Scott S Niekamp Fined and Suspended by FINRA

Soreide Law Group obtained the following information from FINRA’s website under, “Disciplinary and Other FINRA Actions – August 2021.”
Scott S Niekamp (CRD #3277810, Wildwood, Missouri)
On June 9, 2021, an AWC was issued in which Scott S Niekamp was fined $10,000 and suspended from association with any FINRA member in all capacities for three months.
Without admitting or denying FINRA’s findings, Scott S Niekamp consented to the sanctions and to the entry of findings that he allegedly engaged in OBAs (outside business activities) without providing prior written notice to his member firm.
FINRA’s findings stated that the firm approved Scott S Niekamp’s request to invest and participate in an OBA with a company that develops senior living facilities. Niekamp allegedly told the firm that, as a passive investor, his activities would be limited to reviewing corporate documents, attending quarterly board meetings and filing tax returns. Niekamp later updated his OBA disclosures to reflect he was no longer involved with the developing company. However, Niekamp allegedly engaged in other OBAs on behalf of the developing company.
According to FINRA, Scott S Niekamp also received a two percent ownership interest in a limited liability company that provides technology solutions for senior living facilities and partnered with the developing company on several potential projects. Niekamp allegedly did not disclose the additional OBAs he conducted through the developing company or his membership interest and activities on
behalf of the technology solutions company to the firm until later. Niekamp allegedly made false statements regarding his OBAs on compliance questionnaires.
FINRA’s findings also stated that Scott S Niekamp made two loans totaling $450,000 to a firm client without notifying, or obtaining prior approval from, the firm. Niekamp falsely stated on a compliance questionnaire that he had not loaned money to a firm client.
The suspension is in effect from July 6, 2021, through October 5, 2021.
(FINRA Case #2018057421801)
According to FINRA’s BrokerCheck, available to the public on FINRA’s website, Scott S Niekamp has been in the securities industry for 21 years and has 6 Disclosures on his FINRA CRD report. Of the 6 Disclosures, 2 are "Regulatory," and 4 are "Customer Disputes."
In February of 2018, a Customer Dispute settled for $425,600.00, following allegations of, “Customer alleges that in or about June of 2012, the Representative misled her by recommending she invest in a private equity security and failed to disclose material facts concerning the investment, including that the Representative himself was a shareholder. Customer also alleges that the Representative made assurances regarding investment performance that caused her to lose money, and that the investment was unsuitable.”
A customer dispute is pending that was filed in February of 2018, requesting damages of $5,000,000.00, following allegations of, “Customer alleges that in a series of interactions prior to February 18, 2015, the Representative misled him by recommending he invest in a private equity security and failed to disclose material facts concerning the investment, including that the Representative himself was a shareholder. Customer also alleges that the Representative made false representations about the investment that caused him to lose money, that the Representative engaged in a civil conspiracy, and that he breached a fiduciary duty to the customer.”
In July of 2019, a dispute settled for $24,016.50, following these allegations, “The customer alleges that in or around October 2018, the Representative did not accurately inform him of the tax consequences of transferring money from a non-qualified account to fund the purchase of a fixed annuity. The customer alleges this resulted in an unexpected tax liability.”
In April of 2021 a customer dispute was filed and is currently pending with the following allegations, “Customer alleges that in a series of interactions prior to February 18, 2015, the Representative misled him by recommending he invest in a private equity security and failed to disclose material facts concerning the investment, including that the Representative himself was a shareholder. Customer also alleges that the Representative made false representations about the investment that caused him to lose money, that the Representative engaged in a civil conspiracy, and that he breached a fiduciary duty to the customer by recommending an unsuitable investment.”  The requested damages are, $5,000,000.00.
Scott S Niekamp has been listed with only one firm, since 6/26/2000 as a broker, and since 4/17/2007 as an investment advisor with:
NORTHWESTERN MUTUAL INVESTMENT SERVICES, LLC
424 S WOODS MILL RD STE 110
CHESTERFIELD, MO 63017-3428  
If you’ve suffered losses due to the actions or recommendations of the Northwestern Mutual Investment Services of Chesterfield, Missouri, broker/invesment advisor Scott S Niekamp, contact Soreide Law Group and speak to an experienced securities lawyer at no cost regarding the possible recovery of your investment losses through a FINRA arbitration at:  888-760-6552.
Soreide Law Group represents clients nationwide before FINRA and works on a contingency fee basis.