Scott Alan Kaufman, of Wyomissing, Pennsylvania, a stockbroker formerly registered with LPL Financial LLC, has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based on findings that he failed to comply with FINRA’s investigation into accusations of his improper fixed income trading strategy while he was employed by LPL Financial. Letter of Acceptance, Waiver, and Consent No. 2019063886401 (December 22, 2021).
According to the AWC, on September 9, 2019, LPL Financial informed FINRA that Kaufman’s registration as stockbroker had been terminated based upon allegations of Kaufman using a fixed income trading strategy that was intended to increase bond ratings at the expense of lowering yields.
The AWC states that on December 10, 2021, FINRA asked for Kaufman to make an appearance to testify in response to the accusations that LPL Financial made against him. Kaufman reached out to FINRA on December 10, 2021, indicating that he understood what was expected of him and that he would not comply with the request. Kaufman refused to testify, obstructing FINRA’s investigation. He violated FINRA Rules 2010 and 8210 for this reason.
FINRA Public Disclosure shows that Kaufman has been terminated from two other securities broker dealers supported by allegations of his wrongdoing. He was permitted to resign from Prudential Securities founded on allegations that he used profit and loss statements without a branch manager’s approval. He voluntarily resigned from Wells Fargo Clearing Services on June 30, 2017, based upon accusations of his unauthorized trading in customer accounts.
FINRA Public Disclosure also shows that a customer initiated investment related complaint regarding Kaufman’s conduct was settled for $50,000.00 in damages supported by allegations that Kaufman executed trades without the customer’s knowledge or consent from 2012 to 2017 when he was associated with Wells Fargo Advisors. The complaint alleges that the customer was led to believe that their principal would be unaffected by monthly withdrawals from their account.
