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Scott Brander Barred by SEC Following Civil Judgment

Nov 9, 2022 Barred Broker

Scott Brander (CRD #: 2300933), a broker formerly registered with Buckman, Buckman & Reid, has been barred by the SEC, according to his BrokerCheck record, accessed on October 30, 2022. Keep reading if you have questions about his conduct as a broker.

Bar by SEC

On September 19, 2022, the Securities and Exchange Commission filed a regulatory action against Scott Brander following a judgment the SEC filed against him on September 14, 2022.

The SEC alleged that Scott Brander used an average-price account maintained by his firm to purchase large blocks of stock on behalf of his accounts and those of his advisory clients, without specifying at the time of purchase who the stock was bought for. He allegedly waited to see how the securities would perform during the trading day by using the following strategy: if the stock price increased, he allocated most of the winning trades to his accounts, and if the price decreased, he allocated most of the losing trades to clients’ accounts.

Scott Brander allegedly received $812,000 in ill-gotten gains from this fraudulent scheme.

Sanctions

The SEC has barred Scott Brander. 

SEC Civil Action

On September 12, 2022, following an investigation launched in 2020, the Securities and Exchange Commission rendered judgment against Scott Brander. The SEC alleged that Scott Brander engaged in a fraudulent “cherry-picking” scheme as a registered investment adviser working for Buckman Advisory Group from approximately January 2012 until June 2017.

The SEC alleged that Scott Brander disproportionately allocated profitable trades to himself and unprofitable trades to certain client accounts, earning himself $812,000 at the expense of his clients. In this alleged scheme, Scott Brander traded shares of highly-leveraged exchange-traded funds (ETFs), which frequently experienced large price changes over the course of the trading day.

The SEC alleged that Scott Brander failed to perform “any analysis” to determine the suitability of these ETFs for these clients, despite the prospectuses of these ETFs containing warnings about the risks of holding these investments and the relevant clients stating in their account opening documents that they sought more conservative investments.

Lastly, the SEC alleged that Scott Brander violated the following regulations:

  • Section 17(a)(1) of the Securities Act of 1933
  • Section 10(b) of the Securities Exchange Act of 1934 and Rules 10b-5(a) and (c) thereunder
  • Sections 206(1) and (2) of the Investment Advisers Act of 1940

Securities Act of 1933

Section 17(a)(1) of the Securities Act of 1933 bans the use of fraudulent devices, schemes, or artifices in the securities business.

Securities Exchange Act of 1934

Section 10(b) of the Securities Exchange Act of 1934 forbids the use of deceptive or manipulative devices in relation to the purchase or sale of securities. Rules 10b-5(a) and (c) also prohibit deceptive business practices as well as fraudulent schemes and artifices.

Investment Advisers Act of 1940

Sections 206(1) and (2) of the Investment Advisers Act of 1940 forbid the use of fraudulent and deceptive schemes or practices.

Sanctions

As a result of this civil action, Scott Brander was subject to a disgorgement of $812,876. 

Background Information

Scott Brander has passed the following exams:

  • Series 66 – Uniform Combined State Law Examination
  • Series 63 – Uniform Securities Agent State Law Examination
  • SIE – Securities Industry Essentials Examination
  • Series 7 – General Securities Representative Examination

In the past, he worked for the following firms:

  • Buckman, Buckman & Reid (CRD#:23407)
  • Kirlin Securities (CRD#:21210)
  • M.S. Farrell & Company. (CRD#:24232)
  • R.D. White & Company (CRD#:7011)
  • Nichols, Safina, Lerner & Company (CRD#:35476)
  • Smith Barney (CRD#:7059)
  • Gruntal & Company (CRD#:372)

Kurta Law Can Help

If you worked with Scott Brander 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.