Stockbroker Fraud Lawyers

Did Former Wells Fargo Broker Leroy Born Sell You STRIP Bonds? Our Stockbroker Fraud Lawyers Are Investigating Investor Losses

If you are an investor who suffered losses in (Separate Trading of Registered Interest and Principal of Securities) STRIP bonds, please contact the Shepherd Smith Edwards and Kantas Stockbroker Fraud Lawyers (investorlawyers.com) today to request your free, no obligation case assessment.

Currently, we are investigating claims of losses in these zero-interest treasury bonds that are long-term (between four and 29 years to maturity), risky and volatile, place tax obligations on accrued interest that has not been paid, and are illiquid.

One former broker who has come under scrutiny for selling STRIP Bonds is ex-Wells Fargo Clearing Services financial advisor Leroy Born (Le Born) in Orange County, California. Born, who was also a  Wells Fargo Advisors registered representative, is now with International Assets Investments Management as an investment advisor.

What Is A STRIP Bond and Why Is It Unsuitable For Inexperienced and Low-Risk Investors? 

This debt instrument has had principal and coupon payments removed and sold separately. A STRIP bond (also referred to as STRIPS or stripped bonds) is a zero-coupon bond. It doesn’t offer periodic interest payments, unlike conventional bonds. They are bought at a discount, and STRIP bond investors are supposed to make money from the difference between the price they paid and the face value of the bond paid at maturity.

Taxes must be paid on the interest that accrues on the bond yearly. STRIP bonds are high-risk in part because their value is connected to current interest rates. This can impact the bonds’ value as the rates go up and down. Inflation is not factored in since this kind of bond offers a fixed payout upon maturity.

Longer-term STRIP bonds will likely see this inflation risk compounded. All of this means that STRIP bonds are highly unsuitable for inexperienced and risk-averse investors.

Why is Ex-Wells Fargo Stockbroker Leroy Born Under Scrutiny Over STRIP Bonds?

A former customer of Leroy Born’s recently filed a STRIP bond loss lawsuit alleging a seven-figure loss while claiming unauthorized and unsuitable investments, breach of fiduciary duty, supervisory deficiencies, the failure to detect and stop elder financial abuse, and more. Other investors who worked with Born contend that they, too, suffered losses in STRIP bonds that he sold to them.

According to Leroy Born’s CRD, Wells Fargo fired him in June 2025 after determining he made unsuitable investment recommendations to certain clients. There are several investor lawsuits listed, including five customer disputes since 2024. Allegations include unsuitability and unauthorized transactions.

If former Wells Fargo stockbroker Leroy Born or any other financial advisor unsuitably marketed and sold you STRIP bonds, and you sustained significant losses, you may be able to file a FINRA lawsuit to recover your losses.

Representing STRIP Bond Investors in FINRA Arbitration

Shepherd Smith Edwards and Kantas are seasoned Stockbroker Fraud Lawyers that represent bond investors against broker-dealers and their financial advisors. We work with investors all over the United States, as well as foreign nationals, in proving that broker-dealer negligence or fraud contributed to their unnecessary investment losses.

Call (800) 259-9010 today or contact us online. You can also reach out directly to us in Orange County, CA at (619) 550-4847. We have helped to make thousands of investors financially whole again.