Can you recover investment losses due to recommendations by broker Stephen Swensen (CRD# 2885578) regarding the Crew Capital Ponzi scheme?
He was registered with J.W. Cole Financial, Inc. in Clearfield, Utah, from May to July 2018, and with Allegis Investment Services, LLC in Clearfield, Utah, from 2014 to 2018, and previously with Summit Brokerage Services, Inc. in Clearfield, Utah, from 2010 to 2014. He was formerly affiliated with Wealth Navigation Advisors and he was terminated regarding, “Failure to disclose outside business activity.”
According to public records, a former client of Stephen Swensen accuses the broker of losing he and his wife’s entire retirement fund. It is alleged that he recommended the couple invest in Crew Capital Group LLC, allegedly stating a guaranteed minimum 5% annual return. However, it is reported that the broker instead used invested monies to fund his extravagant lifestyle, including cars and airplanes. Additionally, it is alleged that he made earnings payments in a Ponzi-like manner. The investor filed a complaint against Wealth Navigation Advisors, operating under the name Oak Lane Advisors.
The broker committed suicide in June 2022.
In October 2022, the Securities and Exchange Commission (SEC) filed charges against the estate of Stephen Swensen “for operating a fraudulent investment offering from 2011 until 2022 that raised over $29 million from more than 50 investors.” According to the complaint, “Swensen falsely told investors that Crew Capital was a fund that was co-managed by a reputable firm and guaranteed investors a minimum 5% annual return and up to 10% if the S&P 500 performed well.”
Stephen Swensen Customer Complaints
He was the subject of two customer complaints in 2023, according to his CRD report:
November 2023. “Allegations against the Firm for failing to detect an alleged fraud operated away from the Firm by a deceased representative that was with the Firm for less than two months. Claimants invested with the other representative at various times while he was affiliated with differing firms. Claimants allege Registered Representative was indirectly involved.” The customer is seeking $15 million in damages, and the case is currently pending. The complaint took place while he was registered with J.W. Cole Financial Planning, Inc.
April 2023. “Allegations against the Firm by claimants for failing to detect an alleged fraud operated away from the Firm, perpetrated by the former representative, who was affiliated with the Firm for less than two months, outside the scope of his activities with the Firm, regarding investments Claimants made with the representative after he left the Firm.” The customer is seeking $850,000 in damages, and the case is currently pending. The complaint took place while he was registered with Wealth Navigation Advisors.
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, Wealth Navigation Advisors may be liable for investment or other losses suffered by Stephen Swensen’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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