Scott Fries, Formerly of TransAmerica Financial Advisors, Charged by SEC with Defrauding Clients

The SEC claimed Fries has defrauded at least seven investors out of over $170,000.

The Sonn Law Group is investigating allegations that Scott Fries defrauded clients. If you or a family member has suffered losses investing, we want to discuss your case. Please contact us today for a free review of your case.

Scott Allen Fries (CRD#: 220578) was formerly registered as a broker with TransAmerica Financial Advisors from 2014 until 2019. On September 17, 2020, Fries was charged by the SEC with defrauding at least seven investors out of at least $178,000.

The SEC alleged that Fries recommended that certain individuals, including several of his brokerage customers and their relatives, provide him funds to invest outside of his relationship with the registered broker-dealer and investment adviser. Between January 2016 and March 2019, at least seven people allegedly gave Fries a total of at least $178,000 to invest. Fries allegedly betrayed the investors’ trust and spent their money on his own personal expenses. To cover up his fraud, Fries allegedly created fake account statements, lied to his employer, and used a Ponzi-like scheme to repay a couple who demanded return of their investment with funds from other investors.

The SEC’s complaint, filed in federal district court in the Southern District of Ohio, charges Fries with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940. The complaint seeks a permanent injunction, disgorgement with prejudgment interest, and a civil penalty.

Fries has 3 disclosures on his BrokerCheck report.

August 2019 Regulatory Judgment

• Status: Final
• Initiated By: FINRA
• Allegations: Respondent Scott Allen Fries failed to respond to FINRA request for information.
• Resolution: Letter
• Sanctions: Bar
• Registration Capacities Affected: All Capacities 
• Duration: Indefinite
• Start Date: 11/18/2019
• Regulator Statement:  Pursuant to FINRA Rule 9552(h) and in accordance with FINRA’s Notice of Suspension and Suspension from Association letters dated August 13, 2019 and September 6, 2019, respectively, on November 18, 2019, Fries is barred from association with any FINRA member in all capacities. Respondent  failed to request termination of his suspension within three months of the  date of the Notice of Suspension; therefore, he is automatically barred from association with any FINRA member in all capacities.

August 2019 Regulatory Judgment

• Status: Final
• Initiated By: FINRA
• Allegations: Respondent Scott Allen Fries failed to respond to FINRA request for information.
• Resolution: Letter
• Sanctions: Bar
• Registration Capacities Affected: All Capacities 
• Duration: Indefinite
• Start Date: 11/18/2019

July 2019 Employment Separation After Allegations

• Firm Name: TransAmerica Financial Advisors, Inc.
• Termination Type: Discharged
• Allegations: Representative accepted funds to invest in securities products away from the firm.

Contact Us Today

The Sonn Law Group is currently investigating allegations that Scott Fries defrauded clients. 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.