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Investors Allege Timothy Scanlon Violated State and Federal Securities Laws

Nov 21, 2022 Negligence

Timothy Scanlon (CRD #: 1968597), a broker registered with Arque Capital, is involved in several pending disputes, according to his BrokerCheck record, accessed on November 6, 2022. If you have questions about his conduct as a broker, keep reading.

Investor Disputes

In a dispute filed on September 8, 2022, an investor named Timothy Scanlon in allegations including breach of contract, negligence, and violations of multiple state and federal securities laws. The client allegedly bought several GWG products over the years, starting in 2011. GWG Holdings has since filed for bankruptcy. The client seeks $1.7 million in damages in this pending dispute.

On September 6, 2022, an investor alleged that Timothy Scanlon committed common law fraud, negligence and gross negligence, and breached his contract.

The client further alleged that he violated the Securities Act of Arizona, the Arizona Consumer Fraud Act, unspecified California securities laws (including by engaging in “unfair, unlawful and fraudulent business practices”), and unspecified federal securities laws. The client seeks $281,000 in this pending dispute.

Another pending dispute, filed on August 19, 2022, alleged that Timothy Scanlon breached his contract, warranties, and promises. The client also alleged that he violated state securities statutes as well as other claims under common law. The client seeks $50,000 in damages.

On April 18, 2022, an investor named Timothy Scanlon in allegations involving failure to supervise, failure to conduct due diligence, and unsuitable investments. The client seeks $100,001 in damages in this pending dispute.

FINRA Rule 2010

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

What qualifies as broker negligence?

Many kinds of broker misconduct may qualify as negligence. Common examples include unsuitable investment recommendations, material misrepresentations and omissions, and unauthorized trading. Investors who feel their losses are the result of broker negligence may be able to recover their funds by seeking out FINRA arbitration.

FINRA Rule 3110

FINRA Rule 3110 requires that firms establish supervisory systems over their employees to ensure their compliance with securities regulations. Firms must appoint supervisors and provide them with Written Supervisory Procedures (WSPs) to guide their work.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to tailor their investment recommendations to suit investors’ profiles. These profiles contain information about an investor’s age, tax status, and financial goals.

Investors who rely on brokers for recommendations may be able to recoup their losses by pursuing FINRA arbitration.

Background Information

Timothy Scanlon 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 24 – General Securities Principal Examination

Timothy Scanlon is a registered broker in 25 states and a registered investment adviser in Arizona, California, Illinois, New Mexico, Texas, and the District of Columbia.

He has also worked for the following firms:

  • Fox & Company Investments (CRD#:18517)
  • Prudential Securities (CRD#:7471)
  • Merrill Lynch, Pierce, Fenner & Smith (CRD#:7691)

Kurta Law Can Help

If you worked with Timothy Scanlon 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.