Scott Erik Aabel, Broker with Spire Securities, Named in Customer Dispute Alleging Unsuitable Recommendations in GWG L-Bonds

INVESTORS: Spire Securities broker Scott Erik Aabel was named in a customer dispute alleging unsuitable investment recommendations in GWG L-Bonds.

Scott Erik Aabel (CRD: 1493667) is registered as a broker and investment adviser with Spire Securities, where he’s been employed since 2017. Previously, Aabel was registered as a broker with Investors Capital Advisory from January 2016 until August 2016.

Aabel has twenty-five disclosures on his BrokerCheck report. Eight disclosures relate to judgments or liens against Aabel personally and three disclosures relate to personal financial matters. Five customer disputes against Aabel were denied and one was closed with no action taken.

June 2022 Customer Dispute

Status: Pending

Allegations: Unsuitable investment recommendation. Client invested a total of 300000 during 2020 and 2021 in GWG L-Bonds.

Damage Amount Requested: $500,000.00

June 2021 Customer Dispute

Status: Pending

Allegations: Claimant alleges that he ws given poor advice regarding withdrawals from an annuity and that alternative investments were recommended that did not meet the client’s needs and objectives.

Damage Amount Requested: $300,000.00

Broker Comment: I totally disagree with the accusations made in the complaint filed by [REDACTED]. These accusations are false and misleading.

September 2016 Regulatory Judgment

Status: Final

Initiated By: FINRA

Allegations: Without admitting or denying the findings, Aabel consented to the sanctions and to the entry of findings that he failed to timely amend his Form U4 to reflect reportable events. The findings stated that while associated with a member firm, Aabel entered into separate arrangements pursuant to which he settled the amounts due and owed on credit cards by entering into compromises with the credit card companies. Aabel did not disclose the compromises with the credit card companies to the firm, and he also did not update his Form U4 to reflect the compromises.

Resolution: Acceptance, Waiver & Consent (AWC)

Sanctions: Civil and Administrative Penalty(ies)/Fine(s)

Amount: $5,000.00

Sanctions: Suspension

Registration Capacities Affected: Any Capacity

Duration: 30 business days

Start Date: 9/19/2016

End Date: 10/28/2016

April 2012 Regulatory Judgment

Status: Final

Initiated By: Florida Office of Financial Regulation (“Office”), Division of Securities

Allegations: Filed administrative complaint alleging violation of Section 517.161(1)(H), Florida Statutes, Rule 69W-600.013(1)(H)(1).,(2)(H), Florida Administrative Code, and NASD Conduct Rule 2110 and FINRA Conduct Rule 2010.

Resolution: Orderr

Sanctions: Civil and Administrative Penalty(ies)/Fine(s)

Amount: $70,000.00

Sanctions: Restitution

Amount: $100,000.00

June 2009 Customer Dispute

Status: Settled

Allegations: Investment advisory fees caused a partial loss of living benefit rider.

Damage Amount Requested: $71,873.00

Settlement Amount: $6,447.68

Broker Comment: Restoration of living benefits restored to annuity contracts.

February 2005 Customer Dispute

Status: Settled

Allegations: Unsuitable recommendation of promissory notes which is an unregistered security.

Damage Amount Requested: $75,000.00

Settlement Amount: $117,000.00

September 2004 Customer Dispute

Status: Settled

Allegations: Sale of promissory notes, unregistered securities were unsuitable investments.

Damage Amount Requested: $177,224.65

Settlement Amount: $130,000.00

The Sonn Law Group is currently investigating allegations surrounding Scott Erik Aabel. 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.