Scott Allen Sibley – and the firm that employs him or her – is regulated by the Financial Industry Regulatory Authority (FINRA).
If you are like most people, before you go out to dinner at a new restaurant, you probably take a quick look at the reviews. This makes sense; you are going to pay for an expensive dinner, and you need to be sure that you are getting a good value.
Yet, when choosing a financial advisor, many people fail to conduct this same level of due diligence. Before turning over access to your money, you need to be sure that you have found a financial advisor that you can trust. Here, our audit report, including details of allegations, complaints, and sanctions will help you decide whether or not to invest with Scott Allen Sibley.
The stock market is a device for transferring money from the impatient to the patient… Warren Buffet
BrokerComplaints.com is currently investigating allegations related to Scott Allen Sibley. We provide a free platform for investors to help them in their claims against negligent brokers and brokerage firms.
About Scott Sibley
Scott Allen Sibley is an Investment Adviser. Scott Allen Sibley’s Central Registration Depository (CRD) number is 1523981 and the FINRA Profile can be found at – https://brokercheck.finra.org/individual/summary/1523981.
Click here to download a Detailed Audit Report for Scott Allen Sibley.
Scott Allen Sibley has previously been reprimanded and has disclosures and/or client dispute(s) listed at FINRA BrokerCheck.
Accusations and Disclosures
You can find below, a quick snapshot of Scott Allen Sibley’s regulatory actions, arbitrations, and complaints.
DISCLOSURE 1 –
- Event Date: 8/28/2018
- Disclosure Type: Customer Dispute
- Disclosure Resolution: Settled
- Disclosure Detail :: Allegations: Churning, Sector Concentration, Unsuitable Investment Recommendations, Breach of Regulatory Requirements, Breach of Fiduciary Duty, Breach of Contract, Negligence and Gross Negligence
- Settlement Amount: $175,000.00
- Arbitration Docket Number:
DISCLOSURE 2 –
- Event Date: 10/23/2017
- Disclosure Type: Customer Dispute
- Disclosure Resolution: Settled
- Disclosure Detail :: Allegations: Claimants alleged unsuitable investment recommendations, breach of regulatory requirements, breach of fiduciary duty, breach of contract, negligence and gross negligence.
- Settlement Amount: $45,000.00
- Arbitration Docket Number:
DISCLOSURE 3 –
- Event Date: 10/20/2017
- Disclosure Type: Customer Dispute
- Disclosure Resolution: Settled
- Disclosure Detail :: Allegations: Client alleges: Over Concentration, Suitability, Misrepresentations, Deception, Exploitation, Unauthorized Trading, Unscrupulous Activities of a Registered Representative, Negligence, Breach of Fiduciary Duty, Breach of Contract, and Fraud & Violations of Florida’s Investor Protection Act 517. Date of Activity is: 10/17/2008 through 2/15/2017.
- Damage Amount Requested: $100,000.00
- Settlement Amount: $45,000.00
- Arbitration Docket Number: 17-02761
DISCLOSURE 4 –
- Event Date: 8/28/2017
- Disclosure Type: Customer Dispute
- Disclosure Resolution: Settled
- Disclosure Detail :: Allegations: Client alleges Negligence, Breach of Fiduciary Duty, Breach of Contract, Fraud & Violations of Florida’s Investor Protection ACT S517. Date of Activity is: 5/22/1992 through 3/16/2017.
- Damage Amount Requested: $250,000.00
- Settlement Amount: $99,000.00
- Arbitration Docket Number: 17-02277
DISCLOSURE 5 –
- Event Date: 8/23/2017
- Disclosure Type: Customer Dispute
- Disclosure Resolution: Settled
- Disclosure Detail :: Allegations: Client alleges negligence, breach of fiduciary duty, breach of contract, fraud and violations of Florida’s Investor Protection Act 517. Activity date is 5/2015 to 7/2017.
