NEW YORK -- (Business Wire)
The Securities Arbitration Law Firm of Klayman & Toskes, P.A. (“K&T”), www.nasd-law.com,
continues to investigate Wells Fargo Advisors for potential Financial
Industry Regulatory Authority (FINRA) sales practice violations
following the California Attorney General’s Office search
warrant which seeks bank customer records, as reported by the Los
Angeles Times. The information sought by the warrant concerns the manner
in which Wells Fargo (NYSE:WFC) opened customer accounts through
“cross-selling” efforts that resulted in a recent $185 million
settlement reached with Los Angeles County and federal regulators.
According to Wells Fargo’s 3Q
2016 Quarterly Supplement, “cross-selling” referrals from Retail
Banking to Wells Fargo Advisors resulted in an excess of $1 billion in
new deposits and $677 million in net income for the Wealth and
Investment Management business lines which includes Wells Fargo
Advisors, The Private Bank, Abbot Downing, Wells Fargo Institutional
Retirement and Trust, and Wells Fargo Asset Management. Securities
attorney Lawrence L. Klayman, Esq. comments, “Wells Fargo’s ability to
supervise its employees, including their financial advisors, has been
brought into question. The CEO, Robert G. Stumpf, has abruptly resigned,
which seems to indicate that the Board recognizes the need to address
the company’s culture that encouraged the opening of thousands of
fraudulent accounts.” Mr. Klayman further explains, “Our investigation
is focused on whether Wells Fargo Advisors prudently managed customer
accounts that were opened by the firm. In some instances, Wells Fargo
Advisors and its parent Wells Fargo bank may have failed to supervise
the ‘cross-selling’ activities of their employees and could be
responsible for any damages.”
The sole purpose of this release is to investigate whether Wells Fargo
Advisors’ “cross-selling” efforts violated FINRA sales practice rules
regarding the handling of customer investment accounts including, unsuitable
recommendations, breach
of fiduciary duty, misrepresentations
and omissions of material facts, unauthorized
transactions and a failure
to supervise. Current and former customers of Wells Fargo Advisors
who have information about the sales practices of the firm or its
financial advisors are encouraged to contact Lawrence L. Klayman, Esq.
or Raymond Gentile, Esq. of Klayman & Toskes, P.A. at (888) 997-9956, or
visit our website at www.nasd-law.com.
About Klayman & Toskes, P.A.
K&T is a leading national securities law firm which practices
exclusively in the field of securities arbitration and litigation, on
behalf of retail and institutional investors throughout the world in
large and complex securities matters. The firm represents high
net-worth, ultra-high-net-worth, and institutional investors, such as
non-profit organizations, unions, public and multi-employer pension
funds. K&T has office locations in California, Florida, New York and
Puerto Rico.
Destination: http://nasd-law.com/notice-to-wells-fargo-brokerage-customers-the-securities-arbitration-law-firm-of-klayman-toskes-p-a-continues-wells-fargo-advisors-investigation-california-ag-issues-search-warrant/
View source version on businesswire.com: http://www.businesswire.com/news/home/20161021005952/en/
Contacts:
Klayman & Toskes, P.A.
Lawrence L. Klayman, Esq. or Raymond
Gentile, Esq., 888-997-9956
info@nasd-law.com
Source: Klayman & Toskes, P.A.
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