St. Louis, Missouri firm Wells Fargo Advisors, LLC issued a Letter of Acceptance, Waiver and Consent to the Financial Industry Regulatory Authority (FINRA) for allegedly failing to supervise one of their registered representatives. FINRA alleged that the former Wells Fargo Advisors representative “excessively traded equity positions” in the stocks of an elderly customer. FINRA found that this alleged broker misconduct continued until a firm program flagged the customer’s account. FINRA found that as a result of this misconduct the customer paid $300,000 in excess commissions and fees. The FINRA investigation concluded Wells Fargo Advisors violated NASD Rule 3010(a) and FINRA Rules 3110(a) and 2010 by failing to supervise a former registered representative who excessively traded equity positions in an account belonging to a senior customer. Without admitting or denying the FINRA findings, Wells Fargo Advisors consented to the FINRA findings and was censured and fined $175,000.
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 failed supervision and/or other misconduct by their broker can file claims to recover damages against broker-dealers, like Wells Fargo Advisors, LLC, which should consistently oversee its brokers’ activities in order to prevent the above-described misconduct.
Have you suffered losses in your Wells Fargo Advisors, LLC account due to excessive trading and/or failed supervision 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 Wells Fargo Advisors, LLC 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 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 email@example.com for answers to any of your questions about this blog post and/or any related matter