wells fargo clearing services, llc fargo clearing services, llc crd# 19616 sec# 8-37180 main office...
TRANSCRIPT
BrokerCheck Report
WELLS FARGO CLEARING SERVICES, LLC
Section Title
Report Summary
Firm History
CRD# 19616
1
14
Firm Profile 2 - 13
Page(s)
Firm Operations 15 - 31
Disclosure Events 32
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WELLS FARGO CLEARINGSERVICES, LLC
CRD# 19616
SEC# 8-37180
Main Office Location
ONE NORTH JEFFERSON AVENUEMAIL CODE: H0004-050ST. LOUIS, MO 63103Regulated by FINRA Kansas City Office
Mailing Address
ONE NORTH JEFFERSON AVENUEMAIL CODE: H0004-050ST. LOUIS, MO 63103
This firm is a brokerage firm and an investmentadviser firm. For more information aboutinvestment adviser firms, visit the SEC'sInvestment Adviser Public Disclosure website at:
Business Telephone Number
314-875-3000
https://www.adviserinfo.sec.gov
Report Summary for this Firm
This report summary provides an overview of the brokerage firm. Additional information for this firm can be foundin the detailed report.
Disclosure Events
Brokerage firms are required to disclose certaincriminal matters, regulatory actions, civil judicialproceedings and financial matters in which the firm orone of its control affiliates has been involved.
Are there events disclosed about this firm? Yes
The following types of disclosures have beenreported:
Type Count
Regulatory Event 159
Civil Event 2
Arbitration 337
Firm Profile
This firm is classified as a limited liability company.
This firm was formed in Delaware on 03/12/2003.
Its fiscal year ends in December.
Firm History
Information relating to the brokerage firm's historysuch as other business names and successions(e.g., mergers, acquisitions) can be found in thedetailed report.
Firm Operations
Is this brokerage firm currently suspended with anyregulator? No
This firm conducts 24 types of businesses.
This firm is affiliated with financial or investmentinstitutions.
This firm has referral or financial arrangements withother brokers or dealers.
This firm is registered with:
• the SEC• 11 Self-Regulatory Organizations• 53 U.S. states and territories
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This firm is classified as a limited liability company.
This firm was formed in Delaware on 03/12/2003.
CRD#
This section provides the brokerage firm's full legal name, "Doing Business As" name, business and mailingaddresses, telephone number, and any alternate name by which the firm conducts business and where such name isused.
Firm Profile
Firm Names and Locations
Its fiscal year ends in December.
WELLS FARGO CLEARING SERVICES, LLC
SEC#
19616
8-37180
Main Office Location
Mailing Address
Business Telephone Number
Doing business as WELLS FARGO CLEARING SERVICES, LLC
314-875-3000
Regulated by FINRA Kansas City Office
ONE NORTH JEFFERSON AVENUEMAIL CODE: H0004-050ST. LOUIS, MO 63103
ONE NORTH JEFFERSON AVENUEMAIL CODE: H0004-050ST. LOUIS, MO 63103
Other Names of this Firm
Name Where is it used
FIRST CLEARING AK, AL, AR, AZ, CA,CO, CT, DC, DE, FL,GA, HI, IA, ID, IL, IN,KS, KY, LA, MA, MD,ME, MI, MN, MO,MS, MT, NC, ND, NE,NH, NJ, NM, NV, NY,OH, OK, OR, PA, PR,RI, SC, SD, TN, TX,UT, VA, VI, VT, WA,WI, WV, WY 2©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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AK, AL, AR, AZ, CA,CO, CT, DC, DE, FL,GA, HI, IA, ID, IL, IN,KS, KY, LA, MA, MD,ME, MI, MN, MO,MS, MT, NC, ND, NE,NH, NJ, NM, NV, NY,OH, OK, OR, PA, PR,RI, SC, SD, TN, TX,UT, VA, VI, VT, WA,WI, WV, WY
WELLS FARGO ADVISORS AK, AL, AR, AZ, CA,CO, CT, DC, DE, FL,GA, HI, IA, ID, IL, IN,KS, KY, LA, MA, MD,ME, MI, MN, MO,MS, MT, NC, ND, NE,NH, NJ, NM, NV, NY,OH, OK, OR, PA, PR,RI, SC, SD, TN, TX,UT, VA, VI, VT, WA,WI, WV, WY
3©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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This section provides information relating to all direct owners and executive officers of the brokerage firm.
Direct Owners and Executive Officers
Firm Profile
Position
Percentage of Ownership
Is this a public reportingcompany?
Position Start Date
Does this owner direct themanagement or policies ofthe firm?
WACHOVIA SECURITIES FINANCIAL HOLDINGS, LLC
SOLE MEMBER
75% or more
No
Domestic Entity
12/2003
Yes
Is this a domestic or foreignentity or an individual?
Legal Name & CRD# (if any):
Position
Percentage of Ownership
Is this a public reportingcompany?
Position Start Date
Does this owner direct themanagement or policies ofthe firm?
ALEXANDER, JOHN WADE
HEAD OF ADVISOR LED BUSINESS WEST
Less than 5%
No
Individual
03/2017
Yes
2327561
Is this a domestic or foreignentity or an individual?
Legal Name & CRD# (if any):
Position
Percentage of Ownership
Position Start Date
BARNEY, KATHLEEN ELLEN
CHIEF FINANCIAL OFFICER
Less than 5%
Individual
07/2013
6168269
Is this a domestic or foreignentity or an individual?
Legal Name & CRD# (if any):
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Direct Owners and Executive Officers (continued)
Firm Profile
Percentage of Ownership
Is this a public reportingcompany?
Does this owner direct themanagement or policies ofthe firm?
Less than 5%
No
Yes
Position
Percentage of Ownership
Is this a public reportingcompany?
Position Start Date
Does this owner direct themanagement or policies ofthe firm?
CHRISTIAN, CHARLIE KENT
HEAD OF INDEPENDENT CHANNEL
Less than 5%
No
Individual
03/2017
Yes
1465883
Is this a domestic or foreignentity or an individual?
Legal Name & CRD# (if any):
Position
Percentage of Ownership
Is this a public reportingcompany?
Position Start Date
Does this owner direct themanagement or policies ofthe firm?
GETZOFF, RICHARD JAY
HEAD OF ADVISOR LED BUSINESS EAST
Less than 5%
No
Individual
03/2017
Yes
2269931
Is this a domestic or foreignentity or an individual?
Legal Name & CRD# (if any):
HAYS, JAMES EDWARD
1569212
Legal Name & CRD# (if any):
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Direct Owners and Executive Officers (continued)
Firm Profile
Position
Percentage of Ownership
Is this a public reportingcompany?
Position Start Date
Does this owner direct themanagement or policies ofthe firm?
HEAD OF WEALTH BROKERAGE SERVICES
Less than 5%
No
Individual
11/2012
Yes
1569212
Is this a domestic or foreignentity or an individual?
Position
Percentage of Ownership
Is this a public reportingcompany?
Position Start Date
Does this owner direct themanagement or policies ofthe firm?
HUBBERT, MARK WILLIAM
CHIEF RISK AND CREDIT OFFICER
Less than 5%
No
Individual
09/2015
Yes
1802805
Is this a domestic or foreignentity or an individual?
Legal Name & CRD# (if any):
Position
Percentage of Ownership
Position Start Date
Does this owner direct themanagement or policies ofthe firm?
HUNTRUDDY, HEATHER ANNE
HEAD OF CLIENT EXPERIENCE AND GROWTH
Less than 5%
Individual
03/2017
Yes
2091956
Is this a domestic or foreignentity or an individual?
Legal Name & CRD# (if any):
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Direct Owners and Executive Officers (continued)
Firm Profile
Is this a public reportingcompany?
Does this owner direct themanagement or policies ofthe firm?
No
Yes
Position
Percentage of Ownership
Is this a public reportingcompany?
Position Start Date
Does this owner direct themanagement or policies ofthe firm?
HURLEY, KEVIN BRADY
CHIEF COMPLIANCE OFFICER (IA ONLY)
Less than 5%
No
Individual
12/2008
Yes
1293748
Is this a domestic or foreignentity or an individual?
Legal Name & CRD# (if any):
Position
Percentage of Ownership
Is this a public reportingcompany?
Position Start Date
Does this owner direct themanagement or policies ofthe firm?
KARANIK, ERIK ANTHONY
HEAD OF OPERATIONS AND BRANCH INFRASTRUCTURE/CHIEFOPERATIONS OFFICER/ BOARD OF MANAGERS
Less than 5%
No
Individual
03/2017
Yes
2260890
Is this a domestic or foreignentity or an individual?
Legal Name & CRD# (if any):
KELLY, DOUGLAS LAIRD
2428802
Legal Name & CRD# (if any):
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Direct Owners and Executive Officers (continued)
Firm Profile
Position
Percentage of Ownership
Is this a public reportingcompany?
Position Start Date
Does this owner direct themanagement or policies ofthe firm?
CHIEF LEGAL OFFICER / SECRETARY
Less than 5%
No
Individual
03/2008
Yes
2428802
Is this a domestic or foreignentity or an individual?
Position
Percentage of Ownership
Is this a public reportingcompany?
Position Start Date
Does this owner direct themanagement or policies ofthe firm?
KITCHIN, KEVIN THOMAS
DESIGNATED STATE PRINCIPAL
Less than 5%
No
Individual
07/2014
Yes
1841815
Is this a domestic or foreignentity or an individual?
Legal Name & CRD# (if any):
Position
Percentage of Ownership
Position Start Date
Does this owner direct themanagement or policies ofthe firm?
KOWACH, DAVID JOHN
PRESIDENT - CHIEF EXECUTIVE OFFICER / BOARD OF MANAGERS
Less than 5%
Individual
08/2016
Yes
2154665
Is this a domestic or foreignentity or an individual?
Legal Name & CRD# (if any):
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Direct Owners and Executive Officers (continued)
Firm Profile
Is this a public reportingcompany?
Does this owner direct themanagement or policies ofthe firm?
No
Yes
Position
Percentage of Ownership
Is this a public reportingcompany?
Position Start Date
Does this owner direct themanagement or policies ofthe firm?
MCHALE, JAMES TIEBOUT
CHIEF COMPLIANCE OFFICER
Less than 5%
No
Individual
12/2014
Yes
6052977
Is this a domestic or foreignentity or an individual?
Legal Name & CRD# (if any):
Position
Percentage of Ownership
Is this a public reportingcompany?
Position Start Date
Does this owner direct themanagement or policies ofthe firm?
METZ, KELLY MARIE
CHIEF OPERATIONS OFFICER/BACK OFFICE OPERATIONS
Less than 5%
No
Individual
06/2018
Yes
2251657
Is this a domestic or foreignentity or an individual?
Legal Name & CRD# (if any):
MEYER, BRAND FREDERICK
Individual
808629
Is this a domestic or foreignentity or an individual?
Legal Name & CRD# (if any):
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Direct Owners and Executive Officers (continued)
Firm Profile
Position
Percentage of Ownership
Is this a public reportingcompany?
Position Start Date
Does this owner direct themanagement or policies ofthe firm?
BOARD OF MANAGERS
Less than 5%
No
Individual
08/2016
Yes
Is this a domestic or foreignentity or an individual?
Position
Percentage of Ownership
Is this a public reportingcompany?
Position Start Date
Does this owner direct themanagement or policies ofthe firm?
NADREAU, JOSEPH PETER
HEAD OF WFA INNOVATION & STRATEGY
Less than 5%
No
Individual
04/2014
Yes
2382449
Is this a domestic or foreignentity or an individual?
Legal Name & CRD# (if any):
Position
Percentage of Ownership
Position Start Date
Does this owner direct themanagement or policies ofthe firm?
QUEEN, EDUARDO SAMPAIO
HEAD OF DIGITAL AND AUTOMATED INVESTING
Less than 5%
Individual
06/2017
Yes
4934698
Is this a domestic or foreignentity or an individual?
Legal Name & CRD# (if any):
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Direct Owners and Executive Officers (continued)
Firm Profile
Is this a public reportingcompany?
Does this owner direct themanagement or policies ofthe firm?
No
Yes
Position
Percentage of Ownership
Is this a public reportingcompany?
Position Start Date
Does this owner direct themanagement or policies ofthe firm?
VORLOP, ROBERT WILLIAM
HEAD OF WFA PRODUCTS & ADVICE
Less than 5%
No
Individual
04/2014
Yes
1146770
Is this a domestic or foreignentity or an individual?
Legal Name & CRD# (if any):
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This section provides information relating to any indirect owners of the brokerage firm.
Indirect Owners
Firm Profile
EVEREN CAPITAL CORPORATION
SHARE HOLDER
WACHOVIA SECURITIES FINANCIAL HOLDINGS, LLC
75% or more
No
Domestic Entity
08/2010
Yes
Legal Name & CRD# (if any):
Is this a domestic or foreignentity or an individual?
Company through whichindirect ownership isestablished
Relationship to Direct Owner
Relationship Established
Percentage of Ownership
Does this owner direct themanagement or policies ofthe firm?
Is this a public reportingcompany?
WELLS FARGO & COMPANY
SHARE HOLDER
WFC HOLDINGS, LLC
75% or more
Yes
Domestic Entity
09/1998
Yes
Legal Name & CRD# (if any):
Is this a domestic or foreignentity or an individual?
Company through whichindirect ownership isestablished
Relationship to Direct Owner
Relationship Established
Percentage of Ownership
Does this owner direct themanagement or policies ofthe firm?
Is this a public reportingcompany?
WFC HOLDINGS, LLC
EVEREN CAPITAL CORPORATION
Domestic Entity
Legal Name & CRD# (if any):
Is this a domestic or foreignentity or an individual?
Company through whichindirect ownership isestablished
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Indirect Owners (continued)
Firm Profile
SHARE HOLDER
EVEREN CAPITAL CORPORATION
75% or more
No
12/2017
Yes
Company through whichindirect ownership isestablished
Relationship to Direct Owner
Relationship Established
Percentage of Ownership
Does this owner direct themanagement or policies ofthe firm?
Is this a public reportingcompany?
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Firm History
This section provides information relating to any successions (e.g., mergers, acquisitions) involving the firm.
No information reported.
14©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Firm Operations
RegistrationsThis section provides information about the regulators (Securities and Exchange Commission (SEC), self-regulatoryorganizations (SROs), and U.S. states and territories) with which the brokerage firm is currently registered andlicensed, the date the license became effective, and certain information about the firm's SEC registration.
This firm is currently registered with the SEC, 11 SROs and 53 U.S. states and territories.
SEC Registration Questions
This firm is registered with the SEC as:
A broker-dealer:
A broker-dealer and government securities broker or dealer:
A government securities broker or dealer only:
This firm has ceased activity as a government securities broker or dealer:
Yes
Yes
No
No
Federal Regulator Status Date Effective
SEC Approved 04/03/1987
Self-Regulatory Organization Status Date Effective
FINRA Approved 07/09/1987
Cboe BZX Exchange, Inc. Approved 07/01/2016
Cboe Exchange, Inc. Approved 11/14/2016
Chicago Stock Exchange Approved 09/05/1990
NYSE American LLC Approved 12/31/2008
NYSE Arca, Inc. Approved 08/03/2016
Nasdaq GEMX, LLC Approved 09/16/2016
Nasdaq ISE, LLC Approved 03/12/2003
Nasdaq PHLX LLC Approved 04/03/1987
Nasdaq Stock Market Approved 07/12/2006
New York Stock Exchange Approved 08/31/1990
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Firm Operations
Registrations (continued)
U.S. States &Territories
Status Date Effective
Alabama Approved 07/28/1989
Alaska Approved 08/21/1989
Arizona Approved 09/04/1990
Arkansas Approved 01/05/1990
California Approved 07/11/1989
Colorado Approved 02/13/1989
Connecticut Approved 05/16/1989
Delaware Approved 04/17/1989
District of Columbia Approved 03/15/1989
Florida Approved 04/09/1990
Georgia Approved 04/11/1989
Hawaii Approved 08/30/1990
Idaho Approved 06/16/1989
Illinois Approved 06/14/1989
Indiana Approved 11/15/1989
Iowa Approved 05/22/1989
Kansas Approved 08/03/1989
Kentucky Approved 12/07/1989
Louisiana Approved 04/04/1989
Maine Approved 01/16/1990
Maryland Approved 07/05/1989
Massachusetts Approved 01/09/1990
Michigan Approved 01/02/1990
Minnesota Approved 11/09/1989
Mississippi Approved 09/28/1989
Missouri Approved 04/16/1990
Montana Approved 04/11/1989
Nebraska Approved 05/07/1990
Nevada Approved 08/30/1989
New Hampshire Approved 01/01/1990
New Jersey Approved 09/07/1990
New Mexico Approved 07/12/1989
New York Approved 12/19/1989
U.S. States &Territories
Status Date Effective
North Carolina Approved 09/21/1989
North Dakota Approved 11/06/1989
Ohio Approved 04/11/1989
Oklahoma Approved 04/11/1989
Oregon Approved 09/06/1989
Pennsylvania Approved 06/01/1989
Puerto Rico Approved 01/16/1990
Rhode Island Approved 05/17/1989
South Carolina Approved 12/08/1989
South Dakota Approved 05/04/1989
Tennessee Approved 04/03/1989
Texas Approved 11/01/1989
Utah Approved 02/16/1990
Vermont Approved 05/01/1990
Virgin Islands Approved 06/14/2005
Virginia Approved 12/01/1989
Washington Approved 08/31/1989
West Virginia Approved 01/10/1990
Wisconsin Approved 08/31/1990
Wyoming Approved 10/05/1989
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Firm Operations
Types of BusinessThis section provides the types of business, including non-securities business, the brokerage firm is engaged in orexpects to be engaged in.
This firm currently conducts 24 types of businesses.
Types of Business
Exchange member engaged in exchange commission business other than floor activities
Exchange member engaged in floor activities
Broker or dealer making inter-dealer markets in corporation securities over-the-counter
Broker or dealer retailing corporate equity securities over-the-counter
Broker or dealer selling corporate debt securities
Underwriter or selling group participant (corporate securities other than mutual funds)
Mutual fund retailer
U S. government securities dealer
U S. government securities broker
Municipal securities dealer
Municipal securities broker
Broker or dealer selling variable life insurance or annuities
Solicitor of time deposits in a financial institution
Broker or dealer selling oil and gas interests
Put and call broker or dealer or option writer
Broker or dealer selling securities of non-profit organizations (e.g., churches, hospitals)
Investment advisory services
Broker or dealer selling tax shelters or limited partnerships in primary distributions
Non-exchange member arranging for transactions in listed securities by exchange member
Trading securities for own account
Private placements of securities
Broker or dealer selling interests in mortgages or other receivables
Broker or dealer involved in a networking, kiosk or similar arrangment with a: bank, savings bank or association, orcredit union
Other - APPLICANT SOLICITS AND EFFECTS TRANSACTIONS IN REPURCHASE AGREEMENTS, REVERSEPURCHASE AGREEMENTS, CERTIFICATES OF DEPOSIT, BANKER'S ACCEPTANCE, DEPOSIT NOTES ANDOTHER EXEMPT SECURITIES TRANSACTIONS FOR AFFILIATED AND NON-AFFILIATED ENTITIES.
ENGAGING IN MULTI-CURRENCY FIXED INCOME BUSINESS AND FOREIGN EXCHANGE TRANSACTIONSANCILLARY TO THIS BUSINESS.
TRADE SETTLEMENT AND SECURITIES CLEARANCE, AND CORRESPONDENT CLEARING SERVICES; PRIMEBROKERAGE SERVICES; AND SECURITIES LENDING.
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Other Types of Business
This firm does effect transactions in commodities, commodity futures, or commodity options.This firm does engage in other non-securities business.
Non-Securities Business Description: APPICANT SOLICITS AND EFFECTS TRANSACTIONS IN REPURCHASEAGREEMENTS, REVERSE PURCHASE AGREEMENTS, CERTIFICATES OFDEPOSIT, BANKER'S ACCEPTANCES, DEPOSIT NOTES AND OTHEREXEMPT SECURITIES TRANSACTIONS FOR AFFILATED AND NON-AFFILIATED ENTITIES.
Other - APPLICANT SOLICITS AND EFFECTS TRANSACTIONS IN REPURCHASE AGREEMENTS, REVERSEPURCHASE AGREEMENTS, CERTIFICATES OF DEPOSIT, BANKER'S ACCEPTANCE, DEPOSIT NOTES ANDOTHER EXEMPT SECURITIES TRANSACTIONS FOR AFFILIATED AND NON-AFFILIATED ENTITIES.
ENGAGING IN MULTI-CURRENCY FIXED INCOME BUSINESS AND FOREIGN EXCHANGE TRANSACTIONSANCILLARY TO THIS BUSINESS.
TRADE SETTLEMENT AND SECURITIES CLEARANCE, AND CORRESPONDENT CLEARING SERVICES; PRIMEBROKERAGE SERVICES; AND SECURITIES LENDING.
18©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Firm Operations
Clearing Arrangements
This firm does hold or maintain funds or securities or provide clearing services for other broker-dealer(s).
Introducing Arrangements
This firm does refer or introduce customers to other brokers and dealers.
Name: ADM INVESTOR SERVICES, INC.
Business Address: CHICAGO BOARD OF TRADE BUILDING141 WEST JACKSON BOULEVARDCHICAGO, IL 60604
Effective Date: 07/13/2012
Description: TRANSACTIONS EFFECTED IN FUTURES OR COMMODITIES FOR RETAILCUSTOMER ACCOUNTS OF WELLS FARGO ADVISORS WILL BECARRIED, CLEARED AND SETTLED ON A FULLY DISCLOSED BASIS.
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Firm Operations
Industry Arrangements
This firm does have books or records maintained by a third party.
This firm does not have accounts, funds, or securities maintained by a third party.
This firm does have customer accounts, funds, or securities maintained by a third party.
This firm does not have individuals who control its management or policies through agreement.
This firm does not have individuals who wholly or partly finance the firm's business.
Control Persons/Financing
Name: ADM INVESTOR SERVICES, INC.
Business Address: CHICAGO BOARD OF TRADE BUILDING141 WEST JACKSON BOULEVARDCHICAGO, IL 60604
Effective Date: 07/13/2012
Description: TRANSACTIONS EFFECTED IN FUTURES OR COMMODITIES FOR RETAILCUSTOMER ACCOUNTS OF WELLS FARGO ADVISORS WILL BECARRIED, CLEARED AND SETTLED ON A FULLY DISCLOSED BASIS.
Name: WELLS FARGO & COMPANY
Business Address: 1 NORTH JEFFERSONST. LOUIS, MO 63103
Effective Date: 03/20/2010
Description: WELLS FARGO & COMPANY PROVIDES OPERATIONAL FACILITIES ANDSUPPORT, DATA PROCESSING AND RECORDKEEPING FUNCTIONS FORAPPLICANT.
Name: ADM INVESTOR SERVICES, INC.
Business Address: CHICAGO BOARD OF TRADE BUILDING141 WEST JACKSON BOULEVARDCHICAGO, IL 60604
Effective Date: 07/13/2012
Description: TRANSACTIONS EFFECTED IN FUTURES OR COMMODITIES FOR RETAILCUSTOMER ACCOUNTS OF WELLS FARGO ADVISORS WILL BECARRIED, CLEARED AND SETTLED ON A FULLY DISCLOSED BASIS.
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Firm Operations
Organization AffiliatesThis section provides information on control relationships the firm has with other firms in the securities, investmentadvisory, or banking business.
This firm is, directly or indirectly:
· in control of· controlled by· or under common control withthe following partnerships, corporations, or other organizations engaged in the securities or investmentadvisory business.
Yes
No
No
10/01/2016
555 WEST FIFTH STREET50TH FLOORLOS ANGELES, CA 90013
104963
ANALYTIC INVESTORS, LLC is under common control with the firm.
THE AFFILIATE IS 100% OWNED BY WELLS CAPITAL MANAGEMENT, INC.,WHICH IS 100% OWNED BY WELLS FARGO ASSET MANAGEMENTHOLDINGS, LLC, WHICH IS 100% OWNED BY EVEREN CAPITALCORPORATION, WHICH IS 100% OWNED BY WFC HOLDINGS, LLC, WHICH IS100% OWNED BY WELLS FARGO & COMPANY, WHICH IS THE ULTIMATEPARENT OF THE AFFILIATE AND THE APPLICANT.
Description:
Investment AdvisoryActivities:
Securities Activities:
Country:
Foreign Entity:
Effective Date:
Business Address:
CRD #:
Yes
No
No
12/14/2012
1133 CONNECTICUT AVE.,WASHINGTON, DC 20036
125409
THE ROCK CREEK GROUP, LP is under common control with the firm.
Investment AdvisoryActivities:
Securities Activities:
Country:
Foreign Entity:
Effective Date:
Business Address:
CRD #:
21©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Firm Operations
Organization Affiliates (continued)
Yes
THE AFFILIATE IS 100% OWNED BY WELLS FARGO ASSET MANAGEMENTHOLDINGS, LLC, WHICH IS 100% OWNED BY EVEREN CAPITALCORPORATION, WHICH IS 100% OWNED BY WFC HOLDINGS, LLC, WHICH IS100% OWNED BY WELLS FARGO & COMPANY, WHICH IS THE ULTIMATEPARENT OF THE AFFILIATE AND THE APPLICANT.
Description:
Investment AdvisoryActivities:
Yes
Yes
No
12/14/2012
1133 CONNECTICUT AVENUE NWWASHINGTON,, DC 20036
117246
THE ROCK CREEK GROUP, LLC is under common control with the firm.
THE AFFILIATE IS 100% OWNED BY WELLS FARGO ASSET MANAGEMENTHOLDINGS, LLC, WHICH IS 100% OWNED BY EVEREN CAPITALCORPORATION, WHICH IS 100% OWNED BY WFC HOLDINGS, LLC, WHICH IS100% OWNED BY WELLS FARGO & COMPANY, WHICH IS THE ULTIMATEPARENT OF THE AFFILIATE AND THE APPLICANT.
