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LPL Financial Fires Scott Bremus for Allegedly Selling Away

Dec 31, 2021 Selling Away

Scott Bremus (CRD #:4073006), a formerly registered broker, was recently fired by LPL Financial according to his  BrokerCheck record, accessed on December 14, 2021. Details are provided below.  

Termination Details 

On October 1, 2021, LPL Financial fired Scott Bremus after allegedly facilitating private securities transactions without the firm's approval.  

What Is "Selling Away"? 

“Selling away” describes the practice of selling securities in unauthorized private transactions outside the regular scope of the broker’s business. Brokerage firms maintain a list of approved securities their brokers are allowed to offer. By approving products ahead of time, brokerage firms ensure that their brokers sell only securities that are vetted and verified as suitable products.  

FINRA Rule 3280 prohibits brokers from engaging in private securities transactions (including selling away) without first providing written notice to their firm. After receiving that notice, the member firm may approve or disapprove the transaction. If the firm approves, then the firm supervises and records the transaction. Disapproval, on the other hand, prohibits the broker from participating in the transaction either directly or indirectly. 

A violation of FINRA Rule 3280 is also a violation of FINRA Rule 2010, which requires brokers to observe high standards of commercial honor and just and equitable principles of trade in the conduct of their business. 

Prior Disputes 

Scott Bremus has been involved in two customer disputes in the past.  

  1. On July 1, 2009, an investor alleged Scott Bremus  misrepresented a variable annuity in December 2006. The case was settled for $60,000. 
  1. On June 30, 2008, he was involved in a similar dispute wherein the client alleged misrepresentation with respect to annuity. The firm, however, denied the dispute. Firms can deny a dispute without a third party review and investors can still recover their losses following a denial.  

Misrepresentations and omissions concerning material facts in investment recommendations deprive investors of the information they need to assess risks associated with a particular investment.  

FINRA Rule 2020 prohibits brokerage firms and stockbrokers from making material misrepresentations or inducing people into buying investments with false or exaggerated statements about their potential benefits. This unethical conduct also violates FINRA Rule 2010, which states that brokers must uphold high standards of commercial honor.  

Losses attributed to a stockbroker's material misrepresentations of facts may result in a viable securities claim for damages.  

Background Information 

Scott Bremus has passed the following exams: 

  • Series 66 - Uniform Combined State Law Examination 
  • SIE - Securities Industry Essentials Examination 
  • Series 7 - General Securities Representative Examination 

Scott Bremus has also worked with the following firms: 

  • Sterne Agee Financial Services (CRD#:18456) 
  • Morgan Stanley Smith Barney (CRD#:149777) 
  • Citigroup Global Markets (CRD#:7059) 
  • Merrill Lynch, Pierce, Fenner & Smith Incorporated (CRD#:7691) 

Kurta Law Can Help 

If you lost money have been victimized after working with Scott Bremus, 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. Please reach out with any questions about what steps to take next to recover your losses.