Scott Sheehan: DFPG Advisor Lands $475K Complaint

A recent investor complaint against Cornwall-on-Hudson, New York financial advisor Scott Sheehan (CRD# 2328614) alleges that his advice resulted in six-figure damages. Financial Industry Regulatory Authority records show that he is registered as a broker with DFPG Investments, and that he is the Managing Partner of 1031 Investment Services.

Mr. Sheehan’s BrokerCheck report discloses one investor complaint. Filed in December 2023, it alleges that as a representative of DFPG Investments, he recommended an unsuitable real estate investment. The pending complaint alleges damages of $475,000.

Investors should be aware that under FINRA Rule 2111, brokers like Mr. Sheehan are required to perform “reasonable diligence” to determine that the investments they recommend are suitable for a given client’s needs. A risky and illiquid non-traded real estate investment trust (REIT), for instance, may be considered unsuitable for a conservative investor in need of liquidity and principal preservation. Brokers who sell unsuitable products may be liable for damages in the event of losses.

1031 Investment Services’ website includes a profile of Mr. Sheehan that describes him as a the brokerage group’s founder and president. “Since the company’s inception in 2004 Mr. Sheehan has been responsible for providing analysis of properties and real estate markets, development of investment strategies, and portfolio construction for clients of the company,” it states. “During this time he has assisted clients in the acquisition of 1031 exchange related property valued in excess of $3 billion; including over 27 million square feet of commercial property and 20,000 apartment units in over 52 markets across the United States.”

According to the Financial Industry Regulatory Authority, Scott Sheehan holds 28 years of securities industry experience. Based in Cornwall-on-Hudson, New York, he has been registered as a broker with DFPG Investments since 2012. His past registrations include Investors Capital Corporation, Omni Brokerage, Behringer Securities, AFD, SunAmerica Capital Services, Keyport Financial Services, Key Investments, and Pruco Securities. His credentials include the passage of five securities industry qualifying exams: the Investment Company Products/Variable Contracts Representative Examination, or Series 6; the General Securities Representative Examination, or Series 7; the Securities Industry Essentials Examination, or SIE; the Uniform Securities Agent State Law Examination, or Series 63; and the Uniform Combined State Law Examination, or Series 66. He holds 28 state licenses. (Information current as of June 9, 2024.)

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