{"id":4876,"date":"2018-02-21T19:57:51","date_gmt":"2018-02-22T01:57:51","guid":{"rendered":"https:\/\/www.investorlawyers.com\/blog\/?p=4876"},"modified":"2022-03-11T13:40:29","modified_gmt":"2022-03-11T19:40:29","slug":"securities-cases-massachusetts-accuses-scottrade-running-sales-contests-targeting-retirees-wife-investment-adviser-ordered-pay-500k-fraud-case-hedge-fund-manager-firms","status":"publish","type":"post","link":"https:\/\/www.investorlawyers.com\/blog\/securities-cases-massachusetts-accuses-scottrade-running-sales-contests-targeting-retirees-wife-investment-adviser-ordered-pay-500k-fraud-case-hedge-fund-manager-firms\/","title":{"rendered":"Securities Cases: Massachusetts Accuses Scottrade of Running Sales Contests and Targeting Retirees, Wife of Investment Adviser Must Pay $500K in Fraud Case, and Hedge Fund Manager and His Firms Are Ordered to Pay Almost $30M for Diverting Investor Money"},"content":{"rendered":"
\n

Scottrade is Accused of Improper Sales Practices Involving Retirement Accounts<\/strong><\/h2>\n

Massachusetts Secretary of the Commonwealth William Galvin has filed a complaint against Scottrade accusing the brokerage firm of engaging in improper sales practices<\/strong> that it knew violated the US Department of Labor\u2019s fiduciary rule regarding impartial conduct standards. Under the rule, advisors and their firms are obligated to act in a fiduciary capacity when making investment recommendations, as well as act in their clients\u2019 best interests.<\/p>\n

In his complaint, Galvin is contending that Scottrade employed a culture that includes \u201caggressive sales patterns,\u201d and that the firm and its agents failed to abide by its duty to Massachusetts retirees between 12\/2015 and 6\/2016 when it ran a number of national call nights that included the incentive of raffle tickets for those who cold called customers. Scottrade also conducted quarterly sales contests offering at least $490K in prizes. This included the \u201cQ3 Win and Retain Sales Contest \u201cthat offered $285K and paid out $2500\/agent to the top 25 branches according to percentage increase in new net assets brought in.<\/p>\n

Continue Reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"

