Securities Arbitration Lawyer Blog
The Financial Industry Regulatory Authority (“FINRA”) has suspended financial advisor Scott Richard Hansen for three months from the securities industry over allegations that Mr. Hansen, who is not a lawyer and did not attend law school, prepared a will and trust agreement for an elderly client who was in hospice care. FINRA also fined Mr. Hansen $7,500.
At the time of the alleged conduct, Mr. Hansen was a financial advisor with LPL Financial in Moab, Utah. LPL Financial terminated his employment in March 2020 for his conduct.
If you have lost money with broker Scott Hansen or LPL Financial, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential review of your account.
FINRA Letter of Acceptance, Waiver, and Consent No. 2019064872501
On February 25, 2021, Mr. Hansen and FINRA entered into a Letter of Acceptance, Waiver, and Consent (“AWC”). The AWC includes the following factual findings:
- In June 2019, Mr. Hansen’s 70-year old customer was in hospice care.
- Hansen, who is not an attorney and has never attended law school, prepared a will and an irrevocable family trust agreement for the customer by downloading samples and modifying the documents based on what he believed to be the customer’s wishes.
- The customer signed the will and trust agreement and died shortly thereafter.
- Hansen later mailed the customer’s son an itemized invoice for $5,050, which included a $1,000 charge for estate planning, a $1,500 charge for the will, and a $2,000 charge for the trust agreement.
- Hansen’s bill warned, “failure to pay within 14 days will result in a legal claim against the Estate and all legal fees associated.”
- Hansen also emailed the customer’s daughter-in-law threatening a lawsuit if he did not receive payment for his services.
- Hansen did not provide prior written notice to LPL of any of the services he provided the customer as an outside business activity.
- Hansen violated FINRA Rules 3270 and 2010.
Financial Advisor Scott Richard Hansen (CRD No. 2837763)
Mr. Hansen has 23 years of experience in the securities industry and has been associated with the following entities:
- Black Coffee Investment Management, LLC (Founder, Chief Compliance Officer, and Investment Adviser Representative) in Moab, UT, from April 2020 – present.
- LPL Financial LLC (Registered Broker) in Moab, Utah, from November 2005 – April 2020.
- Wells Fargo Investments, LLC in San Francisco, CA, from December 2000 – November 2005.
- Wells Fargo Brokerage Services, L.L.C in Minneapolis, MN, from December 2000 – August 2002.
- Wells Fargo Securities Inc. in San Francisco, CA, from February 2000 – May 2001.
- Wells Fargo Brokerage Services, L.L.C. in Minneapolis, MN, from January 1997 – December 2000.
Mr. Hansen’s public CRD report also discloses that the Colorado Supreme Court has sanctioned him for his unauthorized practice of law.
LPL Financial: A Duty to Supervise
Financial institutions, like LPL Financial, must properly supervise financial advisors and customer accounts. Brokerage firms are required to establish and maintain a reasonably designed system to oversee account activity, such as private securities transactions, to ensure compliance with securities laws and industry regulations. When a brokerage firm fails to supervise its financial advisors or the investment account activity sufficiently, it may be liable for investment losses sustained by customers.
How to Recover Losses or Obtain a Free Consultation
Iorio Altamirano LLP is a securities arbitration law firm based in New York, NY. We pursue FINRA arbitration claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by financial advisors and brokerage firms.
If you have lost money with Scott Hansen or LPL Financial, contact New York securities arbitration lawyers August Iorio and Jorge Altamirano of Iorio Altamirano LLP at august@ia-law.com, jorge@ia-law.com or toll-free at (855) 430-4010 for a free and confidential evaluation of your account.