Investor Alleges Scot Barringer Made Misrepresentations

Scot Barringer (CRD #: 1385168), a broker formerly registered with American Trust Investment Services, allegedly made misrepresentations, according to his BrokerCheck record, accessed on September 7, 2025. Read on if you have questions about his alleged conduct as a broker.[vary this]

Investor Disputes

On June 10, 2025, an investor alleged that Scot Barringer breached his contract and warranties, made intentional and negligent misrepresentations of material fact, and violation of fraud and estate securities statutes and laws concerning deceptive trade practices. The client made these allegations in connection with their purchase of GWG Holdings. This dispute is currently pending.

In a dispute filed on September 7, 2024, an investor alleged that Scot Barringer violated the suitability rule. This dispute was settled for $60,000.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

FINRA Rule 2020

FINRA Rule 2020 forbids the use of deceptive, manipulative, and otherwise fraudulent methods to influence the purchase and sale of securities. The misrepresentation or omission of material facts violates this rule.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to evaluate whether an investment fits their investor’s financial goals. Brokers must consult the investor’s profile, which describes their tax status, age, risk tolerance, and overall financial situation.

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

Maryland Regulatory Action

On May 28, 2025, the Maryland Securities Division filed a regulatory action against Scot Barringer in connection with his suspension by FINRA. This action is currently pending.

FINRA Suspension

On April 22, 2025, Scot Barringer consented to the entry of findings that he allegedly recommended that four customers invest in GWG Holdings L Bonds without a reasonable basis to do so.

According to a Letter of Acceptance, Waiver & Consent (AWC), GWG Holdings allegedly described its L Bonds as speculative, high-risk, illiquid and suitable only for investors with substantial financial resources.

From October 2020 through February 2021, Scot Barringer allegedly recommended L Bonds to the following investors. These investors allegedly had moderate to moderately aggressive risk tolerance, income as an investment objective, and no experience with alternative investments:

• Customer A: Allegedly recommended $22,000 investment in L Bonds, concentrating approximately 6% of their liquid net worth and approximately 22% of their liquid net worth in alternative investments overall.
• Customer B: Allegedly recommended $30,000 investment in L Bonds, which concentrated approximately 6% of her net worth in the investment and approximately 39% in alternative investments.
• Customer C: Allegedly recommended $90,000 in L Bonds, concentrating approximately 26% of her liquid net worth in L Bonds, and resulting in the concentration of approximately 42% of her liquid net worth in alternative investments.
• Customer D: A non-profit entity allegedly recommended $60,000 in L Bonds, which concentrated approximately 23% of its liquid net worth in the investment and 72% of its net worth in alternative investments.

Alleged POPA Inaccuracies

Between October 2020 and March 2021, Scot Barringer allegedly inaccurately completed Private Offering Purchase Agreements (POPAs) associated with eight clients’ L Bond purchases by underreporting their net worth concentration percentages in both L Bonds and alternative investments overall.

For five of these clients, he allegedly inaccurately stated that his recommended concentrations in L Bonds did not cause them to meet or surpass certain POPA concentration thresholds.

The AWC concluded that these allegations constituted violations of FINRA Rules 2111, 2010, and 4511, and Regulation Best Interest.

FINRA Rule 4511

FINRA Rule 4511 requires firms to maintain accurate books and records.

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

Scot Barringer has passed the following exams:

• General Securities Principal Examination – Series 24
• Municipal Securities Principal Examination – Series 53
• Registered Options Principal Examination – Series 4
• Financial and Operations Principal Examination – Series 27
• Operations Professional Examination – Series 99TO
• Municipal Securities Representative Examination – Series 52TO
• Securities Industry Essentials Examination – SIE
• National Commodity Futures Examination – Series 3
• General Securities Representative Examination – Series 7
• Uniform Investment Adviser Law Examination – Series 65
• Uniform Securities Agent State Law Examination – Series 63

He previously worked for the following firms:

• American Trust Investment Services (CRD#:3001)
• WestPark Capital (CRD#:39914) 
• Newport Coast Securities (CRD#:16944)
• Securities America (CRD#:10205)
• Brookstreet Securities (CRD#:14667)
• Barringer Ryan Vance (CRD#:22756)
• J K R & Company (CRD#:8040)
• Bateman Eichler, Hill Richards (CRD#:76) 

Kurta Law Can Help

If you worked with Scot Barringer 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 that 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.