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Scot Harenburg Involved in Unsuitability Dispute

Jan 26, 2022 Unsuitable Investments

Scot Harenburg (CRD #: 2330907), a broker registered with Carl M. Hennig, is involved in an investor dispute, according to his BrokerCheck record, accessed on January 7, 2022. 

Investor Allegations 

On October 28, 2021, an investor filed a dispute against Scot Harenburg, alleging poor initial investments. The investor is seeking $100,000  the case is still pending.  

What is a Suitable Investment? 

A stockbroker who recommends a security or investment is subject to regulatory rules. FINRA Rule 2111 requires registered financial advisors to have a "reasonable basis" to believe that a recommended transaction or investment strategy suits their client's needs. 

According to FINRA, the three prongs of a suitability determination are 1) reasonable-basis suitability, 2) customer-specific suitability, and 3) quantitative suitability. 

  1. Reasonable-basis Suitability: Brokers are required to use reasonable diligence before making a recommendation. This means they have an obligation to understand an investment strategy and its potential risks or rewards. 
  2. Customer-specific Suitability: Before recommending a particular security or investment strategy involving a specific client, brokers are required to have reasonable grounds for believing it will be suitable based on that client's personal profile. The profile includes information on the investor's financial goals, investing experience, and risk tolerance.  
  3. Quantitative Suitability: Brokers with control over a customer's account must have a reasonable basis to believe that the series of transactions they recommend are not excessive before executing them. Excessive transactions run the risk of incurring too many fees and negating any returns.  

If you've lost money due to a financial advisor's bad recommendations, do not hesitate to contact an experienced securities attorney as soon as possible. Kurta Law is a nationally recognized securities law firm with over 25 years of experience litigating securities fraud cases 

Background Information 

Scot Harenburg has passed the following exams: 

  • Series 63 - Uniform Securities Agent State Law Examination 
  • SIE - Securities Industry Essentials Examination 
  • Series 55 - Limited Representative-Equity Trader Exam 
  • Series 7 - General Securities Representative Examination 
  • Series 24 - General Securities Principal Examination 

Scot Harenburg is a registered broker in Ohio and Wisconsin.  

Besides Carl M. Hennig, Scot Harenburg has not worked with any other firm. 

Kurta Law Can Help 

If you have worked with Scot Harenburg and have concerns about your investments, don't hesitate to contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation. 

For nearly 20 years, Kurta Law has advocated for investors 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.