Scott Niekamp, Broker with Northwestern Mutual Investment Services, Suspended by FINRA for Three Months

Niekamp reportedly engaged in outside business activities without providing notice to his firm.

Scott Niekamp (CRD#: 3277810) is registered as a broker and investment adviser with Northwestern Mutual Investment Services, where he has been employed since 2000.

Niekamp has six disclosures on his BrokerCheck report. 

August 2021 Regulatory Judgment

• Status: Final
• Initiated By: Missouri
• Allegations: The Enforcement Section of the MO Securities Division alleged violation of Section 409.4-412(d)(5)(c).
• Resolution: Consent
• Sanctions: Cease and Desist
• Sanctions: Monetary Penalty other than Fines
• Amount: $2,500.00
• Sanctions: Suspension
• Registration Capacities Affected: All Capacities
• Duration: 3 months
• Start Date: 7/19/2021
• End Date: 10/19/2021

June 2021 Regulatory Judgment

• Status: Final
• Initiated By: FINRA
• Allegations: Without admitting or denying the findings, Niekamp consented to the sanctions and to the entry of findings that he engaged in two outside business activities (OBA) without providing prior written notice to his member firm. The findings stated that the firm approved Niekamp’s request to participate in an OBA with a company as a passive investor and his activities would be limited to reviewing corporate documents, attending quarterly board meetings, and filing tax returns. Niekamp later updated his OBA disclosures to reflect he was no longer involved with the company. However, Niekamp engaged in other OBA on behalf of the company. Niekamp also received a 2% ownership interest in an LLC which partnered with the company on several potential projects. Niekamp did not disclose the additional OBA he conducted through the company or his membership interest and activities on behalf of the LLC. Niekamp also made false statements regarding his OBS on six compliance questionnaires. The findings also stated that Niekamp made two loans totaling $450,000 to a firm customer without notifying or obtaining prior approval from the firm. Niekamp’s firm customer and friend approached him about a possible loan to assist the customer in obtaining bank financing and covering payroll taxes for his business. Niekamp and his wife loaned the customer $250,000 via a check drawn on their joint account. Later Niekamp and his wife loaned the customer another $200,000. Niekamp also falsely stated on a compliance questionnaire that he had not loaned money to a firm customer.
• Resolution: Acceptance, Waiver & Consent (AWC)
• Sanctions: Civil and Administrative Penalty(ies)/Fine(s)
• Amount: $10,000.00
• Sanctions: Suspension
• Registration Capacities Affected: All Capacities
• Duration: Three Months
• Start Date: 7/6/2021
• End Date: 10/5/2021

April 2021 Customer Dispute

• Status: Pending
• Allegations: Customer alleges that in a series of interactions prior to February 18, 2015, the Representative misled him by recommending he invest in a private equity security and failed to disclose material facts concerning the investment, including that the Representative himself was a shareholder. Customer also alleges that the Representative made false representations about the investment that caused him to lose money, that the Representative engaged in a civil conspiracy, and that he breached a fiduciary duty to the customer by recommending an unsuitable investment.
• Damage Amount Requested: $5,000,000.00

April 2021 Customer Dispute

• Status: Settled
• Allegations: The customer alleges that in or around October 2018, the Representative did not accurately inform him of the tax consequences of transferring money from a non-qualified account to fund the purchase of a fixed annuity. The customer alleges this resulted in an unexpected tax liability.
• Damage Amount Requested: $50,000.00
• Settlement Amount: $24,016.50
• Broker Comment: The firm’s investigation found that the sale was suitable and that the Representative informed the customer that the sale of non-qualified assets to fund the purchase of the annuity would be subject to capital gains taxes. As a goodwill gesture, the firm made partial reimbursement of the customer’s tax obligation that resulted from the transaction.

February 2018 Customer Dispute

• Status: Pending
• Allegations: Customer alleges that in a series of interactions prior to February 18, 2015, the Representative misled him by recommending he invest in a private equity security and failed to disclose material facts concerning the investment, including that the Representative himself was a shareholder. Customer also alleges that the Representative made false representations about the investment that caused him to lose money, that the Representative engaged in a civil conspiracy, and that he breached a fiduciary duty to the customer.
• Damage Amount Requested: $5,000,000.00

April 2021 Customer Dispute

• Status: Settled
• Allegations: Customer alleges that in or about June of 2012, the Representative misled her by recommending she invest in a private equity security and failed to disclose material facts concerning the investment, including that the Representative himself was a shareholder. Customer also alleges that the Representative made assurances regarding investment performance that caused her to lose money, and that the investment was unsuitable.
• Damage Amount Requested: $500,000.00
• Settlement Amount: $425,600.00

Contact Us Today

The Sonn Law Group is currently investigating allegations surrounding Scott Niekamp. 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.