Scott Williams Suspended by FINRA

Scott Williams (CRD #: 2330693), a broker formerly registered with LPL Financial, was recently suspended by FINRA, according to his BrokerCheck record, accessed on August 5, 2022. Read on if you have questions about Scott Williams’s conduct as a broker.

Suspension by FINRA

On May 27, 2022, FINRA suspended Scott Williams after he allegedly failed to comply with an arbitration award or satisfactorily respond to a request for information regarding the status of his compliance.

On March 18, 2022, Scott Williams was the subject of a FINRA Award for LPL Financial, following a complaint alleging that Scott Williams breached a promissory note and other agreements.

This arbitration agreement obligated Scott Williams to pay LPL Financial the following:

• Interest at 4.04% per year on the damages associated with Note 1
• $80,000 in compensatory damages for the balance due under Note 1 
• Interest at 5.50% per year on the damages associated with Note 2
• $15,945.29 in compensatory damages for the balance due under Note 2
• $8,533.50 in attorneys’ fees and claim filing fees
• $15,351.65 in pre-award interest 
• $84.18 in additional costs

FINRA Rule 9554

FINRA Rule 9554 suspends or cancels the membership of brokers who fail to comply with settlement agreements or arbitration awards or fail to provide information regarding their compliance upon FINRA request.

Sanctions

Scott Williams was suspended by FINRA starting on May 27, 2022, and ended on June 22, 2022.

You can read a copy of the arbitration award here.

Investor Disputes

In a dispute filed on June 10, 2020, an investor alleged that Scott Wiliams recommended unsuitable and overconcentrated positions between February 1, 2011, and October 30, 2015. The client received a settlement of $125,000.

On February 15, 2019, an investor alleged that Scott Williams conducted excessive trading in unsuitable penny stocks and individual equities, resulting in excessive commissions. The client identified March 2017 to March 2018 as the time period for this alleged conduct.

The investor sought $79,299.83 in damages and received a settlement of $61,050.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to evaluate whether an investment fits their investor’s financial goals. Brokers must take into account the information described in an investor’s profile, such as their risk tolerance, tax status, and other investments.

Suitability also applies to investment strategies and trading activity. Overconcentration, in particular, is a strategy that may come with a degree of risk that is beyond investors’ tolerance.

Excessive trading, also called churning, violates the requirement for quantitative suitability and generates commissions and fees that eat into investors’ returns.

Investors who rely on brokers for recommendations may be able to recover their losses by pursuing FINRA arbitration.

Discharge from LPL Financial

On July 10, 2018, LPL Financial fired Scott Williams over an alleged violation of firm policy concerning discretion.

Background Information

Scott Williams has passed the following exams:

• Series 65 – Uniform Investment Adviser Law Examination
• Series 63 – Uniform Securities Agent State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 7 – General Securities Representative Examination
• Series 10 – General Securities Sales Supervisor – General Module Examination
• Series 9 – General Securities Sales Supervisor – Options Module Examination 

He has also worked for the following firms:

• LPL Financial (CRD#:6413)
• Raymond James Financial Services (CRD#:6694)
• J.J.B Hilliard, W.L. Lyons (CRD#:453)

Kurta Law Can Help

If you worked with Scott Williams and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.