Scott Goldman Receives Fine and Suspension from FINRA
The sanctions resulted after allegations of unsuitable investments for an elderly client
In December of 2016, allegations surfaced claiming that broker Scott Goldman recommended an unsuitable investment strategy to an elderly customer. When the Financial Industry Regulatory Authority (FINRA) investigated, the agency fined Goldman $10,000 and suspended him for 20 days.
FINRA reported that Goldman’s strategy for his client involved leveraged metal products, which are risky investments. According to the report, the client was also not “adequately informed” of what the investment entailed and she didn’t understand the risks.
Goldman reported actions violate financial industry regulations and could possibly constitute elder financial fraud. In this instance, if a client doesn’t understand what he or she is agreeing to, executing the transaction anyway may meet this standard.
Goldman began his broker career in 1987 and has worked for nine firms:
- AMEV Investors, Inc.
- PW Securities, Inc.
- Mutual Service Corporation
- Oak Brook Securities Corp. – Oakbrook Terrace, IL
- FFP Securities, Inc. – Chesterfield, MO
- Waterstone Financial Group, Inc. – Arlington Heights, IL
- LPL Financial Corporation – Arlington Heights, IL
- H. Beck, Inc. – Arlington Heights, IL
- Cambridge Investment Research, Inc. – Arlington Heights, IL
Goldman also conducted financial business under the auspices of Champion Financial Services, Inc. and Planning Dynamics, Inc., in Arlington, IL, and Cira in Fairfield, IA.
Unsuitability is something that comes up time and time again in FINRA’s report of Goldman’s history as a broker. In several of the customer complaints against him, unsuitable investment advice is a common theme. Brokers are required to know their clients well and only make recommendations based on their specific financial situation and risk tolerance.
To get more information about Scott Goldman and his broker history, you can read FINRA’s BrokerCheck report.
Due to the increase of older investors, elder financial fraud is quite common these days. If you or someone you know is a victim of fraud or any action that violates securities industry regulations, you may be able reclaim lost money through securities arbitration. To find out, contact the Silver Law Group.
The attorneys at Silver Law Group are leaders in the field of securities arbitration and elder financial fraud. 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.
We have helped recover millions of dollars for our clients, and because we are a contingency-based firm, we don’t expect a fee unless you get money back. For a free consultation, fill out our online contact form.
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