Scottrade is Accused of Improper Sales Practices Involving Retirement Accounts Massachusetts Secretary of the Commonwealth William Galvin has filed a complaint against Scottrade accusing the brokerage firm of engaging in improper sales practices that it knew violated the US Department of Labor\u2019s fiduciary rule regarding impartial conduct standards. Under the rule, advisors and their firms […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[3752,3781,3738,3906,3760],"tags":[2974],"class_list":["post-4876","post","type-post","status-publish","format-standard","hentry","category-financial-firms","category-investment-advisers","category-investor-fraud","category-scottrade","category-sec-enforcement","tag-securities-cases"],"yoast_head":"\nSecurities Cases: Massachusetts Accuses Scottrade of Running Sales Contests and Targeting Retirees, Wife of Investment Adviser Must Pay $500K in Fraud Case, and Hedge Fund Manager and His Firms Are Ordered to Pay Almost $30M for Diverting Investor Money | SSEK Law Firm Blog<\/title>\n<meta name=\"description\" content=\"Scottrade is Accused of Improper Sales Practices Involving Retirement Accounts Massachusetts Secretary of the Commonwealth William Galvin has filed a — February 21, 2018\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.investorlawyers.com\/blog\/securities-cases-massachusetts-accuses-scottrade-running-sales-contests-targeting-retirees-wife-investment-adviser-ordered-pay-500k-fraud-case-hedge-fund-manager-firms\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Securities Cases: Massachusetts Accuses Scottrade of Running Sales Contests and Targeting Retirees, Wife of Investment Adviser Must Pay $500K in Fraud Case, and Hedge Fund Manager and His Firms Are Ordered to Pay Almost $30M for Diverting Investor Money | SSEK Law Firm Blog\" \/>\n<meta name=\"twitter:description\" content=\"Scottrade is Accused of Improper Sales Practices Involving Retirement Accounts Massachusetts Secretary of the Commonwealth William Galvin has filed a — February 21, 2018\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Shepherd Smith Edwards & Kantas, LLP\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Securities Cases: Massachusetts Accuses Scottrade of Running Sales Contests and Targeting Retirees, Wife of Investment Adviser Must Pay $500K in Fraud Case, and Hedge Fund Manager and His Firms Are Ordered to Pay Almost $30M for Diverting Investor Money | SSEK Law Firm Blog","description":"Scottrade is Accused of Improper Sales Practices Involving Retirement Accounts Massachusetts Secretary of the Commonwealth William Galvin has filed a — February 21, 2018","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.investorlawyers.com\/blog\/securities-cases-massachusetts-accuses-scottrade-running-sales-contests-targeting-retirees-wife-investment-adviser-ordered-pay-500k-fraud-case-hedge-fund-manager-firms\/","twitter_card":"summary_large_image","twitter_title":"Securities Cases: Massachusetts Accuses Scottrade of Running Sales Contests and Targeting Retirees, Wife of Investment Adviser Must Pay $500K in Fraud Case, and Hedge Fund Manager and His Firms Are Ordered to Pay Almost $30M for Diverting Investor Money | SSEK Law Firm Blog","twitter_description":"Scottrade is Accused of Improper Sales Practices Involving Retirement Accounts Massachusetts Secretary of the Commonwealth William Galvin has filed a — February 21, 2018","twitter_misc":{"Written by":"Shepherd Smith Edwards & Kantas, LLP","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.investorlawyers.com\/blog\/securities-cases-massachusetts-accuses-scottrade-running-sales-contests-targeting-retirees-wife-investment-adviser-ordered-pay-500k-fraud-case-hedge-fund-manager-firms\/#article","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/securities-cases-massachusetts-accuses-scottrade-running-sales-contests-targeting-retirees-wife-investment-adviser-ordered-pay-500k-fraud-case-hedge-fund-manager-firms\/"},"author":{"name":"Shepherd Smith Edwards & Kantas, LLP","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"headline":"Securities Cases: Massachusetts Accuses Scottrade of Running Sales Contests and Targeting Retirees, Wife of Investment Adviser Must Pay $500K in Fraud Case, and Hedge Fund Manager and His Firms Are Ordered to Pay Almost $30M for Diverting Investor Money","datePublished":"2018-02-22T01:57:51+00:00","dateModified":"2022-03-11T19:40:29+00:00","mainEntityOfPage":{"@id":"https:\/\/www.investorlawyers.com\/blog\/securities-cases-massachusetts-accuses-scottrade-running-sales-contests-targeting-retirees-wife-investment-adviser-ordered-pay-500k-fraud-case-hedge-fund-manager-firms\/"},"wordCount":733,"keywords":["Securities Cases"],"articleSection":["Financial Firms","Investment Advisers","Investor Fraud","Scottrade","SEC Enforcement"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.investorlawyers.com\/blog\/securities-cases-massachusetts-accuses-scottrade-running-sales-contests-targeting-retirees-wife-investment-adviser-ordered-pay-500k-fraud-case-hedge-fund-manager-firms\/","url":"https:\/\/www.investorlawyers.com\/blog\/securities-cases-massachusetts-accuses-scottrade-running-sales-contests-targeting-retirees-wife-investment-adviser-ordered-pay-500k-fraud-case-hedge-fund-manager-firms\/","name":"Securities Cases: Massachusetts Accuses Scottrade of Running Sales Contests and Targeting Retirees, Wife of Investment Adviser Must Pay $500K in Fraud Case, and Hedge Fund Manager and His Firms Are Ordered to Pay Almost $30M for Diverting Investor Money | SSEK Law Firm Blog","isPartOf":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#website"},"datePublished":"2018-02-22T01:57:51+00:00","dateModified":"2022-03-11T19:40:29+00:00","author":{"@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431"},"description":"Scottrade is Accused of Improper Sales Practices Involving Retirement Accounts Massachusetts Secretary of the Commonwealth William Galvin has filed a — February 21, 2018","breadcrumb":{"@id":"https:\/\/www.investorlawyers.com\/blog\/securities-cases-massachusetts-accuses-scottrade-running-sales-contests-targeting-retirees-wife-investment-adviser-ordered-pay-500k-fraud-case-hedge-fund-manager-firms\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.investorlawyers.com\/blog\/securities-cases-massachusetts-accuses-scottrade-running-sales-contests-targeting-retirees-wife-investment-adviser-ordered-pay-500k-fraud-case-hedge-fund-manager-firms\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.investorlawyers.com\/blog\/securities-cases-massachusetts-accuses-scottrade-running-sales-contests-targeting-retirees-wife-investment-adviser-ordered-pay-500k-fraud-case-hedge-fund-manager-firms\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.investorlawyers.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Securities Cases: Massachusetts Accuses Scottrade of Running Sales Contests and Targeting Retirees, Wife of Investment Adviser Must Pay $500K in Fraud Case, and Hedge Fund Manager and His Firms Are Ordered to Pay Almost $30M for Diverting Investor Money"}]},{"@type":"WebSite","@id":"https:\/\/www.investorlawyers.com\/blog\/#website","url":"https:\/\/www.investorlawyers.com\/blog\/","name":"Investor Lawyers Blog","description":"Published By Investment Fraud Attorneys \u2014 Shepherd Smith Edwards & Kantas, LLP","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.investorlawyers.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.investorlawyers.com\/blog\/#\/schema\/person\/e0240e0754684b69f7d6a7de1b9f1431","name":"Shepherd Smith Edwards & Kantas, LLP","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/c7f8f04990816cd4044977eb59908da8c8d1ae487cc919cebd7027b74a0740a3?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/c7f8f04990816cd4044977eb59908da8c8d1ae487cc919cebd7027b74a0740a3?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/c7f8f04990816cd4044977eb59908da8c8d1ae487cc919cebd7027b74a0740a3?s=96&d=mm&r=g","caption":"Shepherd Smith Edwards & Kantas, LLP"},"sameAs":["https:\/\/www.investorlawyers.com\/"]}]}},"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/pedX9K-1gE","_links":{"self":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts\/4876","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/comments?post=4876"}],"version-history":[{"count":3,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts\/4876\/revisions"}],"predecessor-version":[{"id":24598,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/posts\/4876\/revisions\/24598"}],"wp:attachment":[{"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/media?parent=4876"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/categories?post=4876"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investorlawyers.com\/blog\/wp-json\/wp\/v2\/tags?post=4876"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}