Investor Lawsuit Investigation – Scot Barringer
The White Law Group is investigating potential securities claims involving financial advisor Scot Barringer, in light of numerous settled customer disputes and regulatory actions reported by the Financial Industry Regulatory Authority (FINRA).
According to FINRA’s public records (CRD#: 1385168), Barringer is reportedly registered with American Trust Investment Services, Inc. in San Clemente, California. His BrokerCheck report reflects 10 disclosures, including multiple customer complaints, a tax lien, and recent regulatory sanctions related to unsuitable investment recommendations.
Scot Barringer Customer Complaints
Barringer has reportedly been the subject of several investor complaints involving unsuitable investment recommendations, negligence, fraud, and breach of fiduciary duty—particularly related to high-risk investments such as GWG L Bonds.
September 2024: A complaint was settled for $60,000. The client alleged the investment in GWG L Bonds was unsuitable for her retirement account. Barringer later repurchased the bonds in a private transaction with firm approval.
April 2024: A customer alleged breach of fiduciary duty, violations of securities rules, and negligence. The case settled for $7,250.
February 2023: A dispute involving allegations of state securities law violations, fraud, misrepresentation, and supervisory failure was settled for $15,000.
October 2022: A complaint alleged misrepresentation and unsuitability of GWG L Bonds, which later became illiquid due to bankruptcy. The case settled for $24,999.
September 2022: A similar complaint involving omission of material facts and suitability concerns settled for $14,999.
October 2013 & October 1992: Additional disputes involving unsuitability and a regulatory censure further support a pattern of risky and inappropriate recommendations across multiple decades.
Regulatory Actions
In April 2025, FINRA reportedly issued a three-month suspension and a $5,000 fine against Barringer for violating Regulation Best Interest (Reg BI). FINRA alleged that Barringer recommended speculative, unrated debt securities (GWG L Bonds) to multiple retired customers and a non-profit entity, even though they lacked experience with alternative investments and had moderate risk tolerances.
FINRA found that Barringer failed to have a reasonable basis for his recommendations and submitted inaccurate transaction forms, underreporting client exposure to these risky investments. His conduct resulted in overconcentration and regulatory violations.
Additionally, in May 2025, the Maryland Securities Division issued a pending order to show cause and summary suspension tied to these same allegations, amplifying concerns about Barringer’s due diligence practices.
Risks of Broker Misconduct and Supervision Failures
Unsuitable investment recommendations and misrepresentations can result in significant financial harm to investors, especially retirees and conservative clients. When brokers fail to conduct proper due diligence or misstate clients’ exposure to risky products, the results can be catastrophic. Brokerage firms that fail to supervise such activities may be liable for resulting losses.
Recovery Options for Investors
If you suffered investment losses with Scot Barringer, you may be able to pursue a claim through FINRA arbitration. The White Law Group is investigating whether American Trust Investment Services and Barringer’s previous firms failed to adequately supervise his investment activities involving GWG L Bonds and other high-risk securities.
FINRA Arbitration vs. Class Action – What’s the Difference?
FINRA arbitration allows investors to bring claims individually against brokers and brokerage firms based on their specific investment experience. This process is generally quicker and may result in greater compensation than class action lawsuits, which often lead to limited recoveries and longer timelines.
Free Consultation
The White Law Group has successfully resolved over 800 FINRA arbitration cases nationwide involving broker misconduct, unsuitable investments, and firm supervision failures. If you invested with Scot Barringer and have concerns, call our office at 1-888-637-5510 for a free consultation.
For more information, visit www.whitesecuritieslaw.com.
Frequently Asked Questions (FAQs) – Scot Barringer
What are the allegations involving Scot Barringer?
Barringer has been accused of recommending unsuitable, high-risk investments including GWG L Bonds, and misrepresenting clients’ net worth exposure. He was reportedly suspended and fined by FINRA for Reg BI violations.
Can I recover losses if I invested with Scot Barringer?
Possibly. If your investments were unsuitable or improperly sold, you may be eligible to recover losses through FINRA arbitration against Barringer or his supervising firms.
What is the difference between FINRA arbitration and a class action?
FINRA arbitration is typically faster and more tailored to individual investors’ claims, often resulting in higher recoveries. Class actions may take years and offer smaller settlements spread among many investors.
Last modified: July 2, 2025
