DID DAVID PAUL SCOTT CAUSE YOU INVESTMENT LOSSES?
About David Scott of Creative Planning?
David Scott (CRD #812781) , located in Stilwell, Kansas, has a long history in the financial services industry, previously serving as Chairman and Chief Investment Officer at Sunrise Advisors. He has been registered with firms such as Creative Planning and Sunrise Advisors over career spanning decades. His qualifications include extensive experience in investment advisory and client portfolio management.
Investment Losses? Let’s talk.or, give us a ring at (800) 732-2889.
David Scott Customer Complaints and Reviews
David Paul Scott has four disclosures, including one civil event and three customer disputes:
Civil Event Filed February 1, 1983
- Allegations: Breach of a non-compete contract with Merrill Lynch upon joining E.F. Hutton & Company.
- Outcome: An injunction was issued but stayed by a higher court after five weeks. The matter was resolved in July 1983 through a settlement, with all claims between Mr. Scott and Merrill Lynch mutually released.
Customer Dispute 1 Filed November 1, 1985
- Complaint: Error in account management involving the sale of OEX index options instead of purchasing them, leading to client losses.
- Outcome: Settled for $78,000, with Mr. Scott reimbursing his employer, E.F. Hutton, for the same amount.
Customer Dispute 2 Filed August 26, 1986
- Complaint: Churning, unsuitable trading, and failure to supervise in a client’s trust account.
- Outcome: Settled for $600,000. Mr. Scott was not required to contribute to the settlement.
Customer Dispute 3 filed May 1, 1987
- Complaint: Unsuitable and excessive trading activity, including churning, in a client’s account.
- Outcome: Settled for $27,000 after arbitration.
Allegations Against David Scott
The allegations and accusations against Mr. Scott primarily involve client account management errors, trading practices, and contractual disputes:
- Non-compete Breach:
- Allegations involved a breach of contract with Merrill Lynch. The issue was resolved amicably without ongoing implications.
- Account Errors:
- A trading error in November 1985 led to significant client losses. Mr. Scott admitted the mistake and took responsibility, reimbursing the settlement amount.
- Churning and Unsuitable Trading:
- In two separate disputes, clients alleged excessive trading and unsuitable investment strategies, including margin and options trading. The cases were resolved through settlements.
These incidents emphasize the importance of adherence to best practices in client portfolio management and supervision.
David Scott Employment History
Employment History:
- Creative Planning (2020 – 2021): Investment Advisor Representative
- Sunrise Advisors (1994 – 2020): Chairman and Chief Investment Officer
- Merrill Lynch, Pierce, Fenner & Smith: Earlier tenure (dates unspecified)
Exams Passed: No details listed
Investment Advisors Owe Clients The Highest Level Of Care
Investment advisors are obligated to act as fiduciaries, prioritizing their clients’ interests above their own. This involves full disclosure of risks, costs, and potential conflicts of interest associated with any investment strategy. Advisors must exercise due diligence to ensure their recommendations align with clients’ financial goals and risk tolerance. Acting in good faith and maintaining transparency builds trust and ensures that clients can make well-informed decisions.
Option Trading Can Be Extremely Risky
Options trading is inherently risky, with potential for substantial losses due to leverage and complexity. High-risk strategies, such as selling naked options, can result in unlimited losses if market conditions move unfavorably. For example, a misplaced trade involving index options could lead to significant financial impact, as seen in Mr. Scott’s prior disclosure. Advisors must educate clients about these risks, thoroughly assess their risk tolerance, and implement appropriate safeguards to mitigate exposure. Transparency and accuracy in executing options trades are crucial to maintaining client trust and financial stability.
David Scott Red Flags & Your Rights As An Investor
Of course, David Scott did not admit to any of the allegations. But regardless of whether an arbitration award was entered, a settlement occurred, or the customer complaint is still pending, the allegations made by customers are red flags which should put all current and former customers of Creative Planning on alert to review carefully the activity and performance of their accounts and question whether David Scott has engaged in any stockbroker misconduct that may have caused them investment losses. The large number of customer complaints at Creative Planning also raises questions about the brokerage firm’s supervisory practices. If these red flags raise questions, call us and we will inform you of your rights as an investor.
Did You Lose Money Because of Broker Misconduct?
If you have lost money due to negligence or fraud by a stockbroker or advisor, the easiest way to know if you have a case is to call our office at 800-732-2889. Our investment fraud attorneys will evaluate your claim for free and let you know if we can help you recover your losses.
Need Legal Help? Let’s talk.or, give us a ring at 561-338-0037.
File A Claim To Recover Your Investment Losses At Creative Planning Due To David Scott
If you have questions about about Creative Planning and/or David Scott and the management or performance of your accounts, please contact Attorney Pearce for a free initial consultation via email or Toll Free at 1-800-732-2889.
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