Description:
Investment AdvisoryActivities:
Securities Activities:
Country:
Foreign Entity:
Effective Date:
Business Address:
CRD #:
No
Yes
CANADA
Yes
08/01/2012
1235 BAY STREETSUITE 400TORONTO, CANADA M5R 3K4
WELLS FARGO SECURITIES CANADA, LTD. is under common control with the firm.
WELLS FARGO SECURITIES CANADA, LTD. IS WHOLLY OWNED BY EVERENCAPITAL CORPORATION, WHICH IS 100% OWNED BY WFC HOLDINGS, LLC,WHICH IS 100% OWNED BY WELLS FARGO & COMPANY, WHICH IS THEULTIMATE PARENT OF THE AFFILIATE AND THE APPLICANT.
Description:
Investment AdvisoryActivities:
Securities Activities:
Country:
Foreign Entity:
Effective Date:
Business Address:
22©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Firm Operations
Organization Affiliates (continued)WELLS FARGO SECURITIES CANADA, LTD. IS WHOLLY OWNED BY EVERENCAPITAL CORPORATION, WHICH IS 100% OWNED BY WFC HOLDINGS, LLC,WHICH IS 100% OWNED BY WELLS FARGO & COMPANY, WHICH IS THEULTIMATE PARENT OF THE AFFILIATE AND THE APPLICANT.
Description:
No
Yes
No
08/01/2012
101 CALIFORNIA STREETSUITE 3050SAN FRANCISCO, CA 94111
133068
WELLS FARGO PRIME SERVICES, LLC is under common control with the firm.
THE AFFILIATE IS 100% OWNED BY EVEREN CAPITAL CORPORATION,WHICH IS 100% OWNED BY WFC HOLDINGS, LLC, WHICH IS 100% OWNEDBY WELLS FARGO & COMPANY, WHICH IS THE ULTIMATE PARENT OF THEAFFILIATE AND THE APPLICANT.
Description:
Investment AdvisoryActivities:
Securities Activities:
Country:
Foreign Entity:
Effective Date:
Business Address:
CRD #:
Yes
Yes
JAPAN
No
05/11/2007
MARUNOUCHI TRUST TOWER MAIN, 24TH FLOOR1-8-3, MARUNOUCHI, CHIYODA-KUTOKYO, JAPAN
WELLS FARGO SECURITIES (JAPAN) CO., LTD. is under common control with the firm.
THE AFFILIATE IS 100% OWNED BY WELLS FARGO INTERNATIONALBANKING CORPORATION, WHICH IS 100% OWNED BY WELLS FARGO BANK,N.A., WHICH IS 100% OWNED BY WFC HOLDINGS, LLC, WHICH IS 100%OWNED BY WELLS FARGO & COMPANY, WHICH IS THE ULTIMATE PARENTOF THE AFFILIATE AND THE APPLICANT.
Description:
Investment AdvisoryActivities:
Securities Activities:
Country:
Foreign Entity:
Effective Date:
Business Address:
23©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Firm Operations
Organization Affiliates (continued)
Yes
Yes
CHINA
Yes
09/18/2007
23F/AIA CENTRAL1 CONNAUGHT ROAD, CENTRALHONG KONG, HONG KONG
WELLS FARGO SECURITIES ASIA LIMITED is under common control with the firm.
THE AFFILIATE IS 100% OWNED BY WELLS FARGO INTERNATIONALBANKING CORPORATION, WHICH IS 100% OWNED BY WELLS FARGO BANK,N.A., WHICH IS 100% OWNED BY WFC HOLDINGS, LLC, WHICH IS 100%OWNED BY WELLS FARGO & COMPANY, WHICH IS THE ULTIMATE PARENTOF THE AFFILIATE AND THE APPLICANT.
Description:
Investment AdvisoryActivities:
Securities Activities:
Country:
Foreign Entity:
Effective Date:
Business Address:
No
Yes
No
01/01/2009
525 MARKET STREET12TH FLOORSAN FRANCISCO, CA 94105
133366
WELLS FARGO FUNDS DISTRIBUTOR, LLC is under common control with the firm.
THE AFFILIATE IS 100% OWNED BY WELLS FARGO ASSET MANAGEMENTHOLDINGS, LLC, WHICH IS 100% OWNED BY EVEREN CAPITALCORPORATION, WHICH IS 100% OWNED BY WFC HOLDINGS, LLC, WHICH IS100% OWNED BY WELLS FARGO & COMPANY, WHICH IS THE ULTIMATEPARENT OF THE AFFILIATE AND THE APPLICANT.
Description:
Investment AdvisoryActivities:
Securities Activities:
Country:
Foreign Entity:
Effective Date:
Business Address:
CRD #:
106487
GALLIARD CAPITAL MANAGEMENT INC is under common control with the firm.
CRD #:
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Firm Operations
Organization Affiliates (continued)
Yes
No
No
01/01/2009
SIXTH & MARQUETTEMINNEAPOLIS, MN 55479
THE AFFILIATE IS 100% OWNED BY WELLS FARGO ASSET MANAGEMENTHOLDINGS, LLC, WHICH IS 100% OWNED BY EVEREN CAPITALCORPORATION, WHICH IS 100% OWNED BY WFC HOLDINGS, LLC, WHICH IS100% OWNED BY WELLS FARGO & COMPANY, WHICH IS THE ULTIMATEPARENT OF THE AFFILIATE AND THE APPLICANT.
Description:
Investment AdvisoryActivities:
Securities Activities:
Country:
Foreign Entity:
Effective Date:
Business Address:
Yes
No
No
01/01/2009
525 MARKET STREET10TH FLOORSAN FRANCISCO, CA 94105
104973
WELLS CAPITAL MANAGEMENT INC is under common control with the firm.
THE AFFILIATE IS 100% OWNED BY WELLS FARGO ASSET MANAGEMENTHOLDINGS, LLC, WHICH IS 100% OWNED BY EVEREN CAPITALCORPORATION, WHICH IS 100% OWNED BY WFC HOLDINGS, LLC, WHICH IS100% OWNED BY WELLS FARGO & COMPANY, WHICH IS THE ULTIMATEPARENT OF THE AFFILIATE AND THE APPLICANT.
Description:
Investment AdvisoryActivities:
Securities Activities:
Country:
Foreign Entity:
Effective Date:
Business Address:
CRD #:
525 MARKET STREET12TH FLOORSAN FRANCISCO, CA 94105
110841
WELLS FARGO FUNDS MANAGEMENT, LLC is under common control with the firm.
Business Address:
CRD #:
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Firm Operations
Organization Affiliates (continued)
Yes
No
No
01/01/2009
525 MARKET STREET12TH FLOORSAN FRANCISCO, CA 94105
THE AFFILIATE IS 100% OWNED BY WELLS FARGO ASSET MANAGEMENTHOLDINGS, LLC, WHICH IS 100% OWNED BY EVEREN CAPITALCORPORATION, WHICH IS 100% OWNED BY WFC HOLDINGS, LLC, WHICH IS100% OWNED BY WELLS FARGO & COMPANY, WHICH IS THE ULTIMATEPARENT OF THE AFFILIATE AND THE APPLICANT.
Description:
Investment AdvisoryActivities:
Securities Activities:
Country:
Foreign Entity:
Effective Date:
Yes
No
ENGLAND
Yes
03/20/2010
34 GROSVENOR STREETLONDON, ENGLAND W1K 4QU
132377
ECM is under common control with the firm.
THE AFFILIATE IS OWNED 25% BY HADBO INVESTMENTS C.V. AND 75% BYISLAND FINANCE HOLDING COMPANY, BOTH OF WHICH ARE OWNEDDIRECTLY AND INDIRECTLY BY WELLS FARGO FINANCIAL, LLC, WHICH IS100% OWNED BY WELLS FARGO & COMPANY, WHICH IS THE ULTIMATEPARENT OF THE SUBSIDIARY AND THE APPLICANT.
Description:
Investment AdvisoryActivities:
Securities Activities:
Country:
Foreign Entity:
Effective Date:
Business Address:
CRD #:
03/20/2010
10715 DAVID TAYLOR DRIVESUITE 150CHARLOTTE, NC 28262
110667
GOLDEN CAPITAL MANAGEMENT, LLC is under common control with the firm.
Effective Date:
Business Address:
CRD #:
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Firm Operations
Organization Affiliates (continued)
Yes
No
No
THE AFFILIATE IS 100% OWNED BY WELLS CAPITAL MANAGEMENT, INC.,WHICH IS 100% OWNED BY WELLS FARGO ASSET MANAGEMENTHOLDINGS, LLC, WHICH IS 100% OWNED BY EVEREN CAPITALCORPORATION, WHICH IS 100% OWNED BY WFC HOLDINGS, LLC, WHICH IS100% OWNED BY WELLS FARGO & COMPANY, WHICH IS THE ULTIMATEPARENT OF THE AFFILIATE AND THE APPLICANT.
Description:
Investment AdvisoryActivities:
Securities Activities:
Country:
Foreign Entity:
Yes
No
No
03/20/2010
301 SOUTH COLLEGE STREET, TW-8CHARLOTTE, NC 28288
131539
STRUCTURED ASSET INVESTORS, LLC is under common control with the firm.
THE AFFILIATE IS 100% OWNED BY WELLS FARGO & COMPANY. WELLSFARGO & COMPANY IS THE ULTIMATE PARENT OF THE AFFILIATE AND THEAPPLICANT.
Description:
Investment AdvisoryActivities:
Securities Activities:
Country:
Foreign Entity:
Effective Date:
Business Address:
CRD #:
No
No
03/20/2010
301 SOUTH COLLEGE STREET7TH FLOORCHARLOTTE, NC 28288
112660
STRUCTURED CREDIT PARTNERS LLC is under common control with the firm.
Securities Activities:
Country:
Foreign Entity:
Effective Date:
Business Address:
CRD #:
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Firm Operations
Organization Affiliates (continued)
Yes
No
STRUCTURED CREDIT PARTNERS, LLC IS 100% OWNED BY WELLS FARGO& COMPANY. WELLS FARGO & COMPANY IS THE ULTIMATE PARENT OFTHE AFFILIATE AND THE APPLICANT.
Description:
Investment AdvisoryActivities:
Securities Activities:
Yes
No
No
03/20/2010
401 SOUTH TRYON STREETCHARLOTTE, NC 28202
133204
WELLS FARGO INVESTMENT INSTITUTE, INC. is under common control with the firm.
THE AFFILIATE IS OWNED 100% BY WELLS FARGO BANK, N.A., WHICH ISOWNED 100% BY WFC HOLDINGS, LLC, WHICH IS 100% OWNED BY WELLSFARGO & COMPANY, THE ULTIMATE PARENT OF THE AFFILIATE AND THEAPPLICANT.
Description:
Investment AdvisoryActivities:
Securities Activities:
Country:
Foreign Entity:
Effective Date:
Business Address:
CRD #:
No
Yes
No
03/20/2010
301 S COLLEGE STREETCHARLOTTE, NC 28288-0601
126292
WELLS FARGO SECURITIES, LLC is under common control with the firm.
THE AFFILIATE IS WHOLLY OWNED BY EVEREN CAPITAL CORPORATION,WHICH IS 100% OWNED BY WFC HOLDINGS, LLC, WHICH IS 100% OWNEDBY WELLS FARGO & COMPANY, WHICH IS THE ULTIMATE PARENT OF THEAFFILIATE AND THE APPLICANT.
Description:
Investment AdvisoryActivities:
Securities Activities:
Country:
Foreign Entity:
Effective Date:
Business Address:
CRD #:
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Firm Operations
Organization Affiliates (continued)THE AFFILIATE IS WHOLLY OWNED BY EVEREN CAPITAL CORPORATION,WHICH IS 100% OWNED BY WFC HOLDINGS, LLC, WHICH IS 100% OWNEDBY WELLS FARGO & COMPANY, WHICH IS THE ULTIMATE PARENT OF THEAFFILIATE AND THE APPLICANT.
No
Yes
No
03/20/2010
200 BERKELEY STREETBOSTON, MA 02116
487
GLOBAL ALTERNATIVE INVESTMENT SERVICES, INC. is under common control with the firm.
THE AFFILIATE IS 100% OWNED BY WELLS FARGO BANK, N.A., WHICH IS100% OWNED BY WFC HOLDINGS, LLC WHICH IS 100% OWNED BY WELLSFARGO & COMPANY, WHICH IS THE ULTIMATE PARENT OF THE AFFILIATEAND THE APPLICANT.
Description:
Investment AdvisoryActivities:
Securities Activities:
Country:
Foreign Entity:
Effective Date:
Business Address:
CRD #:
No
Yes
ENGLAND
Yes
03/20/2010
LECONFIELD HOUSECURZON STREETLONDON, ENGLAND WIJ-5JA
WELLS FARGO SECURITIES INTERNATIONAL LIMITED is under common control with the firm.
THE AFFILIATE IS 100% OWNED BY WELLS FARGO INTERNATIONALBANKING CORPORATION, WHICH IS 100% OWNED BY WELLS FARGO BANK,N.A., WHICH IS 100% OWNED BY WFC HOLDINGS, LLC, WHICH IS 100%OWNED BY WELLS FARGO & COMPANY, WHICH IS THE ULTIMATE PARENTOF THE AFFILIATE AND THE APPLICANT.
Description:
Investment AdvisoryActivities:
Securities Activities:
Country:
Foreign Entity:
Effective Date:
Business Address:
11025
WELLS FARGO ADVISORS FINANCIAL NETWORK, LLC is under common control with the firm.
CRD #:29©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Firm Operations
Organization Affiliates (continued)
Yes
Yes
No
08/01/2010
ONE NORTH JEFFERSON AVENUEST. LOUIS, MO 63103
11025
THE AFFILIATE IS 100% OWNED BY WACHOVIA SECURITIES FINANCIALHOLDINGS, LLC WHICH IS 100% OWNED BY EVEREN CAPITALCORPORATION, WHICH IS 100% OWNED BY WFC HOLDINGS, LLC, WHICH IS100% OWNED BY WELLS FARGO & COMPANY, WHICH IS THE ULTIMATEPARENT OF THE AFFILIATE AND THE APPLICANT.
Description:
Investment AdvisoryActivities:
Securities Activities:
Country:
Foreign Entity:
Effective Date:
Business Address:
CRD #:
Yes
No
ENGLAND
Yes
03/20/2010
CENTURION HOUSE24 MONUMENT STREET, 4TH FLOORLONDON, ENGLAND EC3R 8A2
109192
FIRST INTERNATIONAL ADVISORS, LLC is under common control with the firm.
THE AFFILIATE IS 100% OWNED BY WELLS FARGO ASSET MANAGEMENTHOLDINGS, LLC, WHICH IS 100% OWNED BY EVEREN CAPITALCORPORATION, WHICH IS 100% OWNED BY WFC HOLDINGS, LLC, WHICH IS100% OWNED BY WELLS FARGO & COMPANY, WHICH IS THE ULTIMATEPARENT OF THE AFFILIATE AND THE APPLICANT.
Description:
Investment AdvisoryActivities:
Securities Activities:
Country:
Foreign Entity:
Effective Date:
Business Address:
CRD #:
This firm is directly or indirectly, controlled by the following:
· bank holding company· national bank
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Firm Operations
Organization Affiliates (continued)
· state member bank of the Federal Reserve System· state non-member bank· savings bank or association· credit union· or foreign bank
Effective Date:
Business Address:
Description: THE AFFILIATE IS 100% OWNED BY WFC HOLDINGS, LLC, WHICH IS 100%OWNED BY WELLS FARGO & COMPANY, THE ULTIMATE PARENT OF THEAFFILIATE AND THE APPLICANT.
WELLS FARGO BANK, N. A. is a National Bank and controls the firm.
01/01/2008
420 MONTGAMERY STREETSAN FRANCISCO, CA 94104
Effective Date:
Business Address:
Description: ULTIMATE PARENT OF APPLICANT
WELLS FARGO & COMPANY is a Bank Holding Company and controls the firm.
01/01/2009
420 MONTGOMERY STREETSAN FRANCISCO, CA 94163
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Disclosure Events
All firms registered to sell securities or provide investment advice are required to disclose regulatory actions, criminal orcivil judicial proceedings, and certain financial matters in which the firm or one of its control affiliates has been involved.For your convenience, below is a matrix of the number and status of disclosure events involving this brokerage firm orone of its control affiliates. Further information regarding these events can be found in the subsequent pages of thisreport.
Final On AppealPending
Regulatory Event 1 158 0
Civil Event 0 2 0
Arbitration N/A 337 N/A
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Disclosure Event Details
What you should know about reported disclosure events:
1. BrokerCheck provides details for any disclosure event that was reported in CRD. It also includessummary information regarding FINRA arbitration awards in cases where the brokerage firm wasnamed as a respondent.
2. Certain thresholds must be met before an event is reported to CRD, for example: o A law enforcement agency must file formal charges before a brokerage firm is required to disclose a
particular criminal event.3. Disclosure events in BrokerCheck reports come from different sources:
o Disclosure events for this brokerage firm were reported by the firm and/or regulators. When the firmand a regulator report information for the same event, both versions of the event will appear in theBrokerCheck report. The different versions will be separated by a solid line with the reporting sourcelabeled.
4. There are different statuses and dispositions for disclosure events: o A disclosure event may have a status of pending, on appeal, or final.
§ A "pending" event involves allegations that have not been proven or formally adjudicated.§ An event that is "on appeal" involves allegations that have been adjudicated but are currently
being appealed.§ A "final" event has been concluded and its resolution is not subject to change.
o A final event generally has a disposition of adjudicated, settled or otherwise resolved.§ An "adjudicated" matter includes a disposition by (1) a court of law in a criminal or civil matter,
or (2) an administrative panel in an action brought by a regulator that is contested by the partycharged with some alleged wrongdoing.
§ A "settled" matter generally involves an agreement by the parties to resolve the matter.Please note that firms may choose to settle customer disputes or regulatory matters forbusiness or other reasons.
§ A "resolved" matter usually involves no payment to the customer and no finding ofwrongdoing on the part of the individual broker. Such matters generally involve customerdisputes.
5. You may wish to contact the brokerage firm to obtain further information regarding any of thedisclosure events contained in this BrokerCheck report.
Regulatory - Final
This type of disclosure event involves (1) a final, formal proceeding initiated by a regulatory authority (e.g., a statesecurities agency, self-regulatory organization, federal regulator such as the U.S. Securities and Exchange Commission,foreign financial regulatory body) for a violation of investment-related rules or regulations; or (2) a revocation orsuspension of the authority of a brokerage firm or its control affiliate to act as an attorney, accountant or federalcontractor.
Disclosure 1 of 158
Reporting Source: Regulator
Allegations: SEC ADMIN RELEASE 33-10511; 34-83508; IA RELEASE 4947, JUNE 25, 2018:THE SECURITIES AND EXCHANGE COMMISSION (COMMISSION) DEEMS ITAPPROPRIATE AND IN THE PUBLIC INTEREST THAT PUBLICADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS BE, ANDHEREBY ARE, INSTITUTED PURSUANT TO SECTION 8A OF THE SECURITIESACT OF 1933 (SECURITIES ACT), SECTION 15(B) OF THE SECURITIESEXCHANGE ACT OF 1934 (EXCHANGE ACT), AND SECTION 203(E) OF THEINVESTMENT ADVISERS ACT OF 1940 (ADVISERS ACT) AGAINST WELLSFARGO ADVISORS, LLC. FROM AT LEAST JANUARY 2009 THROUGH JUNE2013, CERTAIN REGISTERED REPRESENTATIVES AT WELLS FARGOADVISORS, LLC (WFA) AND ITS PREDECESSOR WELLS FARGOINVESTMENTS, LLC (WFI) IMPROPERLY SOLICITED CUSTOMERS TOREDEEM THEIR MARKET-LINKED INVESTMENTS (MLI) EARLY ANDPURCHASE NEW MLIS WITHOUT ADEQUATE ANALYSIS ORCONSIDERATION OF THE SUBSTANTIAL COSTS ASSOCIATED WITH SUCHTRANSACTIONS. AN MLI IS A FIXED MATURITY FINANCIAL PRODUCTWHOSE INTEREST IS DETERMINED BY THE PERFORMANCE OF AREFERENCE ASSET OR MARKET MEASURE SUCH AS AN EQUITY ORCOMMODITY INDEX OVER THE TERM OF THE PRODUCT. MLIS HAVELIMITED LIQUIDITY AND SIGNIFICANT UPFRONT FEES, AND ACCORDINGLYWFA CONSIDERED THEM TO BE PRODUCTS INTENDED TO BE HELD TOMATURITY AND IN 2011 IMPLEMENTED A POLICY PROHIBITINGREPRESENTATIVES FROM ENGAGING IN "SHORT-TERM TRADING" OR "FLIPPING" OF MLIS. NOTWITHSTANDING WFA'S INTERNAL GUIDANCE ANDPOLICY, AND DESPITE THE ADVERSE ECONOMIC CONSEQUENCES TO WFACUSTOMERS, CERTAIN WFA REPRESENTATIVES DID NOT REASONABLYINVESTIGATE OR UNDERSTAND THE SIGNIFICANT COSTS OF MLIEXCHANGES. NEVERTHELESS, THEY RECOMMENDED TO THEIRCUSTOMERS THAT THEY REDEEM THEIR MLIS EARLY, TYPICALLY TOREALIZE PROFITS, AND TO USE THE PROCEEDS FROM THOSEREDEMPTIONS TO PURCHASE NEW MLIS. SUPERVISORS ROUTINELYAPPROVED THE RECOMMENDATIONS OR THE EXCHANGES. THISPRACTICE CAUSED CERTAIN WFA CUSTOMERS TO INCUR SIGNIFICANTCOSTS AND IMPAIRED THE CUSTOMERS' ABILITY TO ACHIEVE THEIRINVESTMENT OBJECTIVES. AS A CONSEQUENCE, WFA OBTAINEDCOMMISSIONS BY MEANS OF RECOMMENDATIONS THAT CONTAINEDIMPLIED REPRESENTATIONS THAT WFA PERSONNEL HAD FORMED AREASONABLE BASIS FOR THE RECOMMENDATIONS WHEN THEY HAD NOT,IN FACT, DONE SO. AS A RESULT OF THE CONDUCT DESCRIBED ABOVE,WFA WILLFULLY VIOLATED SECTIONS 17(A)(2) AND 17(A)(3) OF THESECURITIES ACT.
Current Status: Final
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Initiated By: UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Date Initiated: 06/25/2018
Docket/Case Number: 3-18556
Allegations: SEC ADMIN RELEASE 33-10511; 34-83508; IA RELEASE 4947, JUNE 25, 2018:THE SECURITIES AND EXCHANGE COMMISSION (COMMISSION) DEEMS ITAPPROPRIATE AND IN THE PUBLIC INTEREST THAT PUBLICADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS BE, ANDHEREBY ARE, INSTITUTED PURSUANT TO SECTION 8A OF THE SECURITIESACT OF 1933 (SECURITIES ACT), SECTION 15(B) OF THE SECURITIESEXCHANGE ACT OF 1934 (EXCHANGE ACT), AND SECTION 203(E) OF THEINVESTMENT ADVISERS ACT OF 1940 (ADVISERS ACT) AGAINST WELLSFARGO ADVISORS, LLC. FROM AT LEAST JANUARY 2009 THROUGH JUNE2013, CERTAIN REGISTERED REPRESENTATIVES AT WELLS FARGOADVISORS, LLC (WFA) AND ITS PREDECESSOR WELLS FARGOINVESTMENTS, LLC (WFI) IMPROPERLY SOLICITED CUSTOMERS TOREDEEM THEIR MARKET-LINKED INVESTMENTS (MLI) EARLY ANDPURCHASE NEW MLIS WITHOUT ADEQUATE ANALYSIS ORCONSIDERATION OF THE SUBSTANTIAL COSTS ASSOCIATED WITH SUCHTRANSACTIONS. AN MLI IS A FIXED MATURITY FINANCIAL PRODUCTWHOSE INTEREST IS DETERMINED BY THE PERFORMANCE OF AREFERENCE ASSET OR MARKET MEASURE SUCH AS AN EQUITY ORCOMMODITY INDEX OVER THE TERM OF THE PRODUCT. MLIS HAVELIMITED LIQUIDITY AND SIGNIFICANT UPFRONT FEES, AND ACCORDINGLYWFA CONSIDERED THEM TO BE PRODUCTS INTENDED TO BE HELD TOMATURITY AND IN 2011 IMPLEMENTED A POLICY PROHIBITINGREPRESENTATIVES FROM ENGAGING IN "SHORT-TERM TRADING" OR "FLIPPING" OF MLIS. NOTWITHSTANDING WFA'S INTERNAL GUIDANCE ANDPOLICY, AND DESPITE THE ADVERSE ECONOMIC CONSEQUENCES TO WFACUSTOMERS, CERTAIN WFA REPRESENTATIVES DID NOT REASONABLYINVESTIGATE OR UNDERSTAND THE SIGNIFICANT COSTS OF MLIEXCHANGES. NEVERTHELESS, THEY RECOMMENDED TO THEIRCUSTOMERS THAT THEY REDEEM THEIR MLIS EARLY, TYPICALLY TOREALIZE PROFITS, AND TO USE THE PROCEEDS FROM THOSEREDEMPTIONS TO PURCHASE NEW MLIS. SUPERVISORS ROUTINELYAPPROVED THE RECOMMENDATIONS OR THE EXCHANGES. THISPRACTICE CAUSED CERTAIN WFA CUSTOMERS TO INCUR SIGNIFICANTCOSTS AND IMPAIRED THE CUSTOMERS' ABILITY TO ACHIEVE THEIRINVESTMENT OBJECTIVES. AS A CONSEQUENCE, WFA OBTAINEDCOMMISSIONS BY MEANS OF RECOMMENDATIONS THAT CONTAINEDIMPLIED REPRESENTATIONS THAT WFA PERSONNEL HAD FORMED AREASONABLE BASIS FOR THE RECOMMENDATIONS WHEN THEY HAD NOT,IN FACT, DONE SO. AS A RESULT OF THE CONDUCT DESCRIBED ABOVE,WFA WILLFULLY VIOLATED SECTIONS 17(A)(2) AND 17(A)(3) OF THESECURITIES ACT.
