Last Updated: August 2026 — Houston, TX
Here’s what you need to know about Houston, TX stockbroker Shay Scruggs:
- Name: Shay W. Scruggs
- Current Employer: USCA Securities , ARAX Advisory Partners
- Former Employers:
- DBA: Scruggs Wright Wealth Partners, 1600 West Loop South, Suite 700, Houston, TX 77027
- Prior Firms:
- UBS Financial Services Inc. (2014–2020)
- Rockefeller Financial LLC / Rockefeller Capital Management (6/2020-6/2026)
- Deutsche Bank Securities Inc. (2010–2014)
- Merrill Lynch, Pierce, Fenner & Smith Incorporated (2000–2005)
- CRD number: 4173046
- Stockbroker / Financial Advisor: Yes
- Can Broker be Sued in FINRA: Yes
- Highest Award or Settlement: $195,000
- Current Customer Dispute Seeks Total Damages of: $1,000,000
If you’ve sustained damages from Mr. Scruggs, discuss your case with experienced investment fraud lawyer Bob Rex at (877) 224-3199 for a free consultation.
Did You Lose Money With Shay W. Scruggs As Your Stockbroker?
Shay W. Scruggs has been the subject of multiple customer disputes, including:
- In July 2020, while at UBS Financial Services Inc., a FINRA arbitration (Case No. 20-02402) alleged unsuitable investment recommendations tied to equities dating back to 2013. The claim was settled for $195,000.
- In December 2023, a customer complaint alleged poor account performance while Scruggs was at Rockefeller Financial LLC. The matter was settled in February 2024 for $42,500, with Scruggs contributing the full amount individually.
- In March 2026, a pending FINRA arbitration (Case No. 26-00564) alleges that Scruggs recommended alternative investments inconsistent with the client’s investment profile. The claim currently seeks $1,000,000 in damages.
- In July 2026, a case was filed in Texas State Court, Brazos County, TX, by.a customer of Rockefeller Financial alleging that Scruggs committed sales practice violations . The claim is currently pending and seeks $250,000 in damages. Products involved are equities and promissory notes.
More on REITs and Other Alternative Investments
Allegations of Broker Misconduct Against Shay Scruggs
- Unsuitability – Recommending investments inconsistent with a client’s objectives may violate FINRA Rule 2111 (Suitability), which requires brokers to have a reasonable basis for recommendations.
- Sales Practice violations
Alternative Investments: These are assets that are not stocks, bonds or cash. Alternative investments generally fall within five categories: hedge funds, private capital, natural resources (oil and gas, energy), real estate (REITs) and infrastructure. They are typically less liquid that conventional investments, less regulated with higher fees and generally higher risk. For more investigations involving Alternative Investments, see this.
What Are Sales Practice Violations?
According to FINRA (Financial Industry Regulatory Authority), Sales Practice Violations involve misconduct by financial professionals (brokers, financial advisors) or firms in their interactions with customers, related to the sale of securities or investment products. Sales Practice Violations can lead to enforcement actions, fines, suspensions, or other penalties. Below is an overview of common sales practice violations based on FINRA’s rules and enforcement priorities:
- Suitability Violations (FINRA Rule 2111):
- Example: Recommending high-risk securities to a retiree seeking stable income.
- Unauthorized Trading (FINRA Rule 2010):
- Example: A broker buys or sells securities without discussing with the client.
- Churning (Excessive Trading):
- Engaging in excessive trading in a customer’s account to generate commissions, thereby enriching the broker and the broker-dealer while disregarding the customer’s best interests.
- Misrepresentation or Omission of Material Facts (FINRA Rule 2020):
- Example: Exaggerating potential returns or downplaying risks of a speculative product.
- Fraud and Deceptive Practices (FINRA Rule 2020, Section 10(b) of the Securities Exchange Act):
- Example: Creating fictitious account statements to mislead customers to prevent the customer from realizing his account is losing money or to conceal theft by the broker.
- Private Securities Transactions (Selling Away) (FINRA Rule 3280):
- Example: Promoting unapproved private investments, not authorized by the broker-dealer, to clients.
- Failure to Supervise (FINRA Rule 3110):
- Firms or supervisors failing to adequately oversee brokers’ activities, leading to sales practice violations.
- Customer Fund Misappropriation:
- Misusing or stealing customer funds or securities, such as unauthorized withdrawals or conversions.
- Inadequate Disclosure of Fees and Costs:
- Failing to clearly disclose commissions, markups, or other costs associated with transactions.
Recover Your Investment Losses Now With Rex Securities Law
Our Investigations of Other Rockefeller Financial brokers
If you have suffered investment losses in an account handled by Eric Adam Stiba, contact us for a complimentary consultation with an experienced securities lawyer to learn how you may be able to recover damages through FINRA arbitration.
With offices in Boca Raton, FL, and Austin, TX, stockbroker fraud attorney Bob Rex provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers, financial advisors, and broker-dealers.
If you have questions about how your account has been handled, call (877) 224-3199 to speak with an experienced securities attorney at no cost to you.
Most cases are handled on a contingent fee basis, meaning that you do not pay legal fees unless we are successful.