- Damage Amount Requested: $300,000.00
- Settlement Amount: $7,500.00
- Arbitration Docket Number:
DISCLOSURE 6 –
- Event Date: 4/20/2017
- Disclosure Type: Regulatory
- Disclosure Resolution: Final
- Disclosure Detail :: DocketNumberFDA: 2015044123501
- DocketNumberAAO: 2015044123501
- Initiated By: FINRA
- Allegations: Without admitting or denying the findings, Sibley consented to the sanction and to the entry of findings that he effected about 900 securities purchases and sales in a customer’s two accounts without authorization, knowledge, or consent. The findings stated that of the 900 securities purchases and sales, 139 were equity options where Sibley sold uncovered put option contracts or closed put option contracts for the customer. In addition to effecting purchases and sales without written authorization, Sibley caused the customer to carry a margin debit balance without the customer’s authorization, knowledge, or consent. The customer never authorized Sibley to purchase securities in his account that would result in a debit balance. The findings also stated that Sibley’s recommendations to purchase, sell, or exchange and his recommended strategy to over-concentrate customers’ accounts in the basic materials sector securities (e.g., precious metals) were unsuitable with respect to at least 10 customers. The 10 customers were all seniors. They all relied on the money in their accounts to help fund their ongoing retirements. Sibley’s recommendations to over-concentrate the customers’ accounts between 25 and 62 percent (per customer household) in the basic materials sector (e.g., precious metals securities) were unsuitable in light of the customers’ investment experiences, risk tolerances, investment objectives, ages, and financial situations. In fact, Sibley recommended similar strategies to these customers regardless of their varying investment objectives and financial situations. Sibley also recommended that at least three of the 10 customers further concentrate their accounts in precious metals securities by selling uncovered put option contracts in the sector, in addition to certain precious metals equities already owned by the customers. In and around April 2013, the precious metals equities began to decrease in value, increasing the risk that the options would be assigned and the stocks put to the customers. Nevertheless, Sibley continued recommending that the customers sell additional uncovered put option contracts with expirations one or more years from the sale (LEAPS), which carried even greater risk. In 2014, when Sibley was selling LEAP put option contracts in the three customers’ accounts, their accounts had concentrations in precious metals of about 40-60 percent. Sibley also failed to have a reasonable basis for believing, at the time of making the recommendation, that the three customers had such knowledge and experience in financial matters that they may reasonably be expected to be capable of evaluating the risks of the recommended transactions, and were financially able to bear the risks of the recommended positions in the option contracts. The findings also included that in order to effect his recommended strategy for customers to concentrate their accounts in the basic materials sector, Sibley effected at least 1,000 discretionary transactions in 14 accounts belonging to 10 customers without written discretionary authority and without the accounts being accepted by his member firm as discretionary. The firm’s written procedures prohibited discretionary brokerage accounts. The discretionary transactions effected by Sibley included purchases and sale of various security types including, but not limited to, equities and options. None of the transactions were designated as discretionary in the firm’s systems. FINRA found that Sibley entered at least 22 low-priced securities purchases as unsolicited when in fact they were solicited and/or effected using discretion without written authorization. By incorrectly entering the transactions as unsolicited, Sibley caused the firm to maintain inaccurate books and records. FINRA also found that Sibley willfully failed to amend his Form U4 to disclose a compromise with creditors.
- Resolution: Acceptance, Waiver & Consent(AWC)
- Sanction Details :: Sanctions: Bar (Permanent)
- Sanction Details :: Registration Capacities Affected: All Capacities
- Duration: Indefinite
- Start Date: 4/20/2017
- Sanctions: This settlement includes a finding that Sibley willfully omitted to state a material fact on a Form U4, and that under Section 3(a)(39)(F) of the Securities Exchange Act of 1934 and Article III, Section 4 of FINRA’s By-Laws, this omission makes him subject to a statutory disqualification with respect to association with a member.