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Principal Sanction(s)/ReliefSought:
Other
Other Sanction(s)/ReliefSought:
N/A
Docket/Case Number: 3-18556
Principal Product Type: Other
Other Product Type(s): MARKET-LINKED INVESTMENTS
Resolution Date: 06/25/2018
Resolution:
Other Sanctions Ordered: PREJUDGMENT INTEREST
Sanction Details: WFA IS CENSURED, ORDERED TO CEASE AND DESIST FROM COMMITTINGOR CAUSING ANY VIOLATIONS AND ANY FUTURE VIOLATIONS OFSECTIONS 17(A)(2) AND 17(A)(3) OF THE SECURITIES ACT, AND SHALL PAYDISGORGEMENT, PREJUDGMENT INTEREST, AND A CIVIL MONETARYPENALTY TOTALING $5,108,441.27.
Regulator Statement IN ANTICIPATION OF THE INSTITUTION OF THESE PROCEEDINGS, THEFIRM HAS SUBMITTED AN OFFER OF SETTLEMENT (THE OFFER) WHICHTHE COMMISSION HAS DETERMINED TO ACCEPT. SOLELY FOR THEPURPOSE OF THESE PROCEEDINGS AND ANY OTHER PROCEEDINGSBROUGHT BY OR ON BEHALF OF THE COMMISSION, OR TO WHICH THECOMMISSION IS A PARTY, AND WITHOUT ADMITTING OR DENYING THEFINDINGS HEREIN, EXCEPT AS TO THE COMMISSION'S JURISDICTIONOVER IT AND THE SUBJECT MATTER OF THESE PROCEEDINGS, WHICHARE ADMITTED, THE FIRM CONSENTS TO THE ENTRY OF THIS ORDERINSTITUTING ADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS,PURSUANT TO SECTION 8A OF THE SECURITIES ACT OF 1933, SECTION15(B) OF THE SECURITIES EXCHANGE ACT OF 1934, AND SECTION 203(E)OF THE INVESTMENT ADVISERS ACT OF 1940, MAKING FINDINGS, ANDIMPOSING REMEDIAL SANCTIONS AND A CEASE-AND-DESIST ORDER(ORDER). AS A RESULT OF THE CONDUCT DESCRIBED, WFA WILLFULLYVIOLATED SECTIONS 17(A)(2) AND 17(A)(3) OF THE SECURITIES ACT. INVIEW OF THE FOREGOING, THE COMMISSION DEEMS IT APPROPRIATEAND IN THE PUBLIC INTEREST TO IMPOSE THE SANCTIONS AGREED TO INWFA'S OFFER. ACCORDINGLY, PURSUANT TO SECTION 8A OF THESECURITIES ACT, SECTION 15(B) OF THE EXCHANGE ACT, AND SECTION203(E) OF THE ADVISERS ACT IT IS HEREBY ORDERED THAT WFA ISCENSURED, ORDERED TO CEASE AND DESIST FROM COMMITTING ORCAUSING ANY VIOLATIONS AND ANY FUTURE VIOLATIONS OF SECTIONS17(A)(2) AND 17(A)(3) OF THE SECURITIES ACT, AND SHALL PAYDISGORGEMENT, PREJUDGMENT INTEREST, AND A CIVIL MONETARYPENALTY TOTALING $5,108,441.27 AS FOLLOWS: WFA SHALL PAYDISGORGEMENT OF $930,377, WHICH REPRESENTS THE COMMISSIONSWFA EARNED ON REPRESENTATIVES RECURRENT MLI EXCHANGESBETWEEN JANUARY 1, 2009 AND AUGUST 31, 2012, PREJUDGMENTINTEREST THEREON OF $178,064.27, AND A CIVIL MONEY PENALTY IN THEAMOUNT OF $4,000,000, CONSISTENT WITH THE PROVISIONS OF THEORDER.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
Yes
Sanctions Ordered: CensureMonetary/Fine $4,000,000.00Disgorgement/RestitutionCease and Desist/Injunction
Order
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IN ANTICIPATION OF THE INSTITUTION OF THESE PROCEEDINGS, THEFIRM HAS SUBMITTED AN OFFER OF SETTLEMENT (THE OFFER) WHICHTHE COMMISSION HAS DETERMINED TO ACCEPT. SOLELY FOR THEPURPOSE OF THESE PROCEEDINGS AND ANY OTHER PROCEEDINGSBROUGHT BY OR ON BEHALF OF THE COMMISSION, OR TO WHICH THECOMMISSION IS A PARTY, AND WITHOUT ADMITTING OR DENYING THEFINDINGS HEREIN, EXCEPT AS TO THE COMMISSION'S JURISDICTIONOVER IT AND THE SUBJECT MATTER OF THESE PROCEEDINGS, WHICHARE ADMITTED, THE FIRM CONSENTS TO THE ENTRY OF THIS ORDERINSTITUTING ADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS,PURSUANT TO SECTION 8A OF THE SECURITIES ACT OF 1933, SECTION15(B) OF THE SECURITIES EXCHANGE ACT OF 1934, AND SECTION 203(E)OF THE INVESTMENT ADVISERS ACT OF 1940, MAKING FINDINGS, ANDIMPOSING REMEDIAL SANCTIONS AND A CEASE-AND-DESIST ORDER(ORDER). AS A RESULT OF THE CONDUCT DESCRIBED, WFA WILLFULLYVIOLATED SECTIONS 17(A)(2) AND 17(A)(3) OF THE SECURITIES ACT. INVIEW OF THE FOREGOING, THE COMMISSION DEEMS IT APPROPRIATEAND IN THE PUBLIC INTEREST TO IMPOSE THE SANCTIONS AGREED TO INWFA'S OFFER. ACCORDINGLY, PURSUANT TO SECTION 8A OF THESECURITIES ACT, SECTION 15(B) OF THE EXCHANGE ACT, AND SECTION203(E) OF THE ADVISERS ACT IT IS HEREBY ORDERED THAT WFA ISCENSURED, ORDERED TO CEASE AND DESIST FROM COMMITTING ORCAUSING ANY VIOLATIONS AND ANY FUTURE VIOLATIONS OF SECTIONS17(A)(2) AND 17(A)(3) OF THE SECURITIES ACT, AND SHALL PAYDISGORGEMENT, PREJUDGMENT INTEREST, AND A CIVIL MONETARYPENALTY TOTALING $5,108,441.27 AS FOLLOWS: WFA SHALL PAYDISGORGEMENT OF $930,377, WHICH REPRESENTS THE COMMISSIONSWFA EARNED ON REPRESENTATIVES RECURRENT MLI EXCHANGESBETWEEN JANUARY 1, 2009 AND AUGUST 31, 2012, PREJUDGMENTINTEREST THEREON OF $178,064.27, AND A CIVIL MONEY PENALTY IN THEAMOUNT OF $4,000,000, CONSISTENT WITH THE PROVISIONS OF THEORDER.
Disclosure 2 of 158
i
Reporting Source: Firm
Initiated By: STATE OF NEVADA SECURITIES DIVISION
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 04/13/2018
Docket/Case Number: CI15-011 AND CI15-013
Principal Product Type: No Product
Other Product Type(s):
Allegations: ALLEGED THAT WFCS HAS VIOLATED NRS 90.360(2) AND NAC 90.392 BYMAINTAINING THREE (3) BRANCH OFFICE LOCATIONS IN THE STATE OFNEVADA WITHOUT OBTAINING A LICENSE FROM THE DIVISION
Current Status: Final
Resolution Date: 04/13/2018
Resolution:
Other Sanctions Ordered:
Sanctions Ordered: Monetary/Fine $8,500.00
Consent
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Other Sanctions Ordered:
Sanction Details: IN ADDITION TO THE MONETARY PENALTY OF $8500, WFCS IS ORDEREDTO PAY $1446.13 FOR COSTS OF INSPECTING TWO BRANCH OFFICES
Disclosure 3 of 158
i
Reporting Source: Regulator
Initiated By: STATE OF ILLINOIS, ILLINOIS SECURITIES DEPARTMENT
Principal Sanction(s)/ReliefSought:
Other
Other Sanction(s)/ReliefSought:
NOTICE OF HEARING
Date Initiated: 12/17/2017
Docket/Case Number: 1500252
URL for Regulatory Action:
Principal Product Type: Other
Other Product Type(s): SEPARATELY MANAGED ACCOUNT PRODUCT
Allegations: SEEING NOTICE OF HEARING AND CONSENT ORDER.
Current Status: Final
Resolution Date: 12/21/2017
Resolution:
Other Sanctions Ordered:
Sanction Details: MONETARY PAYMENT $270,000.00
Regulator Statement NOTICE OF HEARING WAS ISSUED DECEMBER 21, 2017. CONSENT ORDERWAS ISSUED DECEMBER 21, 2017. CONTACT 217-782-2256.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered:
Consent
iReporting Source: Firm
37©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Initiated By: STATE OF ILLINOIS, ILLINOIS SECURITIES DEPARTMENT
Principal Sanction(s)/ReliefSought:
Other
Other Sanction(s)/ReliefSought:
NOTICE OF HEARING
Date Initiated: 12/17/2017
Docket/Case Number: 1500252
Principal Product Type: Other
Other Product Type(s): SEPARATELY MANAGED ACCOUNT PRODUCT
Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND THE ENTRY OF FINDINGS THAT IT RECEIVED,REVIEWED AND/OR ANALYZED DOCUMENTS AND INFORMATION FROM AFINANCIAL ADVISORY FIRM CONCERNING CERTAIN MONEY MANAGERSTRATEGIES THAT CONTAINED INFORMATION THAT WAS LATER FOUND TOBE FALSE AND MISLEADING. THE FINDINGS STATED THAT THE FIRMINCLUDED THE FINANCIAL ADVISORY FIRM'S MONEY MANAGERSTRATEGIES IN CERTAIN OF ITS EXTERNALLY MANAGED SEPARATELYMANAGED ACCOUNT PROGRAMS, BUT THE FIRM DID NOT UTILIZEINACCURATE HISTORICAL PERFORMANCE DATA IN CONNECTION WITH ITSDECISION TO ONBOARD THE MONEY MANAGER STRATEGIES AND THEFIRM DID NOT INCORPORATE INACCURATE PERFORMANCE DATA IN ITSADVERTISEMENTS OR PROGRAM MARKETING MATERIALS.
Current Status: Final
Resolution Date: 12/21/2017
Resolution:
Other Sanctions Ordered:
Sanction Details: MONETARY PAYMENT $270,000.00
Firm Statement NOTICE OF HEARING WAS ISSUED DECEMBER 21, 2017. CONSENT ORDERWAS ISSUED DECEMBER 21, 2017.
Sanctions Ordered:
Consent
Disclosure 4 of 158
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Reporting Source: Regulator
Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT IT EXECUTEDSHORT SALE ORDERS IN OVER-THE-COUNTER (OTC) EQUITY SECURITIESAND IMPROPERLY MARKED THE ORDERS AS SHORT EXEMPT. THEFINDINGS STATED THAT THE FIRM EXECUTED SHORT SALETRANSACTIONS IN OTC EQUITY SECURITIES AND INCORRECTLYREPORTED THE TRANSACTIONS TO THE OTC REPORTING FACILITY WITHSHORT EXEMPT MODIFIERS.
Current Status: Final
38©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 12/07/2017
Docket/Case Number: 2016049334801
Principal Product Type: Equity - OTC
Other Product Type(s):
Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT IT EXECUTEDSHORT SALE ORDERS IN OVER-THE-COUNTER (OTC) EQUITY SECURITIESAND IMPROPERLY MARKED THE ORDERS AS SHORT EXEMPT. THEFINDINGS STATED THAT THE FIRM EXECUTED SHORT SALETRANSACTIONS IN OTC EQUITY SECURITIES AND INCORRECTLYREPORTED THE TRANSACTIONS TO THE OTC REPORTING FACILITY WITHSHORT EXEMPT MODIFIERS.
Resolution Date: 12/07/2017
Resolution:
Other Sanctions Ordered:
Sanction Details: THE FIRM WAS CENSURED AND FINED $20,000. FINES PAID IN FULL ONJANUARY 6, 2018.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: CensureMonetary/Fine $20,000.00
Acceptance, Waiver & Consent(AWC)
iReporting Source: Firm
Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT IT EXECUTEDSHORT SALE ORDERS IN OVER-THE-COUNTER (OTC) EQUITY SECURITIESAND IMPROPERLY MARKED THE ORDERS AS SHORT EXEMPT. THEFINDINGS STATED THAT THE FIRM EXECUTED SHORT SALETRANSACTIONS IN OTC EQUITY SECURITIES AND INCORRECTLYREPORTED THE TRANSACTIONS TO THE OTC REPORTING FACILITY WITHSHORT EXEMPT MODIFIERS.
Current Status: Final
39©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 12/07/2017
Docket/Case Number: 2016049334801
Principal Product Type: Equity - OTC
Other Product Type(s):
WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT IT EXECUTEDSHORT SALE ORDERS IN OVER-THE-COUNTER (OTC) EQUITY SECURITIESAND IMPROPERLY MARKED THE ORDERS AS SHORT EXEMPT. THEFINDINGS STATED THAT THE FIRM EXECUTED SHORT SALETRANSACTIONS IN OTC EQUITY SECURITIES AND INCORRECTLYREPORTED THE TRANSACTIONS TO THE OTC REPORTING FACILITY WITHSHORT EXEMPT MODIFIERS.
Resolution Date: 12/07/2017
Resolution:
Other Sanctions Ordered:
Sanction Details: THE FIRM WAS CENSURED AND FINED $20,000.
Firm Statement THE FIRM WAS CENSURED AND FINED $20,000.
Sanctions Ordered: CensureMonetary/Fine $20,000.00
Acceptance, Waiver & Consent(AWC)
Disclosure 5 of 158
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Reporting Source: Regulator
Allegations: SEC ADMIN RELEASE 34-82054, NOVEMBER 13, 2017: THE SEC DEEMS ITAPPROPRIATE AND IN THE PUBLIC INTEREST THAT PUBLICADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS BE, ANDHEREBY ARE, INSTITUTED PURSUANT TO SECTIONS 15(B) AND 21C OF THESECURITIES EXCHANGE ACT OF 1934 AGAINST WELLS FARGO ADVISORS,LLC. IN ANTICIPATION OF THE INSTITUTION OF THESE PROCEEDINGS,RESPONDENT HAS SUBMITTED AN OFFER OF SETTLEMENT WHICH THECOMMISSION HAS DETERMINED TO ACCEPT. SOLELY FOR THE PURPOSEOF THESE PROCEEDINGS AND ANY OTHER PROCEEDINGS BROUGHT BYOR ON BEHALF OF THE COMMISSION, OR TO WHICH THE COMMISSION ISA PARTY, AND WITHOUT ADMITTING OR DENYING THE FINDINGS HEREIN,EXCEPT AS TO THE COMMISSION'S JURISDICTION OVER IT AND THESUBJECT MATTER OF THESE PROCEEDINGS, WHICH ARE ADMITTED,RESPONDENT CONSENTS TO THE ENTRY OF THIS ORDER INSTITUTINGADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS PURSUANT TOSECTIONS 15(B) AND 21C OF THE SECURITIES EXCHANGE ACT OF 1934,MAKING FINDINGS, AND IMPOSING REMEDIAL SANCTIONS AND A CEASE-AND-DESIST ORDER. ON THE BASIS OF THIS ORDER AND RESPONDENT'SOFFER, THE COMMISSION FINDS THAT THESE PROCEEDINGS ARISE OUTOF WELLS FARGO ADVISORS' FAILURE TO FILE OR TIMELY FILE A NUMBEROF SUSPICIOUS ACTIVITY REPORTS ("SARS") FROM APPROXIMATELYMARCH 2012 THROUGH JUNE 2013. THE MAJORITY OF THESE FAILURESINVOLVED THE FAILURE TO TIMELY FILE SARS ON ONGOING SUSPICIOUSACTIVITY THAT CONTINUED AFTER AN INITIAL SAR FILING BY WELLSFARGO ADVISORS ON RELATED SUSPICIOUS ACTIVITY. AT THE TIME,WELLS FARGO ADVISORS' ANTI-MONEY LAUNDERING ("AML") POLICIESAND PROCEDURES REQUIRED THE FILING OF SARS PURSUANT TO THEREQUIREMENTS OF THE BANK SECRECY ACT ("BSA"), INCLUDING THEFILING OF SARS RELATED TO CONTINUING SUSPICIOUS ACTIVITY.DESPITE THESE REQUIREMENTS, WELLS FARGO ADVISORS FAILED TOFILE OR TIMELY FILE AT LEAST 50 SARS, A MAJORITY OF WHICH RELATEDTO CONTINUING SUSPICIOUS ACTIVITY OCCURRING IN ACCOUNTS HELDAT WELLS FARGO ADVISORS' U.S. BRANCH OFFICES THAT FOCUSED ONINTERNATIONAL CUSTOMERS. AS A RESULT OF THIS CONDUCT, WELLSFARGO ADVISORS WILLFULLY VIOLATED SECTION 17(A) OF THEEXCHANGE ACT AND RULE 17A-8 THEREUNDER.
Current Status: Final
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Initiated By: UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Principal Sanction(s)/ReliefSought:
Cease and Desist
Other Sanction(s)/ReliefSought:
Date Initiated: 11/13/2017
Docket/Case Number: 3-18279
Principal Product Type: No Product
Other Product Type(s):
SEC ADMIN RELEASE 34-82054, NOVEMBER 13, 2017: THE SEC DEEMS ITAPPROPRIATE AND IN THE PUBLIC INTEREST THAT PUBLICADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS BE, ANDHEREBY ARE, INSTITUTED PURSUANT TO SECTIONS 15(B) AND 21C OF THESECURITIES EXCHANGE ACT OF 1934 AGAINST WELLS FARGO ADVISORS,LLC. IN ANTICIPATION OF THE INSTITUTION OF THESE PROCEEDINGS,RESPONDENT HAS SUBMITTED AN OFFER OF SETTLEMENT WHICH THECOMMISSION HAS DETERMINED TO ACCEPT. SOLELY FOR THE PURPOSEOF THESE PROCEEDINGS AND ANY OTHER PROCEEDINGS BROUGHT BYOR ON BEHALF OF THE COMMISSION, OR TO WHICH THE COMMISSION ISA PARTY, AND WITHOUT ADMITTING OR DENYING THE FINDINGS HEREIN,EXCEPT AS TO THE COMMISSION'S JURISDICTION OVER IT AND THESUBJECT MATTER OF THESE PROCEEDINGS, WHICH ARE ADMITTED,RESPONDENT CONSENTS TO THE ENTRY OF THIS ORDER INSTITUTINGADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS PURSUANT TOSECTIONS 15(B) AND 21C OF THE SECURITIES EXCHANGE ACT OF 1934,MAKING FINDINGS, AND IMPOSING REMEDIAL SANCTIONS AND A CEASE-AND-DESIST ORDER. ON THE BASIS OF THIS ORDER AND RESPONDENT'SOFFER, THE COMMISSION FINDS THAT THESE PROCEEDINGS ARISE OUTOF WELLS FARGO ADVISORS' FAILURE TO FILE OR TIMELY FILE A NUMBEROF SUSPICIOUS ACTIVITY REPORTS ("SARS") FROM APPROXIMATELYMARCH 2012 THROUGH JUNE 2013. THE MAJORITY OF THESE FAILURESINVOLVED THE FAILURE TO TIMELY FILE SARS ON ONGOING SUSPICIOUSACTIVITY THAT CONTINUED AFTER AN INITIAL SAR FILING BY WELLSFARGO ADVISORS ON RELATED SUSPICIOUS ACTIVITY. AT THE TIME,WELLS FARGO ADVISORS' ANTI-MONEY LAUNDERING ("AML") POLICIESAND PROCEDURES REQUIRED THE FILING OF SARS PURSUANT TO THEREQUIREMENTS OF THE BANK SECRECY ACT ("BSA"), INCLUDING THEFILING OF SARS RELATED TO CONTINUING SUSPICIOUS ACTIVITY.DESPITE THESE REQUIREMENTS, WELLS FARGO ADVISORS FAILED TOFILE OR TIMELY FILE AT LEAST 50 SARS, A MAJORITY OF WHICH RELATEDTO CONTINUING SUSPICIOUS ACTIVITY OCCURRING IN ACCOUNTS HELDAT WELLS FARGO ADVISORS' U.S. BRANCH OFFICES THAT FOCUSED ONINTERNATIONAL CUSTOMERS. AS A RESULT OF THIS CONDUCT, WELLSFARGO ADVISORS WILLFULLY VIOLATED SECTION 17(A) OF THEEXCHANGE ACT AND RULE 17A-8 THEREUNDER.
Resolution Date: 11/13/2017
Resolution:
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Order
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Other Sanctions Ordered:
Sanction Details: RESPONDENT IS ORDERED TO CEASE AND DESIST; IS CENSURED; ANDSHALL PAY A CIVIL MONEY PENALTY IN THE AMOUNT OF $3,500,000.00.
Regulator Statement IN DETERMINING TO ACCEPT WELLS FARGO ADVISORS' OFFER, THECOMMISSION CONSIDERED VOLUNTARY REMEDIAL ACTS PROMPTLYUNDERTAKEN BY RESPONDENT, INCLUDING THE FIRM'S RETAINING ATHIRD PARTY AML COMPLIANCE FIRM TO REVIEW CERTAIN OF ITS SARINVESTIGATIONS DURING THE SUMMER OF 2014. IN DETERMININGWHETHER TO ACCEPT THE OFFER, THE COMMISSION HAS ALSOCONSIDERED THE UNDERTAKINGS ENUMERATED IN THE ORDER.
IN VIEW OF THE FOREGOING, THE COMMISSION DEEMS IT APPROPRIATEAND IN THE PUBLIC INTEREST TO IMPOSE THE SANCTIONS AGREED TO INRESPONDENT WELLS FARGO ADVISORS' OFFER. ACCORDINGLY,PURSUANT TO SECTIONS 15(B) AND 21C OF THE EXCHANGE ACT IT ISHEREBY ORDERED THAT: RESPONDENT CEASE AND DESIST FROMCOMMITTING OR CAUSING ANY VIOLATIONS AND ANY FUTURE VIOLATIONSOF SECTION 17(A) OF THE EXCHANGE ACT AND RULE 17A-8PROMULGATED THEREUNDER; RESPONDENT IS CENSURED; ANDRESPONDENT SHALL, WITHIN 30 DAYS OF THE ENTRY OF THIS ORDER,PAY A CIVIL MONEY PENALTY IN THE AMOUNT OF $3,500,000.00 TO THESEC.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: CensureMonetary/Fine $3,500,000.00Cease and Desist/Injunction
iReporting Source: Firm
Allegations: SEC ADMIN RELEASE 34-82054, NOVEMBER 13, 2017: THE SEC DEEMS ITAPPROPRIATE AND IN THE PUBLIC INTEREST THAT PUBLICADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS BE, ANDHEREBY ARE, INSTITUTED PURSUANT TO SECTIONS 15(B) AND 21C OF THESECURITIES EXCHANGE ACT OF 1934 AGAINST WELLS FARGO ADVISORS,LLC. IN ANTICIPATION OF THE INSTITUTION OF THESE PROCEEDINGS,RESPONDENT HAS SUBMITTED AN OFFER OF SETTLEMENT WHICH THECOMMISSION HAS DETERMINED TO ACCEPT. SOLELY FOR THE PURPOSEOF THESE PROCEEDINGS AND ANY OTHER PROCEEDINGS BROUGHT BYOR ON BEHALF OF THE COMMISSION, OR TO WHICH THE COMMISSION ISA PARTY, AND WITHOUT ADMITTING OR DENYING THE FINDINGS HEREIN,EXCEPT AS TO THE COMMISSION'S JURISDICTION OVER IT AND THESUBJECT MATTER OF THESE PROCEEDINGS, WHICH ARE ADMITTED,RESPONDENT CONSENTS TO THE ENTRY OF THIS ORDER INSTITUTINGADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS PURSUANT TOSECTIONS 15(B) AND 21C OF THE SECURITIES EXCHANGE ACT OF 1934,MAKING FINDINGS, AND IMPOSING REMEDIAL SANCTIONS AND A CEASE-AND-DESIST ORDER. ON THE BASIS OF THIS ORDER AND RESPONDENT'SOFFER, THE COMMISSION FINDS THAT THESE PROCEEDINGS ARISE OUTOF WELLS FARGO ADVISORS' FAILURE TO FILE OR TIMELY FILE A NUMBEROF SUSPICIOUS ACTIVITY REPORTS ("SARS") FROM APPROXIMATELYMARCH 2012 THROUGH JUNE 2013. THE MAJORITY OF THESE FAILURESINVOLVED THE FAILURE TO TIMELY FILE SARS ON ONGOING SUSPICIOUSACTIVITY THAT CONTINUED AFTER AN INITIAL SAR FILING BY WELLSFARGO ADVISORS ON RELATED SUSPICIOUS ACTIVITY. AT THE TIME,WELLS FARGO ADVISORS' ANTI-MONEY LAUNDERING ("AML") POLICIESAND PROCEDURES REQUIRED THE FILING OF SARS PURSUANT TO THEREQUIREMENTS OF THE BANK SECRECY ACT ("BSA"), INCLUDING THEFILING OF SARS RELATED TO CONTINUING SUSPICIOUS ACTIVITY.DESPITE THESE REQUIREMENTS, WELLS FARGO ADVISORS FAILED TOFILE OR TIMELY FILE AT LEAST 50 SARS, A MAJORITY OF WHICH RELATEDTO CONTINUING SUSPICIOUS ACTIVITY OCCURRING IN ACCOUNTS HELDAT WELLS FARGO ADVISORS' U.S. BRANCH OFFICES THAT FOCUSED ONINTERNATIONAL CUSTOMERS. AS A RESULT OF THIS CONDUCT, WELLSFARGO ADVISORS WILLFULLY VIOLATED SECTION 17(A) OF THEEXCHANGE ACT AND RULE 17A-8 THEREUNDER.
