Scot Barringer, Broker with American Trust Investment Services, Named in Customer Disputes Alleging Unsuitable Investment Recommendations in GWG-L Bonds

INVESTORS: American Trust Investment Services broker Scot Barringer was named in multiple customer disputes following allegations of selling unsuitable investments in GWG-L bonds.

Scot Barringer (CRD: 13585168) is registered as a broker and investment adviser with American Trust Investment Services, where he’s been employed since 2020. Barringer was previously registered as a broker with WestPark Capital from 2016 until 2020.

Barringer has seven disclosures on his BrokerCheck report. One disclosure relates to a personal financial matter.

February 2023 Customer Dispute

Status: Pending

Allegations: violation of state securities laws, breach of fiduciary duty, negligence, fraud, breach of contract, negligent misrepresentation, failure to supervise and respondeat superior

Damage Amount Requested: $70,000.00

October 2022 Customer Dispute

Status: Pending

Allegations: The arbitration alleges that GWG L Bonds were misrepresented to the client and not suitable for the clients investment objectives.

September 2022 Customer Dispute

Status: Pending

Allegations: Suitability, omission of material fact/ Client purchased an investment and the company later filed for Chapter 11 bankruptcy.

Damage Amount Requested: $60,000.00

April 2022 Customer Dispute

Status: Settled

Allegations: Suitability

Damage Amount Requested: $60,000.00

Settlement Amount: $50,000.00

Broker Comment: On January 27, 2022, the customer executed an Acknowledgment of Sale and Release, relating to the customer’s direction to liquidate assets held in customer’s IIRA account valued as of 10/07/, including among other assets, GWG Holdings L Bonds. Pursuant to the Acknowledgment of Sale and Release the customer took steps to liquidate her assets. On April 20,2022, GWG filed a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code. Because of the time it would take time to present GWG’s reorganization plan and the time it would take to get the GWG bond holders to approve the plan or accept another plan, the liquidation of the GWG L Bonds would extend beyond the liquidity requirements of the customer. Even though the customer had in the aggregate positive returns on the liquidation of all of her other asserts, even if she had losses in the liquidation of her GWG L Bonds, the RR and the customer entered into a Purchase and Sale Agreement pursuant to which the RR purchased the customer’s GWG L Bonds for $50,000.00. The Firm was a aware and approved the Private Securities Transaction.

October 2013 Customer Dispute

Status: Settled

Allegations: Alleged unsuitability from February 2009 through June 2009

Damage Amount Requested: $200,000.00

Settlement Amount: $70,000.00

August 1992 Regulatory Judgment

Status: Final

Initiated By: National Association of Securities Dealers, Inc.

Resolution: Consent

Sanctions: Monetary/Fine

Amount: $10,000.00

Sanctions: Censure

Sanctions: Suspension

The Sonn Law Group is currently investigating allegations surrounding Scot Barringer. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.