In 2020 alone, Todd Petersen was the subject of eight investor arbitration claims which relate to the sale of diamonds. Many of these claims have been settled, and Petersen’s employer, SCF Securities, Inc., discharged him, alleging Petersen “misstated and/or omitted material facts and circumstances regarding an outside business activity.”
Todd Petersen is a former broker and investment adviser who spent 2015-2019 at SCF Securities, Inc. in Roseville, California, and began working in the securities industry in 1984.
Customer Disputes Allege Improper Sales Of Diamonds
According to Petersen’s BrokerCheck Report, published by the Financial Industry Regulatory Authority, eight investors have filed FINRA arbitration claims involving allegations of “fraud and breach of duty related to the purchase of diamonds Petersen sold . . .” These investors requested damages ranging from $20,000 to $960,000, and several of these claims were settled for amounts ranging from $9,800 to $351,205. One investor’s claim is still pending.
The allegations all arise out of the purchase and sale of diamonds and each investor alleges that the diamond sales were part of an “outside business activity.”
Brokers are required to disclose the nature of their outside business activities to their employing brokerage firms so that the firms can ensure that they are upholding their legal and regulatory obligations to their clients, including protecting clients from outside frauds and other misconduct committed by the brokers, especially when outside business activities are investment-related. Failure to do so could result in liability for brokerage firms.
Petersen’s Employer, SCF Securities, Inc., Discharged Him In 2019
Petersen’s BrokerCheck Report also discloses that he was discharged by SCF Securities in 2019. Like many of the customer complaints on Petersen’s record, Petersen’s discharge was amid allegations that he “misstated and/or omitted material facts and circumstances regarding and outside business activity.” Subsequent to Petersen’s discharge, he spent less than year at Ameriprise Financial Services, LLC before leaving the securities industry.
While it cannot be confirmed from Petersen’s BrokerCheck Report, it is likely that his discharge related to the same diamond business that resulted in eight investor arbitration claims.
Did You Invest And/Or Buy Or Sell Diamonds Through Todd Petersen?
Investors who bought and sold diamonds with Murray Todd Petersen and suffered losses may be able to recover their losses. Brokerage firms are responsible for supervising their registered representatives, especially if they are engaged in private business activities away from the firm that involve unusual, alternative, risky investments like diamonds, precious metals, private real estate, or virtually anything else that is not officially vetted by a broker-dealer. If you suffered losses due to a private investment recommended by your stockbroker, you may be entitled to recover your losses.
Silver Law Group is investigating potential claims involving Murray Todd Petersen, SCF Securities, and investments in diamonds. Silver Law Group is experienced in representing investors who lost money due to securities fraud. Our attorneys have handled many cases involving precious metals, diamonds, and other unique investments. If you or someone you know suffered losses investing with Murray Todd Petersen, please contact Silver Law Group toll free at (800) 975-4345 or email email@example.com for a confidential consultation.