Wells Fargo Stockbroker Suspended for Engaging in Private Securities Transactions

Robert David Meyers of Kiawah Island, South Carolina submitted a Letter of Acceptance, Waiver, and Consent (AWC) in which Meyers was fined and suspended by the Financial Industry Regulatory Authority (FINRA) , for allegedly engaging in private securities transactions in violation of FINRA Rules 3280 and 2010.

In July 2007, Meyers registered with Wells Fargo as a General Securities Representative (GS). According to FINRA, between February 2016 and October 2017, Meyers participated in private securities transactions by soliciting, facilitating and recommending private equity investments. The findings stated that the securities were offered by three private equity funds to 26 Wells Fargo customers who made investments totaling $1.9 million without written notice or consent from his firm. On November 2, 2017, Wells Fargo filed a Uniform Termination Notice for Securities Industry Registration (Form U5) stating that Meyers was discharged due to the recommendations not offered through the firm. Meyers did not receive any compensation from the private equity funds as a result of his participation.

FINRA Rule 3280(b) states that prior to participating in any private securities transaction, an associated person shall provide written notice to the member with which he is associated describing in detail the proposed transaction and the person’s proposed role therein and stating whether he has received or may receive selling compensation in connection with the transaction.”

FINRA Rule 2010 requires associated persons, in the conduct of their business, to observe high standards of commercial honor and just and equitable principles of trade. A violation of FINRA Rule 3280 also constitutes a violation of FINRA Rule 2010.

Without admitting or denying FINRA’s findings, Robert David Meyers was assessed a deferred fine of $20,000 and suspended from association with any FINRA member in all capacities for 12 months. The suspension is in effect from November 4, 2019, through November 3, 2020.

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 private transactions, and/or other misconduct by their broker can file claims to recover damages against broker-dealers, like Wells Fargo, which should consistently oversee its brokers’ activities in order to prevent the above-described misconduct.

Have you suffered losses in your Wells Fargo account due to private transactions by your broker?  Was Robert David Meyers your stockbroker?  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 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 pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.