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

Scott Kaup is a Nebraska based securities broker. He has worked in the securities industry for thirty-eight years. During his career, he has been registered with five different securities firms.

His Registrations

  • St. Paul Investors (1981-1984)
  • WZW Financial Services (1984-1985)
  • VSR Financial Services (1985-1987, 1989-2016)
  • American General Securities Incorporation (1987-1989)
  • Summit Brokerage Services (2016-2019)
  • Cetera Advisor Networks (2019-Present)

The Allegations

  • In April 2016, a customer alleged that Scott Kaup recommended unsuitable investments, engaged in common law fraud, breached his fiduciary duty, and managed their account negligently. This case was settled for $173,000 in damages.
  • In July 2018, a customer alleged that Scott Kaup recommended unsuitable investments and made material misrepresentations. This case was settled for $998,000 in damages.
  • In February 2019, a customer alleged that Scott Kaup recommended unsuitable investments and made material misrepresentations and omissions. This case was settled for $42,500 in damages.

What Does This Mean?

As fiduciaries, securities brokers have an obligation to their customers to only make decisions that act in their best financial interests. This is also known as their fiduciary duty. The main aspect of this duty is making sure that their customers are actually suited for the investments they are recommending. Brokers can determine a customer’s suitability by analyzing crucial financial factors specific to every customer. These include the customer’s age, financial status, risk tolerance, liquidity needs, and investment objectives. Brokers who invest their customers contrary to these factors have exposed their customers to significant financial risk.

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 Kaup, 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.