Ex-Wells Fargo Broker Jeremy Fortner Allegedly Borrowed Money From Clients
Our broker misconduct lawyers investigate claims of losses involving former customers of ex-Wells Fargo Advisors registered representative Jeremy Fortner. The broker-dealer fired him in August 2021 in the wake of allegations that he inappropriately borrowed funds.
In November 2021, with a starting date of March 3, 2022, the Financial Industry Regulatory Authority (FINRA) permanently barred Fortner after he did not respond to requests for information into its investigation. Jeremy Fortner was a registered broker and investment adviser for 16 years.
Please contact our skilled California broker negligence attorneys if you suffered investment losses while working with Jeremy Fortner. Our securities law firm can help you understand whether you have grounds for a FINRA arbitration claim to pursue damages against him or one of the previous firms where he used to work.
Call Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) in California (619) 550-4847 or nationwide at (800) 259-9010.
Key Disclosures Involving Broker Jeremy Fortner
According to Jeremy Fortner’s BrokerCheck record, several claims against the ex-Wells Fargo broker allege negligence and fraud.
- January 2022: The Oregon Division of Financial Regulation issued a cease and desist order after finding that he solicited a $25K loan from a client. Fortner denies the allegations. He was ordered to pay $20K.
- November 2021: A client agreed to a $100K settlement after alleging that Fortner gave him “incorrect advice” related to an annuity sale, which placed them in a higher tax bracket.
- October 2021: Customers said Fortner recommended a real estate investment to them. They contend that they gave him money in exchange for a promissory note, but he never returned all of the money. A more than $22K settlement was reached.
Between June 2021 and August 2021, six other investor claims were filed in which Fortner is accused of borrowing money from customers and not repaying the funds. Various settlements were reached. There was also a complaint from July 2021 in which the customer accused the former Wells Fargo broker of getting him involved in a private placement and outside business activity. An over $232K settlement was reached.
Jeremy Fortner was a Wells Fargo Advisors broker out of Beverly Hills, CA, from June 2014 to September 2021. Other firms where he used to be registered as a broker or investment adviser include J.P. Morgan Securities, Chase Investment Services, T. Rowe Price Investment Services, MML Investors Services, InterSecurties Inc, and more.
FINRA Prohibits Broker From Borrowing Funds From Customers
Under FINRA Rule 3240, brokers are not allowed to borrow from or lend money to customers unless:
- Their broker-dealer has written procedures allowing this practice.
- The financial advisor obtained the firm’s written approval for the loan in advance.
- The broker and customer are immediate family members.
- The customer and the representative are registered with the same firm.
- The borrowing arrangement is predicated upon a personal relationship between broker and customer. The loan would not have been offered, solicited, or issued except that the two individuals had a personal relationship unrelated to the broker-client relationship.
- The lending arrangement is because of a business relationship unrelated to the broker-client relationship.
There is also FINRA Rule 2010 stipulating that members abide by high commercial honor standards and fair principles of trade.
Broker Misconduct Involving Borrowing From Customers
Unfortunately, some brokers continue to borrow money from clients improperly, which can present clear conflicts of interest. It may also lead to customer losses. If you believe that you suffered losses as a result of broker negligence and misconduct, contact us at SSEK Law Firm today.