Current Status: Final
42©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Initiated By: UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Principal Sanction(s)/ReliefSought:
Cease and Desist
Other Sanction(s)/ReliefSought:
CENSURE, CIVIL MONEY PENALTY
Date Initiated: 11/13/2017
Docket/Case Number: 3-18279
Principal Product Type: No Product
Other Product Type(s):
SEC ADMIN RELEASE 34-82054, NOVEMBER 13, 2017: THE SEC DEEMS ITAPPROPRIATE AND IN THE PUBLIC INTEREST THAT PUBLICADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS BE, ANDHEREBY ARE, INSTITUTED PURSUANT TO SECTIONS 15(B) AND 21C OF THESECURITIES EXCHANGE ACT OF 1934 AGAINST WELLS FARGO ADVISORS,LLC. IN ANTICIPATION OF THE INSTITUTION OF THESE PROCEEDINGS,RESPONDENT HAS SUBMITTED AN OFFER OF SETTLEMENT WHICH THECOMMISSION HAS DETERMINED TO ACCEPT. SOLELY FOR THE PURPOSEOF THESE PROCEEDINGS AND ANY OTHER PROCEEDINGS BROUGHT BYOR ON BEHALF OF THE COMMISSION, OR TO WHICH THE COMMISSION ISA PARTY, AND WITHOUT ADMITTING OR DENYING THE FINDINGS HEREIN,EXCEPT AS TO THE COMMISSION'S JURISDICTION OVER IT AND THESUBJECT MATTER OF THESE PROCEEDINGS, WHICH ARE ADMITTED,RESPONDENT CONSENTS TO THE ENTRY OF THIS ORDER INSTITUTINGADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS PURSUANT TOSECTIONS 15(B) AND 21C OF THE SECURITIES EXCHANGE ACT OF 1934,MAKING FINDINGS, AND IMPOSING REMEDIAL SANCTIONS AND A CEASE-AND-DESIST ORDER. ON THE BASIS OF THIS ORDER AND RESPONDENT'SOFFER, THE COMMISSION FINDS THAT THESE PROCEEDINGS ARISE OUTOF WELLS FARGO ADVISORS' FAILURE TO FILE OR TIMELY FILE A NUMBEROF SUSPICIOUS ACTIVITY REPORTS ("SARS") FROM APPROXIMATELYMARCH 2012 THROUGH JUNE 2013. THE MAJORITY OF THESE FAILURESINVOLVED THE FAILURE TO TIMELY FILE SARS ON ONGOING SUSPICIOUSACTIVITY THAT CONTINUED AFTER AN INITIAL SAR FILING BY WELLSFARGO ADVISORS ON RELATED SUSPICIOUS ACTIVITY. AT THE TIME,WELLS FARGO ADVISORS' ANTI-MONEY LAUNDERING ("AML") POLICIESAND PROCEDURES REQUIRED THE FILING OF SARS PURSUANT TO THEREQUIREMENTS OF THE BANK SECRECY ACT ("BSA"), INCLUDING THEFILING OF SARS RELATED TO CONTINUING SUSPICIOUS ACTIVITY.DESPITE THESE REQUIREMENTS, WELLS FARGO ADVISORS FAILED TOFILE OR TIMELY FILE AT LEAST 50 SARS, A MAJORITY OF WHICH RELATEDTO CONTINUING SUSPICIOUS ACTIVITY OCCURRING IN ACCOUNTS HELDAT WELLS FARGO ADVISORS' U.S. BRANCH OFFICES THAT FOCUSED ONINTERNATIONAL CUSTOMERS. AS A RESULT OF THIS CONDUCT, WELLSFARGO ADVISORS WILLFULLY VIOLATED SECTION 17(A) OF THEEXCHANGE ACT AND RULE 17A-8 THEREUNDER.
Resolution Date: 11/13/2017
Resolution:
Sanctions Ordered: CensureMonetary/Fine $3,500,000.00Cease and Desist/Injunction
Order
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Other Sanctions Ordered:
Sanction Details: RESPONDENT IS ORDERED TO CEASE AND DESIST; IS CENSURED; ANDSHALL PAY A CIVIL MONEY PENALTY IN THE AMOUNT OF $3,500,000.00.
Firm Statement IN DETERMINING TO ACCEPT WELLS FARGO ADVISORS' OFFER, THECOMMISSION CONSIDERED VOLUNTARY REMEDIAL ACTS PROMPTLYUNDERTAKEN BY RESPONDENT, INCLUDING THE FIRM'S RETAINING ATHIRD PARTY AML COMPLIANCE FIRM TO REVIEW CERTAIN OF ITS SARINVESTIGATIONS DURING THE SUMMER OF 2014. IN DETERMININGWHETHER TO ACCEPT THE OFFER, THE COMMISSION HAS ALSOCONSIDERED THE UNDERTAKINGS ENUMERATED IN THE ORDER. IN VIEWOF THE FOREGOING, THE COMMISSION DEEMS IT APPROPRIATE AND INTHE PUBLIC INTEREST TO IMPOSE THE SANCTIONS AGREED TO INRESPONDENT WELLS FARGO ADVISORS' OFFER. ACCORDINGLY,PURSUANT TO SECTIONS 15(B) AND 21C OF THE EXCHANGE ACT IT ISHEREBY ORDERED THAT: RESPONDENT CEASE AND DESIST FROMCOMMITTING OR CAUSING ANY VIOLATIONS AND ANY FUTURE VIOLATIONSOF SECTION 17(A) OF THE EXCHANGE ACT AND RULE 17A-8PROMULGATED THEREUNDER; RESPONDENT IS CENSURED; ANDRESPONDENT SHALL, WITHIN 30 DAYS OF THE ENTRY OF THIS ORDER,PAY A CIVIL MONEY PENALTY IN THE AMOUNT OF $3,500,000.00 TO THESEC.
Sanctions Ordered: CensureMonetary/Fine $3,500,000.00Cease and Desist/Injunction
Disclosure 6 of 158
i
Reporting Source: Regulator
Initiated By: FINRA
Date Initiated: 11/06/2017
Docket/Case Number: 2016051812801
Principal Product Type: Other
Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT IT FAILED TOREPORT TO TRACE THE CORRECT TIME OF TRADE EXECUTION FOR 88TRANSACTIONS IN TRACE-ELIGIBLE SECURITIZED PRODUCTS. THEFINDINGS STATED THAT THE FIRM FAILED TO REPORT TO TRACE 148TRANSACTIONS IN TRACE-ELIGIBLE SECURITIZED PRODUCTS WITHIN 15MINUTES OF THE TIME OF EXECUTION.
Current Status: Final
44©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Principal Sanction(s)/ReliefSought:
Other
Other Sanction(s)/ReliefSought:
N/A
Other Product Type(s): SECURITIZED PRODUCTS
Resolution Date: 11/06/2017
Resolution:
Other Sanctions Ordered:
Sanction Details: THE FIRM WAS CENSURED AND FINED $30,000. FINES PAID IN FULL ONNOVEMBER 17, 2017.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: CensureMonetary/Fine $30,000.00
Acceptance, Waiver & Consent(AWC)
iReporting Source: Firm
Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other
Other Sanction(s)/ReliefSought:
N/A
Date Initiated: 11/06/2017
Docket/Case Number: 2016051812801
Principal Product Type: Other
Other Product Type(s): SECURITIZED PRODUCTS
Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT IT FAILED TOREPORT TO TRACE THE CORRECT TIME OF TRADE EXECUTION FOR 88TRANSACTIONS IN TRACE-ELIGIBLE SECURITIZED PRODUCTS. THEFINDINGS STATED THAT THE FIRM FAILED TO REPORT TO TRACE 148TRANSACTIONS IN TRACE-ELIGIBLE SECURITIZED PRODUCTS WITHIN 15MINUTES OF THE TIME OF EXECUTION.
Current Status: Final
45©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Other Sanction(s)/ReliefSought:
N/A
Resolution Date: 11/06/2017
Resolution:
Other Sanctions Ordered:
Sanction Details: THE FIRM WAS CENSURED AND FINED $30,000. FINES PAID IN FULL ONNOVEMBER 17, 2017.
Firm Statement THE FIRM WAS CENSURED AND FINED $30,000. FINES PAID IN FULL ONNOVEMBER 17, 2017.
Sanctions Ordered: CensureMonetary/Fine $30,000.00
Acceptance, Waiver & Consent(AWC)
Disclosure 7 of 158
i
Reporting Source: Regulator
Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT CERTAIN FIRMREGISTERED REPRESENTATIVES RECOMMENDED VOLATILITY-LINKEDEXCHANGE-TRADED PRODUCTS (VOLATILITY ETPS) TO BROKERAGECUSTOMERS WITHOUT FULLY UNDERSTANDING THEIR RISKS ANDFEATURES. THE FINDINGS STATED THAT THE FIRM FAILED TO VET ORPLACE RESTRICTIONS ON RECOMMENDATIONS AND PURCHASES OFVOLATILITY ETPS, AND AS A RESULT, THESE PRODUCTS WERE MADEAVAILABLE TO RETAIL BROKERAGE CUSTOMERS REGARDLESS OF RISKPROFILE AND INVESTMENT OBJECTIVE. CERTAIN FIRM REPRESENTATIVESMISTAKENLY BELIEVED THAT VOLATILITY ETPS COULD BE USED AS ALONG-TERM HEDGE ON THEIR CUSTOMERS' EQUITY POSITIONS IN THEEVENT OF A MARKET DOWNTURN. IN FACT, VOLATILITY ETPS AREGENERALLY SHORT-TERM TRADING PRODUCTS THAT DEGRADESIGNIFICANTLY OVER TIME AND SHOULD NOT BE USED AS PART OF ALONG-TERM BUY-AND-HOLD INVESTMENT STRATEGY. ACCORDINGLY, INTHOSE INSTANCES, THE REPRESENTATIVES DID NOT HAVE AREASONABLE BASIS TO RECOMMEND VOLATILITY ETPS AS SUITABLE TOCUSTOMERS WITH CONSERVATIVE OR MODERATE RISK PROFILES ANDINVESTMENT OBJECTIVES AND THE REPRESENTATIVES FURTHER FAILEDTO APPROPRIATELY RECOMMEND THE EXIT OF THESE POSITIONS WITHINA TIMELY MANNER. IN SOME INSTANCES, CUSTOMERS INCURREDSIGNIFICANT LOSSES. THE FINDINGS ALSO STATED THAT THE FIRM FAILEDTO ESTABLISH AND MAINTAIN A SUPERVISORY SYSTEM, INCLUDINGWRITTEN POLICIES AND PROCEDURES, REASONABLY DESIGNED TOACHIEVE COMPLIANCE WITH NASD RULE 2310 IN CONNECTION WITH ITSSALE OF VOLATILITY ETPS. ALTHOUGH THE FIRM SHOULD HAVE BEENAWARE OF THE COMPLEXITY AND UNIQUE RISKS AND FEATURESASSOCIATED WITH VOLATILITY ETPS, THE FIRM FAILED TO IMPLEMENT AREASONABLE SYSTEM TO SUPERVISE ITS REPRESENTATIVES' SOLICITEDSALES OF VOLATILITY ETPS. THE FINDINGS ALSO INCLUDED THAT THEFIRM'S SUPERVISORY SYSTEMS ALSO DID NOT INCLUDE REASONABLETRAINING FOR REGISTERED REPRESENTATIVES AND SUPERVISORSREGARDING THE FEATURES AND RISKS ASSOCIATED WITH VOLATILITYETPS. BECAUSE THE FIRM FAILED TO ESTABLISH AND PROVIDEREASONABLE GUIDANCE, TRAINING OR TOOLS TO EDUCATE ITSREGISTERED REPRESENTATIVES AND SUPERVISORS ABOUT VOLATILITYETPS, CERTAIN RETAIL BROKERAGE CUSTOMERS WERE UNINFORMEDABOUT THE FEATURES AND RISKS ASSOCIATED WITH VOLATILITY ETPSPRIOR TO PURCHASING THEM.
Current Status: Final
46©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other
Other Sanction(s)/ReliefSought:
N/A
Date Initiated: 10/16/2017
Docket/Case Number: 2014042465601
Principal Product Type: Other
Other Product Type(s): VOLATILITY-LINKED EXCHANGE-TRADED PRODUCTS
WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT CERTAIN FIRMREGISTERED REPRESENTATIVES RECOMMENDED VOLATILITY-LINKEDEXCHANGE-TRADED PRODUCTS (VOLATILITY ETPS) TO BROKERAGECUSTOMERS WITHOUT FULLY UNDERSTANDING THEIR RISKS ANDFEATURES. THE FINDINGS STATED THAT THE FIRM FAILED TO VET ORPLACE RESTRICTIONS ON RECOMMENDATIONS AND PURCHASES OFVOLATILITY ETPS, AND AS A RESULT, THESE PRODUCTS WERE MADEAVAILABLE TO RETAIL BROKERAGE CUSTOMERS REGARDLESS OF RISKPROFILE AND INVESTMENT OBJECTIVE. CERTAIN FIRM REPRESENTATIVESMISTAKENLY BELIEVED THAT VOLATILITY ETPS COULD BE USED AS ALONG-TERM HEDGE ON THEIR CUSTOMERS' EQUITY POSITIONS IN THEEVENT OF A MARKET DOWNTURN. IN FACT, VOLATILITY ETPS AREGENERALLY SHORT-TERM TRADING PRODUCTS THAT DEGRADESIGNIFICANTLY OVER TIME AND SHOULD NOT BE USED AS PART OF ALONG-TERM BUY-AND-HOLD INVESTMENT STRATEGY. ACCORDINGLY, INTHOSE INSTANCES, THE REPRESENTATIVES DID NOT HAVE AREASONABLE BASIS TO RECOMMEND VOLATILITY ETPS AS SUITABLE TOCUSTOMERS WITH CONSERVATIVE OR MODERATE RISK PROFILES ANDINVESTMENT OBJECTIVES AND THE REPRESENTATIVES FURTHER FAILEDTO APPROPRIATELY RECOMMEND THE EXIT OF THESE POSITIONS WITHINA TIMELY MANNER. IN SOME INSTANCES, CUSTOMERS INCURREDSIGNIFICANT LOSSES. THE FINDINGS ALSO STATED THAT THE FIRM FAILEDTO ESTABLISH AND MAINTAIN A SUPERVISORY SYSTEM, INCLUDINGWRITTEN POLICIES AND PROCEDURES, REASONABLY DESIGNED TOACHIEVE COMPLIANCE WITH NASD RULE 2310 IN CONNECTION WITH ITSSALE OF VOLATILITY ETPS. ALTHOUGH THE FIRM SHOULD HAVE BEENAWARE OF THE COMPLEXITY AND UNIQUE RISKS AND FEATURESASSOCIATED WITH VOLATILITY ETPS, THE FIRM FAILED TO IMPLEMENT AREASONABLE SYSTEM TO SUPERVISE ITS REPRESENTATIVES' SOLICITEDSALES OF VOLATILITY ETPS. THE FINDINGS ALSO INCLUDED THAT THEFIRM'S SUPERVISORY SYSTEMS ALSO DID NOT INCLUDE REASONABLETRAINING FOR REGISTERED REPRESENTATIVES AND SUPERVISORSREGARDING THE FEATURES AND RISKS ASSOCIATED WITH VOLATILITYETPS. BECAUSE THE FIRM FAILED TO ESTABLISH AND PROVIDEREASONABLE GUIDANCE, TRAINING OR TOOLS TO EDUCATE ITSREGISTERED REPRESENTATIVES AND SUPERVISORS ABOUT VOLATILITYETPS, CERTAIN RETAIL BROKERAGE CUSTOMERS WERE UNINFORMEDABOUT THE FEATURES AND RISKS ASSOCIATED WITH VOLATILITY ETPSPRIOR TO PURCHASING THEM.
Resolution Date: 10/16/2017
Resolution:
Other Sanctions Ordered:
Sanction Details: THE FIRM WAS CENSURED AND ORDERED TO JOINTLY AND SEVERALLYPAY $3,411,478.78 IN RESTITUTION TO CUSTOMERS.
Regulator Statement IN DETERMINING TO RESOLVE THIS MATTER WITHOUT THE IMPOSITIONOF A FINE, FINRA TOOK THE FOLLOWING INTO CONSIDERATION: (I) PRIORTO DETECTION BY FINRA, THE FIRM CORRECTED ITS SUPERVISORYDEFICIENCIES RELATING TO VOLATILITY ETPS; (II) THE FIRM WASPREVIOUSLY FINED $2.1 MILLION - AFTER THE MISCONDUCT AND ITSREMEDIATION HEREIN - FOR SIMILAR VIOLATIONS RELATING TO NON-TRADITIONAL ETPS; AND, (III) THE FIRM PROVIDED SUBSTANTIALASSISTANCE TO FINRA BY, AMONG OTHER THINGS, ENGAGING AT ITS OWNEXPENSE A CONSULTING FIRM TO REVIEW, COMPILE, AND CALCULATELARGE AMOUNTS OF DATA PERTAINING TO SALES OF VOLATILITY ETPSFOR USE IN DETERMINING THE APPROPRIATE RESTITUTION TO BEPROVIDED.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: CensureDisgorgement/Restitution
Acceptance, Waiver & Consent(AWC)
47©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Regulator Statement IN DETERMINING TO RESOLVE THIS MATTER WITHOUT THE IMPOSITIONOF A FINE, FINRA TOOK THE FOLLOWING INTO CONSIDERATION: (I) PRIORTO DETECTION BY FINRA, THE FIRM CORRECTED ITS SUPERVISORYDEFICIENCIES RELATING TO VOLATILITY ETPS; (II) THE FIRM WASPREVIOUSLY FINED $2.1 MILLION - AFTER THE MISCONDUCT AND ITSREMEDIATION HEREIN - FOR SIMILAR VIOLATIONS RELATING TO NON-TRADITIONAL ETPS; AND, (III) THE FIRM PROVIDED SUBSTANTIALASSISTANCE TO FINRA BY, AMONG OTHER THINGS, ENGAGING AT ITS OWNEXPENSE A CONSULTING FIRM TO REVIEW, COMPILE, AND CALCULATELARGE AMOUNTS OF DATA PERTAINING TO SALES OF VOLATILITY ETPSFOR USE IN DETERMINING THE APPROPRIATE RESTITUTION TO BEPROVIDED.
iReporting Source: Firm
Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT CERTAIN FIRMREGISTERED REPRESENTATIVES RECOMMENDED VOLATILITY-LINKEDEXCHANGE-TRADED PRODUCTS (VOLATILITY ETPS) TO BROKERAGECUSTOMERS WITHOUT FULLY UNDERSTANDING THEIR RISKS ANDFEATURES. THE FINDINGS STATED THAT THE FIRM FAILED TO VET ORPLACE RESTRICTIONS ON RECOMMENDATIONS AND PURCHASES OFVOLATILITY ETPS, AND AS A RESULT, THESE PRODUCTS WERE MADEAVAILABLE TO RETAIL BROKERAGE CUSTOMERS REGARDLESS OF RISKPROFILE AND INVESTMENT OBJECTIVE. CERTAIN FIRM REPRESENTATIVESMISTAKENLY BELIEVED THAT VOLATILITY ETPS COULD BE USED AS ALONG-TERM HEDGE ON THEIR CUSTOMERS' EQUITY POSITIONS IN THEEVENT OF A MARKET DOWNTURN. IN FACT, VOLATILITY ETPS AREGENERALLY SHORT-TERM TRADING PRODUCTS THAT DEGRADESIGNIFICANTLY OVER TIME AND SHOULD NOT BE USED AS PART OF ALONG-TERM BUY-AND-HOLD INVESTMENT STRATEGY. ACCORDINGLY, INTHOSE INSTANCES, THE REPRESENTATIVES DID NOT HAVE AREASONABLE BASIS TO RECOMMEND VOLATILITY ETPS AS SUITABLE TOCUSTOMERS WITH CONSERVATIVE OR MODERATE RISK PROFILES ANDINVESTMENT OBJECTIVES AND THE REPRESENTATIVES FURTHER FAILEDTO APPROPRIATELY RECOMMEND THE EXIT OF THESE POSITIONS WITHINA TIMELY MANNER. IN SOME INSTANCES, CUSTOMERS INCURREDSIGNIFICANT LOSSES. THE FINDINGS ALSO STATED THAT THE FIRM FAILEDTO ESTABLISH AND MAINTAIN A SUPERVISORY SYSTEM, INCLUDINGWRITTEN POLICIES AND PROCEDURES, REASONABLY DESIGNED TOACHIEVE COMPLIANCE WITH NASD RULE 2310 IN CONNECTION WITH ITSSALE OF VOLATILITY ETPS. ALTHOUGH THE FIRM SHOULD HAVE BEENAWARE OF THE COMPLEXITY AND UNIQUE RISKS AND FEATURESASSOCIATED WITH VOLATILITY ETPS, THE FIRM FAILED TO IMPLEMENT AREASONABLE SYSTEM TO SUPERVISE ITS REPRESENTATIVES' SOLICITEDSALES OF VOLATILITY ETPS. THE FINDINGS ALSO INCLUDED THAT THEFIRM'S SUPERVISORY SYSTEMS ALSO DID NOT INCLUDE REASONABLETRAINING FOR REGISTERED REPRESENTATIVES AND SUPERVISORSREGARDING THE FEATURES AND RISKS ASSOCIATED WITH VOLATILITYETPS. BECAUSE THE FIRM FAILED TO ESTABLISH AND PROVIDEREASONABLE GUIDANCE, TRAINING OR TOOLS TO EDUCATE ITSREGISTERED REPRESENTATIVES AND SUPERVISORS ABOUT VOLATILITYETPS, CERTAIN RETAIL BROKERAGE CUSTOMERS WERE UNINFORMEDABOUT THE FEATURES AND RISKS ASSOCIATED WITH VOLATILITY ETPSPRIOR TO PURCHASING THEM.
Current Status: Final
48©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other
Other Sanction(s)/ReliefSought:
N/A
Date Initiated: 10/16/2017
Docket/Case Number: 2014042465601
Principal Product Type: Other
Other Product Type(s): VOLATILITY-LINKED EXCHANGE-TRADED PRODUCTS
WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT CERTAIN FIRMREGISTERED REPRESENTATIVES RECOMMENDED VOLATILITY-LINKEDEXCHANGE-TRADED PRODUCTS (VOLATILITY ETPS) TO BROKERAGECUSTOMERS WITHOUT FULLY UNDERSTANDING THEIR RISKS ANDFEATURES. THE FINDINGS STATED THAT THE FIRM FAILED TO VET ORPLACE RESTRICTIONS ON RECOMMENDATIONS AND PURCHASES OFVOLATILITY ETPS, AND AS A RESULT, THESE PRODUCTS WERE MADEAVAILABLE TO RETAIL BROKERAGE CUSTOMERS REGARDLESS OF RISKPROFILE AND INVESTMENT OBJECTIVE. CERTAIN FIRM REPRESENTATIVESMISTAKENLY BELIEVED THAT VOLATILITY ETPS COULD BE USED AS ALONG-TERM HEDGE ON THEIR CUSTOMERS' EQUITY POSITIONS IN THEEVENT OF A MARKET DOWNTURN. IN FACT, VOLATILITY ETPS AREGENERALLY SHORT-TERM TRADING PRODUCTS THAT DEGRADESIGNIFICANTLY OVER TIME AND SHOULD NOT BE USED AS PART OF ALONG-TERM BUY-AND-HOLD INVESTMENT STRATEGY. ACCORDINGLY, INTHOSE INSTANCES, THE REPRESENTATIVES DID NOT HAVE AREASONABLE BASIS TO RECOMMEND VOLATILITY ETPS AS SUITABLE TOCUSTOMERS WITH CONSERVATIVE OR MODERATE RISK PROFILES ANDINVESTMENT OBJECTIVES AND THE REPRESENTATIVES FURTHER FAILEDTO APPROPRIATELY RECOMMEND THE EXIT OF THESE POSITIONS WITHINA TIMELY MANNER. IN SOME INSTANCES, CUSTOMERS INCURREDSIGNIFICANT LOSSES. THE FINDINGS ALSO STATED THAT THE FIRM FAILEDTO ESTABLISH AND MAINTAIN A SUPERVISORY SYSTEM, INCLUDINGWRITTEN POLICIES AND PROCEDURES, REASONABLY DESIGNED TOACHIEVE COMPLIANCE WITH NASD RULE 2310 IN CONNECTION WITH ITSSALE OF VOLATILITY ETPS. ALTHOUGH THE FIRM SHOULD HAVE BEENAWARE OF THE COMPLEXITY AND UNIQUE RISKS AND FEATURESASSOCIATED WITH VOLATILITY ETPS, THE FIRM FAILED TO IMPLEMENT AREASONABLE SYSTEM TO SUPERVISE ITS REPRESENTATIVES' SOLICITEDSALES OF VOLATILITY ETPS. THE FINDINGS ALSO INCLUDED THAT THEFIRM'S SUPERVISORY SYSTEMS ALSO DID NOT INCLUDE REASONABLETRAINING FOR REGISTERED REPRESENTATIVES AND SUPERVISORSREGARDING THE FEATURES AND RISKS ASSOCIATED WITH VOLATILITYETPS. BECAUSE THE FIRM FAILED TO ESTABLISH AND PROVIDEREASONABLE GUIDANCE, TRAINING OR TOOLS TO EDUCATE ITSREGISTERED REPRESENTATIVES AND SUPERVISORS ABOUT VOLATILITYETPS, CERTAIN RETAIL BROKERAGE CUSTOMERS WERE UNINFORMEDABOUT THE FEATURES AND RISKS ASSOCIATED WITH VOLATILITY ETPSPRIOR TO PURCHASING THEM.
Resolution Date: 10/16/2017
Resolution:
Other Sanctions Ordered:
Sanction Details: THE FIRM WAS CENSURED AND ORDERED TO JOINTLY AND SEVERALLYPAY $3,411,478.78 IN RESTITUTION TO CUSTOMERS.
