FINRA Fines and Suspends Former LPL Advisor for Unauthorized Private Transactions

The Financial Industry Regulatory Authority fined and suspended Scott Michael Bremus after he participated in a private securities transaction without providing prior written notice to his firm.

According to FINRA, Bremus participated in a private securities transaction involving two of his LPL customers, a married couple. Bremus introduced them to a registered representative that would “facilitate a discussion” among them regarding an investment in an unnamed company. In August 2020, the customers entered into a $300,000 promissory note with the company.

FINRA says Bremus received no selling compensation from the sale of the $300,000 promissory note to two LPL Financial customers. Nevertheless, he was suspended for six months and fined $10,000 for his actions.

Bremus attested on the forms that he “did not solicit, recommend, or otherwise participate in the underlying transaction or investment for which this transfer was requested.” FINRA notes that he communicated with the registered representative he previously recommended regarding the status of the customers’ investment in the company.

On Oct. 29, 2021, LPL filed a Uniform Termination disclosing that the firm had discharged Bremus because he had “[f]acilitated clients’ investments into [a] private company without firm approval, in violation of [LPL’s] selling away policy.”

According to BrokerCheck, Bremus was affiliated with LPL Financial for five years. Prior to that he was affiliated with Sternee Agee Financial Services, Morgan Stanley, Citigroup Global Markets and Merrill Lynch.

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