On July 19, 2018 a judgment issued by the United States Court of Appeals for the Ninth Circuit became final in which Wedbush Securities Inc. was fined $300,000 and Edward William Wedbush was fined $50,000 and suspended from association with any FINRA member in any principal capacity for 31 days.
Edward Wedbush founded his firm in 1955 and served as a general partner when it was a partnership and became president of the Firm when it was incorporated. He also became Chief Compliance Officer (CCO) and the Business Conduct Manager (BCM) in August 2006. Wedbush was responsible for the firm’s compliance system and all regulatory filings. According to FINRA, from January 2005 to July 2010, the firm committed 158 violations of the rules and by-laws of the National Association of Securities Dealers Inc. (NASD), the New York Stock Exchange Inc. (NYSE) and FINRA. The findings stated that the firm reported 129 events late (RE-3, U4 and U5), 18 events inaccurate, and failed to file 11 forms (RE-3, U4 and U5). The Firm and Mr. Wedbush allegedly failed to reasonably supervise regulatory reportings, failed to implement the firm’s supervisory system, failed to detect and prevent violations and failed to implement corrective measures to address the regulatory reporting failures.
The United States Court of Appeals for the Ninth Circuit denied the firm and Mr. Wedbush’s petition for review. Edward William Wedbush’s suspension was in effect from August 20, 2018, through September 19, 2018.
Stockbrokers have been known to engage in many practices that may violate industry and firm rules, practices, and procedures. In order to protect investors from stockbroker misconduct, FINRA rules require brokerage firms to establish and implement a supervisory system. The implementation of these industry rules requires supervisors to monitor their 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/or their supervisors fail to establish and implement these protective measures, they may be liable to investors for damages which flow from the broker’s misconduct. Therefore, investors who have suffered losses stemming from negligence, failure to supervise and/or other misconduct by their broker can file claims to recover damages against broker-dealers, like, Wedbush Securities which should consistently oversee its brokers’ activities in order to prevent the above-described misconduct.
Have you suffered losses in your Wedbush Securities account due to negligence and/or failure to supervise by your broker? 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 Wedbush Securities stockbrokers who may have engaged in broker 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 firstname.lastname@example.org for answers to any of your questions about this blog post and/or any related matter.