South Florida Arbitration & Litigation Lawyer Blog
FINRA Fraud and Mismanagement Attorney, Russell L. Forkey, Esq.
May, 2011
Scott Jeffrey Adler (CRD #3175603, Registered Representative, Sharon, Massachusetts, formerly licensed with New England Securities) submitted a Letter of Acceptance, Waiver and Consent in which he was fined $36,434, which includes disgorgement of $16,434 to be paid to the firm, and suspended from association with any FINRA member in any capacity for 12 months. The disgorgement must be paid to the firm within 60 days of the acceptance of the AWC, and the remaining fine must be paid either immediately upon Adler’s reassociation with a FINRA member firm following his suspension, or prior to the filing of any application or request for relief from any statutory disqualification, whichever is earlier. Without admitting or denying the findings, Adler consented to the described sanctions and to the entry of findings that he participated in private securities transactions when customers of his member firm and his accounting firm purchased promissory notes an individual issued. The findings stated that Adler failed to provide written notice to his firm describing in detail the proposed transactions with the individual issuing the promissory notes, his proposed role therein, and stating whether he had received or might receive selling compensation in connection with the transactions. The findings also stated that Adler introduced the customers to the individual and they invested a total of about $700,000 in the individual’s promissory notes as a result of Adler’s referrals. The findings also included that the individual paid Adler approximately $16,434 in selling compensation for his referral. FINRA found that the customers lost approximately $630,000, and the firm made full restitution to Adler’s clients even though one was not a customer of the firm. The suspension is in effect from March 21, 2011, through March 20, 2012. (FINRA Case #2010021436901).
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