Scott Hechler Allegedly Engaged in Excessive and Unauthorized Trading

Scott Hechler (CRD #: 5277526), a broker registered with Spartan Capital Securities, is the subject of an investor dispute. This is according to his BrokerCheck record, accessed on May 17, 2024. Investors who have questions regarding his alleged conduct should keep reading. 

Investor Allegations

On March 25, 2024, 36 investors alleged that Scott Hechler recommended unsuitable investments and engaged in excessive trading and unauthorized trading. The dispute settled for $140,000. 

Investors should note that this is the third investor dispute on his record. 

Excessive Trading

FINRA Rule 2111, a.k.a. The Suitability Rule, requires brokers to tailor their investment recommendations to suit investors’ needs. Trades must be quantitatively suitable, meaning the number of trades must suit an investor’s needs. Each trade comes with a transaction fee, so too many transactions will result in excessive fees for the investor. Excessive trading is also known as “churning.” 

Unauthorized Trading

FINRA Rule 3260 limits discretionary trading by brokers to pre-approved discretionary accounts. These accounts must be approved for discretionary trading by both the client and the firm. Discretionary trading that takes place in an account that has not been approved is unauthorized.

Background Information 

Scott Hechler has passed the following exams:

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

He is registered as a broker in 33 states. 

During his 15 years of experience, he has registered with seven firms: 

• Spartan Capital Securities (CRD #: 146251) 
• SW Financial (CRD #: 145012) 
• Worden Capital Management (CRD #: 148366) 
• Legend Securities (CRD #: 44952) 
• Joseph Gunnar & Co (CRD #: 24795)
• Brookstone Securities (CRD #: 13366) 
• JP Turner & Company (CRD #: 43177) 

Kurta Law Can Help 

If you have worked with Scott Hechler and have concerns about your investments, do not hesitate to contact us at 877-600-0098 or email 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 that 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. Do not let securities fraud go unchecked. Start your recovery process today.