Victim of Financial Fraud? Call Now

Investor Seeks Six Figures in Dispute with Scott Schlett

Scott Schlett (CRD #: 2111952), a broker registered with Morgan Stanley, allegedly failed to manage a client’s account in her best interest, according to his BrokerCheck record, accessed on March 15, 2023. Keep reading if you have questions about his alleged conduct as a broker.

Investor Dispute

In a pending dispute filed on February 3, 2023, an investor alleged that Scott Schlett failed to manage her accounts in her best interest from 2019-2020. The client also made undisclosed allegations. She seeks $400,000 in damages.

FINRA Rule 2111

FINRA Rule 2111 defines suitable investments as securities that fit an investor’s profile. These profiles describe an investor’s risk tolerance, tax status, and overall financial situation.

Investment strategies must also meet the requirements of suitability. Overconcentration is a common example of an unsuitable investment strategy because it can increase the risk for an investor beyond what is appropriate for their financial goals.

A strategy involving excessive trading violates the requirement for quantitative suitability and can generate fees that significantly cut into investors’ returns.

Investors who rely on their broker for recommendations may be able to recoup their losses by seeking out FINRA arbitration.

Regulation Best Interest

Regulation Best Interest (Reg-BI) is an SEC regulation that requires brokerage firms to put their clients’ best interests first. For example, firms must conduct reasonable due diligence when researching investments to ensure their recommendations are suitable for the investor.

Background Information

Scott Schlett 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 31 – Futures Managed Funds Examination
  • Series 7 – General Securities Representative Examination

Scott Schlett is a registered broker in 33 states and the District of Columbia. He is also a registered investment adviser in New Jersey and Texas.

He has also worked for the following firms:

  • Morgan Stanley & Company (CRD#:8209)     
  • Morgan Stanley (CRD#:7556)
  • Wachovia Securities (CRD#:19616)
  • First Union Capital Markets Corporation (CRD#:6124)
  • Ryan, Beck & Company (CRD#:3248)

Kurta Law Can Help

If you worked with Scott Schlett 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.