Former Sapere Wealth Creation, LLC broker Scott Trease (CRD# 1298222) is accused of investment losses related to alternative investments. He was registered with Sapere Wealth Creation, LLC in Matthews, North Carolina, from 2003 to 2010.
In March 2023, the United States Securities And Exchange Commission (SEC) opened an investigation against Sapere Wealth Management, LLC and Scott Trease and sanctioned him to a civil and administrative penalty and fine following allegations that he”recommended that three of their advisory clients invest a total of $7.3 million in two risky, alternative-investment deals that Defendants incorrectly believed were collateralized by a gold safekeeping receipt (SKR).” According to the complaint, “From 2018 through early 2019, this self-described financier had presented Trease with several other investment opportunities. Those opportunities had consistently fallen apart, but raised red flags that this vein of alternative-investment opportunities would be unsuitable for Defendants’ advisory clients. Trease and Sapere did not reasonably understand these May 2019 investments and thus lacked a reasonable basis to recommend them to their clients. In one of the investments that Trease and Sapere recommended in May 2019, a client ultimately lost $2.3 million.” Similarly, the SEC reported that another customer had $5 million in investments “without a reasonable understanding of them, and in the face of red flags suggesting the investment might not be suitable.”
Scott Trease Customer Complaints
He has been the subject of one customer complaint, according to his CRD report:
March 2023. “The allegation in this civil matter is breach of fiduciary duty in violation of Section 206(2) of the Advisers Act. Mr. Trease, along with Sapere Wealth Management LLC (“Sapere”), entered into Consent Agreements with the SEC reflecting the resolution of a civil matter. Both Mr. Trease and Sapere consented to the entry of a final judgment as part of a settlement of the civil case. In connection with the Consent Agreements, the SEC prepared and filed a complaint, describing the government’s allegations giving rise to the Agreements. Both Mr. Trease and Sapere, without admitting or denying the allegation of breach of fiduciary duty in the Complaint, consented to entry of a final judgment permanently restraining and enjoining violation of fiduciary duty and ordering compliance with a conduct-based injunction. Mr. Trease has consented to paying a civil penalty in the amount of $100,000 under Section 209(e) of the Investment Adviser Act of 1940. In connection with this matter, Mr. Trease mistakenly relied on an individual who convinced him of his sophisticated investment experience and financial acumen, along with his sincere profession of the Christian faith. The Order and Final Judgment was entered on April 26, 2023.” The customer was awarded $100,000 in damages.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Sapere Wealth Creation, LLC may be liable for investment or other losses suffered by Scott Trease’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.
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