Scott Kemps Allegedly Facilitated Unsuitable and Illiquid Investments

Scott Kemps (CRD #: 1849069), a broker registered with Great Point Capital, is involved in a pending dispute, according to his BrokerCheck record, accessed on June 27, 2023. Investors may have also engaged his services through BlueSkye Investment Advisers or Spectrum Capital Management. Read on to learn more about his alleged conduct as a broker.

Investor Disputes

On April 12, 2023, an investor alleged that Scott Kemps facilitated unsuitable, speculative, and illiquid investments from 2014-2015. The client seeks $400,000 in damages in this pending dispute.

A dispute filed on October 8, 2021, similarly alleged that Scott Kemps made unsuitable investment recommendations. The client sought $100,000 and received a settlement of $206,300.

On May 24, 2021, an investor alleged that Scott Kemps misrepresented the potential benefits of purchasing Oncolix stock (ONCX) and its potential performance, resulting in losses for the client. They sought $136,250 but the dispute was denied by the firm.

However, investors should be aware that firms can deny disputes without allowing an outside review. Investors may be able to recover their losses after a denial by seeking out FINRA arbitration.

In a dispute filed on March 12, 2021, an investor named Scott Kemps and his firm in allegations of statutory fraud, breach of contract, negligence, lack of suitability, and lack of due diligence with regard to the sale of GPB Capital Holdings funds. The client sought $600,000 and received a settlement of $400,000.

On February 22, 2021, an investor alleged that Scott Kemps made unsuitable recommendations of three direct participation program (DPP) investments between 2015-2020. They sought $300,000 in damages and received a settlement of $110,000.

FINRA Rule 2111 and Regulation Best Interest

FINRA Rule 2111 requires brokers to tailor their investment recommendations to suit investors’ profiles, which describe investor characteristics, such as their risk tolerance, tax status, and financial goals.

Regulation Best Interest (Reg-BI) is an SEC regulation that requires brokerage firms to put their clients’ best interests first. For example, firms must conduct reasonable due diligence when researching investments to ensure their recommendations are suitable for the investor.

FINRA Rule 2020

FINRA Rule 2020 bans the use of deceptive or manipulative tactics, like the misrepresentation or omission of material facts, as they relate to the purchase and sale of securities.

FINRA Rule 2010

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

What is broker negligence?

Brokers may act in many negligent ways, ranging from omitting material facts to executing unauthorized trades.

Investors who have lost money through broker negligence may be able to recover their funds by pursuing FINRA arbitration.

Background Information

Scott Kemps has passed the following exams:

• Series 65 – Uniform Investment Adviser Law Examination
• Series 63 – Uniform Securities Agent State Law Examination
• Series 99TO – Operations Professional Examination
• Series 79TO – Investment Banking Registered Representative Examination
• SIE – Securities Industry Essentials Examination
• Series 3 – National Commodity Futures Examination
• Series 34 – Retail Off-Exchange FOREX Examination
• Series 7 – General Securities Representative Examination
• Series 26 – Investment Company Products/Variable Contracts Principal Examination
• Series 30 – NFA Branch Manager Examination
• Series 27 – Financial and Operations Principal Examination
• Series 24 – General Securities Principal Examination
• Series 4 – Registered Options Principal Examination

Scott Kemps is a registered broker in ten states and a registered investment adviser in Florida.

He has also worked for the following firms:

• Meyers Associates (CRD#:34171)
• International Assets Advisory (CRD#:10645)
• Ariston Wealth Management (CRD#:158220)
• Anderson & Strudwick (CRD#:48)
• Jesup & Lamont Securities CORP. (CRD#:39056)
• Empire Investment Advisors (CRD#:108006)
• Empire Financial Group (CRD#:28759)
• Centennial Capital Management (CRD#:38988)
• Summit Brokerage Services (CRD#:34643)
• Securities Service Network (CRD#:13318)
• Anchor National Financial Services (CRD#:5774)

Kurta Law Can Help

If you worked with Scott Kemps 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.