Brent Burgesser of Chandler, Arizona submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) for allegedly executing unsuitable mutual fund switches in the accounts of three customers. Burgesser became registered in the securities industry in May 2000 as a General Securities Representative (GSR).From October 2008, through July 2012, Mr. Burgesses was an associated member with Wells Fargo Advisors, LLC.
FINRA alleged that between January 2009 and May 2012, Mr. Burgesser effected 83 unsuitable mutual fund switches in the accounts of several customers, resulting in more than $63,700 in customer losses. Mutual fund “switching” is simply the process of transferring an investment from one fund to another, sometimes for good reason and other times to defraud clients. Some brokers attempt to effect numerous switches in client accounts in order to generate commissions. In the case of Mr. Burgesser, FINRA found that the former Wells Fargo representative generated approximately $109,500 in commissions for himself as a result of mutual fund “switching.”