Scott Paul Smith Investigation
June 2023– Huntington Beach, CA
According to publicly available records, Scott Paul Smith, a currently unregistered broker who last worked for J.W. Cole Financial, discloses a final regulatory matter resulting in a 12 month suspension from FINRA in all capacities.
The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.
In 1/2023 without admitting or denying the FINRA findings, Smith consented to the sanctions and to the entry of findings that he borrowed $78,000 from an elderly customer through 5 separate loans without providing prior written notice to or obtaining written approval from his member firm. The findings stated that the customer, who was one of Smith’s retail customers at the firm, was not Smith’s immediate family member nor was she in the business of lending money. Smith used the funds to pay for personal expenses. No payment terms were discussed or memorialized for any of these loans. After receiving a complaint from the customer’s estate, Smith repaid each of the 5 loans. Further, Smith concealed the loans from the firm by instructing the customer to wire the proceeds for certain of the loans from one of her firm accounts to her personal checking account, which she held outside the firm and then to write a check payable to a member of Smith’s immediate family. Smith also did not notify the firm of the complaint by the customer’s estate, nor did he seek or receive authorization to resolve the complaint. Smith was suspended in all capacities from FINRA for a period of 12 months beginning 2/2023 and ending 2/2024. He was also fined $10,000.
In 12/2020, an Edward Jones customer alleged that Smith took a loan from the client. The case was settled in the amount of $33,850.
In 4/2020, Smith resigned from Edward Jones in response to allegations that he had received a loan from a client.
Smith was with J.W. Cole Advisors, Inc. from 5/2020 to the time he was suspended. He is owner of Smith Wealth Partners in Huntington Beach, CA.
If you have suffered losses in an account handled by Scott Paul Smith contact us for a no charge consultation to learn how you may be able to recover damages through FINRA arbitration.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
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