Securities Division, 3rd Floor
Arizona Corporation Commission
1300 W. Washington St.
Phoenix, AZ 85007
Main: (602) 542-4242
Toll-Free Number in Arizona:
1-(866) 837-4399
Email
SecuritiesDiv@azcc.gov
Ask and Check
Before You Invest!
Toll free in AZ
1-866-VERIFY-9
(1-866-837-4399)
in Brief
Subscribe to securities news briefs at info@azinvestor.gov.
Commission Sanctions Peoria Securities Salesman for Fraud in Connection with Crypto-based Investment, Revokes Registration
The Corporation Commission ordered Arthur Hoffman of Peoria and his affiliated company, ICA Financial Services, Inc. to pay $170,000 in restitution and a $20,000 administrative penalty for defrauding eight investors with a crypto-based investment fund. The Commission also revoked Hoffman’s registration as an Arizona securities salesman.
The Commission found Hoffman and his affiliated company failed to disclose to investors that the cryptocurrency investment contracts issued by Zima Digital Assets, LLC, were not authorized by Hoffman’s securities dealer.
Additionally, the Commission found Hoffman classified his client’s cryptocurrency investment as “unsolicited” despite having introduced them to the crypto-based fund.
In January 2020, the principals of Zima Digital Assets, LLC were indicted for wire fraud and money laundering in connection with the cryptocurrency investment fund.
In settling this matter, the respondents admit to the Commission’s findings only for the purpose of this proceeding and agree to the entry of the Commission’s order.
All documents relating to this agenda item can be found in the Corporation Commission's online docket at https://edocket.azcc.gov and entering docket number S-21181A-22-0047.
###