Scott Michael Bremus: Suspensions and Fines Imposed by FINRA

According to the terms of an Acceptance, Waiver, and Consent (AWC) published by the Financial Industry Regulatory Authority (FINRA), Scott Michael Bremus of Braselton, Georgia, was subject to disciplinary action on October 6, 2023. In this particular case, Bremus consented to a $10,000 deferred fine as well as a six-month ban from association with any FINRA member.

The findings that Bremus participated in a private securities transaction without giving his affiliated member firm prior written notice or obtaining written approval led to the imposition of the sanctions. Interestingly, he took part in this deal without getting paid for the sale.

It is crucial to emphasize that Bremus did not openly acknowledge or refute the conclusions against him when he agreed to these sanctions. In the financial sector, it is a major infraction to fail to obtain permission or give notice for private securities transactions since it jeopardizes regulatory compliance and transparency.

The AWC is a regulatory tool that addresses and punishes this kind of behavior. It emphasizes how important it is to follow the right procedures when it comes to securities transactions to preserve the financial system’s integrity.

The results show that a married couple who were clients of Scott Michael Bremus’ affiliated firm were implicated in the private securities transaction as a result of his involvement. Bremus was instrumental in the couple’s meeting with a registered representative who was associated with the same firm and had a FINRA registration.

This introduction provided a forum for talking about possible investments in particular businesses. The married couple, Bremus, and the registered representative engaged in a cooperative dialogue that highlighted the intricacy of the private securities transaction.

The main regulatory issue, though, is that Bremus did not follow the necessary procedures; specifically, he did not obtain written consent from his member firm or give prior written notice before completing the transaction.

The imposition of regulatory measures, such as a suspension and deferred fine, highlights the importance of compliance and due diligence in private securities transactions in the financial sector.

There were serious regulatory concerns raised by the representative’s involvement in undisclosed outside business activities (OBAs), which set off a chain of events. The representative coordinated the transfer of money from firm clients to these undisclosed activities, including one that was identified as a company, but neglected to notify the firm of these OBAs. In this instance, a married couple made a financial agreement with the aforementioned company by signing a $300,000 promissory note.

The way that Scott Michael Bremus facilitated the transfer of funds with customer authorization is what makes regulatory scrutiny more intense. Bremus started a $125,000 wire transfer from one customer’s firm account to the company and another $175,000 wire transfer from another customer’s firm account to the same entity by electronically signing and submitting firm “Move Money” forms.

Specifically noteworthy is Bremus’s attestation on these forms. Bremus claimed that even though he oversaw the transactions, he “did not solicit, recommend, or otherwise participate in the underlying transaction or investment for which this transfer was requested.”

This contradictory statement highlights the importance of appropriate disclosure and adherence to protocols in financial transactions. It raises concerns about the transparency and accuracy of the information supplied to the firm.

Bremus faces severe penalties from the authorities, which include a six-month suspension and a deferred fine. Key regulatory principles intended to safeguard investors and uphold the integrity of financial transactions within the industry are broken by the failure to disclose OBAs and the improper transfer of client funds.

The case serves as a sobering lesson, highlighting the necessity for financial professionals to maintain the highest standards of disclosure, compliance, and openness to win over their clients and regulatory bodies’ trust.

SUMMARY REPORT: SCOTT MICHAEL BREMUS

CONCLUSION

To sum up, the disciplinary measures taken against Scott Michael Bremus highlight the seriousness of his regulatory transgressions, which included helping to transfer client funds improperly and taking part in secret private securities transactions.

FINRA established the Acceptance, Waiver, and Consent (AWC) process, which demonstrates the industry’s dedication to upholding regulatory compliance and transparency.

The importance of accurate disclosure and protocol adherence in financial transactions is highlighted by Bremus’s disregard for appropriate procedures and the inconsistent nature of his attestations.

The penalties, which include a deferred fine and a six-month suspension, are a harsh reminder of what the industry expects in terms of moral behavior and compliance with regulations.

This case serves as a sobering reminder of how crucial it is for financial professionals to maintain the highest standards of honesty, compliance, and openness in their business dealings to build trust with both clients and regulatory bodies.