Wells Fargo Advisors Financial Network Investment Loss Claims
Do You Have a Claim Against Wells Fargo / Wachovia?
One of the largest banking institutions in the U.S., Wells Fargo offers
a wide range of financial services, including investment products through
its subsidiaries: Wells Fargo Investments, LLC and the recently acquired
Wachovia Securities, now known as Wells Fargo Advisors.
A securities brokerage firm licensed by FINRA, Wells Fargo has a legal
duty to supervise its brokers and its brokers' recommendations to
clients to ensure compliance with and prevent violations of the rules
of the security industry. When an individual broker is negligent or acts
in an unlawful manner against the interests of the client and that client
suffers damages as a result of such wrongdoing, the firm may be held liable
for the investor's losses.
Wachovia Securities - Prudential Securities
Wachovia Securities was the securities subsidiary of Wachovia Corporation.
In 2003, Wachovia Securities merged with Prudential Securities, making
it the third largest full-service brokerage firm in the U.S. During the
recent U.S. subprime mortgage crisis, Wachovia found itself struggling
and was acquired by Wells Fargo in 2008. In 2009, Wachovia Securities
became Wells Fargo Advisors.
AG Edwards & Sons
Founded in 1887 in St. Louis, Missouri, AG Edwards was one of the first
brokerage firms to be publicly traded beginning in the 1970s. As of 2007,
AG Edwards & Sons, Inc. operated as a subsidiary of Wachovia Securities,
LLC. Following the merger, Wachovia moved the world headquarters of combined
retail brokerage, Wachovia Securities, from Richmond, VA to AG Edwards'
previous headquarters in St. Louis. Subsequently, Wachovia eliminated
the AG Edwards brand in favor of Wachovia Securities. Wachovia Corporation
was later purchased by Wells Fargo.
Wells Fargo Investment Fraud
In recent years, Wells Fargo Advisors have come under scrutiny for various
claims of investment fraud and misconduct. In 2011,
FINRA fined Wells Fargo Advisors $1 million for delays in delivering prospectuses as well as delayed reporting
required information to brokers. Federal securities laws require brokerage
firms to deliver prospectuses within three business days, which Wells
Fargo failed to do in the case of at least 900,000 customers. Some received
theirs up to 153 days late.
In 2012, Wells Fargo was fined $2 million by FINRA for
selling unsuitable reverse convertibles primarily to the elderly. One of the primary brokers alleged in this case
was Alfred Chi Chen. In at least 25 percent of Chen's client accounts
with reverse convertible holdings, 90 percent of the clients' assets
were in risky securities. In December of that year, a federal indictment
was brought in U.S. District Court that charged nine defendants from North
Carolina in an
$11 million insider trading conspiracy. The lead defendant, John Femenia, was a Wells Fargo investment banker.
In June 2013, FINRA announced that it
ordered Wells Fargo to reimburse customers more than $3 million due to
unsuitable sales of floating-rate bank loans. The fine amounted to $1.25 million
and the reimbursements to more than 239 customers totaled approximately
$2 million in losses. Floating-rate bank loan funds can be illiquid and
pose significant credit risks.
Recover Losses Against Wells Fargo
Meyer Wilson has the knowledge and resources necessary to successfully
represent investors in their claims against securities brokerage firms
such as Wells Fargo. We represent clients with investor claims in federal
and state courts, and in arbitration through The Financial Industry Regulatory
Authority (FINRA), the American Arbitration Association (AAA) and private
arbitration. We also represent international clients with claims against
brokerage firms in the United States through FINRA. To determine whether
you have a case against Wells Fargo for your losses, call us toll-free or
complete our online form for a free case evaluation.