If you invested with financial advisor Stephen Swensen, recent allegations may affect you. Swensen has been accused of engaging in unauthorized transactions and other serious misconduct. Investors who trusted him may have suffered significant financial harm. In this blog, we will break down the allegations against Swensen, his history with brokerage firms like Wealth Navigation Advisors and J.W. Cole Financial Inc., and what these issues could mean for investors.
If you or someone you know has been impacted by Stephen Swensen or another broker, don’t hesitate to reach out to Meyer Wilson today. Our attorneys are experienced in broker misconduct cases and will help to guide you through the process with a free consultation.
Understanding the Allegations Against Stephen Swensen
Stephen Swensen’s (CRD#: 2885578) professional history includes several troubling investor complaints. His brief tenure at J.W. Cole Financial, Inc. between May and July of 2018 was particularly notable for the disputes that followed. Allegations tied to Swensen involve unauthorized transactions and sales practice violations that raised red flags among investors and regulatory authorities.
Key complaints include:
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Fraudulent Practices: On February 26, 2024, a client filed a dispute, claiming Swensen was committing fraud under the firm’s watch that went undetected. The damages sought totaled an alarming $14,400,000. This case settled.
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Multiple Violations: A second arbitration, filed on February 21, 2024, accused Swensen of similar violations as the more recent dispute, with the client seeking $7,100,000 in damages. This case settled.
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Misconduct Spanning Several Customers: In April 2023, another customer also filed a dispute that claimed fraud and sought damages of $850,000. This case settled.
The magnitude of these claims suggests that Swensen’s clients may have been exposed to significant risks without their full knowledge or consent.
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$350 Million for Our Clients Nationwide.
Brokerage Firms Associated with Stephen Swensen and Their Role
The firms connected to Stephen Swensen during the time of these disputes also bear scrutiny. Brokerage firms have a duty to supervise their advisors properly. Failure to detect or prevent misconduct can have serious consequences for both investors and the firms themselves.
J.W. Cole Financial Inc.
Swensen’s time at J.W. Cole Financial Inc. may have been short, but it coincided with key allegations:
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Lack of Oversight: Despite Swensen’s alleged misconduct, there is no public record suggesting J.W. Cole immediately intervened or identified the unauthorized transactions.
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Involvement in Investor Disputes: J.W. Cole may be drawn into arbitration cases tied to Swensen’s actions during his tenure, which could expose the firm to liability.
Wealth Navigation Advisors
Wealth Navigation Advisors also faced challenges connected to Stephen Swensen:
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Outside Business Activity Concerns: On June 6, 2022, Wealth Navigation Advisors disaffiliated with Swensen due to his failure to disclose outside business activities.
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Post-Employment Settlement: Even after leaving the firm, allegations against Swensen linked to fraudulent activities led to financial settlements involving past clients.
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Damage to Reputation: Ongoing complaints and arbitration cases have cast doubt on Wealth Navigation Advisors’ compliance systems and ability to protect client investments.
Meyer Wilson Fights to Protect Victims of Broker Misconduct
The allegations and arbitration claims tied to Stephen Swensen reveal just how vulnerable investors can be when financial advisors and firms fail in their duties.
If you or someone you know has suffered losses due to the actions of brokers like Stephen Swensen, the experienced attorneys at Meyer Wilson are here to help. With more than 20 years in the industry and over $350 million recovered for our clients, our focus on investment fraud and securities litigation has helped many investors recover their losses. Contact us today for a free consultation to discuss your case and learn how we can assist you in protecting your financial interests.
Our lawyers are nationwide leaders in investment fraud cases.
Frequently Asked Questions
What are the main allegations against Stephen Swensen?
Swensen faces allegations of fraudulent practices, and post-employment misconduct resulting in financial settlements.
How did Wealth Navigation Advisors respond to the allegations?
Wealth Navigation Advisors ended their affiliation with Swensen due to concerns about his failure to disclose outside business activities.
What damages were being sought in the arbitration cases?
Investors filed claims seeking a combined total of over $21 million in damages across multiple arbitration cases.
Recovering Losses Caused by Investment Misconduct.