FINRA Suspends Wells Fargo Broker for Private Securities Transactions

David Manor, a currently unregistered representative formerly employed with Wells Fargo Clearing Services, LLC (Wells Fargo), has agreed to an Offer of Settlement by the Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) in which he consented to, but did not admit to or deny, the findings that he engaged in outside business activities without his firm’s approval, made unsuitable recommendations to his customer and caused that customer approximately $224,000 in losses in less than three months.

FINRA’s findings state that while employed by Wells Fargo, David Manor, of Brookline, Massachusetts, engaged in unapproved outside business activity in which he assisted a customer, a 75 year old retiree with limited income, in selling mineral rights on a property he owned.  In return for his help, the customer paid Mr. Manor $107,000 that Manor then used to open a brokerage account away from his member firm and traded from the account on behalf of his customer.  FINRA stated that Mr. Manor effected risky, unsuitable options trades from the account, and caused his customer to lose approximately $224,000 in less than three months.

Mr. Manor was suspended from associating with any FINRA member in any capacity for a period of nine months. The suspension is in effect from October 7, 2019 through July 6, 2020.

Stockbrokers, registered representatives, and other financial professionals have been known to engage in many types of fraudulent and prohibited behavior which are in violation of 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 fail to 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 unsuitable recommendations and/or 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 stockbroker misconduct.

Have you suffered losses in your Wells Fargo account due to your stockbroker’s 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 unauthorized outside business activity, made unsuitable recommendations 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 40 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.