The law firm of Oakes & Fosher is presently investigating the alleged misconduct of former securities broker Scott Donato. According to his publicly available FINRA BrokerCheck report, Scott Donato has been the subject of multiple customer disputes.

Scott Donato was a Florida based securities broker. He worked in the securities industry for twenty-three years. He spent his entire career registered with Morgan Stanley between 1993 and 2017. He is no longer working as a registered securities broker in any fashion.

The Allegations

  • In September 2001, customers alleged that Scott Donato executed common law and statutory securities violations. This case went to arbitration where the customer was awarded $125,000 in damages.
  • In June 2014, a customer alleged that Scott Donato recommended unsuitable options investments. This case was settled for $350,000 in damages.
  • In March 2017, another customer alleged that Scott Donato made unsuitable recommendations. This case was settled for $995,000 in damages.
  • In November 2017, even more customers alleged that Scott Donato recommended unsuitable investments. This case was settled for $150,000 in damages.
  • In December 2018, Scott Donato was barred from acting as a securities broker in any fashion after failing to respond to a FINRA request for information.

What Does This Mean?

Securities brokers have a duty to their customers to only make recommendations that would be suitable for them. This can be determined by looking at multiple factors provided to them by their customers. This includes investment objectives, risk tolerance, liquidity needs, and financial situation. Brokers who invest customers contrary to their specific factors either do so in an attempt to defraud them, or through their own negligence. Regardless of their intent, brokers placing investors in products they are financially unsuited for disqualifies the broker from being able to perform their duties in the manner required for their position.

Oakes & Fosher Can Help

Many investors are unaware of the legal recourse available to them after losing money due to securities broker fraud and/or negligence. The truth is that investors who have lost money in this fashion may actually be entitled to damages.

Oakes & Fosher dedicates its entire legal practice to helping investors across the nation. If you, or someone you know, have lost money investing with Scott Donato, please contact Oakes & Fosher for a free and private consultation. Oakes & Fosher handles cases on a contingency basis, which means there are no fees charged unless we collect for you.