William Campbell of Florence, South Carolina submitted a Letter of Acceptance, Waiver and Consent (AWC) to The Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) for allegedly making several trades for clients without written authorization.
Campbell entered the securities industry in 2012 when he became associated with FINRA Member Frim Wells Fargo Advisors, LLC (Wells Fargo) and within a year became a General Securities Representative (GSR). On July 17, 2014 Wells Fargo filed a Uniform Termination Notice for Securities Industry Registration (Form U5) terminating Campbell’s registration.
FINRA found that between October 2013 and April 2014, Campbell exercised discretion over three customer accounts and made eleven trades without their written authorization. Additionally, FINRA alleged that Campbell mismarked order tickets in relation to ten of the trades. Campbell also allegedly entered a false notation in Wells Fargo’s records stating that he spoke to one of the clients prior to the trades. None of the customers were aware of the trades and Campbell used the customers online login credentials to execute the trades.
Prior to the trades, all three of the clients had granted Campbell discretionary trading authority in their respective accounts and gave Campbell permission to use their online login credentials. Wells Fargo written supervisory procedures prohibited discretionary trading in the types of accounts at issue. FINRA also found that Campbell created a false notation that stated one of the trades was originated by the client. This statement was false and caused Wells Fargo to have maintained inaccurate books and records.
Without admitting or denying the FINRA findings, Campbell agreed to the sanctions that he violated NASD Rule 2510(b) and FINRA Rules 4511 and 2010 and was suspended from association with any FINRA member in any capacity for a period of four months.
Stockbrokers have been known to engage in many types of practices which violate industry and firm rules, practices, and procedures. In order to protect customers from stockbroker misconduct, FINRA rules require broker-dealers like Wells Fargo to not only establish and implement a reasonable supervisory system but enforce their rules, policies and procedures. The implementation of the rules require supervisors to monitor employees to ensure they comply with federal and state securities laws, securities industry rules and regulations, and the firms, such as Wells Fargo own policies and procedures. If broker dealers and/or their supervisors do not establish, implement and enforce these protective measures, they may be liable to investors for damages which flow from the misconduct. As a result, investors who have suffered losses because of their stockbroker’s unlawful or prohibited conduct can file a claim to recover damages against broker dealers like Wells Fargo, which should consistently oversee its employees in order to prevent stockbroker misconduct.
Have you suffered losses in your Wells Fargo investment account due to your stockbroker’s misconduct? 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 stockbrokers for unsuitable recommendations, misrepresentations, and/or other unauthorized and prohibited conduct.
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 post a comment, call (800) 732-2889, send Mr. Pearce an email at email@example.com, and/or visit our website at www.secatty.com for answers to any of your questions about this blog post and/or any related matter.