DISCLOSURE 7 –
- Event Date: 1/10/2017
- Disclosure Type: Customer Dispute
- Disclosure Resolution: Settled
- Disclosure Detail :: Allegations: CLIENT ALLEGES NEGLIGENCE, BREACH OF FIDUCIARY DUTY, BREACH OF CONTRACT, FRAUD AND VIOLATION OF FLORIDA’S INVESTOR PROTECTION ACT 517. DATE OF ACTIVITY IS 11/04/2008 THROUGH 8/15/2015.
- Damage Amount Requested: $300,000.00
- Settlement Amount: $137,000.00
- Arbitration Docket Number: 17-00066
DISCLOSURE 8 –
- Event Date: 12/13/2016
- Disclosure Type: Customer Dispute
- Disclosure Resolution: Settled
- Disclosure Detail :: Allegations: Client alleges unauthorized trading and poor performance. Date of activity is: 6/02/2009 thru 12/13/2016.
- Settlement Amount: $37,500.00
- Arbitration Docket Number:
DISCLOSURE 9 –
- Event Date: 5/31/2016
- Disclosure Type: Customer Dispute
- Disclosure Resolution: Settled
- Disclosure Detail :: Allegations: Claimants allege negligence and gross negligence, common law fraud, unsuitable recommendations, omissions of material facts, unauthorized trading, churning, statutory fraud in violation of FS 517.301, exploitation of the elderly in violation of FS 415.111, breach of contract, breach of fiduciary duty, violation of FINRA Rule 2010 and violation of FINRA Rule 2111. Activity dates are 7/26/05 through 2/18/15.
- Damage Amount Requested: $675,000.00
- Settlement Amount: $350,000.00
- Arbitration Docket Number:
DISCLOSURE 10 –
- Event Date: 11/3/2015
- Disclosure Type: Customer Dispute
- Disclosure Resolution: Settled
- Disclosure Detail :: Allegations: Client alleges over concentration. Date of Activity is 8/2014 through 2/2015.
- Damage Amount Requested: $25,000.00
- Settlement Amount: $9,500.00
- Arbitration Docket Number:
According to a study prepared for the FINRA Investor Education Foundation, 80 percent of American investors report that they have been solicited to participate in a fraud scheme, while 11 percent of American investors report that they personally lost money as a result of fraud.
FINRA notes that the rate of investment fraud is most likely much higher than it is reported. This is because many victims of financial advisor scams are too ashamed to come forward. Further, the study also found that a significant number of investors do not know how to spot common red flags of investment fraud. The least you should do is share your experience with other potential victims of investment scams.
Previous Associations
Under federal securities law and securities industry regulations, registered investment firms have a legal duty to supervise their financial advisors. Section 15(b)(4)(E) of the Securities and Exchange Act of 1934 makes a securities firm liable for the conduct of representatives.
- MOORS & CABOT, INC. (CRD#: 594) :: 3/18/2015 – 2/27/2017 :: BOCA RATON, FL
- RAYMOND JAMES & ASSOCIATES, INC. (CRD#: 705) :: 11/26/2007 – 3/10/2015 :: FT. LAUDERDALE, FL
- JANNEY MONTGOMERY SCOTT LLC (CRD#: 463) :: 11/3/2000 – 12/12/2007 :: FT. LAUDERDALE, FL
- SALOMON SMITH BARNEY INC. (CRD#: 7059) :: 1/28/1998 – 10/19/2000 :: NEW YORK, NY
- PRUDENTIAL SECURITIES INCORPORATED (CRD#: 7471) :: 11/2/1994 – 1/14/1998 :: NEW YORK, NY
The duty to supervise securities representatives is a strong legal requirement. Registered investment firms must take many different steps to ensure that they are protecting their customers from irresponsible and criminal financial advisors.
Legit or Not?
Unfortunately, stockbroker fraud is more common than many investors would like to think. And yes, stockbrokers (including Scott Allen Sibley, but not limited to) can (and do) steal money from their clients. While it’s rare that a broker will literally steal his client’s money (though that does happen), typically the “theft” of investment funds comes in the form of other fraudulent violations of securities law and FINRA rules which leads to significant investment losses.
