James Schaedler, Jr., former registered representative with Wells Fargo Clearing Services (Wells Fargo), has been barred by the Financial Industry Regulatory Authority (FINRA) for refusing to produce information and documents requested by FINRA in connection with an investigation into allegations that he exercised undue influence over an elderly former client and improperly received a $200,000 gift from another elderly client.
FINRA began an investigation in January 2016, into allegations that James Robert Schaedler, Jr., of Corona, California, exercised undue influence over a former elderly client, who ultimately amended her trust to make Mr. Schaedler a partial beneficiary and residual beneficiary of her $2.3 million dollar estate. Further, FINRA expanded its investigation to include allegations that Mr. Schaedler improperly received a gift of $200,000 from a second elderly client.
As part of its investigation, FINRA sent Mr. Schaedler a request for documents and information pursuant to FINRA Rule 8210, and Mr. Schaedler, through his attorney, requested an extension, which was granted. Mr. Schaedler again failed to produce the requested information and notified FINRA, again through his attorney, that he would not produce the information. By refusing to comply with FINRA’s request for documents and information connected to its investigation, Mr. Schaedler violated FINRA Rules 8210 and 2010. Consequently, Mr. Schaedler was barred from associating with any FINRA member in any capacity.
FINRA rules require brokerage firms to establish and implement a reasonable supervisory system to protect customers from the risks associated with investing. The implementation of the rules requires supervisors to monitor their employees to ensure compliance with federal and state securities laws, securities industry rules and regulations, as well as 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 account holders for investment losses which stem from their employees’ misconduct. Therefore, investors who have suffered losses due to a brokerage firm’s failure to supervise its representatives can file claims to recover damages against firms, like Wells Fargo, which have a duty to supervise its employees in order to protect their customers’ interests.
Have you suffered losses in your Wells Fargo account due to a stockbroker’s misconduct? Do you feel that your broker has exercised undue influence over you and your investment accounts? 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 stockbrokers who may have engaged in 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 firstname.lastname@example.org for answers to any of your questions about this blog post and/or any related matter.