Soreide Law Group has new information to report concerning securities broker Scott Thomas Wolfrum (CRD#: 2187550, Indianapolis, Indiana). Evidently, the securities broker was associated with Wells Fargo Advisors (2011 to 2013), David A. Noyes Company (2013 to 2018), and Huntleigh Securities Corporation (2018 to 2019). Also, he has been the owner of Wolfrum Capital Management and Foundry Capital Group. Notably, four investors filed disputes about Wolfrum, and Securities and Exchange Commission (“SEC”) sanctioned him. Here’s more on these disclosures.
Particularly, the client of David A. Noyes brought a FINRA Arbitration Claim in July 2021 in regard to Scott Wolfrum. It appears that the client invested in unsuitable alternative investments including real estate investment trusts (“REITs”). According to the client, Wolfrum provided unsuitable investment recommendations (suitability covers the investor’s risk tolerance, investment objectives, financial needs and investing experience). For this reason, the client demanded $250,000 in compensation in this ongoing matter.
Notably, SEC issued an Order fining Scott Wolfrum $75,000 and censuring him, among other things, for his alleged violation of securities laws (Investment Advisers Act, Securities Exchange Act). The Commission mentioned that Wolfrum supposedly did not tell his advisory clients regarding conflicts relating to their investments in Foundry Mezzanine Opportunity Fund (“FMOF”). This fund was apparently involved with aiding small businesses who needed capital. Also, the fund invested in some of those businesses. Supposedly, at the time of his $20,000,000.00 in sales of FMOF interests, Wolfrum did not tell investors about his financial interests relating to two of FMOF’s holdings and about finder’s fees relating to the fund’s investments.
Also, a Huntleigh Securities Corporation client brought a dispute about Scott Wolfrum in March 2019. The nature of this dispute reportedly focused on the client’s private placement investment in 2018. Wolfrum purportedly failed to get authorization when effectuating this purchase. For this reason, and to resolve the matter, Huntleigh Securities Corporation paid the client $449,300 in an April 2019 settlement.
Evidently, when Scott Wolfrum worked for Wells Fargo, he was involved in the recommendation or sale of variable annuity products. One Wells Fargo client alleged that Wolfrum caused an unsuitable concentration of their assets in annuities. It appears that the annuities were unsuitable according to the complaint. Because of this, Wells Fargo Financial Network compensated this client in the amount of $10,000.
Did securities broker Scott Wolfrum cause you to suffer losses? If so, call Soreide Law Group at (888) 760-6552 and speak with a skilled securities lawyer regarding a possible recovery of your losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The firm has helped many United States investors recover compensation after incurring losses caused by their financial advisors and securities brokers. Please note that Wolfrum denies all allegations of his sales practice violations.
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