Scott Lee: Former Moloney, Ausdal Advisor Faces GWG L Bond Complaints

Multiple recent investor complaints against former Moloney Securities and Ausdal Financial advisor Scott Lee (CRD# 4409541) concern investments in GWG L bonds. Financial Industry Regulatory Authority records show that the former Cold Spring, Minnesota representative is not currently registered as a broker or as an investment advisor.

Mr. Lee’s BrokerCheck report discloses seven investor complaints. The most recent, filed in The most recent, filed in March 2023, alleges that as a representative of Moloney Securities, he made unsuitable investment recommendations and acted negligently. The pending complaint alleges damages of $150,000. An earlier investor complaint, filed in 2022, alleges that as an Ausdal Financial Partners representative, he recommended unsuitable GWG L bonds, breached his fiduciary duty, and failed in his supervisory duties. The pending complaint alleges damages of $350,000. A third pending investor complaint, filed in 2022, similarly detailed suitability and negligence concerns relating to corporate bond investments, alleging damages of $500,000.

A fourth investor complaint, filed in April 2023, alleged that he acted negligently and made unsuitable recommendations of corporate bond investments in 2018, while a representative of Moloney Securities. The pending complaint alleges damages of $103,000. A fifth pending investor complaint, filed in 2022, alleged that he made unsuitable recommendations and breached his fiduciary duty in connections with GWG Holdings bonds and preferred stock, as well as a Procaccianti Hotel REIT, while he was a representative of Moloney Securities and Ausdal Financial Partners. The pending complaint alleges damages of $170,000. A sixth investor complaint, filed in 2022, alleged that he made unsuitable recommendations as a Moloney representative. The pending complaint alleges damages of $260,000.

Four of the six pending complaints described above contain identical statements pushing back against the allegations. Specifically, the complaints alleging damages of $150,000, $500,000, $103,000, and $260,000 contain the following “Broker Statement”: “I refute the allegations of the claims.”

A seventh disclosure on Mr. Lee’s BrokerCheck report describes a 2021 investor complaint alleging that he recommended unsuitable investments while a representative of Moloney Securities. The complaint reached a settlement of $32,800.

According to the Financial Industry Regulatory Authority, Scott Lee holds 19 years of securities industry experience and is not currently registered as a broker or as an investment advisor. His registration history includes Ausdal Financial Partners (Cold Spring, Minnesota; 2019-2021), Moloney Securities (Cold Spring, Minnesota; 2016-2019), Cambridge Investment Research (St. Cloud, Minnesota; 2016), Dougherty & Company (St. Cloud, Minnesota; 2014-2015), LPL Financial (Bloomington, Minnesota; 2013-2014), UBS Financial Services (St. Cloud, Minnesota; 2011-2013), Raymond James Financial Services (St. Cloud, Minnesota; 2009-2011), Wells Fargo Investments (Fergus Falls, Minnesota; 2004-2009), and Morgan Stanley DW (Purchase, New York; 2001-2004). (Information current as of May 30, 2023.)

Carlson Law has represented at least nine investors in claims against their financial advisors for investments in GWG Holdings Inc. 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.