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Wells Fargo Broker Suspended by FINRA for Falsified Forms

Sandra McCabe, a former registered representative employed with Wells Fargo Clearing Services, LLC, (Wells Fargo), submitted a Letter of Acceptance, Waiver, and Consent in which she consented to, but did not admit to or deny, the Financial Industry Regulatory Authority’s (FINRA) findings that she falsified documents by photocopying and re-using previously signed customer forms.

FINRA’s findings state that on approximately 36 occasions, Sandra Jayne McCabe, of Holbrook, New York, photocopied and reused signed and partially completed customer forms rather than having them execute new forms.  The forms included ACH authorization agreements which authorize transfers of funds.  FINRA found that Ms. McCabe submitted the forms with non-original signatures and, in two cases, altered information on the forms as well.  Although the customers authorized the underlying transactions, they did not authorize her to falsify the forms.

For violating FINRA Rule 2010, which requires registered representatives to “observe high standards of commercial honor,” Ms. McCabe was assessed a deferred fine of $5,000 and suspended from association with any FINRA member in any capacity for three months. The suspension is in effect from August 7, 2017 through November 6, 2017.

Stockbrokers, registered representatives, and other financial professionals have been known to engage in different types of fraudulent and prohibited behavior which violate industry rules and procedures.  In order to protect investors from stockbroker misconduct, FINRA rules require broker-dealers to establish and implement a supervisory system in order to safeguard customer assets.  If broker-dealers and their supervisors do not establish and implement these protective measures, they may be liable to account holders for investment losses.  As a result, account holders who have suffered losses stemming from a registered representative’s misconduct can file a claim to recover damages against broker-dealers, like Wells Fargo, which have a duty to supervise its employees in order to prevent the above-described misconduct.

Have you suffered losses in your Wells Fargo account due to falsified account documents or other stockbroker misconduct?  If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation.  Mr. Pearce is accepting clients with valid claims against Wells Fargo stockbrokers who may have engaged in misconduct and caused investors losses.

The most important of investors’ rights is the right to be informed!  This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida.  For over 35 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues.  The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally!  Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.