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. Continue reading →