A customer complaint has been filed against former stockbroker Eric Hollifield (Eric Shea Hollifield CRD:# 3091319) claiming damages of $1,240,000 for misappropriation of funds from the account. The claim was filed on the 25th of August and is currently pending.
Hollifield is a former registered broker and investment advisor who has been in the industry from 1998. He has been associated with the following firms:
- Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD#:7691) of New York, NY.
- H&R Block Financial Advisors, Inc. (CRD#:5979) of Duluth, GA,
- Sterne Agee Financial Services, Inc. (CRD#:18456), of Dacula, GA
- LPL Financial LLC (CRD#:6413), also of Dacula, GA, which appears to be his last association with a major firm.
LPL Financial filed a Unified Termination Notice for Securities Industry Registration (Form U5) that terminated their association with Hollifield, and notified FINRA (Financial Industry Regulatory Authority) of the same on 10th September 2021. Hollifield’s failure to disclose his outside business activities has been stated as the reason for the discharge, which was officially done on the 12th of August.
Hollifield, it appears, was discharged for similar reasons by Hamilton Investment Counsel, LLC, on the 1st of September, 2021. No information is available about his association with Hamilton which, seemingly, was very brief.
Eric Hollifield FINRA investigation
The FINRA (Financial Industry Regulatory Authority) investigation launched after the LPL U5 filing indicates that the claim for misappropriation is by an elderly lady. They requested for documents pertaining to the case and had also requested Hollifield for an on-the-record testimony around the end of September.
While acknowledging on phone as well as on emails exchanged with staff pf FINRA the receipt of the FINRA requests, Hollifield indicated that he was disinclined to either providing any information or testifying on-record.
His refusal to comply with the FINRA request has led to him being sanctioned by the self-regulatory body, and barred from associating with any member of FINRA in any capacity, effective the 7th of October. No end date has been specified for the sanction.
Letter of Acceptance, Waiver, and Consent
A letter of Acceptance, Waiver, and Consent (AWC) was signed by Hollifield on the 29th of September. It was made final when signed by FINRA’s counsel on the 7th of October.
What is an AWC?
Signing on the AWC can be considered similar to entering a ‘no contest’ plea in a criminal charge. The defendant acknowledges the charges and submits to them by choosing to not contest its contents. The acceptance includes that of the specified sanctions therein. The right to an appeal is also waived off.
The signing of the AWC is a regular occurrence in the industry with charged parties often choosing to do so.
Having signed one, in addition to the specific sanctions contained in it, the defendant is also barred from issuing any statements, either directly or even indirectly, or communicating in any manner, that seem to indicate that the signed AWC is incorrect in any way.
On its part, with the AWC being signed, FINRA considers it to be a closed case and agrees to not bring any further charges against the defendant. Of course, if some facts of the case change, the case could be reopened or a fresh one filed.
Haselkorn & Thibaut, P.A., represents investors nationwide in their efforts at recovering losses from investments made due to broker misconduct or neglect. Our lawyers are admitted to practice in Florida and New York.
If you have had dealings with Hollifield and are concerned about how your account has been handled, we encourage you to speak to one of our securities attorneys.
Our cases are handled on a contingent fee basis. You don’t need to pay us until we have been able to recover for you.