FINRA suspends Brent Van Lott (CRD #1559744, Orem, Utah)
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As reported in InvestmentNews, three Raymond James entities have agreed to pay over $15 million to resolve an investigation by the SEC. The settlement and SEC order focused on Raymond James’s actions in improperly charging certain clients advisory fees when the...read more
April 9, 2018 – An Offer of Settlement was issued in which Lott was assessed a deferred fine of
$20,000 and suspended from association with any FINRA member in all capacities for four months.
Without admitting or denying the allegations, Lott consented to the sanctions and to the entry of
findings that he knowingly and substantially aided and abetted an individual in engaging in the
recommendation and sale of securities at a time when the individual was not registered with FINRA,
not associated with any FINRA member firm and not registered with the state of Utah, where both the individual and the customers resided. The findings stated that for three investors who were not yet Lott’s member firm’s customers, the individual submitted to an insurance company requests to exchange variable annuities for fixed indexed annuities issued by the company. The company rejected his request because he was not registered with FINRA at the time, which was necessary under Utah law to sell or make a recommendation to terminate a variable annuity contract. At the individual’s request, Lott agreed to serve as the registered representative of record for the variable annuities and to split with the individual the commissions paid by an insurance company, even though Lott knew that the individual was not registered. Instead of directly paying the individual his share of
the commissions, Lott paid the individual’s wife, in an effort to conceal his activity. Lott
repeatedly facilitated the individual’s efforts to continue acting as a securities broker, despite the individual’s unregistered status, by effecting variable annuity exchanges and mutual fund sales that the individual recommended to customers to fund fixed indexed annuity purchases. Lott’s scheme
ended after the SEC charged the individual with operating a $4 million Ponzi scheme. The findings
also stated that in order to effect the transactions, Lott falsely certified to his firm on
suitability forms for different customers that he had discussed the benefits and costs of the
transactions with the customers identified on the forms. By doing so, Lott caused his firm to
maintain false books and records. The findings also included that Lott made false statements on
forms he submitted to the insurance company. Lott made these false statements and submitted these false documents in order to conceal the individual’s role in the transactions.
The suspension is in effect from April 16, 2018, through August 15, 2018. (FINRA Case
If you or someone you know has lost money investing with Brent Van Lott, call the experienced FINRA arbitration attorneys at Epperson & Greenidge at 877-445-9261 for a free consultation. You may be eligible to recoup your losses. Epperson & Greenidge accepts all cases on a contingency basis: we only get paid if and when you collect money. Time to file your claim may be limited, so we encourage you to avoid delay. Call 877-445-9261 now to speak to an attorney for free.