Firm Statement IN DETERMINING TO RESOLVE THIS MATTER WITHOUT THE IMPOSITIONOF A FINE, FINRA TOOK THE FOLLOWING INTO CONSIDERATION: (I) PRIORTO DETECTION BY FINRA, THE FIRM CORRECTED ITS SUPERVISORYDEFICIENCIES RELATING TO VOLATILITY ETPS; (II) THE FIRM WASPREVIOUSLY FINED $2.1 MILLION - AFTER THE MISCONDUCT AND ITSREMEDIATION HEREIN - FOR SIMILAR VIOLATIONS RELATING TO NON-TRADITIONAL ETPS; AND, (III) THE FIRM PROVIDED SUBSTANTIALASSISTANCE TO FINRA BY, AMONG OTHER THINGS, ENGAGING AT ITS OWNEXPENSE A CONSULTING FIRM TO REVIEW, COMPILE, AND CALCULATELARGE AMOUNTS OF DATA PERTAINING TO SALES OF VOLATILITY ETPSFOR USE IN DETERMINING THE APPROPRIATE RESTITUTION TO BEPROVIDED.
Sanctions Ordered: CensureDisgorgement/Restitution
Acceptance, Waiver & Consent(AWC)
49©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
IN DETERMINING TO RESOLVE THIS MATTER WITHOUT THE IMPOSITIONOF A FINE, FINRA TOOK THE FOLLOWING INTO CONSIDERATION: (I) PRIORTO DETECTION BY FINRA, THE FIRM CORRECTED ITS SUPERVISORYDEFICIENCIES RELATING TO VOLATILITY ETPS; (II) THE FIRM WASPREVIOUSLY FINED $2.1 MILLION - AFTER THE MISCONDUCT AND ITSREMEDIATION HEREIN - FOR SIMILAR VIOLATIONS RELATING TO NON-TRADITIONAL ETPS; AND, (III) THE FIRM PROVIDED SUBSTANTIALASSISTANCE TO FINRA BY, AMONG OTHER THINGS, ENGAGING AT ITS OWNEXPENSE A CONSULTING FIRM TO REVIEW, COMPILE, AND CALCULATELARGE AMOUNTS OF DATA PERTAINING TO SALES OF VOLATILITY ETPSFOR USE IN DETERMINING THE APPROPRIATE RESTITUTION TO BEPROVIDED.
Disclosure 8 of 158
i
Reporting Source: Regulator
Initiated By: MISSOURI
Principal Sanction(s)/ReliefSought:
Other
Other Sanction(s)/ReliefSought:
MONETARY FINE - $24,672.17 TO THE MISSOURI SECRETARY OF STATEINVESTOR EDUCATION AND PROTECTION FUND
Date Initiated: 02/16/2017
Docket/Case Number: AP-17-01
URL for Regulatory Action: HTTP://WWW.SOS.MO.GOV/CMSIMAGES/SECURITIES/ORDERS/AP-17-01.PDF
Principal Product Type: Other
Other Product Type(s):
Allegations: RESPONDENT FAILED TO REASONABLY SUPERVISE THE IRADISTRIBUTIONS IN VIOLATION OF SECTION 409.4-412(D)(9)
Current Status: Final
Resolution Date: 02/16/2017
Resolution:
Other Sanctions Ordered:
Sanction Details: RESPONDENT SHALL MAINTAIN AND ENFORCE PROCEDURES ANDSYSTEMS FOR SUPERVISING THE ACTIVITIES OF AGENTS, EMPLOYEES,AND MISSOURI OFFICE OPERATIONS IN A MANNER REASONABLYDESIGNED TO ACHIEVE COMPLIANCE WITH APPLICABLE STATE ANDFEDERAL SECURITIES LAWS AND REGULATIONS, AND THE RULES OF THEFINANCIAL INDUSTRY REGULATORY AUTHORITY.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: CensureMonetary/Fine $25,672.17
Consent
50©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
iReporting Source: Firm
Initiated By: MISSOURI
Principal Sanction(s)/ReliefSought:
Other
Other Sanction(s)/ReliefSought:
MONETARY FINE - $24,672.17 TO THE MISSOURI SECRETARY OF STATEINVESTOR EDUCATION AND PROTECTION FUND
Date Initiated: 02/16/2017
Docket/Case Number: AP-17-01
Principal Product Type: Other
Other Product Type(s):
Allegations: RESPONDENT FAILED TO REASONABLY SUPERVISE THE IRADISTRIBUTIONS FROM 08/07/2001 TO 07/29/2007 IN VIOLATION OF SECTION409.4-412(D)(9)
Current Status: Final
Resolution Date: 02/16/2017
Resolution:
Other Sanctions Ordered:
Sanction Details: RESPONDENT SHALL MAINTAIN AND ENFORCE PROCEDURES ANDSYSTEMS FOR SUPERVISING THE ACTIVITIES OF AGENTS, EMPLOYEES,AND MISSOURI OFFICE OPERATIONS IN A MANNER REASONABLYDESIGNED TO ACHIEVE COMPLIANCE WITH APPLICABLE STATE ANDFEDERAL SECURITIES LAWS AND REGULATIONS, AND THE RULES OF THEFINANCIAL INDUSTRY REGULATORY AUTHORITY.
Firm Statement RESPONDENT SHALL MAINTAIN AND ENFORCE PROCEDURES ANDSYSTEMS FOR SUPERVISING THE ACTIVITIES OF AGENTS, EMPLOYEES,AND MISSOURI OFFICE OPERATIONS IN A MANNER REASONABLYDESIGNED TO ACHIEVE COMPLIANCE WITH APPLICABLE STATE ANDFEDERAL SECURITIES LAWS AND REGULATIONS, AND THE RULES OF THEFINANCIAL INDUSTRY REGULATORY AUTHORITY.
Sanctions Ordered: CensureMonetary/Fine $25,672.17
Consent
Disclosure 9 of 158
i
51©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Reporting Source: Regulator
Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 04/07/2017
Docket/Case Number: 2016049925401
Principal Product Type: Equity Listed (Common & Preferred Stock)
Other Product Type(s):
Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT IT FAILED TOEXECUTE 50 MARKET ORDERS IN PREFERRED SECURITIES FULLY ANDPROMPTLY. THE FINDINGS STATED THAT IN 19 OF THOSE 50TRANSACTIONS, THE FIRM FAILED TO USE REASONABLE DILIGENCE TOASCERTAIN THE BEST INTER-DEALER MARKET AND FAILED TO BUY ORSELL IN SUCH MARKET SO THAT THE RESULTANT PRICE TO ITSCUSTOMER WAS AS FAVORABLE AS POSSIBLE UNDER PREVAILINGMARKET CONDITIONS.
Current Status: Final
Resolution Date: 04/07/2017
Resolution:
Other Sanctions Ordered: INTEREST
Sanction Details: THE FIRM WAS CENSURED, FINED $20,000 AND REQUIRED TO PAYRESTITUTION IN THE TOTAL AMOUNT OF $4,543.08, PLUS INTEREST. FINESPAID IN FULL ON MAY 11, 2017.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: CensureMonetary/Fine $20,000.00Disgorgement/Restitution
Acceptance, Waiver & Consent(AWC)
iReporting Source: 52©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Reporting Source: Firm
Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 04/07/2017
Docket/Case Number: 2016049925401
Principal Product Type: Equity Listed (Common & Preferred Stock)
Other Product Type(s):
Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT IT FAILED TOEXECUTE 50 MARKET ORDERS IN PREFERRED SECURITIES FULLY ANDPROMPTLY. THE FINDINGS STATED THAT IN 19 OF THOSE 50TRANSACTIONS, THE FIRM FAILED TO USE REASONABLE DILIGENCE TOASCERTAIN THE BEST INTER-DEALER MARKET AND FAILED TO BUY ORSELL IN SUCH MARKET SO THAT THE RESULTANT PRICE TO ITSCUSTOMER WAS AS FAVORABLE AS POSSIBLE UNDER PREVAILINGMARKET CONDITIONS.
Current Status: Final
Resolution Date: 04/07/2017
Resolution:
Other Sanctions Ordered: INTEREST
Sanction Details: THE FIRM WAS CENSURED, FINED $20,000 AND REQUIRED TO PAYRESTITUTION IN THE TOTAL AMOUNT OF $4,543.08, PLUS INTEREST.
Firm Statement THE FIRM WAS CENSURED, FINED $20,000 AND REQUIRED TO PAYRESTITUTION IN THE TOTAL AMOUNT OF $4,543.08, PLUS INTEREST.
Sanctions Ordered: CensureMonetary/Fine $20,000.00Disgorgement/Restitution
Acceptance, Waiver & Consent(AWC)
Disclosure 10 of 158
i
Reporting Source: Regulator
Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT IT, WITH TWOOTHER FIRMS, FAILED TO MAINTAIN APPROXIMATELY ONE MILLIONELECTRONIC BROKERAGE RECORDS IN NON-ERASABLE AND NON-REWRITABLE FORMAT, KNOWN AS WORM "WRITE ONCE, READ MANY"FORMAT. THE FINDINGS STATED THAT WORM IS INTENDED TO PREVENTTHE ALTERATION OR DESTRUCTION OF BROKER-DEALER RECORDSSTORED ELECTRONICALLY. THE FINDINGS ALSO STATED THAT FORAPPROXIMATELY 1.5 MILLION ACCOUNTS, THE FIRM, WITH THE OTHERTWO FIRMS, FAILED TO PRESERVE CUSTOMER ACCOUNT FORMTEMPLATES CONTAINING THE TERMS AND CONDITIONS RELATED TO THEOPENING AND MAINTENANCE OF THE ACCOUNTS. THE FINDINGS ALSOINCLUDED THAT THE FIRM, WITH ONE OF THE OTHER FIRMS, FAILED TORETAIN CERTAIN COMMUNICATIONS, INCLUDING 77,280 REJECT LETTERSAND 78,200 FULFILLMENT LETTERS. FINRA FOUND THAT THE FIRM FAILEDTO NOTIFY FINRA, ITS DESIGNATED EXAMINING AUTHORITY, AT LEAST 90DAYS PRIOR TO USING NEW STORAGE MEDIA TO STORE ELECTRONICBROKER-DEALER RECORDS. FINRA ALSO FOUND THAT THE FIRM FAILEDTO IMPLEMENT AN AUDIT SYSTEM FOR THOSE RECORDS THEY FAILED TOMAINTAIN IN WORM FORMAT. IN ADDITION, FINRA DETERMINED THAT THEFIRM FAILED TO PROVIDE ITS THIRD-PARTY VENDORS FULL ACCESS TO,AND THE ABILITY TO DOWNLOAD INFORMATION FROM, ITS ELECTRONICSTORAGE SYSTEMS. MOREOVER, FINRA FOUND THAT THE FIRM FAILEDTO IMPLEMENT AN ADEQUATE SUPERVISORY SYSTEM, AND FAILED TOENFORCE WRITTEN PROCEDURES, CONCERNING THE FIRM'S READYACCESS TO ELECTRONIC BROKER-DEALER RECORDS AND ITS STORAGEOF SUCH RECORDS IN WORM FORMAT.
Current Status: Final
53©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other
Other Sanction(s)/ReliefSought:
N/A
Date Initiated: 12/21/2016
Docket/Case Number: 2016050274801
Principal Product Type: No Product
Other Product Type(s):
Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT IT, WITH TWOOTHER FIRMS, FAILED TO MAINTAIN APPROXIMATELY ONE MILLIONELECTRONIC BROKERAGE RECORDS IN NON-ERASABLE AND NON-REWRITABLE FORMAT, KNOWN AS WORM "WRITE ONCE, READ MANY"FORMAT. THE FINDINGS STATED THAT WORM IS INTENDED TO PREVENTTHE ALTERATION OR DESTRUCTION OF BROKER-DEALER RECORDSSTORED ELECTRONICALLY. THE FINDINGS ALSO STATED THAT FORAPPROXIMATELY 1.5 MILLION ACCOUNTS, THE FIRM, WITH THE OTHERTWO FIRMS, FAILED TO PRESERVE CUSTOMER ACCOUNT FORMTEMPLATES CONTAINING THE TERMS AND CONDITIONS RELATED TO THEOPENING AND MAINTENANCE OF THE ACCOUNTS. THE FINDINGS ALSOINCLUDED THAT THE FIRM, WITH ONE OF THE OTHER FIRMS, FAILED TORETAIN CERTAIN COMMUNICATIONS, INCLUDING 77,280 REJECT LETTERSAND 78,200 FULFILLMENT LETTERS. FINRA FOUND THAT THE FIRM FAILEDTO NOTIFY FINRA, ITS DESIGNATED EXAMINING AUTHORITY, AT LEAST 90DAYS PRIOR TO USING NEW STORAGE MEDIA TO STORE ELECTRONICBROKER-DEALER RECORDS. FINRA ALSO FOUND THAT THE FIRM FAILEDTO IMPLEMENT AN AUDIT SYSTEM FOR THOSE RECORDS THEY FAILED TOMAINTAIN IN WORM FORMAT. IN ADDITION, FINRA DETERMINED THAT THEFIRM FAILED TO PROVIDE ITS THIRD-PARTY VENDORS FULL ACCESS TO,AND THE ABILITY TO DOWNLOAD INFORMATION FROM, ITS ELECTRONICSTORAGE SYSTEMS. MOREOVER, FINRA FOUND THAT THE FIRM FAILEDTO IMPLEMENT AN ADEQUATE SUPERVISORY SYSTEM, AND FAILED TOENFORCE WRITTEN PROCEDURES, CONCERNING THE FIRM'S READYACCESS TO ELECTRONIC BROKER-DEALER RECORDS AND ITS STORAGEOF SUCH RECORDS IN WORM FORMAT.
Resolution Date: 12/21/2016
Resolution:
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Acceptance, Waiver & Consent(AWC)
54©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Other Sanctions Ordered: UNDERTAKING
Sanction Details: THE FIRM WAS CENSURED, FINED $1,500,000, JOINTLY AND SEVERALLY,AND IS REQUIRED TO REVIEW ITS POLICIES AND PROCEDURES RELATEDTO THE ADEQUACY OF ITS RELEVANT POLICIES AND PROCEDURES(WRITTEN OR OTHERWISE), INCLUDING A DESCRIPTION OF THE REMEDIALMEASURES LEADING TO FULL COMPLIANCE, RELATING TO THE CONDUCTADDRESSED IN THE AWC. FINES PAID IN FULL ON 12/28/16.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: CensureMonetary/Fine $1,500,000.00
iReporting Source: Firm
Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT IT, WITH TWOOTHER FIRMS, FAILED TO MAINTAIN APPROXIMATELY ONE MILLIONELECTRONIC BROKERAGE RECORDS IN NON-ERASABLE AND NON-REWRITABLE FORMAT, KNOWN AS WORM "WRITE ONCE, READ MANY"FORMAT. THE FINDINGS STATED THAT WORM IS INTENDED TO PREVENTTHE ALTERATION OR DESTRUCTION OF BROKER-DEALER RECORDSSTORED ELECTRONICALLY. THE FINDINGS ALSO STATED THAT FORAPPROXIMATELY 1.5 MILLION ACCOUNTS, THE FIRM, WITH THE OTHERTWO FIRMS, FAILED TO PRESERVE CUSTOMER ACCOUNT FORMTEMPLATES CONTAINING THE TERMS AND CONDITIONS RELATED TO THEOPENING AND MAINTENANCE OF THE ACCOUNTS. THE FINDINGS ALSOINCLUDED THAT THE FIRM, WITH ONE OF THE OTHER FIRMS, FAILED TORETAIN CERTAIN COMMUNICATIONS, INCLUDING 77,280 REJECT LETTERSAND 78,200 FULFILLMENT LETTERS. FINRA FOUND THAT THE FIRM FAILEDTO NOTIFY FINRA, ITS DESIGNATED EXAMINING AUTHORITY, AT LEAST 90DAYS PRIOR TO USING NEW STORAGE MEDIA TO STORE ELECTRONICBROKER-DEALER RECORDS. FINRA ALSO FOUND THAT THE FIRM FAILEDTO IMPLEMENT AN AUDIT SYSTEM FOR THOSE RECORDS THEY FAILED TOMAINTAIN IN WORM FORMAT. IN ADDITION, FINRA DETERMINED THAT THEFIRM FAILED TO PROVIDE ITS THIRD-PARTY VENDORS FULL ACCESS TO,AND THE ABILITY TO DOWNLOAD INFORMATION FROM, ITS ELECTRONICSTORAGE SYSTEMS. MOREOVER, FINRA FOUND THAT THE FIRM FAILEDTO IMPLEMENT AN ADEQUATE SUPERVISORY SYSTEM, AND FAILED TOENFORCE WRITTEN PROCEDURES, CONCERNING THE FIRM'S READYACCESS TO ELECTRONIC BROKER-DEALER RECORDS AND ITS STORAGEOF SUCH RECORDS IN WORM FORMAT.
Current Status: Final
55©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other
Other Sanction(s)/ReliefSought:
N/A
Date Initiated: 12/21/2016
Docket/Case Number: 2016050274801
Principal Product Type: No Product
Other Product Type(s):
WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT IT, WITH TWOOTHER FIRMS, FAILED TO MAINTAIN APPROXIMATELY ONE MILLIONELECTRONIC BROKERAGE RECORDS IN NON-ERASABLE AND NON-REWRITABLE FORMAT, KNOWN AS WORM "WRITE ONCE, READ MANY"FORMAT. THE FINDINGS STATED THAT WORM IS INTENDED TO PREVENTTHE ALTERATION OR DESTRUCTION OF BROKER-DEALER RECORDSSTORED ELECTRONICALLY. THE FINDINGS ALSO STATED THAT FORAPPROXIMATELY 1.5 MILLION ACCOUNTS, THE FIRM, WITH THE OTHERTWO FIRMS, FAILED TO PRESERVE CUSTOMER ACCOUNT FORMTEMPLATES CONTAINING THE TERMS AND CONDITIONS RELATED TO THEOPENING AND MAINTENANCE OF THE ACCOUNTS. THE FINDINGS ALSOINCLUDED THAT THE FIRM, WITH ONE OF THE OTHER FIRMS, FAILED TORETAIN CERTAIN COMMUNICATIONS, INCLUDING 77,280 REJECT LETTERSAND 78,200 FULFILLMENT LETTERS. FINRA FOUND THAT THE FIRM FAILEDTO NOTIFY FINRA, ITS DESIGNATED EXAMINING AUTHORITY, AT LEAST 90DAYS PRIOR TO USING NEW STORAGE MEDIA TO STORE ELECTRONICBROKER-DEALER RECORDS. FINRA ALSO FOUND THAT THE FIRM FAILEDTO IMPLEMENT AN AUDIT SYSTEM FOR THOSE RECORDS THEY FAILED TOMAINTAIN IN WORM FORMAT. IN ADDITION, FINRA DETERMINED THAT THEFIRM FAILED TO PROVIDE ITS THIRD-PARTY VENDORS FULL ACCESS TO,AND THE ABILITY TO DOWNLOAD INFORMATION FROM, ITS ELECTRONICSTORAGE SYSTEMS. MOREOVER, FINRA FOUND THAT THE FIRM FAILEDTO IMPLEMENT AN ADEQUATE SUPERVISORY SYSTEM, AND FAILED TOENFORCE WRITTEN PROCEDURES, CONCERNING THE FIRM'S READYACCESS TO ELECTRONIC BROKER-DEALER RECORDS AND ITS STORAGEOF SUCH RECORDS IN WORM FORMAT.
Resolution Date: 12/21/2016
Resolution:
Other Sanctions Ordered: UNDERTAKING
Sanction Details: THE FIRM WAS CENSURED, FINED $1,500,000, JOINTLY AND SEVERALLY,AND IS REQUIRED TO REVIEW ITS POLICIES AND PROCEDURES RELATEDTO THE ADEQUACY OF ITS RELEVANT POLICIES AND PROCEDURES(WRITTEN OR OTHERWISE), INCLUDING A DESCRIPTION OF THE REMEDIALMEASURES LEADING TO FULL COMPLIANCE, RELATING TO THE CONDUCTADDRESSED IN THE AWC
Sanctions Ordered: CensureMonetary/Fine $1,500,000.00
Acceptance, Waiver & Consent(AWC)
Disclosure 11 of 158
i
Reporting Source: Regulator
Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM AND ITSAFFILIATE CONSENTED TO THE SANCTIONS AND TO THE ENTRY OFFINDINGS THAT THEY FAILED TO ESTABLISH, MAINTAIN, AND ENFORCEREASONABLE SUPERVISORY SYSTEMS FOR THE USE OF CONSOLIDATEDREPORTS GENERATED BY THEIR REGISTERED REPRESENTATIVESTHROUGH A PARTICULAR APPLICATION (THE APPLICATION) THAT THEFIRMS MADE AVAILABLE TO THEIR REGISTERED REPRESENTATIVES. THEFINDINGS STATED THAT THE FIRM AND ITS AFFILIATE PERMITTED THEIRREGISTERED REPRESENTATIVES TO USE UP TO 10 OR MORE DIFFERENTAPPLICATIONS TO CREATE CONSOLIDATED REPORTS, INCLUDING THEAPPLICATION. THE APPLICATION WAS THE MOST WIDELY USEDCONSOLIDATED REPORTING APPLICATION AT THE FIRMS. THE FINDINGSALSO STATED THAT WHEN PREPARING APPLICATION REPORTS, THEFIRMS' REPRESENTATIVES WERE PERMITTED TO MANUALLY ENTERINFORMATION REGARDING CUSTOMERS' EXTERNAL ACCOUNTS, ASSETSAND LIABILITIES INTO A CENTRALIZED ASSETS AND LIABILITIES TABLE,WHICH THE FIRMS MAINTAINED. THE APPLICATION WOULD PULL THATINFORMATION FROM THE TABLE TO POPULATE THE APPLICATIONREPORTS, INCLUDING THOSE THAT WERE THEN SENT TO THE FIRMS'CUSTOMERS. THE FIRMS REVIEWED A RANDOM SAMPLING OF ONLY 2PERCENT OF THE APPLICATION REPORTS. THE FIRM AND ITS AFFILIATEDID NOT, AND HAD NO SYSTEM IN PLACE TO, REVIEW THE CONTENTS OFTHE APPLICATION REPORTS, INCLUDING INFORMATION ABOUTCUSTOMERS' HOLDINGS AWAY FROM THE FIRMS. THE FINDINGS ALSOINCLUDED THAT THE FIRMS' SUPERVISORY SYSTEMS AND PROCEDURESWERE INADEQUATE BECAUSE THERE WAS NO MECHANISM ALLOWINGTHEIR REPRESENTATIVES TO DESIGNATE WHICH APPLICATION REPORTSWERE ACTUALLY PROVIDED TO CUSTOMERS. THE FIRMS COULD NOTDISTINGUISH BETWEEN DRAFT APPLICATION REPORTS AND REPORTSTHAT WERE COMPLETED AND SENT TO CUSTOMERS, WHICH SHOULDHAVE BEEN SUBJECTED TO THE FIRMS' SUPERVISORY SYSTEMSDESIGNED TO REVIEW CUSTOMER COMMUNICATIONS.
Current Status: Final
56©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 12/05/2016
Docket/Case Number: 2015043740201
Principal Product Type: No Product
Other Product Type(s):
WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM AND ITSAFFILIATE CONSENTED TO THE SANCTIONS AND TO THE ENTRY OFFINDINGS THAT THEY FAILED TO ESTABLISH, MAINTAIN, AND ENFORCEREASONABLE SUPERVISORY SYSTEMS FOR THE USE OF CONSOLIDATEDREPORTS GENERATED BY THEIR REGISTERED REPRESENTATIVESTHROUGH A PARTICULAR APPLICATION (THE APPLICATION) THAT THEFIRMS MADE AVAILABLE TO THEIR REGISTERED REPRESENTATIVES. THEFINDINGS STATED THAT THE FIRM AND ITS AFFILIATE PERMITTED THEIRREGISTERED REPRESENTATIVES TO USE UP TO 10 OR MORE DIFFERENTAPPLICATIONS TO CREATE CONSOLIDATED REPORTS, INCLUDING THEAPPLICATION. THE APPLICATION WAS THE MOST WIDELY USEDCONSOLIDATED REPORTING APPLICATION AT THE FIRMS. THE FINDINGSALSO STATED THAT WHEN PREPARING APPLICATION REPORTS, THEFIRMS' REPRESENTATIVES WERE PERMITTED TO MANUALLY ENTERINFORMATION REGARDING CUSTOMERS' EXTERNAL ACCOUNTS, ASSETSAND LIABILITIES INTO A CENTRALIZED ASSETS AND LIABILITIES TABLE,WHICH THE FIRMS MAINTAINED. THE APPLICATION WOULD PULL THATINFORMATION FROM THE TABLE TO POPULATE THE APPLICATIONREPORTS, INCLUDING THOSE THAT WERE THEN SENT TO THE FIRMS'CUSTOMERS. THE FIRMS REVIEWED A RANDOM SAMPLING OF ONLY 2PERCENT OF THE APPLICATION REPORTS. THE FIRM AND ITS AFFILIATEDID NOT, AND HAD NO SYSTEM IN PLACE TO, REVIEW THE CONTENTS OFTHE APPLICATION REPORTS, INCLUDING INFORMATION ABOUTCUSTOMERS' HOLDINGS AWAY FROM THE FIRMS. THE FINDINGS ALSOINCLUDED THAT THE FIRMS' SUPERVISORY SYSTEMS AND PROCEDURESWERE INADEQUATE BECAUSE THERE WAS NO MECHANISM ALLOWINGTHEIR REPRESENTATIVES TO DESIGNATE WHICH APPLICATION REPORTSWERE ACTUALLY PROVIDED TO CUSTOMERS. THE FIRMS COULD NOTDISTINGUISH BETWEEN DRAFT APPLICATION REPORTS AND REPORTSTHAT WERE COMPLETED AND SENT TO CUSTOMERS, WHICH SHOULDHAVE BEEN SUBJECTED TO THE FIRMS' SUPERVISORY SYSTEMSDESIGNED TO REVIEW CUSTOMER COMMUNICATIONS.
