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Huntleigh Securities Corporation Broker Scott Wolfrum Investment Loss Options

Posted on Wednesday, June 2nd, 2021 at 12:17 am    

Huntleigh Securities Corporation

Did you lose money investing with Huntleigh Securities Corporation broker Scott Wolfrum (CRD# 2187550)? Wolfrum has been registered with Huntleigh Securities Corporation in Indianapolis, Indiana from 2018 to 2019. Previously, Wolfrum was registered with David A. Noyes & Company in Indianapolis, Indiana from 2013 to 2018. 

In March 2021, the Securities and Exchange Commission (SEC) sanctioned Wolfrum to a cease and desist and sanctioned him to pay $75,000 in civil and administrative penalties, $140,125 in disgorgement, and a $21,354 monetary penalty. The SEC found that Wolfrum failed to disclose conflicts of interest when recommending that his advisory clients invest in Foundry Mezzanine Opportunity Fund (FMOF), which is a private fund that provides lending to and invests in small businesses. The SEC found that between December 2015 and June 2018, “Wolfrum sold more than $20 million in interests in FMOF, almost all of which were recommended by Wolfrum and sold to his advisory clients. Wolfrum failed to disclose to his clients the conflicts of interest created by his and his family members’ financial interests in two of the Fund’s holdings and Wolfrum’s receipt of $140,125 in finder’s fees for facilitating two different investments by the Fund.”

Wolfrum has been the subject of three customer complaints between 2008 and 2019, one of which was denied, according to his CRD report. The most recent complaint was regarding: 

March 2019. “Complainant alleges that the purchase of a private placement was made without complainant’s approval. Date of activity was 01/11/2018.” The customer sought $500,000 in damages and the case was settled for $449,300. The complaint took place while Wolfrum was registered with Huntleigh Securities Corporation and was regarding private placement investment losses. 

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, Huntleigh Securities Corporation may be liable for investment or other losses suffered by Wolfrum’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.