Scot Benefiel: $1mm Complaint Against Merrill Advisor

A recent investor complaint against Scottsdale, Arizona financial advisor Scot Benefiel (CRD# 1968666) alleges that his advice resulted in million-dollar damages. Financial Industry Regulatory Authority records show that he is registered as a broker and an investment advisor with Merrill Lynch.

Mr. Benefiel’s BrokerCheck report discloses multiple investor complaints. The most recent, filed in June 2026, alleges that as a representative of Merrill Lynch, he misrepresented and recommended an unsuitable bond strategy. The pending complaint alleges damages of $1 million.

An earlier investor complaint, filed in 2003, alleged that as a representative of Merrill Lynch, he breached his fiduciary duty and made misrepresentations and omissions of material facts. In 2005 the complaint reached a settlement of $275,000.

FINRA rules stipulate that brokers like Mr. Benefiel can only recommend that their clients invest in what are known as suitable investments and/or strategies. What this means, according to FINRA Rule 2111, is that brokers must “have a reasonable basis to believe that a recommended transaction or investment strategy” is appropriate for a customer’s background and objectives. They must arrive at this basis through reasonable diligence into the customer’s investment profile. They are similarly required by FINRA Rule 2150 to make their recommendations without using “manipulative, deceptive or other fraudulent device[s] or contrivance[s],” while FINRA Rule 2010 requires them to “observe high standards of commercial honor and just and equitable principles of trade.” In other words, brokers may not make misrepresentations of material facts relating to the investments they recommend, as these misrepresentations may lead investors to purchase unsuitable products. FINRA-registered persons who advise their clients to invest unsuitably may be found liable in the event of losses.

According to the Financial Industry Regulatory Authority, Scot Benefiel holds 34 years of securities industry experience. Based in Scottsdale, Arizona, he has been registered as a broker and an investment advisor with Merrill Lynch since 2006. He was previously registered with Merrill Lynch from 1989 until 2003. His credentials include the passage of four securities industry qualifying exams: the Securities Industry Essentials Examination, or SIE; the Uniform Combined State Law Examination, or Series 66; the Uniform Securities Agent State Law Examination, or Series 63; and the General Securities Representative Examination, or Series 7. He holds 26 state licenses. (Information current as of July 12, 2026.)

Carlson Law represents investors throughout the United States in claims against financial advisors and investment firms. If you or a loved one have suffered investment losses, please call us at 888-976-6111 or complete our contact form for a free and confidential consultation.