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Former VSR Financial Services, Inc. Broker Scott Kaup Faces Multiple Customer Complaints

Posted on Wednesday, October 17th, 2018 at 5:39 pm    

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Former VSR Financial Services, Inc. broker Scott Kaup (CRD# 1002907) is alleged to have recommended unsuitable high-risk oil and gas and real estate securities. Kaup has been registered with Cetera Advisor Networks LLC in Stuart, Nebraska since 2019. Kaup was registered with Summit Brokerage Services, Inc. in Stuart, Nebraska from 2016 to 2021. Previously, Kaup was registered with VSR Financial Services, Inc. in Stuart, Nebraska from 1989 to September 2016.

Kaup has been the subject of two customer complaints between 2016 and 2018, according to his CRD report:

January 2021. “Claimants allege that their registered representative recommended unsuitable investments.” The case is currently pending. The complaint was regarding private placements and real estate securities. The complaint took place while Kaup was registered with VSR Financial Services, Inc. 

November 2020. “Claimants allege that their registered representative recommended unsuitable investments.” The customer is seeking $665,000 in damages. The complaint was regarding private placements and real estate securities. The complaint took place while Kaup was registered with VSR Financial Services, Inc. 

February 2019. “Client alleges unsuitable investment recommendations, material misrepresentations and omissions, and supervisory due diligence failures.” The customer sought $450,000 in damages and the case was settled for $42,500. The complaint was regarding direct investments and real estate securities. The complaint took place while Kaup was registered with VSR Financial Services, Inc. 

July 2018. “Client alleges unsuitable investment recommendations, material misrepresentations and omissions, and supervisory due diligence failures.” The customer sought $2.6 million in damages and the case was settled for $998,000. This case is regarding direct investments and real estate securities. The complaint was regarding direct investments and real estate securities. The complaint took place while Kaup was registered with VSR Financial Services, Inc. 

April 2016. “Unsuitable recommendations, Violation of common law fraud, breach of fiduciary duty, and negligence. The dates the alleged activity are 3/30/2001 to 6/14/2010.” The customer alleged damages of between $1 and $5 million from direct investments and limited partnership interests in oil and gas and real estate securities and the case was settled for $173,000. The complaint took place while Kaup was registered with VSR Financial Services, Inc.

Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, VSR Financial Services, Inc. may be liable for investment or other losses suffered by Kaup’s customers.

Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.