A Tucson woman, Pamela Hopman and her company PGH Advisors, has been ordered by the Arizona Corporation Commission to pay $410,790 in restitution and a $35,000 administrative penalty for dishonest and unethical conduct.
The Commission also revoked the investment adviser representative license of Pamela Hopman and the investment adviser license of her affiliated company, PGH Advisors, LLC.
The Commission found Hopman and PGH Advisors LLC sold at least $1,562,392 worth of securities from a company called Deeproot and its affiliates to her advisory clients who believed they were buying life settlement products. The Securities and Exchange Commission has alleged Deeproot is a Ponzi scheme.
Additionally, the Commission found Hopman, PGH Advisors, LLC, and another PGH investment adviser representative sold at least $10,040,526 worth of unregistered securities from a company called Premier Global Corporation to PGH advisory clients. The Commission found the investors bought 12-month, unsecured promissory notes that accrued interest payable to the investor. The Oklahoma Department of Securities has alleged Premier Global Corporation is a Ponzi scheme.
The Commission found in most instances, Hopman and PGH Advisors, LLC did not inform the investors that she or her affiliates were receiving commissions for selling the unregistered investments.
Also, the Commission found the sales commissions paid to Hopman and her company created a conflict of interest between the clients’ best interests and Hopman’s self-interest in earning a sales commission. This material conflict impacts the providing of unbiased and objective investment advice.
In settling this matter, the respondents admit to the Commission’s findings and the entry of the consent order.