Financial Industry Regulatory Authority (FINRA) BrokerCheck reveals disclosures about securities broker Scott Willard Taubman (also known as Scott W. Taubman, Scott Taubman) [CRD: 4809824, Peoria, Arizona]. Taubman previously worked for several brokerage firms, including Ameriprise Financial Services LLC from 2017 to 2022. Recent disclosures raise concerns about Taubman’s conduct, including regulatory sanctions and a pending client dispute.
FINRA Sanctions and Suspension Over Alleged Client Loans
On July 19, 2024, FINRA filed Case No. 2022076257601 against Scott Taubman, alleging that he borrowed $62,500 from two senior clients without notifying or obtaining written approval from his member firm. The findings indicated that Taubman received approximately $100,000 from the clients, failed to document the loans, and did not repay them. Instead, he disclosed the debt as a personal loan in a Chapter 7 bankruptcy filing and obtained a discharge of his indebtedness.
Additionally, FINRA found that Taubman falsely attested in his annual compliance questionnaires that he followed his firm's policies. Without admitting or denying the findings, Taubman consented to the sanctions and agreed to a four-month suspension from all capacities, effective from August 5, 2024, to December 4, 2024. Considering his financial status, no monetary fines were imposed.
Pending Client Dispute About Scott Taubman Alleging Unsuitable Investment Recommendations
On December 13, 2023, a client of Allstate Financial Services LLC filed a FINRA arbitration claim (Case No. 23-03464) against Scott Taubman, alleging that he recommended a variable annuity that was unsuitable and not in the client’s best interest. The damages have not been specified, but the firm determined that the alleged damages may exceed $5,000. The dispute remains pending.
Employment Separation from Ameriprise Financial Services
On September 5, 2022, Ameriprise Financial Services LLC permitted Taubman to resign following allegations of violating company policy by accepting a loan from a client and failing to disclose a judgment. In response, Taubman claimed that the loans were received from close personal friends before they became clients and that FINRA rules allow loans under certain personal relationship exceptions.
Looking for more information about Scott Taubman? If so, reach out to Soreide Law Group online or at (888) 760-6552 to speak with a securities lawyer. The team at Soreide Law Group works on a contingency basis, advances all costs, and helps investors across the country with recovering losses from sales practice misconduct. Taubman and the firms he worked for deny accusations of sales practice violations.
