Scott Brannan Faces Allegations of Unsuitable Investments

Scott Brannan (CRD # 4553880), a broker and investment adviser, is alleged to have violated suitability requirements in investments of non-traded real estate investment trusts (REITs). These allegations can be found on Scott Brannan’s BrokerCheck profile via FINRA.

On February 15, 2022, an investor alleged that Scott Brannan recommended unsuitable investments. The investor alleges that Scott Brannan recommended non-traded REITs. Non-traded REITs are especially risky because of their illiquid nature. The investor further alleged that Scott Brannan misrepresented these high-commission investment products.

The investor is seeking $100,001; the dispute is pending.

FINRA Rule 2111

FINRA Rule 2111 defines suitable investments as securities that fit an investor’s profile. An investor’s profile includes information about their risk tolerance, investing experience, financial goals, and age. Investors who rely on their brokers for recommendations may be able to recover their losses through FINRA arbitration.

• Investments can be unsuitable because they are high risk and likely to lose money.
• Securities may also be unsuitable because they are illiquid, meaning they are intended to be held for an extended time, and investors may have to pay high fees to cash out.
• Securities can be quantitatively unsuitable, which means that brokers executed an excessive number of trades.
• These requirements apply to the overall investment strategy as well as the investments themselves. For instance, an investment strategy might be unsuitable if the securities are over-concentrated in a particular stock or sector.

Background Information

Scott Brannan 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 6 – Investment Company Products/Variable Contracts Representative Examination

He is a registered broker in Minnesota and North Dakota. He is also an investment adviser in North Dakota.

Scott Brannan has worked for the following firms:

• Berthel, Fisher & Company Financial Services, Inc. (CRD # 13609)
• BFC Planning (CRD #: 119682)
• Morgan Stanley Smith Barney (CRD # 149777)
• Citigroup Global Markets Inc. (CRD # 7059)

Kurta Law Can Help

If you worked with Scott Brannan and have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For nearly 20 years, Kurta Law has advocated on behalf of investors recovering their investment losses from stockbrokers and brokerage firms. Kurta Law is a nationally recognized law firm that exclusively represents investors. We work on a contingency basis, which means that the firm only earns a fee if our securities attorneys recover money on your behalf. Reach out and we can tell you what steps to take to restore your lost funds.