Scott Patrick Klor Suspended and Fined by FINRA for Private Securities Transaction Structured as a Viatical Settlement

Scott Patrick Klor Suspended and Fined by FINRA for Private Securities Transaction Structured as a Viatical Settlement

Scott Patrick Klor (CRD#: 2493369) is a previously registered broker/investment advisor. From 2011 to 2017, Mr. Klor was a financial advisor with LPL Financial in Fort Mill, South Carolina.

He was terminated by the firm following allegations that he violated the firm’s policy regarding private securities transactions by soliciting investors to buy a variable life insurance policy structured as a viatical settlement.

After receiving Form U5 from LPL, FINRA initiated its own investigation into the allegations. Mr. Klor was recently suspended for 14 months and fined $5,000 (Letter of Acceptance, Waiver and Consent No. 2017054221601).

SUSPENDED FINANCIAL ADVISOR: SCOTT PATRICK KLOR

Former LPL Financial representative Scott Klor was discharged from his member firm after it was discovered that he violated Firm policy by selling a variable life insurance policy structured as a viatical settlement to various investors.

The policy, taken on the life of an elderly person with a terminal illness, was sold for $1.4 million to an LLC set up by the investors. While the firm did allow its representatives to engage in private securities transactions with prior written notice and approval, offering viatical settlements remained prohibited.

Following its investigation, FINRA concluded that Mr. Klor had violated FINRA Rule 2010 and FINRA Rule 3280. Mr. Klor was fined $5,000 and suspended from the financial industry for 14 months. Mr. Klor consented to the order without confirming or denying the allegations.

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