Scott William Norvell of Omaha, Nebraska, a stockbroker registered with Cetera Advisors LLC and LPL Financial LLC, has been fined $10,000 and suspended for 2.5 months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because Norvell made misrepresentations of material fact in connection with annuity exchanges . Letter of Acceptance, Waiver, and Consent No. 2020065106301 (November 22, 2023).
According to the AWC, between May 2019 and July 2020, while associated with Cetera Advisors, Norvell negligently misrepresented the death benefits related to eight variable annuity exchanges. Specifically, Norvell misled customers about the guaranteed death benefit of the new annuity products. FINRA stated that the customers were led to believe that the guaranteed benefit on a new annuity policy would be either the value of the customer’s contribution in the annuity, less withdrawals, or the account value to the extent that it was greater. This feature was only available through an optional rider requiring an additional fee, not selected or paid for by the customers. The rider was never selected by Norvell on applications. Therefore, he violated FINRA Rule 2010.
Moreover, in November and December of 2020, while associated with LPL Financial, Norvell falsified signatures on a total of 13 documents for three customers. LPL Financial’s policy prohibited signing a customer’s name or initials, regardless of the customer’s knowledge or consent. Norvell’s actions included falsifying an account transfer form, two money movement forms, and ten applications. He violated FINRA Rules 4511 and 2010.
FINRA Public Disclosure additionally shows that Norvell was the subject of a customer initiated investment related complaint in which the customer requested compensatory damages based upon allegations that the customer was not made aware of direct investment purchases. The complaint was withdrawn on September 11, 2012.
Another customer complaint was filed against Norvell on January 28, 2003, concerning his association with Vestax Securities Corporation. The complaint alleged omissions by the stockbroker regarding a 1035 exchange of a variable life policy, involving variable life products. This complaint was closed with no further action taken by the customer. Additionally, Norvell was the subject of a customer complaint filed on January 23, 2003. The client alleged inadequate disclosure related to a 1035 exchange of a variable life policy. The firm closed this complaint without a resolution.
Norvell was associated with Cetera Advisors LLC in Omaha, Nebraska, from June 16, 2006, to September 1, 2020. He was then associated with LPL Financial LLC in Omaha, Nebraska, from August 28, 2020, to February 22, 2022.
Norvell has been registered with Brokers International Financial Services, LLC in Omaha, Nebraska, as a stockbroker since March 21, 2022, and Brokers Financial as an investment adviser representative since March 21, 2022.
