Investor Seeks Six Figures in Dispute with Scott Aabel Involving GWG L Bonds

Scott Aabel (CRD #: 1493667), a broker registered with Spire Securities, allegedly gave unsuitable investment recommendations, according to his BrokerCheck record, accessed on September 2, 2022. Investors may have also engaged his services through Spire Wealth Management. If you want to learn more about his conduct as a broker, read on.

Investor Disputes

On June 21, 2022, an investor alleged that Scott Aabel made an unsuitable recommendation to invest $300,000 in GWG L Bonds from 2020-2021. The client seeks $500,000 in this pending dispute.

In a dispute filed on June 29, 2021, an investor alleged that Scott Aabel recommended unsuitable alternative investments and gave “poor advice” concerning withdrawals from an annuity. The client seeks $300,000 in damages in this pending dispute.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to recommend securities that sufficiently match their client’s investment goals. Brokers must use the information in an investor’s profile, such as their risk tolerance, age, and tax status when making recommendations.

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

FINRA Suspension

On September 16, 2016, Scott Aabel consented to the entry of findings that he allegedly failed to amend his Uniform Application for Securities Industry Registration or Transfer Form (Form U4) in a timely manner.

A Letter of Acceptance, Waiver and Consent (AWC) alleges that Scott Aabel entered into two financial compromises with credit card companies in June and July 2012. He allegedly did not update this information on his Form U4 until February 11, 2013, and did not disclose these compromises to his firm, Prime Capital Services, at any time.

The AWC concludes that these allegations constitute violations of FINRA Rules 1122 and 2010 and Article V, Section 2 of FINRA’s By-Laws.

FINRA Rules 1122 and 2010

FINRA Rules 1122 prohibits FINRA members from filing or failing to correct misleading information on their registration or membership documentation.

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

Article V, Section 2 of FINRA’s By-Laws

Article V, Section 2 of FINRA’s By-Laws requires FINRA members to update and amend any outdated or inaccurate information on their registration application within 30 days of learning the facts leading to the changes.

Sanctions

Scott Aabel consented to the following sanctions:

• $5,000 fine
• 30-business day suspension

His suspension began on September 19, 2016, and ended on October 28, 2016.

You can read a copy of the AWC filing here.

Tax Liens

From 2016-2022, Scott Aabel was subject to $340,190.84 in tax liens. 

Background Information

Scott Aabel 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 7 – General Securities Representative Examination
• Series 22 – Direct Participation Programs Representative Examination
• Series 6 – Investment Company Products/Variable Contracts Representative Examination

Scott Aabel is a registered broker and a registered investment adviser in Florida.

He has also worked for the following firms:

• Investors Capital Corporation (CRD#:30613)
• SagePoint Financial (CRD#:133763)
• Asset & Financial Planning (CRD#:110709)
• Prime Capital Services (CRD#:18334)
• Lutheran Brotherhood Securities (CRD#:4205)

Kurta Law Can Help

If you worked with Scott Aabel 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.