Resolution Date: 12/05/2016
Resolution:
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Acceptance, Waiver & Consent(AWC)
57©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Other Sanctions Ordered:
Sanction Details: THE FIRM WAS CENSURED AND FINED $1,000,000, JOINTLY ANDSEVERALLY. FINES PAID IN FULL ON 12/23/16.
Sanctions Ordered: CensureMonetary/Fine $1,000,000.00
iReporting Source: Firm
Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM AND ITSAFFILIATE CONSENTED TO THE SANCTIONS AND TO THE ENTRY OFFINDINGS THAT THEY FAILED TO ESTABLISH, MAINTAIN,AND ENFORCE REASONABLE SUPERVISORY SYSTEMS FOR THE USE OFCONSOLIDATED REPORTS GENERATED BY THEIR REGISTEREDREPRESENTATIVES THROUGH A PARTICULAR APPLICATION (THEAPPLICATION) THAT THE FIRMS MADE AVAILABLE TO THEIR REGISTEREDREPRESENTATIVES. THE FINDINGS STATED THAT THE FIRM AND ITSAFFILIATE PERMITTED THEIR REGISTEREDREPRESENTATIVES TO USE UP TO 10 OR MORE DIFFERENT APPLICATIONSTO CREATE CONSOLIDATED REPORTS, INCLUDING THE APPLICATION. THEAPPLICATION WAS THE MOST WIDELY USED CONSOLIDATED REPORTINGAPPLICATION AT THE FIRMS. THE FINDINGS ALSO STATED THAT WHENPREPARING APPLICATION REPORTS, THE FIRMS' REPRESENTATIVESWERE PERMITTED TOMANUALLY ENTER INFORMATION REGARDING CUSTOMERS' EXTERNALACCOUNTS, ASSETS AND LIABILITIES INTO A CENTRALIZED ASSETS ANDLIABILITIES TABLE, WHICH THE FIRMS MAINTAINED. THE APPLICATIONWOULD PULL THAT INFORMATION FROM THE TABLE TO POPULATE THEAPPLICATION REPORTS, INCLUDING THOSE THAT WERE THEN SENT TOTHE FIRMS' CUSTOMERS. THE FIRMS REVIEWED A RANDOM SAMPLING OFONLY 2 PERCENT OF THE APPLICATION REPORTS. THE FIRM AND ITSAFFILIATE DID NOT, AND HAD NO SYSTEM IN PLACE TO, REVIEW THECONTENTS OF THE APPLICATION REPORTS, INCLUDING INFORMATIONABOUT CUSTOMERS' HOLDINGS AWAY FROM THE FIRMS. THE FINDINGSALSO INCLUDED THAT THE FIRMS' SUPERVISORY SYSTEMS ANDPROCEDURES WERE INADEQUATE BECAUSE THERE WAS NO MECHANISMALLOWING THEIR REPRESENTATIVES TO DESIGNATE WHICH APPLICATIONREPORTSWERE ACTUALLY PROVIDED TO CUSTOMERS. THE FIRMS COULD NOTDISTINGUISH BETWEEN DRAFT APPLICATION REPORTS AND REPORTSTHAT WERE COMPLETED AND SENT TO CUSTOMERS, WHICHSHOULD HAVE BEEN SUBJECTED TO THE FIRMS' SUPERVISORY SYSTEMSDESIGNED TO REVIEW CUSTOMER COMMUNICATIONS.
Current Status: Final
58©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 12/05/2016
Docket/Case Number: 2015043740201
Principal Product Type: No Product
Other Product Type(s):
Resolution Date: 12/05/2016
Resolution:
Other Sanctions Ordered:
Sanction Details: THE FIRM WAS CENSURED AND FINED $1,000,000, JOINTLY ANDSEVERALLY.
Sanctions Ordered: CensureMonetary/Fine $1,000,000.00
Acceptance, Waiver & Consent(AWC)
Disclosure 12 of 158
i
Reporting Source: Regulator
Initiated By: FINRA
Date Initiated: 10/20/2016
Docket/Case Number: 2015046578401
Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT IT EFFECTED39 CUSTOMER TRANSACTIONS IN A MUNICIPAL SECURITY IN AN AMOUNTLOWER THAN THE MINIMUM DENOMINATION OF THE ISSUE WHICH WERENOT SUBJECT TO AN EXCEPTION UNDER THE RULE. THE FINDINGSSTATED THAT THE FIRM FAILED TO DISCLOSE ALL MATERIAL FACTSCONCERNING 39 MUNICIPAL SECURITIES TRANSACTIONS AT OR PRIOR TOTHE TIME OF TRADE. SPECIFICALLY, THE FIRM FAILED TO INFORM ITSCUSTOMER THAT THE MUNICIPAL SECURITIES TRANSACTION WAS IN ANAMOUNT BELOW THE MINIMUM DENOMINATION OF THE ISSUE, OR THATTHE MUNICIPAL SECURITIES CONTAINED A RESALE RESTRICTION WHICHCOULD AFFECT THE LIQUIDITY OF THE CUSTOMER'S POSITION.
Current Status: Final
59©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Docket/Case Number: 2015046578401
Principal Product Type: Debt - Municipal
Other Product Type(s):
Resolution Date: 10/20/2016
Resolution:
Other Sanctions Ordered: REQUIRED TO OFFER RESCISSION TO CUSTOMERS
Sanction Details: THE FIRM WAS CENSURED, FINED $42,500, AND REQUIRED TO OFFERRESCISSION TO THE CUSTOMERS WHO PURCHASED THE SECURITIES ATEITHER THE ORIGINAL PURCHASE PRICE OR THE CURRENT FAIR MARKETVALUE, WHICHEVER IS HIGHER. THE OFFER OF RESCISSION SHALLREMAIN OPEN WITH THE AFFECTED CUSTOMER FOR A PERIOD OF 60DAYS. FINES PAID IN FULL ON NOVEMBER 8, 2016.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: CensureMonetary/Fine $42,500.00
Acceptance, Waiver & Consent(AWC)
iReporting Source: Firm
Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT IT EFFECTED39 CUSTOMER TRANSACTIONS IN A MUNICIPAL SECURITY IN AN AMOUNTLOWER THAN THE MINIMUM DENOMINATION OF THE ISSUE WHICH WERENOT SUBJECT TO AN EXCEPTION UNDER THE RULE. THE FINDINGSSTATED THAT THE FIRM FAILED TO DISCLOSE ALL MATERIAL FACTSCONCERNING 39 MUNICIPAL SECURITIES TRANSACTIONS AT OR PRIOR TOTHE TIME OF TRADE. SPECIFICALLY, THE FIRM FAILED TO INFORM ITSCUSTOMER THAT THE MUNICIPAL SECURITIES TRANSACTION WAS IN ANAMOUNT BELOW THE MINIMUM DENOMINATION OF THE ISSUE, OR THATTHE MUNICIPAL SECURITIES CONTAINED A RESALE RESTRICTION WHICHCOULD AFFECT THE LIQUIDITY OF THE CUSTOMER'S POSITION.
Current Status: Final
60©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 10/20/2016
Docket/Case Number: 2015046578401
Principal Product Type: Debt - Municipal
Other Product Type(s):
WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT IT EFFECTED39 CUSTOMER TRANSACTIONS IN A MUNICIPAL SECURITY IN AN AMOUNTLOWER THAN THE MINIMUM DENOMINATION OF THE ISSUE WHICH WERENOT SUBJECT TO AN EXCEPTION UNDER THE RULE. THE FINDINGSSTATED THAT THE FIRM FAILED TO DISCLOSE ALL MATERIAL FACTSCONCERNING 39 MUNICIPAL SECURITIES TRANSACTIONS AT OR PRIOR TOTHE TIME OF TRADE. SPECIFICALLY, THE FIRM FAILED TO INFORM ITSCUSTOMER THAT THE MUNICIPAL SECURITIES TRANSACTION WAS IN ANAMOUNT BELOW THE MINIMUM DENOMINATION OF THE ISSUE, OR THATTHE MUNICIPAL SECURITIES CONTAINED A RESALE RESTRICTION WHICHCOULD AFFECT THE LIQUIDITY OF THE CUSTOMER'S POSITION.
Resolution Date: 10/20/2016
Resolution:
Other Sanctions Ordered: REQUIRED TO OFFER RESCISSION TO CUSTOMERS
Sanction Details: THE FIRM WAS CENSURED, FINED $42,500, AND REQUIRED TO OFFERRESCISSION TO THECUSTOMERS WHO PURCHASED THE SECURITIES AT EITHER THEORIGINAL PURCHASE PRICE ORTHE CURRENT FAIR MARKET VALUE, WHICHEVER IS HIGHER. THE OFFEROF RESCISSION SHALLREMAIN OPEN WITH THE AFFECTED CUSTOMER FOR A PERIOD OF 60DAYS. FINES PAID IN FULLON NOVEMBER 8, 2016.
Firm Statement N/A
Sanctions Ordered: CensureMonetary/Fine $42,500.00
Acceptance, Waiver & Consent(AWC)
Disclosure 13 of 158
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Reporting Source: Firm
Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, WELLS FARGO BANK,N.A. ("WFBNA") CONSENTED TO THE ENTRY OF AN ORDER THAT ITSCOMMUNITY BANK GROUP HAD UNSAFE OR UNSOUND PRACTICES INRISK MANAGEMENT AND OVERSIGHT OF SALES PRACTICES, AND UNSAFEOR UNSOUND SALES PRACTICES BY SELLING UNWANTED DEPOSIT ORCREDIT CARD ACCOUNTS, THE UNAUTHORIZED OPENING OF SUCHACCOUNTS, THE TRANSFER OF FUNDS TO UNAUTHORIZED ACCOUNTS,AND UNAUTHORIZED CREDIT INQUIRIES TO OPEN THE ACCOUNTS.
Current Status: Final
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www.finra.org/brokercheck User Guidance
Initiated By: COMPTROLLER OF THE CURRENCY (OCC)
Principal Sanction(s)/ReliefSought:
Cease and Desist
Other Sanction(s)/ReliefSought:
COMPLIANCE AND RISK MANAGEMENT PLAN; PAY REIMBURSEMENT TOAFFECTED CONSUMERS; CIVIL MONEY PENALTY.
Date Initiated: 09/06/2016
Docket/Case Number: AA-EC-2016-66 AND AA-EC-2016-67
Principal Product Type: Banking Products (Other than CD(s))
Other Product Type(s):
WITHOUT ADMITTING OR DENYING THE FINDINGS, WELLS FARGO BANK,N.A. ("WFBNA") CONSENTED TO THE ENTRY OF AN ORDER THAT ITSCOMMUNITY BANK GROUP HAD UNSAFE OR UNSOUND PRACTICES INRISK MANAGEMENT AND OVERSIGHT OF SALES PRACTICES, AND UNSAFEOR UNSOUND SALES PRACTICES BY SELLING UNWANTED DEPOSIT ORCREDIT CARD ACCOUNTS, THE UNAUTHORIZED OPENING OF SUCHACCOUNTS, THE TRANSFER OF FUNDS TO UNAUTHORIZED ACCOUNTS,AND UNAUTHORIZED CREDIT INQUIRIES TO OPEN THE ACCOUNTS.
Resolution Date: 09/06/2016
Resolution:
Other Sanctions Ordered: ESTABLISH A COMPLIANCE PLAN; CREATE RISK MANAGEMENT AND AUDITOVERSIGHT, PROVIDE REIMBURSEMENT PLAN AND ASSESSMENT.
Sanction Details: FINE PAID OF $35,000,000.00
Sanctions Ordered: Monetary/Fine $35,000,000.00Disgorgement/RestitutionCease and Desist/Injunction
Consent
Disclosure 14 of 158
i
Reporting Source: Firm
Initiated By: CONSUMER FINANCIAL PROTECTION BUREAU (CFPB)
Date Initiated: 09/04/2016
Docket/Case Number: 2016-CFPB-0015
Principal Product Type: Banking Products (Other than CD(s))
Other Product Type(s):
Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, WELLS FARGO BANK,N.A. ("WFBNA") CONSENTED TO THE ENTRY OF AN ORDER THAT ITSCOMMUNITY BANK GROUP ENGAGED IN UNFAIR AND ABUSIVE PRACTICESBY OPENING DEPOSIT ACCOUNTS, TRANSFERRING FUNDS BETWEENACCOUNTS, APPLYING FOR CREDIT CARDS, ISSUING DEBIT CARDS ANDENROLLING CUSTOMERS IN ON-LINE BANKING SERVICES WITHOUT THECUSTOMERS' CONSENT.
Current Status: Final
62©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
CIVIL MONEY PENALTIES OF $100,000,000.00; COMPLIANCE AND REDRESSPLANS; INDEPENDENT CONSULTANT REVIEW, PAY REDRESS TO AFFECTEDCONSUMERS.
Other Product Type(s):
Resolution Date: 09/04/2016
Resolution:
Other Sanctions Ordered: DEVELOP COMPLIANCE PLAN AND MONITORING
Sanction Details: $100,000,000.00 FINE PAID
Sanctions Ordered: Monetary/Fine $100,000,000.00Disgorgement/RestitutionCease and Desist/Injunction
Consent
Disclosure 15 of 158
i
Reporting Source: Firm
Initiated By: CONSUMER FINANCIAL PROTECTION BUREAU (CFPB)
Principal Sanction(s)/ReliefSought:
Cease and Desist
Other Sanction(s)/ReliefSought:
COMPLIANCE PLAN, REMEDIATION TO BORROWERS, PAY CIVIL MONEYPENALTIES OF $3,600,000 AND PROVIDE A QUARTERLY/ANNUAL TRACKINGREPORT TO CFPB.
Date Initiated: 08/20/2016
Docket/Case Number: 2016-CFPB-0013
Principal Product Type: Other
Other Product Type(s): STUDENT LOAN SERVICING
Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, WELLS FARGO BANK,N.A. ("WFBNA") CONSENTED TO THE ENTRY OF AN ORDER THAT UNDERCERTAIN SCENARIOS AND IN CERTAIN TIMEFRAMES ITS EDUCATIONFINANCIAL SERVICES BUSINESS (EFS)ALLOCATED PARTIAL PAYMENTS,AGGREGATED PARTIAL PAYMENTS, AND CHARGED LATE FEES IN WAYSTHAT WERE ALLEGED TO BE UNLAWFUL.
Current Status: Final
Resolution Date: 08/20/2016
Resolution: Consent
63©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Resolution Date: 08/20/2016
Other Sanctions Ordered: DEVELOP COMPLIANCE PLAN AND MONITORING.
Sanction Details: $3,600,000.00 FINE PAID
Sanctions Ordered: Monetary/Fine $3,600,000.00Disgorgement/RestitutionCease and Desist/Injunction
Disclosure 16 of 158
i
Reporting Source: Firm
Initiated By: VERMONT DEPARTMENT OF FINANCIAL REGULATION
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
CENSURE
Date Initiated: 06/28/2016
Docket/Case Number: 16-25-S
Principal Product Type: Other
Other Product Type(s): NON-TRADITIONAL ETFS
Allegations: THE STATE OF VERMONT DEPARTMENT OF FINANCIAL REGULATIONALLEGED THAT WELLS FARGO ADVISORS, LLC FAILED TO REASONABLYSUPERVISE A REGISTERED REPRESENTATIVE WITH REGARD TO THE USEOF INVESTMENTS IN NON-TRADITIONAL ETFS; FAILED TO ESTABLISH ANDMAINTAIN AN ADEQUATE SUPERVISORY SYSTEM IN CONNECTION WITHTHE SALE OF AND INVESTMENT IN NON-TRADITIONAL ETFS; FAILED TOFOLLOW WRITTEN SUPERVISORY PROCEDURES WITH RESPECT TO THEUSE OF AND INVESTMENT IN NON-TRADITIONAL ETFS; AND ALLOWED AREGISTERED REPRESENTATIVE TO RECOMMEND UNSUITABLE PRODUCTSTO A CUSTOMER, ALL IN VIOLATION OF 9 VSA SECTION 5412(D)(9).
Current Status: Final
Resolution Date: 06/28/2016
Resolution:
Other Sanctions Ordered:
Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS.THEREFORE, THE FIRM IS CENSURED AND FINED $300,000.
Sanctions Ordered: CensureMonetary/Fine $300,000.00
Consent
64©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS.THEREFORE, THE FIRM IS CENSURED AND FINED $300,000.
Firm Statement WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS.THEREFORE, THE FIRM IS CENSURED AND FINED $300,000.
Disclosure 17 of 158
i
Reporting Source: Regulator
Initiated By: VIRGINIA STATE CORPORATION COMMISION
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
RESTITUTION
Date Initiated: 09/11/2015
Docket/Case Number: SEC-2014-00035
URL for Regulatory Action: HTTP://WWW.SCC.VIRGINIA.GOV/DOCKETSEARCH#/CASEDETAILS/133609
Principal Product Type: Investment Contract(s)
Other Product Type(s):
Allegations: WELLS FARGO ADVISORS FAILED TO SUPERVISE AN AGENT THAT SOLDOVER $400,000 IN UNREGISTERED SECURITIES TO WELLS FARGOADVISORS' CLIENTS.
Current Status: Final
Resolution Date: 09/11/2015
Resolution:
Other Sanctions Ordered: WELLS FARGO ADVISORS AGREED TO PAY $55,000 TO DEFRAY THE COSTOF INVESTIGATION.
Sanction Details: MONETARY FINE OF $150,000. WELLS FARGO ADVISORS AGREED TO PAY$55,000 TO DEFRAY THE COST OF INVESTIGATION.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: Monetary/Fine $150,000.00Disgorgement/Restitution
Settled
65©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Sanction Details: MONETARY FINE OF $150,000. WELLS FARGO ADVISORS AGREED TO PAY$55,000 TO DEFRAY THE COST OF INVESTIGATION.
Regulator Statement WELLS FARGO ADVISORS EMPLOYED CHRISTOPHER CUNNINGHAM (CRD#2390800) AS AN AGENT FROM 2005 TO 2009. WHILE AT WELLS FARGOADVISORS, CUNNINGHAM SOLD OVER $400,000 IN UNREGISTEREDSECURITIES TO HIS CLIENTS. CUNNINGHAM IS CURRENTLY SERVING 57MONTHS IN FEDERAL PRISON FOR WIRE FRAUD RELATED TO HISSCHEME.
iReporting Source: Firm
Initiated By: COMMONWEALTH OF VIRGINIA
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 09/11/2015
Docket/Case Number: SEC-2014-00035
Principal Product Type: No Product
Other Product Type(s):
Allegations: THE DIVISION ALLEGES THAT WFA COMMITTED MULTIPLE VIOLATIONS OF(I) RULE 21 VAC 5-20-260 B BY FAILING TO EXERCISE DILIGENTSUPERVISION OVER SECURITIES ACTIVITIES OF ITS AGENT; (II) RULE 21VAC 5-20-260 D (2) BY FAILING TO MONITOR AND CONDUCT FREQUENTEXAMINATIONS OF ALL CUSTOMER ACCOUNTS TO DETECT AND PREVENTIRREGULARITIES OR ABUSES; AND (III)RULE 21 VAC 5-20-260 D BY FAILINGTO ENFORCE ITS WRITTEN POLICIES AND PROCEDURES.
Current Status: Final
Resolution Date: 09/11/2015
Resolution:
Other Sanctions Ordered: WELLS FARGO ADVISORS AGREED TO PAY $55,000 TO DEFRAY THE COSTOF INVESTIGATION.
Sanction Details: MONETARY FINE OF $150,000. WELLS FARGO ADVISORS AGREED TO PAY$55,000 TO DEFRAY THE COST OF INVESTIGATION.
Sanctions Ordered: Monetary/Fine $150,000.00Disgorgement/Restitution
Order
66©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Disclosure 18 of 158
i
Reporting Source: Regulator
Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT IT MADEUNSUITABLE RECOMMENDATIONS TO RETAIL CUSTOMERS TO PURCHASESTRUCTURED REPACKAGED ASSET-BACKED TRUST SECURITIES(STRATS), A COMPLEX STRUCTURED PRODUCT THAT PAID A FLOATINGRATE OF PERIODIC INCOME UP TO A MINIMUM OR MAXIMUM RATE, BASEDON THE STRATS TRUST'S INTEREST IN A CAPITAL SECURITY ISSUED BY AFINANCIAL INSTITUTION AND THE STRATS TRUST'S INTEREST IN ANINTEREST RATE SWAP CONTRACT. THE FIRM SOLD APPROXIMATELY $12MILLION WORTH OF THE STRATS TO ITS RETAIL CUSTOMERS, IN BOTHPRIMARY AND SECONDARY MARKETS. ALTHOUGH THE FIRM PROVIDEDITS SALES-FORCE TRAINING ON STRUCTURED PRODUCTS, NONE OF THISTRAINING RELATED SPECIFICALLY TO THE UNIQUE FEATURES AND RISKSOF THE STRATS. ADDITIONALLY, ALTHOUGH THE FIRM'S INTRANET PAGEDEDICATED TO FIXED INCOME PRODUCTS PROVIDED BASICINFORMATION CONCERNING THE STRATS, IT DID NOT PROVIDE ANYINFORMATION CONCERNING THE RISKS OF INVESTING IN THESEPRODUCTS, AND SPECIFICALLY DID NOT ADDRESS THE RISKS TOCUSTOMER PRINCIPAL IN THE EVENT OF A REDEMPTION OF THEUNDERLYING CAPITAL SECURITY. UNDER THE TERMS OF THEPROSPECTUS FOR THE STRATS, THE AMOUNT PAID TO A CUSTOMER INTHE EVENT OF A TERMINATION WAS THE PROCEEDS OF THEREDEMPTION OF UNDERLYING CAPITAL SECURITY PLUS ACCRUEDINTEREST AND LESS THE SWAP TERMINATION FEE. IN CERTAINCIRCUMSTANCES, THE CUSTOMER WOULD FACE A SUBSTANTIAL RISK OFLOSS OF PRINCIPAL UPON TERMINATION OF THE STRATS DUE TO THEAMOUNT OF THE SWAP TERMINATION FEE. THE FIRM'S REGISTEREDREPRESENTATIVES GENERALLY WERE NOT FAMILIAR WITH SUCH RISKSOF INVESTING IN THE STRATS AND WERE CONSEQUENTLY UNABLE TOEXPLAIN SUCH RISKS WHEN RECOMMENDING THE PRODUCT TO THEFIRM'S RETAIL CUSTOMERS. EVENTUALLY, THE FINANCIAL INSTITUTIONREDEEMED THE UNDERLYING CAPITAL SECURITY, CAUSING THE STRATSTO BE TERMINATED. THE FINANCIAL INSTITUTION REDEEMED THEUNDERLYING CAPITAL SECURITY AT PAR VALUE PLUS ACCRUEDINTEREST. BASED ON THE TERMS OF THE UNDERLYING SWAPAGREEMENT, CUSTOMERS RECEIVED THE PROCEEDS OF THEREDEMPTION AFTER THE SWAP TERMINATION FEE WAS PAID. AS ARESULT, AT THE TIME OF THE STRATS' TERMINATION, MANY CUSTOMERSHOLDING THE STRATS RECEIVED LESS, AND IN SOME CASESSIGNIFICANTLY LESS, THAN THE AMOUNT THEY PAID FOR THE STRATS.THE FIRM FAILED TO EDUCATE ITS REGISTERED REPRESENTATIVESREGARDING THE UNIQUE FEATURES AND RISKS OF THE STRATS. AS ARESULT, THE FIRM'S REGISTERED REPRESENTATIVES DID NOTCOMPREHEND THE RISKS TO CUSTOMERS OF INVESTING IN THE STRATSAND THUS LACKED A REASONABLE BASIS FOR RECOMMENDING THESEPRODUCTS TO THE FIRM'S RETAIL CUSTOMERS. THE FINDINGS STATEDTHAT THE FIRM MADE AVAILABLE TO ITS SALES-FORCE CERTAININTERNAL-USE ONLY DOCUMENTS REGARDING THE STRATS. THESEDOCUMENTS DID NOT CONTAIN ADEQUATE DESCRIPTIONS OF THEPRODUCT, NOR DID THEY DISCLOSE THE DEGREE TO WHICH STRATSCUSTOMERS COULD LOSE PRINCIPAL IF THE UNDERLYING CAPITALSECURITY WAS REDEEMED. ACCORDINGLY, THE FIRM'S INTERNAL-USEONLY COMMUNICATIONS WERE NOT FAIR AND BALANCED AND DID NOTPROVIDE A SOUND BASIS FOR EVALUATING THE FACTS SURROUNDINGTHE STRATS OR ITS RISKS. THE FINDINGS ALSO STATED THAT THE FIRMFAILED TO ESTABLISH AND MAINTAIN SUPERVISORY PROCEDURES,INCLUDING TRAINING OF ITS REGISTERED REPRESENTATIVES,REASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITH FINRASUITABILITY STANDARDS. THE FIRM'S SUPERVISORY SYSTEM FOR THESALE OF STRATS WAS NOT REASONABLY DESIGNED BECAUSE IT FAILEDTO INCLUDE ADEQUATE TRAINING FOR THE FIRM'S SALES-FORCEREGARDING THE RISKS OF INVESTING IN THE PRODUCT. THE FIRM DIDNOT PROVIDE PRODUCT SPECIFIC TRAINING TO ITS REGISTEREDREPRESENTATIVES, AND THE INTERNAL-USE ONLY MATERIALS MADEAVAILABLE TO ITS REGISTERED REPRESENTATIVES DID NOT ADEQUATELYINFORM ITS REPRESENTATIVES ABOUT THE RISKS OF INVESTING IN THESTRATS.
