Scott Klor, a former representative of LPL Financial, was suspended for 14 months and fined $5,000 by the Financial Industry Regulatory Authority, Inc. (FINRA) for a life insurance scheme.

The Allegations

According to the FINRA letter of acceptance, Klor was involved in private securities transactions  encouraging investors to purchase approximately $1.4 million in a variable life insurance policy through a specially-formed limited liability company (LLC). Although Klor was required to disclose this transaction to LPL, he failed to do so.

The Facts of the Case

Investors purchased the life insurance policy at a price that exceeds the surrender value of the policy. The policy was for variable life insurance of a terminally ill elderly person. With Klor’s assistance, the investors formed an LLC and purchased the policy for $1.4 million. Over the years, the investors made payments and contributions to the LLC, and Klor received a 4 percent commission for his participation.

Klor Released from the Securities Firm

However, the amount paid for the policy exceeded the expected death benefit. After the insured passed away, it was revealed that the death benefit was worth less than the invested amount, causing the LLC investors to lose more than $200,000. Klor is no longer associated with the securities firm.

Speak with a Securities Fraud Attorney

Dimond Kaplan & Rothstein, P.A. has vast experience representing investors who have lost money as a result of securities fraud or stockbroker misconduct. We will aggressively pursue claims to recover your losses or damages.

If you are looking for a securities fraud attorney to review your rights and options, the securities fraud lawyers at Dimond Kaplan & Rothstein, P.A. represent individual and institutional investors who have lost money as a result of securities fraud or stockbroker misconduct.

Contact Dimond Kaplan & Rothstein Today

Contact an investment fraud attorney at Dimond Kaplan & Rothstein, P.A. to schedule an appointment for a FREE case evaluation.

Our offices are located in Los AngelesNew YorkDetroit, West Palm Beach, Naples and Miami, and we represent clients nationwide. Translations services are available.

EN   ES   PT     
855.650.5675



Miami Office
Grand Bay Plaza
2665 S. Bayshore Drive
Penthouse 2B
Miami, FL 33133
Telephone: 786.628.8236




Los Angeles Office
Available by Appointment
2029 Century Park East
Century Plaza Tower
Suite 400N
Los Angeles, CA 90067
Telephone: 424.544.7930




New York City Office
Available by Appointment
14 Wall St, 20th Floor
New York, NY 10005
Telephone: 917.382.5217




West Palm Beach Office
Northbridge Centre
515 N. Flagler Drive, Suite P-300
West Palm Beach, FL 33401
Telephone: 561.475.2887




Detroit Office
41000 Woodward Avenue,
Suite 350 East
Bloomfield Hills, Mi 48304
Telephone: 248.368.0182