NOTICE TO WELLS FARGO BROKERAGE CUSTOMERS -- The Securities Arbitration Law Firm of Klayman & Toskes, P.A. Continues Wells Fa...
October 21 2016 - 5:33PM
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.
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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/
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Klayman & Toskes, P.A.Lawrence L. Klayman, Esq. or Raymond
Gentile, Esq., 888-997-9956info@nasd-law.com
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