INVESTORS: Former Fifth Third Securities broker David Sheldon Wells was named an SEC complaint alleging he misappropriated over $683,000 from three investment advisory clients.
David Sheldon Wells (CRD: 6774493) was registered as a broker with Fifth Third Securities from 2019 until 2021. Wells was previously registered as a broker with Merrill Lynch from 2017 until 2019.
Wells has three disclosures on his BrokerCheck report.
September 2022 Civil Judgment
Initiated By: United States Securities and Exchange Commission
Allegations: Plaintiff United States Securities and Exchange Commission (the “SEC” or “Commission”) alleges that from at least October 2020 through July 2021, while working as a representative of an SEC-registered broker-dealer and investment advisory firm (“Firm A”), Defendant David Sheldon Wells (“Wells”) misappropriated over $683,000 from three of his investment advisory clients. Wells fraudulently solicited the clients to give him money to invest on their behalf through Firm A. He told the clients to purchase cashiers’ checks made out to a corporate entity that he created shortly before misappropriating their funds. Wells then transferred the clients’ funds to personal brokerage accounts owned or controlled by him, where he lost nearly all the funds through risky options trading. Wells also spent some of his clients’ funds on personal expenses. Wells accomplished his scheme by making false statements and misleading omissions to the clients about how he planned to invest their money and by creating a shell entity that he used to conceal from his clients that they were writing checks to Wells. Wells admitted to engaging in this fraudulent scheme. In a July 2021 resignation letter to his employer, Wells confessed to using his clients’ money for “very risky” options trading and said he thought he “deserve[d] to go to jail” for what he had done. By making material misrepresentations and omissions to investors, and by misappropriating over $683,000 of client assets, Wells has committed securities fraud in violation of Section 10(b) of the Securities Exchange Act of 1934, and Rule 10b-5 thereunder, and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940.
September 2021 Regulatory Judgment
Initiated By: FINRA
Allegations: Without admitting or denying the findings, Wells consented to the sanction and to the entry of findings that he failed to appear for on-the-record testimony or to produce documents requested by FINRA in connection with its investigation into his potential misconduct while at his member firm.
Resolution: Acceptance, Waiver & Consent (AWC)
Bar: Bar (Permanent)
Registration Capacities Affected: All Capacities
Start Date: 9/20/2021
July 2021 Employment Separation After Allegations
Firm Name: Fifth Third Securities
Termination Type: Voluntary Resignation
Allegations: At the time of termination, David Wells admitted [to] misappropriating funds from three clients.
The Sonn Law Group is currently investigating allegations surrounding David Sheldon Wells. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.