• March 8, 2024
• JW Cole FInancial

Stephen Romney Swensen (CRD#:2885578) was a registered broker and investment advisor.

 

Broker’s Background

He entered the securities industry in 1997 and previously worked with Robert W. Baird & Co.; Northwestern Mutual Investment Services; Park Avenue Securities, LLC; Securian Financial Services, Inc.; Commonwealth Financial Network; Summit Brokerage Services, Inc.; Allegis Investment Services, LLC; J.W Cole Financial, Inc.; and Wealth Navigation Advisors.

 

Allegations of Misconduct

According to publicly available records released by the Securities and Exchange Commission (SEC), in October of 2022, the SEC filed charges against the estate of Stephen Romney Swensen, a former registered investment adviser representative, for operating a fraudulent investment offering from 2011 until 2022 that raised over $29 million from more than 50 investors.

 

The SEC’s complaint alleges that Swensen, who died on June 6, 2022, fraudulently induced victims into investing in Crew Capital Group, LLC. 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. According to the complaint, Crew Capital, which was owned and controlled by Swensen, did not invest in any securities. Rather, the SEC alleges, Swensen misappropriated essentially all investor funds to make Ponzi payments to other investors and to pay for Swensen’s personal expenses, such as real estate, vehicles and multiple private aircraft, and Swensen’s living expenses.

 

The SEC’s complaint, filed in U.S. District Court for the District of Utah, charges Swensen and Crew Capital with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The SEC seeks a permanent injunction against Crew Capital, and disgorgement with prejudgment interest from Swensen’s estate and Crew Capital.

 

For a copy of the SEC litigation press release, click here.

 

In addition, Stephen Swenson was the subject of four disclosures, which include the following:

• Feb 26, 2024—“ 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 damage amount requested is $14,400,000, and the customer dispute is still pending.
• Feb 21, 2024—“ 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 damage amount requested is $7,100,000 and the customer dispute is still pending.
• Nov 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 damage amount requested is $15,000,000 and the customer dispute is still pending.
• 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 damage amount requested is $850,000 and the customer dispute is still pending.
• June 2022—“ Failure to disclose outside business activity.” Stephen Swenson was discharged by Wealth Navigation Advisors.

 

For a copy of Stephen Swenson’s SEC AdvisorInfo, click here.

 

 We Help Investors Recover Investment Losses

A Ponzi scheme is a fraudulent investment scheme whereby the operator generates returns for older investors through revenue paid by new investors, rather than from legitimate business activities or profit of financial trading. Operators of Ponzi schemes can be either individuals or corporations, and grab the attention of new investors by offering short-term returns that are either abnormally high or unusually consistent.

 

Companies that engage in Ponzi schemes focus all of their energy into attracting new clients to make investments. Ponzi schemes rely on a constant flow of new investments to continue to provide returns to older investors. When this flow runs out, the scheme falls apart.

 

Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients.  To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.

 

The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis.  Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at (800) 931-8452 or by email at mwolper@wolperlawfirm.com.