The law firm of Oakes & Fosher is presently investigating the possible misconduct of former securities broker Scott Palmer. According to his publicly available FINRA BrokerCheck report, Scott Palmer has been the subject of numerous customer disputes.
Scott Palmer operated most recently as a New Jersey based securities broker. He worked in the securities industry for for forty-four years. During his career, he was registered with five different securities firms.
His Registrations
- Darby & Co. (1973-1976)
- Dean Witter & Co. (1976-1978)
- Dean Witter Reynolds Inc. (1978-1994)
- Citigroup Global Markets (1994-2007)
- Janney Montgomery Scott (2007-2017)
The Allegations
- In April 1988, a customer alleged that Scott Palmer recommended unsuitable investments, engaged in excessive trading, and recommended an unsuitable options trading strategy. The alleged losses totaled $94,000. This case was settled for $75,000.
- Also in April 1988, a customer alleged that Scott Palmer executed unsuitable and excessive option trades that allegedly resulted in losses totaling approximately $107,000. This case was settled for $62,500.
- In January 2015, a customer alleged that the securities Palmer purchased in her account were not suitable to her investment objectives and risk tolerance. This case was settled for $70,000.
- In October 2015, a customer alleged that Scott Palmer provided her with inaccurate information regarding the potential income earned on her account.
- In July 2016, a customer alleged that Scott Palmer made unsuitable investments in her account. This case was settled for $75,000.
- In April of 2017, a customer alleged that Palmer purchased securities in his account without his authorization.
- In May of 2017, Scott Palmer was urged to resign from Janney Montgomery Scott by his employers due to his extensive history of customer complaints.
- In July of 2017, a customer alleged that Scott Palmer made unsuitable investments by creating a high concentration of energy stocks with in the customer’s portfolio. This case was settled for $235,000 in damages.
- Also in July 2017, another customer alleged that Palmer made unsuitable investments by creating a high concentration of energy stocks with the customer’s portfolio. This case was settled for $55,000.
- In December 2017, like the two customers mentioned above, this customer also complained that Scott Palmer made unsuitable investments in their account and over concentrated the securities purchased in the energy sector. This case was settled for $100,000 in damages.
- In January 2018, a customer alleged that Scott Palmer made unsuitable investments in their account. This case was settled for $50,000 in damages.
- In February 2018, a customer alleged that Palmer made unsuitable investments in their accounts and, just like his other complaints, over-concentrated the portfolio with securities in the energy sector. This case was settled for $300,000 in damages.
- In March 2018, another customer alleged that Scott Palmer made unsuitable investments in her accounts. This case was settled for $32,500 in damages.
- In April of 2018, Scott Palmer was sanctioned by FINRA for failing to appear for the on-the-record testimony that FINRA requested while investigating his potential suitability violations. Due to his alleged failure to appear for said testimony, Scott Palmer was barred by FINRA from acting as a securities broker in any fashion.
- In March 2019, a customer alleged that Scott Palmer purchased unsuitable securities for the Trust for which he was the trustee. This case was settled for $38,000 in damages.
- In April 2019, an attorney, on behalf of investors, alleged that Scott Palmer recommended investments to them that were unsuitable based on their previously stated investment objectives. This case is currently pending. The customer is seeking $414,736 in damages.
What Does This Mean?
The main allegation levied against Scott Palmer was that he recommended unsuitable investments to his customers. Securities brokers are obligated to only recommend securities to customers that are suited for them. This suitability is determined through factors like the customer’s previously stated investment objectives, risk tolerance, liquidity needs, and financial situation. Securities brokers are expected to conduct the necessary due diligence required to discern a customer’s suitability based on these factors. Because of this, securities brokers cannot excuse themselves by claiming they were unaware of an investment’s unsuitability.
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 William Palmer, 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.
