SALEM—The Oregon Division of Financial Regulation (DFR) has issued an order to revoke the investment adviser and insurance licenses of David D. Swanson, Sr. a Lake Oswego-based investment adviser, effective March 1, 2023, for violations of the state’s securities and insurance laws arising out of Swanson’s unlawful sale of promissory notes to his clients. Swanson did not tell his clients he was borrowing the money to pay other clients. The delay in the effective date of the revocation allows for an orderly wind-down of his business. Swanson has also been under a cease-and-desist order since 2020.
The division’s order will permanently revoke the investment adviser representative and state investment adviser licenses of Swanson and his company, Swanson Financial Services, Inc., as well as Swanson’s resident insurance producer and resident insurance consultant licenses. The order also assessed civil penalties of up to $160,000 against Swanson and his companies.
The division’s investigation found that Swanson, acting through another of his companies, SF Commercial, LLC, sold promissory notes totaling more than $1.5 million to five clients ages 64 to 77 years old in 2018 and 2019. The clients’ investments ranged from $50,000 to $755,000. As an investment adviser, Swanson was prohibited from borrowing money from his clients. Swanson and his companies also failed to make meaningful disclosures about the true nature and purpose of the investments, including that the money invested by some clients would be used to pay back other clients. Swanson eventually paid back those loans.
“We will not stand for anyone taking advantage of others, especially our vulnerable populations,” said DFR Administrator TK Keen. “Investment advisers must put their clients’ needs and interests ahead of their own. If you have questions about your financial adviser or believe you may have been taken advantage of in an investment scheme, you can contact our consumer advocates for help.”
The division’s consumer advocates can be reached at 888-877-4894 (toll-free). The division’s consumer advocate webpage: https://dfr.oregon.gov/help/Pages/index.aspx also has information about how to file a complaint, check licenses, find resources, or contact an advocate.
DFR has resources available for people who need help with financial services, student loans, payday loans, choosing a financial professional, and more. There are also tips on how to manage finances, find loan help, get out of debt, and more on our financial help page: https://dfr.oregon.gov/financial/Pages/index.aspx
The division – part of the Department of Consumer and Business Services – regulates, among others, financial service institutions (including banks and credit unions), investment services, and insurance companies to make sure they are licensed properly and following the law.