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Scott Erik Aabel of Spire Securities: $800k in Customer Complaints

April 25, 2023

KlaymanToskes Investigates Broker/Investment Advisor Scott Aabel’s 23 Public Disclosures

National investment loss lawyers KlaymanToskes is investigating Scott Erik Aabel (CRD# 1493667) after the broker and investment advisor, registered with Spire Securities and Spire Wealth Management, received two pending investor complaints alleging $800,000 in collective damages due to unsuitable investment recommendations. 

According to FINRA BrokerCheck, Scott Erik Aabel was previously registered with Investors Capital Corp. and Sagepoint Financial in Nokomis, FL. The broker has 23 public disclosures including 12 customer complaints. The majority of customer complaints filed against Aabel allege unsuitable investment recommendations and/or misrepresentation of investment-related facts.

Investors that suffered losses with Scott Erik Aabel may be entitled to a financial recovery. Contact attorney Lawrence L. Klayman at (888) 997-9956 or lklayman@klaymantoskes.com for a free consultation to discuss your recovery options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you. 

Scott Erik Aabel: $800k in Pending Complaints 

According to Scott Erik Aabel’s FINRA Brokercheck Report, the Spire Securities broker/investment advisor has two pending investor complaints filed against him. In addition, Aabel has eight tax liens, one financial compromise, and two regulatory/disciplinary actions disclosed. 

Aabel’s most recent complaint alleges unsuitable investment recommendations in Alternative Investments including GWG L Bonds at Spire Securities. The customer alleges $500,000 in damages.

A second pending complaint alleges Aabel gave his customer poor advice regarding withdrawals from an annuity and that alternative investments were recommended that did not meet the client’s needs and objectives. The customer alleged $300,000 in damages relating to DPP & LP Interests. The complaint further alleged the misconduct took place at Spire Securities, Sagepoint Financial, and Investors Capital Corp.

Scott Erik Aabel: Regulatory History

In 2016, Scott Erik Aabel entered into a regulatory agreement known as a Letter of Acceptance, Waive, and Consent with FINRA’s Department of Enforcement. The Department suspended Aabel from acting as a broker for thirty days and fined him $5,000 in connection with his failure to disclose financial compromises with two credit card companies to his prior firm, Prime Capital Services. The AWC alleged Aabel did not update his Form U4 to reflect the compromises which is required. 

According to the AWC, Aabel entered into a compromise with a credit card company “pursuant to which he agreed to pay $9,000 to satisfy an outstanding balance in the amount of $37,222.13.” Aabel’s compromise allegedly required disclosure on a Form U4 within thirty 30 days of “learning of the facts or circumstances giving rise to the amendment.” 

In a second circumstance, Aabel entered into another compromise with a second credit card company “pursuant to which he agreed to pay $5,682.39 to satisfy an outstanding balance in the amount of $20,230.77.” Following both events, Aabel failed to make these required disclosures. 

In a previous regulatory action, initiated by the Florida Office of Financial Regulation, Division of Securities, Scott Aabel was fined $70,000 and ordered to pay restitution to a customer in the amount of $100,000. The order followed Aabel’s unsuitable recommendation for advisory clients to hold a “JNL Variable Annuity” which caused investment losses. 

Among other rules, Aabel violated section 517.161(1)(H), Florida Statutes which states an investment advisor “has demonstrated unworthiness to transact the business of [a] dealer, investment adviser, intermediary, or associated person.”

How Can I Recover My Losses?

If your stockbroker or financial advisor recommended unsuitable investments based on your investment profile or disregarded your risk-tolerance when making investment recommendations, you may be entitled to a financial recovery through FINRA arbitration.

Your brokerage firm and representative have an obligation to recommend investments that are suitable for your net worth, risk tolerance, age, liquidity needs, employment status, and many other factors.

Investors that suffered losses with Scott Erik Aabel are encouraged to contact attorney Lawrence L. Klayman, Esq. immediately for a free consultation at (888) 997-9956 or lklayman@klaymantoskes.com to discuss legal options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you. 

About KlaymanToskes

KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico. 

Contact

KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lklayman@klaymantoskes.com
www.klaymantoskes.com