Timothy J. Scherwa, who until recently worked as a stockbroker for Wells
Fargo Clearing Services, LLC, in Morris Plains, New Jersey, has been accused
of taking discretion in non-discretionary customer accounts while he was
employed by Wells Fargo.
Regulatory records indicate that Mr. Scherwa worked for Wells Fargo as
a financial advisor from May 9, 2014, through October 26, 2017. On December
14, 2017, Mr. Scherwa started working for a different brokerage firm,
Capitol Securities Management, Inc. Prior to joining Wells Fargo in 2014,
Mr. Scherwa was associated for many years with Morgan Stanley and its
predecessors. Mr. Scherwa started working in the securities industry in 1996.
On October 14, 2017, Wells Fargo reported to FINRA that Mr. Scherwa had
been accused of taking discretion in non-discretionary customer accounts.
Most brokerage firm accounts are
non-discretionary, meaning that a financial advisor must get a client’s permission
prior to making any trades in the account. By contrast, in a
discretionary account, the customer has signed paperwork giving the financial advisor
the authority to make securities purchases and sales without having to
obtain the client’s permission before making each trade.
A broker who improperly takes discretion in a non-discretionary account
may be found to have engaged in unauthorized trading, which is strictly
prohibited under securities industry rules.
If you think your broker may have made trades in your investment accounts
without your knowledge or consent,
contact the experienced investment fraud attorneys at the law firm of Meyer
Wilson to discuss your legal options. You may be able to recover your losses resulting from any unauthorized
trades that were made in your investment account.