According to FINRA, Kevin Andrew Hobbs was barred from association with any FINRA member in all capacities for providing an inaccurate response to FINRA's request for information and for participating in numerous private securities transactions without prior written disclosure or approval.

FINRA's investigation concerned allegations that Hobbs traded away from his member firm in a customer's third-party brokerage account. When FINRA requested that Hobbs identify all individuals for whom he had effected securities transactions in accounts other than at his firm, he provided an inaccurate response that failed to identify at least one other individual whose account he had traded away from his firm. This information was material to FINRA's investigation. Hobbs also failed to disclose this information to his firm when questioned during its internal investigation.

Additionally, FINRA found that Hobbs participated in numerous private securities transactions without prior written disclosure to or approval from his firm. Trading away from one's firm and engaging in private securities transactions without disclosure create significant risks for investors. These activities occur outside the firm's supervisory framework, meaning they lack oversight to ensure suitability, proper execution, and compliance with securities regulations.

Investors should understand that registered representatives must conduct securities business through their registered firm and disclose any private securities transactions to ensure proper supervision. When representatives trade in customer accounts at other firms without disclosure, customers lose important protections. The permanent bar reflects both the underlying misconduct of undisclosed trading activities and the additional serious violation of providing false information to regulators during an investigation.