Sometimes investment losses occur because advisors, stockbrokers, and even brokerage firms, commit fraud. Massimo Vignelli
Investors generally understand that there are risks associated with buying and selling securities. The market can go up, and the market can go down. No matter how skilled of an investor you are, there are always risks. With that being said, sometimes investment losses cannot be blamed on simple back luck.
There are 10 major types of complaints we receive against Investment Brokers –
- Outright Theft (Conversion of Funds)
- Unauthorized Trading
- Misrepresentation or Omission of Material Facts
- Excessive Trading (Churning)
- Lack of Diversification
- Unsuitable Investment Recommendations
- Failure to Disclose a Personal Conflict of Interest
- Front Running of Transactions
- Breakpoint Sale Violations
- Negligent Portfolio Management
Do your due diligence before investing. Public records are available for everybody to review and decide on the safest bet.
How to Protect Yourself
We, as citizens, place a great deal of trust in the financial advisors who are tasked with helping us achieve and maintain financial security. Most of the time financial advisors and stockbrokers are honest folks who work diligently in their client’s best interests. However, on occasion financial advisors and the brokerage firms who employ them mess up and cause serious financial harm to their clients. Sometimes these losses are caused by simple negligence. Other times fraud or other serious misconduct is to blame.
Here are 5 signs that your broker needs to be reported –
- Breach of Fiduciary Duty: Under the Investment Advisers Act of 1940, certain investment professionals, known as registered investment advisors (RIAs), owe fiduciary obligations to their customers. Your investment broker must always look out for your best interests. If you lost money because of your broker’s breach of fiduciary duty, you may be entitled to compensation for the full value of your damages.
- Unsuitable Investments: Many financial advisors are not fiduciaries. Instead, they are held to the suitability standard. These stockbrokers and financial advisors can only sell and recommend financial products that are appropriate for a customer’s unique investment profile. If you lost money in unsuitable investments, you should consider reporting them.
- Material Misrepresentations or Omissions: Brokers have a duty to make fair and honest representations to their clients. If they fail to do so, and an investor loses money due to a misrepresentation or a material omission, the broker may be liable for the investor’s losses.
- Lack of Diversification: Brokers must also act with the appropriate level of professional skill. Pushing a customer into over-concentrated investments is highly risky. Brokers can be held liable for losses sustained because of an investor’s inappropriate lack of diversification.
- Excessive Trading (Churning): Stockbrokers and financial advisors must have a well-grounded, reasonable basis to execute all trades. Unfortunately, there are cases in which brokers will frequently trade on a customer’s account, simply to increase their own fees. This unlawful practice is known as churning.
- Unauthorized Trading: Brokers must have the proper legal authority to make transactions on behalf of a client. If you lost money because your broker made trades that you never approved of, you may have been the victim of unauthorized trading. You should consult with an experienced attorney.
Report Scott Sibley
In order to prevail in an investment fraud lawsuit or FINRA arbitration cases, you must be able to assert a viable ‘cause of action’.
Scott Allen Sibley – and the firm that employs this broker – is regulated by the Financial Industry Regulatory Authority (FINRA). FINRA provides an online form to allow investors to file a formal complaint against their financial advisor, stockbroker, or brokerage firm.
Click here to go to FINRA’s Online Complaint Form →
This form will ask you for specific information related to your complaint. Be prepared by gathering the following:
- Name and symbol for the investment product in question.
- The CRD number (1523981) for the broker – Scott Allen Sibley
- Your complete contact information.
Remember, it is advised to report your broker to FINRA, only after you have exhausted all of your other remedies and carefully prepared a compelling complaint. Once you file a complaint against your broker at FINRA, your case will be bound by FINRA’s rules and the arbitration panel’s eventual decision. The time clock will start, and your complaint will be served on your broker or broker-dealer.