Tag: Wells Fargo

Former Wells Fargo Reps Barred for Unsuitable Energy Securities

Former Wells Fargo Reps Barred for Unsuitable Energy Securities

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Two former Wells Fargo brokers from California have been barred by the Financial Industry Regulatory Authority (FINRA) for allegedly exposing clients to undue risks. The regulator barred California brokers Charles Frieda and Charles Lynch for recommending that clients over-concentrate their investments in energy-sector securities that resulted in significant losses.

According to FINRA, the two brokers recommended an investment strategy involving four speculative energy stocks to a majority of their customers. Between November 2012 and October 2015, the brokers recommended these investments to more than 50 customers, exposing the customers to significant losses.

In addition to the speculative nature of the securities, the volatility of the energy market, and the high level of concentration, the broker also failed to properly consider the customers’ investment profiles. In the complaint filed by FINRA, the agency says that Frieda and Lynch did not properly consider the suitability of their recommendations.

Brokers Terminated for Unsuitable Energy Securities

Charles Frieda and Charles Lynch worked together in Irvine, California. Wells Fargo terminated Lynch in April of this year, followed by Frieda this past August.

Charles Frieda began his securities career at Citigroup in 2008, leaving for Morgan Stanley after one year. He joined Wells Fargo in 2012. Charles Lynch began his securities career in 1999 at Morgan Stanley, followed by a four-year stint at Citigroup, after which he rejoined Morgan Stanley. Lynch also joined Wells Fargo in 2012.

Are You a Victim of Stockbroker Misconduct?

If you lost money as a result of investing with Charles Frieda or Charles Lynch or are a victim of stockbroker misconduct, contact an experienced securities fraud attorney today.

Call an Investment Fraud Attorney Today

If you are looking for an attorney to review your rights and options, the securities fraud lawyers at Dimond Kaplan & Rothstein, P.A. have recovered more than $100 million from banks and brokerage firms for their wrongful actions.

With offices in Los Angeles, New York, West Palm Beach and Miami, our securities fraud attorneys represent clients nationwide and can help you recover your investment  losses.

Contact a securities fraud attorney at Dimond Kaplan & Rothstein, P.A. today to schedule an appointment or consultation to review your rights and options.

Wells Fargo Broker Barred by FINRA Over Improper Transfers.

FINRA Barred a Wells Fargo Broker

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Wells Fargo Broker Barred by FINRA Over Improper Transfers

A former Wells Fargo broker has consented to sanctions from the Financial Industry Regulatory Authority (FINRA), banning him from the securities industry after he transferred client money to his own accounts to pay credit card bills. Scott Polish of Mentor, Ohio consented to the settlement with FINRA after admitting he made transfers from the accounts of elderly clients and used the proceeds for himself

Protect Yourself from Stockbroker Misconduct

Brokers like Scott Polish, although rare, do exist. There are several steps in an attempt to avoid becoming the victim of a similar scheme. Below are three steps that can help you avoid stockbroker misconduct.

  • Receive and Review Statements | For starters, make sure you receive and review your monthly account statements, and pay particular attention to securities purchases and sales and to withdrawals from your account. Make a point to ask questions about trades or activity that seems out of the ordinary.
  • Trade Authorization | Next, never allow your broker to make trades on your behalf without your permission. If your broker is required to obtain your permission before any trade, the likelihood of being victimized is reduced drastically.
  • Contact an Attorney | Finally, if you suspect your broker of committing fraud, consider closing your account and contacting an experienced securities fraud attorney.

Did You Invest with Wells Fargo Broker Scott Polish?

If you invested with Scott Polish or someone like him, and believe that you have been the victim of a similar kind of fraud, contact an experienced securities fraud attorney today.

Call a Securities Fraud Attorney Today
If you are looking for an attorney to review your rights and options, the securities lawyers at Dimond Kaplan & Rothstein, P.A. have recovered over $100 million from banks and brokerages firms for their wrongful actions.

With offices in Los Angeles, they have helped stockbroker fraud victims throughout Bel Air, Santa Barbara, Newport Beach and Laguna Beach.

Wells Fargo Skyscraper building in against backdrop of the sky.

FINRA Fines Wells Fargo For Failing to Supervise

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In the latest string of incidents to affect Wells Fargo well known for its recent “new” account scandal, FINRA fines Wells Fargo for failing to supervise broker’s accounts. Two Wells Fargo subsidiaries have agreed to pay $1 million to settle claims that they failed to supervise brokers’ use of a reporting system, which led to questions of whether certain financial reports were sent to consumers as required.

Over a six-year period, Wells Fargo Advisors LLC and Wells Fargo Advisors Financial Network LLC reviewed only approximately 2 percent of consolidated reports detailing consumers’ financial holdings and were generated through a specific program. The subsidiaries had no way to track the content of those reports, which meant that there was no way to know if the reports ever reached their intended destination – the customer.

Consolidated reports detail consumers’ financial holdings, and are considered communications with the public, so they must be clear and accurate according to FINRA rules. The agency sent a warning in 2015 to its member brokerage firms that failing to properly monitor consolidated reports could lead to unscrupulous individuals disguising theft or cause a miscalculation or mismanagement of customer funds.

Of the roughly 2 percent of consolidated reports generated by the subsidiaries, FINRA found that only the cover sheets were reviewed, focusing on grammatical errors, contact information and the like and not the actual content contained within the report.

FINRA also alleged that the subsidiaries had no way to designate between a draft of a report and the final version thing because there was no procedure in place to mark which was which – something that should have triggered the company’s supervisory obligations.

More than 5 million consolidated reports were generated through this system from 2009 and 2015.

Call a Los Angeles Securities Fraud Attorney Today

Even big banks and their subsidiaries can and do make mistakes. As evidenced by the above. If you believe you have suffered a loss as a result of your broker or banks’ mismanagement, you may have certain legal rights that require your immediate attention.

Contact an experienced Los Angeles securities fraud attorney today for a consultation to discuss your rights and options.