Current Status: Final
67©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 08/03/2015
Docket/Case Number: 2012033568901
Principal Product Type: Other
Other Product Type(s): STRUCTURED REPACKAGED ASSET-BACKED TRUST SECURITIES /INTEREST RATE SWAP CONTRACT
WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT IT MADEUNSUITABLE RECOMMENDATIONS TO RETAIL CUSTOMERS TO PURCHASESTRUCTURED REPACKAGED ASSET-BACKED TRUST SECURITIES(STRATS), A COMPLEX STRUCTURED PRODUCT THAT PAID A FLOATINGRATE OF PERIODIC INCOME UP TO A MINIMUM OR MAXIMUM RATE, BASEDON THE STRATS TRUST'S INTEREST IN A CAPITAL SECURITY ISSUED BY AFINANCIAL INSTITUTION AND THE STRATS TRUST'S INTEREST IN ANINTEREST RATE SWAP CONTRACT. THE FIRM SOLD APPROXIMATELY $12MILLION WORTH OF THE STRATS TO ITS RETAIL CUSTOMERS, IN BOTHPRIMARY AND SECONDARY MARKETS. ALTHOUGH THE FIRM PROVIDEDITS SALES-FORCE TRAINING ON STRUCTURED PRODUCTS, NONE OF THISTRAINING RELATED SPECIFICALLY TO THE UNIQUE FEATURES AND RISKSOF THE STRATS. ADDITIONALLY, ALTHOUGH THE FIRM'S INTRANET PAGEDEDICATED TO FIXED INCOME PRODUCTS PROVIDED BASICINFORMATION CONCERNING THE STRATS, IT DID NOT PROVIDE ANYINFORMATION CONCERNING THE RISKS OF INVESTING IN THESEPRODUCTS, AND SPECIFICALLY DID NOT ADDRESS THE RISKS TOCUSTOMER PRINCIPAL IN THE EVENT OF A REDEMPTION OF THEUNDERLYING CAPITAL SECURITY. UNDER THE TERMS OF THEPROSPECTUS FOR THE STRATS, THE AMOUNT PAID TO A CUSTOMER INTHE EVENT OF A TERMINATION WAS THE PROCEEDS OF THEREDEMPTION OF UNDERLYING CAPITAL SECURITY PLUS ACCRUEDINTEREST AND LESS THE SWAP TERMINATION FEE. IN CERTAINCIRCUMSTANCES, THE CUSTOMER WOULD FACE A SUBSTANTIAL RISK OFLOSS OF PRINCIPAL UPON TERMINATION OF THE STRATS DUE TO THEAMOUNT OF THE SWAP TERMINATION FEE. THE FIRM'S REGISTEREDREPRESENTATIVES GENERALLY WERE NOT FAMILIAR WITH SUCH RISKSOF INVESTING IN THE STRATS AND WERE CONSEQUENTLY UNABLE TOEXPLAIN SUCH RISKS WHEN RECOMMENDING THE PRODUCT TO THEFIRM'S RETAIL CUSTOMERS. EVENTUALLY, THE FINANCIAL INSTITUTIONREDEEMED THE UNDERLYING CAPITAL SECURITY, CAUSING THE STRATSTO BE TERMINATED. THE FINANCIAL INSTITUTION REDEEMED THEUNDERLYING CAPITAL SECURITY AT PAR VALUE PLUS ACCRUEDINTEREST. BASED ON THE TERMS OF THE UNDERLYING SWAPAGREEMENT, CUSTOMERS RECEIVED THE PROCEEDS OF THEREDEMPTION AFTER THE SWAP TERMINATION FEE WAS PAID. AS ARESULT, AT THE TIME OF THE STRATS' TERMINATION, MANY CUSTOMERSHOLDING THE STRATS RECEIVED LESS, AND IN SOME CASESSIGNIFICANTLY LESS, THAN THE AMOUNT THEY PAID FOR THE STRATS.THE FIRM FAILED TO EDUCATE ITS REGISTERED REPRESENTATIVESREGARDING THE UNIQUE FEATURES AND RISKS OF THE STRATS. AS ARESULT, THE FIRM'S REGISTERED REPRESENTATIVES DID NOTCOMPREHEND THE RISKS TO CUSTOMERS OF INVESTING IN THE STRATSAND THUS LACKED A REASONABLE BASIS FOR RECOMMENDING THESEPRODUCTS TO THE FIRM'S RETAIL CUSTOMERS. THE FINDINGS STATEDTHAT THE FIRM MADE AVAILABLE TO ITS SALES-FORCE CERTAININTERNAL-USE ONLY DOCUMENTS REGARDING THE STRATS. THESEDOCUMENTS DID NOT CONTAIN ADEQUATE DESCRIPTIONS OF THEPRODUCT, NOR DID THEY DISCLOSE THE DEGREE TO WHICH STRATSCUSTOMERS COULD LOSE PRINCIPAL IF THE UNDERLYING CAPITALSECURITY WAS REDEEMED. ACCORDINGLY, THE FIRM'S INTERNAL-USEONLY COMMUNICATIONS WERE NOT FAIR AND BALANCED AND DID NOTPROVIDE A SOUND BASIS FOR EVALUATING THE FACTS SURROUNDINGTHE STRATS OR ITS RISKS. THE FINDINGS ALSO STATED THAT THE FIRMFAILED TO ESTABLISH AND MAINTAIN SUPERVISORY PROCEDURES,INCLUDING TRAINING OF ITS REGISTERED REPRESENTATIVES,REASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITH FINRASUITABILITY STANDARDS. THE FIRM'S SUPERVISORY SYSTEM FOR THESALE OF STRATS WAS NOT REASONABLY DESIGNED BECAUSE IT FAILEDTO INCLUDE ADEQUATE TRAINING FOR THE FIRM'S SALES-FORCEREGARDING THE RISKS OF INVESTING IN THE PRODUCT. THE FIRM DIDNOT PROVIDE PRODUCT SPECIFIC TRAINING TO ITS REGISTEREDREPRESENTATIVES, AND THE INTERNAL-USE ONLY MATERIALS MADEAVAILABLE TO ITS REGISTERED REPRESENTATIVES DID NOT ADEQUATELYINFORM ITS REPRESENTATIVES ABOUT THE RISKS OF INVESTING IN THESTRATS.
Resolution Date: 08/03/2015
Resolution:
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Acceptance, Waiver & Consent(AWC)
68©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Other Sanctions Ordered: PLUS INTEREST ON THE RESTITUTION
Sanction Details: THE FIRM WAS CENSURED, FINED $500,000, AND ORDERED TO PAY$241,974.34, PLUS INTEREST, IN RESTITUTION TO CUSTOMERS.
THE $500,000 FINE PAID IN FULL ON AUGUST 18, 2015.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: CensureMonetary/Fine $500,000.00Disgorgement/Restitution
iReporting Source: Firm
Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT IT MADEUNSUITABLE RECOMMENDATIONS TO RETAIL CUSTOMERS TO PURCHASESTRUCTURED REPACKAGED ASSET-BACKED TRUST SECURITIES(STRATS), A COMPLEX STRUCTURED PRODUCT THATPAID A FLOATING RATE OF PERIODIC INCOME UP TO A MINIMUM ORMAXIMUM RATE, BASED ON THE STRATS TRUST'S INTEREST IN A CAPITALSECURITY ISSUED BY A FINANCIAL INSTITUTION AND THE STRATS TRUST'SINTEREST IN AN INTEREST RATE SWAP CONTRACT. THE FIRM SOLDAPPROXIMATELY $12 MILLION WORTH OF THE STRATS TO ITS RETAILCUSTOMERS, IN BOTH PRIMARY AND SECONDARY MARKETS. ALTHOUGHTHE FIRM PROVIDED ITS SALES-FORCE TRAINING ON STRUCTUREDPRODUCTS, NONE OF THIS TRAINING RELATED SPECIFICALLY TO THEUNIQUE FEATURES AND RISKS OF THE STRATS. ADDITIONALLY, ALTHOUGHTHE FIRM'S INTRANET PAGE DEDICATED TO FIXED INCOME PRODUCTSPROVIDED BASIC INFORMATION CONCERNING THE STRATS, IT DID NOTPROVIDE ANY INFORMATION CONCERNING THE RISKS OF INVESTING INTHESE PRODUCTS, AND SPECIFICALLY DID NOT ADDRESS THE RISKS TOCUSTOMER PRINCIPAL IN THE EVENT OF A REDEMPTION OF THEUNDERLYING CAPITAL SECURITY. UNDER THE TERMS OF THEPROSPECTUS FOR THE STRATS, THE AMOUNT PAID TO A CUSTOMER INTHE EVENT OF A TERMINATION WAS THE PROCEEDS OF THEREDEMPTION OF UNDERLYING CAPITAL SECURITY PLUS ACCRUEDINTEREST AND LESS THE SWAP TERMINATION FEE. IN CERTAINCIRCUMSTANCES, THE CUSTOMER WOULD FACE A SUBSTANTIAL RISK OFLOSS OF PRINCIPAL UPON TERMINATION OF THE STRATS DUE TO THEAMOUNT OF THE SWAP TERMINATION FEE. THE FIRM'S REGISTEREDREPRESENTATIVES GENERALLY WERE NOT FAMILIAR WITH SUCH RISKSOF INVESTING IN THE STRATS AND WERE CONSEQUENTLY UNABLE TOEXPLAIN SUCH RISKS WHEN RECOMMENDING THE PRODUCT TO THEFIRM'S RETAIL CUSTOMERS. EVENTUALLY, THE FINANCIAL INSTITUTIONREDEEMED THE UNDERLYING CAPITAL SECURITY, CAUSING THE STRATSTO BE TERMINATED. THE FINANCIAL INSTITUTION REDEEMED THEUNDERLYING CAPITAL SECURITY AT PAR VALUE PLUS ACCRUEDINTEREST. BASED ON THE TERMS OF THE[NTC] STRATS, CUSTOMERSRECEIVED THE PROCEEDS OF THE REDEMPTION [NTC] OF THEUNDERLYING CAPITAL SECURITY LESS THE SWAP TERMINATION FEE PAID.AS A RESULT, AT THE TIME OF THE STRATS' TERMINATION, MANYCUSTOMERS HOLDING THE STRATS RECEIVED LESS, AND IN SOME CASESSIGNIFICANTLY LESS, THAN THE AMOUNT THEY PAID FOR THE STRATS.NEVERTHELESS, THE FIRM'S REGISTERED REPRESENTATIVES DID NOTCOMPREHEND THE RISKS TO CUSTOMERS OF INVESTING IN THE STRATSAND THUS LACKED A REASONABLE BASIS FOR RECOMMENDING THESEPRODUCTS TO THE FIRM'S RETAIL CUSTOMERS. THE FINDINGS STATEDTHAT THE FIRM MADE AVAILABLE TO ITS SALES-FORCE CERTAININTERNAL-USE ONLY DOCUMENTS REGARDINGTHE STRATS. THESE DOCUMENTS DID NOT CONTAIN ADEQUATEDESCRIPTIONS OF THE PRODUCT, NOR DID THEY DISCLOSE THE DEGREETO WHICH STRATS CUSTOMERS COULD LOSE PRINCIPAL IF THEUNDERLYING CAPITAL SECURITY WAS REDEEMED. ACCORDINGLY, THEFIRM'S INTERNAL-USE ONLY COMMUNICATIONS WERE NOT FAIR ANDBALANCED AND DID NOT PROVIDE A SOUND BASIS FOR EVALUATING THEFACTS SURROUNDING THE STRATS OR ITS RISKS. THE FINDINGS ALSOSTATED THAT THE FIRM FAILED TO ESTABLISH AND MAINTAINSUPERVISORY PROCEDURES, INCLUDING TRAINING OF ITS REGISTEREDREPRESENTATIVES, REASONABLY DESIGNED TO ACHIEVE COMPLIANCEWITH FINRA SUITABILITY STANDARDS. THE FIRM'S SUPERVISORY SYSTEMFOR THE SALE OF STRATS WAS NOT REASONABLY DESIGNED BECAUSE ITFAILED TO INCLUDE ADEQUATE TRAINING FOR THE FIRM'S SALES-FORCEREGARDING THE RISKS OF INVESTING IN THE PRODUCT. THE FIRM DIDNOT PROVIDE PRODUCT SPECIFIC TRAINING TO ITS REGISTEREDREPRESENTATIVES, AND THE INTERNAL-USE ONLY MATERIALS MADEAVAILABLE TO ITS REGISTERED REPRESENTATIVES DID NOT ADEQUATEINFORM ITS REPRESENTATIVES ABOUT THE RISKS OF INVESTING IN THESTRATS.
Current Status: Final
69©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Initiated By: FINRA
Date Initiated: 08/03/2015
Docket/Case Number: 2012033568901
Principal Product Type: Other
WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT IT MADEUNSUITABLE RECOMMENDATIONS TO RETAIL CUSTOMERS TO PURCHASESTRUCTURED REPACKAGED ASSET-BACKED TRUST SECURITIES(STRATS), A COMPLEX STRUCTURED PRODUCT THATPAID A FLOATING RATE OF PERIODIC INCOME UP TO A MINIMUM ORMAXIMUM RATE, BASED ON THE STRATS TRUST'S INTEREST IN A CAPITALSECURITY ISSUED BY A FINANCIAL INSTITUTION AND THE STRATS TRUST'SINTEREST IN AN INTEREST RATE SWAP CONTRACT. THE FIRM SOLDAPPROXIMATELY $12 MILLION WORTH OF THE STRATS TO ITS RETAILCUSTOMERS, IN BOTH PRIMARY AND SECONDARY MARKETS. ALTHOUGHTHE FIRM PROVIDED ITS SALES-FORCE TRAINING ON STRUCTUREDPRODUCTS, NONE OF THIS TRAINING RELATED SPECIFICALLY TO THEUNIQUE FEATURES AND RISKS OF THE STRATS. ADDITIONALLY, ALTHOUGHTHE FIRM'S INTRANET PAGE DEDICATED TO FIXED INCOME PRODUCTSPROVIDED BASIC INFORMATION CONCERNING THE STRATS, IT DID NOTPROVIDE ANY INFORMATION CONCERNING THE RISKS OF INVESTING INTHESE PRODUCTS, AND SPECIFICALLY DID NOT ADDRESS THE RISKS TOCUSTOMER PRINCIPAL IN THE EVENT OF A REDEMPTION OF THEUNDERLYING CAPITAL SECURITY. UNDER THE TERMS OF THEPROSPECTUS FOR THE STRATS, THE AMOUNT PAID TO A CUSTOMER INTHE EVENT OF A TERMINATION WAS THE PROCEEDS OF THEREDEMPTION OF UNDERLYING CAPITAL SECURITY PLUS ACCRUEDINTEREST AND LESS THE SWAP TERMINATION FEE. IN CERTAINCIRCUMSTANCES, THE CUSTOMER WOULD FACE A SUBSTANTIAL RISK OFLOSS OF PRINCIPAL UPON TERMINATION OF THE STRATS DUE TO THEAMOUNT OF THE SWAP TERMINATION FEE. THE FIRM'S REGISTEREDREPRESENTATIVES GENERALLY WERE NOT FAMILIAR WITH SUCH RISKSOF INVESTING IN THE STRATS AND WERE CONSEQUENTLY UNABLE TOEXPLAIN SUCH RISKS WHEN RECOMMENDING THE PRODUCT TO THEFIRM'S RETAIL CUSTOMERS. EVENTUALLY, THE FINANCIAL INSTITUTIONREDEEMED THE UNDERLYING CAPITAL SECURITY, CAUSING THE STRATSTO BE TERMINATED. THE FINANCIAL INSTITUTION REDEEMED THEUNDERLYING CAPITAL SECURITY AT PAR VALUE PLUS ACCRUEDINTEREST. BASED ON THE TERMS OF THE[NTC] STRATS, CUSTOMERSRECEIVED THE PROCEEDS OF THE REDEMPTION [NTC] OF THEUNDERLYING CAPITAL SECURITY LESS THE SWAP TERMINATION FEE PAID.AS A RESULT, AT THE TIME OF THE STRATS' TERMINATION, MANYCUSTOMERS HOLDING THE STRATS RECEIVED LESS, AND IN SOME CASESSIGNIFICANTLY LESS, THAN THE AMOUNT THEY PAID FOR THE STRATS.NEVERTHELESS, THE FIRM'S REGISTERED REPRESENTATIVES DID NOTCOMPREHEND THE RISKS TO CUSTOMERS OF INVESTING IN THE STRATSAND THUS LACKED A REASONABLE BASIS FOR RECOMMENDING THESEPRODUCTS TO THE FIRM'S RETAIL CUSTOMERS. THE FINDINGS STATEDTHAT THE FIRM MADE AVAILABLE TO ITS SALES-FORCE CERTAININTERNAL-USE ONLY DOCUMENTS REGARDINGTHE STRATS. THESE DOCUMENTS DID NOT CONTAIN ADEQUATEDESCRIPTIONS OF THE PRODUCT, NOR DID THEY DISCLOSE THE DEGREETO WHICH STRATS CUSTOMERS COULD LOSE PRINCIPAL IF THEUNDERLYING CAPITAL SECURITY WAS REDEEMED. ACCORDINGLY, THEFIRM'S INTERNAL-USE ONLY COMMUNICATIONS WERE NOT FAIR ANDBALANCED AND DID NOT PROVIDE A SOUND BASIS FOR EVALUATING THEFACTS SURROUNDING THE STRATS OR ITS RISKS. THE FINDINGS ALSOSTATED THAT THE FIRM FAILED TO ESTABLISH AND MAINTAINSUPERVISORY PROCEDURES, INCLUDING TRAINING OF ITS REGISTEREDREPRESENTATIVES, REASONABLY DESIGNED TO ACHIEVE COMPLIANCEWITH FINRA SUITABILITY STANDARDS. THE FIRM'S SUPERVISORY SYSTEMFOR THE SALE OF STRATS WAS NOT REASONABLY DESIGNED BECAUSE ITFAILED TO INCLUDE ADEQUATE TRAINING FOR THE FIRM'S SALES-FORCEREGARDING THE RISKS OF INVESTING IN THE PRODUCT. THE FIRM DIDNOT PROVIDE PRODUCT SPECIFIC TRAINING TO ITS REGISTEREDREPRESENTATIVES, AND THE INTERNAL-USE ONLY MATERIALS MADEAVAILABLE TO ITS REGISTERED REPRESENTATIVES DID NOT ADEQUATEINFORM ITS REPRESENTATIVES ABOUT THE RISKS OF INVESTING IN THESTRATS.
70©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Principal Sanction(s)/ReliefSought:
Censure
Other Sanction(s)/ReliefSought:
FINE
Principal Product Type: Other
Other Product Type(s): STRUCTURED REPACKAGED ASSET-BACKED TRUST SECURITIES
Resolution Date: 08/03/2015
Resolution:
Other Sanctions Ordered: PLUS INTEREST ON THE RESTITUTION
Sanction Details: THE FIRM WAS CENSURED, FINED $500,000, AND ORDERED TO PAY$241,974.34, PLUS INTEREST, IN RESTITUTION TO CUSTOMERS.
Sanctions Ordered: CensureMonetary/Fine $500,000.00Disgorgement/Restitution
Acceptance, Waiver & Consent(AWC)
Disclosure 19 of 158
i
Reporting Source: Regulator
Initiated By: FINRA
Date Initiated: 07/06/2015
Docket/Case Number: 2014042689901
Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT ITDISADVANTAGED CERTAIN RETIREMENT PLAN AND CHARITABLEORGANIZATION CUSTOMERS THAT WERE ELIGIBLE TO PURCHASE CLASSA SHARES IN CERTAIN MUTUAL FUNDS WITHOUT A FRONT-END SALESCHARGE. THE FINDINGS STATED THAT THESE CUSTOMERS WEREINSTEAD SOLD CLASS A SHARES WITH A FRONT-END SALES CHARGE ORCLASS B OR C SHARES WITH BACK-END SALES CHARGES AND HIGHERONGOING FEES AND EXPENSES. THE FINDINGS ALSO STATED THAT THEFIRM FAILED TO ESTABLISH AND MAINTAIN A SUPERVISORY SYSTEM ANDPROCEDURES REASONABLY DESIGNED TO ENSURE THAT ELIGIBLECUSTOMERS WHO PURCHASED MUTUAL FUND SHARES RECEIVED THEBENEFIT OF APPLICABLE SALES CHARGE WAIVERS. THE FIRM FAILED TOADOPT ADEQUATE CONTROLS TO DETECT INSTANCES IN WHICH THEY DIDNOT PROVIDE SALES CHARGE WAIVERS TO CUSTOMERS IN CONNECTIONWITH THEIR MUTUAL FUND PURCHASES.
Current Status: Final
71©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Principal Sanction(s)/ReliefSought:
Other
Other Sanction(s)/ReliefSought:
N/A
Principal Product Type: Mutual Fund(s)
Other Product Type(s):
Resolution Date: 07/06/2015
Resolution:
Other Sanctions Ordered: UNDERTAKING
Sanction Details: THE FIRM IS CENSURED, ORDERED TO PROVIDE RESTITUTION TOCUSTOMERS, WHICH INCLUDES THE SALES CHARGE PAID, PLUSINTEREST, AND WITH RESPECT TO ANY ELIGIBLE CUSTOMER THATPURCHASED CLASS B OR C SHARES AND STILL HOLDS SUCH SHARES INAN ACCOUNT AT THE FIRM, IT SHALL OFFER SUCH CUSTOMER THEOPTION OF CONVERTING SUCH CLASS B OR C SHARES TO CLASS ASHARES. IF AN ELIGIBLE FUND DOES NOT PERMIT CONVERSION OF CLASSB OR C SHARES TO CLASS A SHARES, THE ELIGIBLE CUSTOMER SHALL BEPROVIDED THE OPTION OF REPLACING CLASS B OR C SHARES WITH ANEQUIVALENT VALUE OF CLASS A SHARES OFFERED BY ANOTHER ELIGIBLEFUND. THE FIRM SHALL CAUSE SUCH CONVERSION TO OCCUR AT NOEXPENSE TO THE CUSTOMER.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: CensureDisgorgement/Restitution
Acceptance, Waiver & Consent(AWC)
iReporting Source: Firm
Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT ITDISADVANTAGED CERTAIN RETIREMENT PLAN AND CHARITABLEORGANIZATION CUSTOMERS THAT WERE ELIGIBLE TO PURCHASE CLASSA SHARES IN CERTAIN MUTUAL FUNDS WITHOUT A FRONT-END SALESCHARGE. THE FINDINGS STATED THAT THESE CUSTOMERS WEREINSTEAD SOLD CLASS A SHARES WITH A FRONT-END SALES CHARGE ORCLASS B OR C SHARES WITH BACK-END SALES CHARGES AND HIGHERONGOING FEES AND EXPENSES. THE FINDINGS ALSO STATED THAT THEFIRM FAILED TO ESTABLISH AND MAINTAIN A SUPERVISORY SYSTEM ANDPROCEDURES REASONABLY DESIGNED TO ENSURE THAT ELIGIBLECUSTOMERS WHO PURCHASED MUTUAL FUND SHARES RECEIVED THEBENEFIT OF APPLICABLE SALES CHARGE WAIVERS. THE FIRM FAILED TOADOPT ADEQUATE CONTROLS TO DETECT INSTANCES IN WHICH THEY DIDNOT PROVIDE SALES CHARGE WAIVERS TO CUSTOMERS IN CONNECTIONWITH THEIR MUTUAL FUND PURCHASES.
Current Status: Final
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Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other
Other Sanction(s)/ReliefSought:
N/A
Date Initiated: 07/06/2015
Docket/Case Number: 2014042689901
Principal Product Type: Mutual Fund(s)
Other Product Type(s):
WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT ITDISADVANTAGED CERTAIN RETIREMENT PLAN AND CHARITABLEORGANIZATION CUSTOMERS THAT WERE ELIGIBLE TO PURCHASE CLASSA SHARES IN CERTAIN MUTUAL FUNDS WITHOUT A FRONT-END SALESCHARGE. THE FINDINGS STATED THAT THESE CUSTOMERS WEREINSTEAD SOLD CLASS A SHARES WITH A FRONT-END SALES CHARGE ORCLASS B OR C SHARES WITH BACK-END SALES CHARGES AND HIGHERONGOING FEES AND EXPENSES. THE FINDINGS ALSO STATED THAT THEFIRM FAILED TO ESTABLISH AND MAINTAIN A SUPERVISORY SYSTEM ANDPROCEDURES REASONABLY DESIGNED TO ENSURE THAT ELIGIBLECUSTOMERS WHO PURCHASED MUTUAL FUND SHARES RECEIVED THEBENEFIT OF APPLICABLE SALES CHARGE WAIVERS. THE FIRM FAILED TOADOPT ADEQUATE CONTROLS TO DETECT INSTANCES IN WHICH THEY DIDNOT PROVIDE SALES CHARGE WAIVERS TO CUSTOMERS IN CONNECTIONWITH THEIR MUTUAL FUND PURCHASES.
Resolution Date: 07/06/2015
Resolution:
Other Sanctions Ordered: UNDERTAKING
Sanction Details: THE FIRM IS CENSURED, ORDERED TO PROVIDE RESTITUTION TOCUSTOMERS, WHICH INCLUDES THE SALES CHARGE PAID, PLUSINTEREST, AND WITH RESPECT TO ANY ELIGIBLE CUSTOMER THATPURCHASED CLASS B OR C SHARES AND STILL HOLDS SUCH SHARES INAN ACCOUNT AT THE FIRM, IT SHALL OFFER SUCH CUSTOMER THEOPTION OF CONVERTING SUCH CLASS B OR C SHARES TO CLASS ASHARES. IF AN ELIGIBLE FUND DOES NOT PERMIT CONVERSION OF CLASSB OR C SHARES TO CLASS A SHARES, THE ELIGIBLE CUSTOMER SHALL BEPROVIDED THE OPTION OF REPLACING CLASS B OR C SHARES WITH ANEQUIVALENT VALUE OF CLASS A SHARES OFFERED BY ANOTHER ELIGIBLEFUND. THE FIRM SHALL CAUSE SUCH CONVERSION TO OCCUR AT NOEXPENSE TO THE CUSTOMER.
