Douglas Jay Melzer, a former broker with the Sewickley, Pennsylvania branch of Wells Fargo Advisors, LLC (Wells Fargo), submitted a letter of acceptance, waiver, and consent in which he consented to, but did not admit to or deny, the Financial Industry Regulatory Authority’s (FINRA) findings that he solicited his firm’s customers to invest $2 million in an unapproved outside investment.
According to FINRA, Douglas Melzer, aka Dutch Melzer, solicited four of his Wells Fargo customers to invest $2 million in an investment contract that had not been approved by the firm. Mr. Melzer received at least $27,000 for his participation in the securities transactions and a 2.5% member interest in the investment. Further, FINRA found that Mr. Melzer caused the registered representative code on some customer accounts to be changed, which resulted in the firm paying him over $9,500 in commissions that should have gone to his partners. Consequently, Douglas Melzer, of Mars, Pennsylvania, was permanently barred from any association with any FINRA member in any capacity.
Stockbrokers, financial advisors, and other financial industry professionals have been known to engage in many types of misconduct which violate industry rules and procedures. In order to protect investors from such misconduct, FINRA rules require brokerage firms to establish and implement a reasonable supervisory system. The implementation of the rules requires supervisors to monitor employees to ensure compliance with federal and state securities laws, securities industry rules and regulations, and the brokerage firm’s own policies and procedures. If broker dealers and their supervisors fail to establish and implement these protective measures, they may be held liable to investment account holders for losses flowing from the employees’ misconduct. As a result, investors who have suffered losses stemming from unauthorized securities transactions or other misconduct by their broker or registered representative can bring forth claims to recover damages against broker dealers like Wells Fargo Advisors, which have a duty to supervise its employees in order to prevent broker misconduct.
Have you suffered losses in your Wells Fargo investment account due to Douglas Melzer’s or another registered representative or stockbroker’s unauthorized securities transactions or other 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 financial professionals for unauthorized and/or fraudulent misconduct.
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 33 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 post a comment, call (800) 732-2889, send Mr. Pearce an email at email@example.com, and/or visit our website at www.secatty.com for answers to any of your questions about this blog post and/or any related matter.