At Sonn Law Group, our top-rated securities fraud lawyers are currently reviewing any and all investor complaints against Wells Fargo Advisors Financial Network LLC (CRD#: 11025). This brokerage firm is licensed to operate in all 50 states as well as in three U.S. territories.
If you are a current or former customer of Wells Fargo Advisors, you should be aware of the complaints against this brokerage firm. If you lost money due to the negligence or fraud of Wells Fargo Advisors, or any of the firm’s representatives, our investor protection team is interested in speaking to you.
Broker Negligence and Misconduct: Wells Fargo Advisors
In October of 2017, FINRA investigators found that several securities representatives employed at Wells Fargo Advisors were pushing investors into wholly unsuitable investments. Specifically, these securities representatives were recommending that firm customers purchase risky volatility-linked exchange traded funds (ETFs).
These recommendations were made regardless of the individual investor’s profile or stated level of risk tolerance. As a result of the findings, Wells Fargo Advisors was ordered to pay $3,411,478.78 in financial restitution to the affected investors.
Failure to Adequately Maintain Customer Records
In December of 2016, FINRA determined that Wells Fargo Advisors had failed to maintain more than 1.5 million critically important customer documents. Under securities industry rules, these documents must be preserved in a non-erasable format.
As these records were not saved, certain terms and conditions that some investors agreed to were lost by the brokerage. Without admitting to or denying any wrongdoing, Wells Fargo Advisors agreed to pay a fine of $1,500,000.
Failure to Obtain and Secure Relevant Customer Information
In December of 2016, FINRA determined that Wells Fargo Advisors failed to obtain certain information from some of its customers. Specifically, the firm failed to obtain and record the investment holdings that certain clients had away from the firm. Without this information, it is difficult for brokers to recommend investment opportunities that are truly suitable. The brokerage firm was censured and fined $1,000,000 for this misconduct.
Broker Negligence: Misrepresentation and Omission of Material Facts
In August of 2014, a FINRA arbitration panel based in Milwaukee, Wisconsin awarded a Wells Fargo Advisors client $195,000 in financial compensation.
This award was granted after the panel determined that a Wells Fargo Advisors securities representative misrepresented and omitted material facts in relation to a municipal bond investment. As a result of the misconduct, the customer sustained substantial investment losses.
Contact Our Experienced Securities Fraud Lawyers Today
At Sonn Law Group, our aggressive investment fraud lawyers have handled many FINRA arbitration claims. We can help you obtain complete financial compensation for your losses. If you lost money because of the misconduct of Wells Fargo Advisors, or any of the firm’s representative, please call us now to schedule your free, no obligation case evaluation. We handle all investor complaints on contingency, meaning we only collect legal fees if we win or settle your case.