Scott Thomas Wolfrum of Indianapolis, Indiana, a stockbroker formerly registered with David Noyes Company, is the subject of a customer initiated investment related FINRA arbitration claim in which the customer sought between $100,000.00 and $500,000.00 in damages based upon allegations that unsuitable recommendations were made to the customer by Wolfrum concerning alternative investments, including real estate investment trusts. Financial Industry Regulatory Authority (FINRA) Arbitration No. 21-01658 (July 7, 2021).
Wolfrum has been identified in three more customer initiated investment related disputes regarding accusations of his wrongdoing during the time that he was employed by securities broker dealers, including Wachovia Securities, Wells Fargo Financial Network, and Huntleigh Securities Corporation. FINRA Public Disclosure shows that a customer filed an investment related complaint regarding Wolfrum’s conduct where the customer requested $18,000.00 in damages supported by allegations of Wolfrum’s failure to follow the customer’s instructions concerning mutual fund trades during the time that Wolfrum was registered with Wachovia Securities.
Another customer initiated investment related arbitration claim concerning Wolfrum’s activities was settled for $10,000.00 in damages founded on accusations of unsuitable transactions by Wolfrum as it pertained to variable annuities when he was associated with Wells Fargo Financial Network.
On March 18, 2019, an additional customer initiated investment related complaint involving Wolfrum’s conduct was resolved for $449,300.00 in damages based upon allegations of an unauthorized private placement transaction through Wolfrum at Huntleigh Securities Corporation.
Wolfrum has also been sanctioned by Securities and Exchange Commission (SEC). He was fined $75,00.00 and ordered to cease and desist violating federal securities laws supported by accusations of Wolfrum failing to disclose conflicts of interest to his investment advisory clients relating to Foundry Mezzanine Opportunity Fund, known as FOMF, while Wolfrum was registered with Wolfrum Capital Management LLC. Case No. 3-20252 (March 24, 2021).
According to SEC’s Order, between December of 2015 and June of 2018, $20,000,000.00 in FMOF interests had been sold by Wolfrum to advisory clients without Wolfrum telling the customers about his and his family’s personal interests in at least two of FOMF’s holdings. He also allegedly received finder’s fees for transactions he facilitated, and he did not disclose them to investors. Wolfrum is alleged to have violated Securities Exchange Act of 1934 Section 15(b) and Investment Advisors Act of 1940 Sections 203(f) and 203(k).
Wolfrum was employed by David A. Noyes Company between May 24, 2013, and January 4, 2018, and Huntleigh Securities Corporation between January 3, 2018, and September 23, 2019.
