically, they alleged:
- Failure to supervise;
- Breach of fiduciary duty;
- Broker negligence;
- Unsuitable investment recommendations;
- Violation of the industry’s ‘Know Your Customer’ rules;
- Negligent misrepresentation; and
- Investment fraud.
The specific investments that were involved in this case were the Hybrid Aircraft Company, Edgewood Property Group, LLC, and multiple variable annuities that were issued by two different investment companies. In reviewing the evidence presented by all parties, the FINRA arbitration panel agreed with the Dielmans awarding them the full $1.1 million they were requesting for their financial damages.