Securities Arbitration Lawyers BlogHave You Invested Your Hard-Earned Money with Broker Scott Erik Aabel?
Once again, Nokomis, Florida-based broker is sanctioned and fined by FINRA.
When investing with a broker, it’s important to know his or her own financial background. For instance, if you invested with Scott Aabel anytime since his early days in the securities industry with Lutheran Brotherhood Securities Corp. in 1991, you might be interested to know that he has at least four judgment/liens or financial complaints lodged against him in his personal financial life.
In addition to the personal financial disclosures on Aabel’s BrokerCheck report, there are a reported ten customer disputes requesting upwards of $600,000 lodged against the Florida broker. The Financial Industry Regulatory Authority (FINRA) report lends insight about the allegations relating to Aabel’s 25-year securities industry career.
In addition to the above issues, in September 2016, FINRA both suspended Aabel for 30 business days from acting as a broker or otherwise associating with firms that sell securities to the public, as well as ordered him to pay Civil and Administrative Penalty(ies)/Fine(s) in the amount of $5000. In this case, it is alleged that Aabel settled the amounts he owed on credit cards by entering into compromises with credit card companies without notifying his member firm or disclosing this on regulatory forms (as required by his profession).
Adding to Aabel’s personal track record, in 2012, the Florida Office of Financial Regulation Division of Securities filed suit against Aabel and his firm, “Prime Capital Services, Inc., Asset & Financial Planning, Ltd. (AFP), in 2012. The agency alleged that they violated the Florida Securities and Investor Protection Act through:
- Fraud and deceit
- Failure to observe high standards of commercial honor and principles of trade
Reportedly, the firm and its members “failed to fully inform investors that management fees withdrawn from their variable annuities negatively impacted their benefit riders.
The riders guaranteed annual bonuses and premium protection, regardless of stock market losses, as long as certain conditions were met. However, the direct withdrawal of management fees from the accounts voided or violated the terms and conditions of the riders, adversely affecting annuity benefits. The firms and their associated persons owed a duty to their customers to ensure they were aware of this matter. Certain customers would have benefitted from their riders, except for the deduction of the management fees.”
If you were one of Aabel’s clients, it would be in your best interest to learn more about the allegations against him. You can read his FINRA BrokerCheck report and also get in touch with the Silver Law Group.
The attorneys at Silver Law Group are leaders in the field of securities arbitration. We represent individual and institutional investors across the United States who have lost money at the hands of a trusted financial advisor. Scott Silver is currently the chairman of the American Trial Lawyers Association, Securities and Financial Fraud Group and routinely represents investors in securities arbitration claims.
If you lost money as the result of his actions, we may be able to help you recover it. Fill out our contact form for a free consultation with an experienced arbitration lawyer.