Articles Posted in Wells Fargo

Supervisory Failures Allegedly Resulted in Unsuitable Trades and Rollovers 

Wells Fargo Clearing Services and Wells Fargo Advisors have arrived at a settlement with the Financial Industry Regulatory Authority (FINRA). 

The two broker-dealers will pay $3.1M for purportedly not setting up and maintaining a supervisory system that complied with the self-regulatory organization’s (SRO’s) rules involving early unit investment trust (UIT) rollover trading. FINRA’s action is its final one in its targeted probe into the sale of UITs

Former New Jersey Financial Advisor Allegedly Targeted Florida Doctors

James Alan Seijas, an ex-Wells Fargo Clearing Services broker, was barred by the Financial Industry Regulatory Authority (FINRA) beginning November 2, 2021. The former New Jersey investment advisor did not provide information in the self-regulatory organization’s (SRO’s) investigation into his alleged involvement in an over $33M Ponzi scam.

Seijas, ex-UBS broker Michael Ackerman, and general surgeon Quan Tran are accused of running a cryptocurrency scam that targeted mostly Florida doctors through the entity Q3 Trading Club from 2017 to 2019. This would have been during Seijas’ time as a Wells Fargo registered representative. 

Senior Citizens Were Among Former Fairfield, NJ Financial Advisor’s Alleged Victims

Kenneth Andrews Welsh, an ex-Wells Fargo Clearing Services broker, is now facing Securities and Exchange Commission (SEC) charges accusing him of misappropriating at least $2.86 million from brokerage firm customers and advisory clients.

Allegedly the financial advisor used victims’ money (including senior citizens) to pay credit card bills and buy precious metals, including gold coins. 

COVID Relief Loans Involved Undisclosed Business Outside Their Brokerage Firms 

According to InvestmentNews, ex-J.P. Morgan Securities broker Gloria Willis, former Merrill Lynch stockbroker Evelyn Batista, and ex-Wells Fargo financial advisor Kenric Sexton have either been barred or suspended from the securities industry.

These Financial Industry Regulatory Authority (FINRA) sanctions were imposed after the self-regulatory organization (SRO) found that all three of them either inappropriately or incorrectly applied for federal COVID-relief loan programs geared towards small businesses in the wake of the coronavirus pandemic. 

New Jersey Financial Advisor’s Victims Included Older Investors Who Spoke Spanish

Ramon Arturo Herrera, a former Wells Fargo (WFC) registered representative, is sentenced to 27 months in prison and three years of supervised release. The former New Jersey financial advisor pleaded guilty to wire fraud for bilking approximately 40 clients of $450K.

Herrera worked five years in the industry. The entire time, he was a Wells Fargo broker until 2018. That is the same year that Financial Industry Regulatory Authority (FINRA) barred him from the industry.  The following year, Herrera was expelled by the New Jersey Bureau of Securities. 

New FINRA Arbitration Claim Seeks $260K in Damages 

Former Wells Fargo Clearing Services (WRET) broker Herbert Lee Weith IV is named in yet another customer dispute in which the claimant is seeking damages for losses involving variable annuities. Weith, who was a Wells Fargo broker from 2012 to 2019 in Naples, Florida, became a registered investment advisor for Equitable Advisors, LLC, in Columbia, Maryland from January to October of 2020.

Our Florida broker fraud attorneys have been looking into complaints by ex-Wells Fargo customers of Weith who suffered serious investment losses that may have been caused by unsuitable investment recommendations. Contact our attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) today. 

FINRA Suspends Texas Broker For Three Months

Kurt Jason Gunter, a Wells Fargo Clearing Services (WRET) registered representative in Bee Cave, Texas, was recently sanctioned by the Financial Industry Regulatory Authority (FINRA). 

The self-regulatory organization (SRO) contends that he allegedly made unsuitable unit investment trust (UIT) sales to customers. In addition to having to pay a $10K civil fine, Gunter is suspended for three months beginning December 20, 2020. The broker, who is also a registered Wells Fargo investment adviser, consented to the sanctions but is not denying or admitting to the findings. 

Fired Wells Fargo Representative is Barred by FINRA

The Financial Industry Regulatory Authority (FINRA) announced this month that it is barring former Wells Fargo Advisors Financial Network broker, Leonard Charles Kinsman, from the industry. 

The ban comes after Kinsman refused to testify in the self-regulatory organization’s (SRO’s) probe into his firing by Wells Fargo (WFC) for allegedly “unprofessional conduct.” Kinsman was named last year in an investor fraud claim accusing him of making unsuitable investment recommendations and forging and falsifying business records. That customer dispute has now been settled for $995K.  

Wells Fargo Stockbroker Accused Of Overconcentration & Unsuitable Investments 

Wells Fargo Clearing Services broker, Jeffrey Eiler, has been the subject of 12 customer investment loss disputes, most of which were settled and a few that were denied. If you are an investor who lost money while Eiler was your registered representative, our stockbroker fraud attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm) want to offer you a free case assessment. 

The customer disputes against Eiler go back more than twenty years. According to his BrokerCheck record, most of the settlements were paid by the firm where he was a registered representative. 

Wells Fargo Sold Non-Traditional ETFs to Retail Investors 

If you were an investor who suffered losses in non-traditional exchange-traded funds (ETFs) that you feel were unsuitable for you yet were recommended by a Wells Fargo investment advisor or broker, our ETF fraud attorneys at Shepherd Smith Edwards and Kantas (SSEK Law Firm) would like to offer you a free case consultation. 

Wells Fargo Advisors Financial Network and Wells Fargo Clearing Services recently agreed to pay $35M to settle US Securities and Exchange Commission (SEC) claims. These claims accused the two Wells Fargo entities of lax supervision of their registered investment advisors (RIAs). As well as the brokers who recommended certain complex non-traditional ETFs to retirees and other retail advisory and brokerage customers. 

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