Sanctions Ordered: CensureDisgorgement/Restitution
Acceptance, Waiver & Consent(AWC)
Disclosure 20 of 158
i
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Disclosure 20 of 158
Reporting Source: Regulator
Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 05/06/2015
Docket/Case Number: 2012035222801
Principal Product Type: Other
Other Product Type(s): UNSPECIFIED SECURITIES
Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT IT ACCEPTEDAND HELD CUSTOMER MARKET ORDERS, TRADED FOR ITS OWNACCOUNT AT PRICES THAT WOULD HAVE SATISFIED THE CUSTOMERMARKET ORDERS, AND FAILED TO IMMEDIATELY THEREAFTER EXECUTETHE CUSTOMER MARKET ORDERS. THE FINDINGS STATED THAT THE FIRMFAILED TO SHOW THE CORRECT TIME OF EXECUTION ON THEMEMORANDUM OF BROKERAGE ORDERS AND FAILED TO SHOW THECORRECT TIME OF ENTRY ON THE MEMORANDUM OF BROKERAGEORDERS. THE FINDINGS ALSO STATED THAT THE FIRM FAILED TO REPORTTHE CORRECT TIME OF EXECUTION TO THE OTC REPORTING FACILITY(OTCRF) LAST SALE REPORTS OF TRANSACTIONS IN DESIGNATEDSECURITIES. THE FINDINGS ALSO INCLUDED THAT THE FIRM'SSUPERVISORY SYSTEM DID NOT PROVIDE FOR SUPERVISIONREASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITH RESPECT TOTHE APPLICABLE SECURITIES LAWS AND REGULATIONS, AND FINRARULES, CONCERNING OTC ORDER PROTECTION. THE FIRM'S WRITTENSUPERVISORY PROCEDURES (WSPS) FAILED TO PROVIDE FOR THEMINIMUM REQUIREMENTS FOR ADEQUATE WSPS CONCERNING OTCORDER PROTECTION.
Current Status: Final
Resolution Date: 05/06/2015
Resolution:
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Acceptance, Waiver & Consent(AWC)
74©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Other Sanctions Ordered: UNDERTAKING
Sanction Details: THE FIRM WAS CENSURED, FINED $35,000, AND UNDERTAKES TO REVISEITS WSPS TO ADDRESS THE DEFICIENCIES DESCRIBED IN THE AWC. FINEPAID IN FULL ON 5/28/2015.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: CensureMonetary/Fine $35,000.00
iReporting Source: Firm
Initiated By: FINRA
Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT IT ACCEPTEDAND HELD CUSTOMER MARKET ORDERS, TRADED FOR ITS OWNACCOUNT AT PRICES THAT WOULD HAVE SATISFIED THE CUSTOMERMARKETORDERS, AND FAILED TO IMMEDIATELY THEREAFTER EXECUTE THECUSTOMER MARKET ORDERS. THE FINDINGS STATED THAT THE FIRMFAILED TOSHOW THE CORRECT TIME OF EXECUTION ON THE MEMORANDUM OFBROKERAGE ORDERS AND FAILED TO SHOW THE CORRECT TIME OFENTRY ONTHE MEMORANDUM OF BROKERAGE ORDERS. THE FINDINGS ALSOSTATED THAT THE FIRM FAILED TO REPORT THE CORRECT TIME OFEXECUTIONTO THE OTC REPORTING FACILITY (OTCRF) LAST SALE REPORTS OFTRANSACTIONS IN DESIGNATED SECURITIES. THE FINDINGS ALSOINCLUDEDTHAT THE FIRM'S SUPERVISORY SYSTEM DID NOT PROVIDE FORSUPERVISION REASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITHRESPECT TOTHE APPLICABLE SECURITIES LAWS AND REGULATIONS, AND FINRARULES, CONCERNING OTC ORDER PROTECTION. THE FIRM'S WRITTENSUPERVISORY PROCEDURES (WSPS) FAILED TO PROVIDE FOR THEMINIMUM REQUIREMENTS FOR ADEQUATE WSPS CONCERNING OTCORDERPROTECTION.
Current Status: Final
75©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 05/06/2015
Docket/Case Number: 2012035222801
Principal Product Type: Other
Other Product Type(s): UNSPECIFIED SECURITIES
Resolution Date: 05/06/2015
Resolution:
Other Sanctions Ordered:
Sanction Details: THE FIRM WAS CENSURED, FINED $35,000, AND UNDERTAKES TO REVISEITS WSPS TO ADDRESS THE DEFICIENCIES DESCRIBED IN THE AWC.
Firm Statement THE FIRM WAS CENSURED, FINED $35,000, AND UNDERTAKES TO REVISEITS WSPS TO ADDRESS THE DEFICIENCIES DESCRIBED IN THE AWC.
Sanctions Ordered: CensureMonetary/Fine $35,000.00
Acceptance, Waiver & Consent(AWC)
Disclosure 21 of 158
i
Reporting Source: Regulator
Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT FOR SEVERALYEARS THE FIRM FAILED TO COMPLY FULLY WITH A KEY ASPECT OF THEANTI-MONEY LAUNDERING ("AML") COMPLIANCE PROGRAMREQUIREMENTS FOR BROKER-DEALERS. TO SATISFY THOSEREQUIREMENTS, EVERY BROKER-DEALER MUST ESTABLISH ANDMAINTAIN A CUSTOMER IDENTIFICATION PROGRAM ("CIP") UNDER WHICHIT VERIFIES THE IDENTITY OF EACH CUSTOMER OPENING A NEWACCOUNT, AND, DURING THE RELEVANT PERIOD, THE FIRM'S CIP WASDEFICIENT, IN THAT IT DID NOT SUBJECT CERTAIN NEW CUSTOMERS TOIDENTITY VERIFICATION. THE FINDINGS STATED THAT DURING THERELEVANT PERIOD, WHEN THE FIRM'S TRANSACTION-PROCESSINGSYSTEM, THE BETA SYSTEM, ASSIGNED CUSTOMER IDENTIFIERS TO NEWSECURITIES ACCOUNTS, IT SOMETIMES RECYCLED IDENTIFIERSPREVIOUSLY ASSIGNED TO ACCOUNTS THAT HAD BEEN CLOSED. WHENTHIS HAPPENED, THE CIP SYSTEM RECOGNIZED THE IDENTIFIERS ANDTREATED THE NEW ACCOUNTS AS IF THEY HAD ALREADY GONETHROUGH THE CIP SYSTEM. THUS, EVEN THOUGH THE APPURTENANTCUSTOMER INFORMATION - SUCH AS CUSTOMER NAME, ADDRESS, TAX-IDENTIFICATION NUMBER, AND DATE OF BIRTH - WAS DIFFERENT FROMTHE PREVIOUS INSTANCE OF IDENTITY VERIFICATION, THE CIP SYSTEMDID NOT SUBJECT THE CUSTOMERS ASSOCIATED WITH THESE NEWACCOUNTS TO IDENTITY VERIFICATION. FOR THAT REASON, THE FIRM'SCIP SYSTEM DID NOT VERIFY THE IDENTITIES OF NEW CUSTOMERS WITHRECYCLED IDENTIFIERS. THIS RESULTED IN THE FIRMS' FAILURE TOCONDUCT CUSTOMER-IDENTITY VERIFICATION FOR NEARLY 220,000ACCOUNTS DURING THE RELEVANT PERIOD. THE FINDINGS ALSO STATEDTHAT OF THE ACCOUNTS THAT WERE NOT SUBJECTED TO IDENTITYVERIFICATION, APPROXIMATELY 120,000 WERE ALREADY CLOSED WHENTHE PROBLEM CAME TO LIGHT. THESE ACCOUNTS WERE NEVERSUBJECTED TO IDENTITY VERIFICATION. THE ACCOUNTS THAT WERESTILL OPEN WHEN THE FIRM DISCOVERED THE DESIGN FLAW WERESUBSEQUENTLY SENT THROUGH THE CIP PROCESS, WITH THE FIRMEVENTUALLY PROHIBITING FURTHER ACTIVITY IN 345 ACCOUNTS FORWHICH IDENTITY VERIFICATION COULD NOT BE COMPLETED.
Current Status: Final
76©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other
Other Sanction(s)/ReliefSought:
N/A
Date Initiated: 12/18/2014
Docket/Case Number: 2012034123501
Principal Product Type: No Product
Other Product Type(s):
WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT FOR SEVERALYEARS THE FIRM FAILED TO COMPLY FULLY WITH A KEY ASPECT OF THEANTI-MONEY LAUNDERING ("AML") COMPLIANCE PROGRAMREQUIREMENTS FOR BROKER-DEALERS. TO SATISFY THOSEREQUIREMENTS, EVERY BROKER-DEALER MUST ESTABLISH ANDMAINTAIN A CUSTOMER IDENTIFICATION PROGRAM ("CIP") UNDER WHICHIT VERIFIES THE IDENTITY OF EACH CUSTOMER OPENING A NEWACCOUNT, AND, DURING THE RELEVANT PERIOD, THE FIRM'S CIP WASDEFICIENT, IN THAT IT DID NOT SUBJECT CERTAIN NEW CUSTOMERS TOIDENTITY VERIFICATION. THE FINDINGS STATED THAT DURING THERELEVANT PERIOD, WHEN THE FIRM'S TRANSACTION-PROCESSINGSYSTEM, THE BETA SYSTEM, ASSIGNED CUSTOMER IDENTIFIERS TO NEWSECURITIES ACCOUNTS, IT SOMETIMES RECYCLED IDENTIFIERSPREVIOUSLY ASSIGNED TO ACCOUNTS THAT HAD BEEN CLOSED. WHENTHIS HAPPENED, THE CIP SYSTEM RECOGNIZED THE IDENTIFIERS ANDTREATED THE NEW ACCOUNTS AS IF THEY HAD ALREADY GONETHROUGH THE CIP SYSTEM. THUS, EVEN THOUGH THE APPURTENANTCUSTOMER INFORMATION - SUCH AS CUSTOMER NAME, ADDRESS, TAX-IDENTIFICATION NUMBER, AND DATE OF BIRTH - WAS DIFFERENT FROMTHE PREVIOUS INSTANCE OF IDENTITY VERIFICATION, THE CIP SYSTEMDID NOT SUBJECT THE CUSTOMERS ASSOCIATED WITH THESE NEWACCOUNTS TO IDENTITY VERIFICATION. FOR THAT REASON, THE FIRM'SCIP SYSTEM DID NOT VERIFY THE IDENTITIES OF NEW CUSTOMERS WITHRECYCLED IDENTIFIERS. THIS RESULTED IN THE FIRMS' FAILURE TOCONDUCT CUSTOMER-IDENTITY VERIFICATION FOR NEARLY 220,000ACCOUNTS DURING THE RELEVANT PERIOD. THE FINDINGS ALSO STATEDTHAT OF THE ACCOUNTS THAT WERE NOT SUBJECTED TO IDENTITYVERIFICATION, APPROXIMATELY 120,000 WERE ALREADY CLOSED WHENTHE PROBLEM CAME TO LIGHT. THESE ACCOUNTS WERE NEVERSUBJECTED TO IDENTITY VERIFICATION. THE ACCOUNTS THAT WERESTILL OPEN WHEN THE FIRM DISCOVERED THE DESIGN FLAW WERESUBSEQUENTLY SENT THROUGH THE CIP PROCESS, WITH THE FIRMEVENTUALLY PROHIBITING FURTHER ACTIVITY IN 345 ACCOUNTS FORWHICH IDENTITY VERIFICATION COULD NOT BE COMPLETED.
Resolution Date: 12/18/2014
Resolution:
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: CensureMonetary/Fine $1,500,000.00
Acceptance, Waiver & Consent(AWC)
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Other Sanctions Ordered:
Sanction Details: THE FIRM WAS CENSURED AND FINED, JOINTLY AND SEVERALLY,$1,500,000.
FINE PAID IN FULL ON JANUARY 12, 2015.
Regulator Statement IN DETERMINING THE APPROPRIATE SANCTIONS, FINRA CONSIDEREDTHAT THE FIRM DISCOVERED THE CIP-RELATED VIOLATIONS THROUGHTHE FIRM'S COMPLIANCE RISK ANALYSIS SYSTEM (CRAS) TEST,INVESTIGATED THEIR CAUSES AND SCOPE, PERFORMED REMEDIATIONCIP ON THE APPROXIMATELY 100,000 AFFECTED ACCOUNTS THATREMAINED OPEN, MADE PROGRAMMING CHANGES TO THE CIP SYSTEMAND TO THE FIRM'S BETA IN AN EFFORT TO PREVENT RECURRENCES, ANDREPORTED THE VIOLATIONS TO FINRA IN ACCORDANCE WITH RULE4530(B).
Sanctions Ordered: CensureMonetary/Fine $1,500,000.00
iReporting Source: Firm
Allegations: FINRA HAS ALLEGED POTENTIAL VIOLATIONS OF FINRA RULES 3310 AND2010 AND NASD RULE 2110. WITHOUT ADMITTING OR DENYING THEFINDINGS, THE FIRM CONSENTED TO THE SANCTIONS AND TO THE ENTRYOF FINDINGS THAT FORSEVERAL YEARS THE FIRM FAILED TO COMPLY FULLY WITH A KEY ASPECTOF THE ANTI-MONEY LAUNDERING ("AML") COMPLIANCE PROGRAMREQUIREMENTS FOR BROKER-DEALERS. TO SATISFY THOSEREQUIREMENTS, EVERY BROKER-DEALER MUST ESTABLISH ANDMAINTAIN ACUSTOMER IDENTIFICATION PROGRAM ("CIP") UNDER WHICH IT VERIFIESTHE IDENTITY OF EACH CUSTOMER OPENING A NEW ACCOUNT, AND,DURING THE RELEVANT PERIOD, THE FIRM'S CIP WAS DEFICIENT, IN THATIT DID NOT SUBJECT CERTAIN NEW CUSTOMERS TO IDENTITYVERIFICATION. THE FINDINGS STATED THAT DURING THE RELEVANTPERIOD, WHEN THE FIRM'S TRANSACTION-PROCESSING SYSTEM, THEBETASYSTEM, ASSIGNED CUSTOMER IDENTIFIERS TO NEW SECURITIESACCOUNTS, IT SOMETIMES RECYCLED IDENTIFIERS PREVIOUSLYASSIGNED TOACCOUNTS THAT HAD BEEN CLOSED. WHEN THIS HAPPENED, THE CIPSYSTEM RECOGNIZED THE IDENTIFIERS AND TREATED THE NEWACCOUNTSAS IF THEY HAD ALREADY GONE THROUGH THE CIP SYSTEM. THUS, EVENTHOUGH THE APPURTENANT CUSTOMER INFORMATION - SUCH ASCUSTOMER NAME, ADDRESS, TAX-IDENTIFICATION NUMBER, AND DATE OFBIRTH - WAS DIFFERENT FROM THE PREVIOUS INSTANCE OF IDENTITYVERIFICATION, THE CIP SYSTEM DID NOT SUBJECT THE CUSTOMERSASSOCIATED WITH THESE NEW ACCOUNTS TO IDENTITY VERIFICATION.FORTHAT REASON, THE FIRM'S CIP SYSTEM DID NOT VERIFY THE IDENTITIESOF NEW CUSTOMERS WITH RECYCLED IDENTIFIERS. THIS RESULTED INTHE FIRMS' FAILURE TO CONDUCT CUSTOMER-IDENTITY VERIFICATIONFOR NEARLY 220,000 ACCOUNTS DURING THE RELEVANT PERIOD. THEFINDINGS ALSO STATED THAT OF THE ACCOUNTS THAT WERE NOTSUBJECTED TO IDENTITY VERIFICATION, APPROXIMATELY 120,000 WEREALREADY CLOSED WHEN THE PROBLEM CAME TO LIGHT. THESEACCOUNTS WERE NEVER SUBJECTED TO IDENTITY VERIFICATION. THEACCOUNTSTHAT WERE STILL OPEN WHEN THE FIRM DISCOVERED THE DESIGN FLAWWERE SUBSEQUENTLY SENT THROUGH THE CIP PROCESS, WITH THEFIRM EVENTUALLY PROHIBITING FURTHER ACTIVITY IN 345 ACCOUNTSFOR WHICH IDENTITY VERIFICATION COULD NOT BE COMPLETED. INDETERMINING THE APPROPRIATE SANCTIONS, FINRA CONSIDERED THATTHE FIRM DISCOVERED THE CIP-RELATED VIOLATIONS THROUGH THEFIRM'S COMPLIANCE RISK ANALYSIS SYSTEM (CRAS) TEST, INVESTIGATEDTHEIR CAUSES AND SCOPE, PERFORMED REMEDIATION CIP ON THEAPPROXIMATELY 100,000 AFFECTED ACCOUNTS THAT REMAINED OPEN,MADE PROGRAMMING CHANGES TO THE CIP SYSTEM AND TO THE FIRM'SBETA IN AN EFFORT TO PREVENT RECURRENCES, AND REPORTED THEVIOLATIONS TO FINRA IN ACCORDANCE WITH RULE 4530(B).
Current Status: Final
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Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other
Other Sanction(s)/ReliefSought:
N/A
Date Initiated: 12/18/2014
Docket/Case Number: 2012034123501
Principal Product Type: No Product
Other Product Type(s):
FINRA HAS ALLEGED POTENTIAL VIOLATIONS OF FINRA RULES 3310 AND2010 AND NASD RULE 2110. WITHOUT ADMITTING OR DENYING THEFINDINGS, THE FIRM CONSENTED TO THE SANCTIONS AND TO THE ENTRYOF FINDINGS THAT FORSEVERAL YEARS THE FIRM FAILED TO COMPLY FULLY WITH A KEY ASPECTOF THE ANTI-MONEY LAUNDERING ("AML") COMPLIANCE PROGRAMREQUIREMENTS FOR BROKER-DEALERS. TO SATISFY THOSEREQUIREMENTS, EVERY BROKER-DEALER MUST ESTABLISH ANDMAINTAIN ACUSTOMER IDENTIFICATION PROGRAM ("CIP") UNDER WHICH IT VERIFIESTHE IDENTITY OF EACH CUSTOMER OPENING A NEW ACCOUNT, AND,DURING THE RELEVANT PERIOD, THE FIRM'S CIP WAS DEFICIENT, IN THATIT DID NOT SUBJECT CERTAIN NEW CUSTOMERS TO IDENTITYVERIFICATION. THE FINDINGS STATED THAT DURING THE RELEVANTPERIOD, WHEN THE FIRM'S TRANSACTION-PROCESSING SYSTEM, THEBETASYSTEM, ASSIGNED CUSTOMER IDENTIFIERS TO NEW SECURITIESACCOUNTS, IT SOMETIMES RECYCLED IDENTIFIERS PREVIOUSLYASSIGNED TOACCOUNTS THAT HAD BEEN CLOSED. WHEN THIS HAPPENED, THE CIPSYSTEM RECOGNIZED THE IDENTIFIERS AND TREATED THE NEWACCOUNTSAS IF THEY HAD ALREADY GONE THROUGH THE CIP SYSTEM. THUS, EVENTHOUGH THE APPURTENANT CUSTOMER INFORMATION - SUCH ASCUSTOMER NAME, ADDRESS, TAX-IDENTIFICATION NUMBER, AND DATE OFBIRTH - WAS DIFFERENT FROM THE PREVIOUS INSTANCE OF IDENTITYVERIFICATION, THE CIP SYSTEM DID NOT SUBJECT THE CUSTOMERSASSOCIATED WITH THESE NEW ACCOUNTS TO IDENTITY VERIFICATION.FORTHAT REASON, THE FIRM'S CIP SYSTEM DID NOT VERIFY THE IDENTITIESOF NEW CUSTOMERS WITH RECYCLED IDENTIFIERS. THIS RESULTED INTHE FIRMS' FAILURE TO CONDUCT CUSTOMER-IDENTITY VERIFICATIONFOR NEARLY 220,000 ACCOUNTS DURING THE RELEVANT PERIOD. THEFINDINGS ALSO STATED THAT OF THE ACCOUNTS THAT WERE NOTSUBJECTED TO IDENTITY VERIFICATION, APPROXIMATELY 120,000 WEREALREADY CLOSED WHEN THE PROBLEM CAME TO LIGHT. THESEACCOUNTS WERE NEVER SUBJECTED TO IDENTITY VERIFICATION. THEACCOUNTSTHAT WERE STILL OPEN WHEN THE FIRM DISCOVERED THE DESIGN FLAWWERE SUBSEQUENTLY SENT THROUGH THE CIP PROCESS, WITH THEFIRM EVENTUALLY PROHIBITING FURTHER ACTIVITY IN 345 ACCOUNTSFOR WHICH IDENTITY VERIFICATION COULD NOT BE COMPLETED. INDETERMINING THE APPROPRIATE SANCTIONS, FINRA CONSIDERED THATTHE FIRM DISCOVERED THE CIP-RELATED VIOLATIONS THROUGH THEFIRM'S COMPLIANCE RISK ANALYSIS SYSTEM (CRAS) TEST, INVESTIGATEDTHEIR CAUSES AND SCOPE, PERFORMED REMEDIATION CIP ON THEAPPROXIMATELY 100,000 AFFECTED ACCOUNTS THAT REMAINED OPEN,MADE PROGRAMMING CHANGES TO THE CIP SYSTEM AND TO THE FIRM'SBETA IN AN EFFORT TO PREVENT RECURRENCES, AND REPORTED THEVIOLATIONS TO FINRA IN ACCORDANCE WITH RULE 4530(B).
Resolution Date: 12/18/2014
Resolution:
Sanctions Ordered: CensureMonetary/Fine $1,500,000.00
Acceptance, Waiver & Consent(AWC)
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Other Sanctions Ordered:
Sanction Details: THE FIRM WAS CENSURED AND FINED, JOINTLY AND SEVERALLY,$1,500,000.
Firm Statement IN DETERMINING THE APPROPRIATE SANCTIONS, FINRA CONSIDEREDTHAT THE FIRM DISCOVERED THE CIP-RELATED VIOLATIONS THROUGHTHEFIRM'S COMPLIANCE RISK ANALYSIS SYSTEM (CRAS) TEST, INVESTIGATEDTHEIR CAUSES AND SCOPE, PERFORMED REMEDIATION CIP ON THEAPPROXIMATELY 100,000 AFFECTED ACCOUNTS THAT REMAINED OPEN,MADE PROGRAMMING CHANGES TO THE CIP SYSTEM AND TO THE FIRM'SBETA IN AN EFFORT TO PREVENT RECURRENCES, AND REPORTED THEVIOLATIONS TO FINRA IN ACCORDANCE WITH RULE 4530(B).
CensureMonetary/Fine $1,500,000.00
Disclosure 22 of 158
i
Reporting Source: Regulator
Allegations: SEC ADMIN RELEASE 34-73175, IA RELEASE 40-3928 / SEPTEMBER 22, 2014:THE SECURITIES AND EXCHANGE COMMISSION DEEMS IT APPROPRIATEAND IN THE PUBLIC INTEREST THAT PUBLIC ADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS BE, AND HEREBY ARE, INSTITUTEDPURSUANT TO SECTIONS 15(B) AND 21C OF THE SECURITIES EXCHANGEACT OF 1934 AND SECTIONS 203(E) AND 203(K) OF THE INVESTMENTADVISERS ACT OF 1940 AGAINST WELLS FARGO ADVISORS, LLC ("WELLSFARGO ADVISORS" OR "RESPONDENT"). IN ANTICIPATION OF THEINSTITUTION OF THESE PROCEEDINGS, RESPONDENT HAS SUBMITTED ANOFFER OF SETTLEMENT WHICH THE COMMISSION HAS DETERMINED TOACCEPT. WELLS FARGO ADVISORS ADMITS THE FINDINGS,ACKNOWLEDGES THAT ITS CONDUCT VIOLATED THE FEDERALSECURITIES LAWS, ADMITS THE COMMISSION'S JURISDICTION OVER ITAND THE SUBJECT MATTER OF THESE PROCEEDINGS, AND CONSENTS TOTHE ENTRY OF THIS ORDER INSTITUTING ADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS. THIS CASE INVOLVES THE FAILURE OFWELLS FARGO ADVISORS TO ADEQUATELY ESTABLISH, MAINTAIN, ANDENFORCE POLICIES AND PROCEDURES REASONABLY DESIGNED TOPREVENT THE MISUSE OF MATERIAL NONPUBLIC INFORMATION,SPECIFICALLY, THE MATERIAL NONPUBLIC INFORMATION OBTAINED FROMITS CUSTOMERS AND ITS ADVISORY CLIENTS. WELLS FARGO ADVISORS'POLICIES AND PROCEDURES TO PREVENT THE MISUSE OF MATERIALNONPUBLIC INFORMATION WERE NOT REASONABLY DESIGNED TOADDRESS THE RISK THAT ITS ASSOCIATED PERSONS COULD OBTAINMATERIAL NONPUBLIC INFORMATION FROM ITS CUSTOMERS ANDADVISORY CLIENTS EVEN THOUGH THE FIRM EXPRESSLY IDENTIFIEDTHAT RISK IN MULTIPLE INTERNAL DOCUMENTS. THIS RISK MANIFESTEDITSELF IN 2010 WHEN ONE OF THE REGISTERED REPRESENTATIVES OFWELLS FARGO ADVISORS MISAPPROPRIATED INFORMATION FROM ONEOF HIS CUSTOMERS ABOUT A COMPANY'S SECURITIES, TRADED ON THEBASIS OF THAT INFORMATION, AND TIPPED OTHERS INCLUDING SEVERALOF HIS WELLS FARGO ADVISORS CUSTOMERS. THE MANNER IN WHICHTHE POLICIES AND PROCEDURES WERE DESIGNED AFFECTED THECOMPANY SECURITIES REVIEW. MULTIPLE UNITS WITHIN THE FIRMRECEIVED INDICATIONS SUGGESTING THAT THE REGISTEREDREPRESENTATIVE WAS MISUSING MATERIAL NONPUBLIC INFORMATIONOBTAINED FROM A CUSTOMER TO TRADE IN THE COMPANY'S SECURITIES.BECAUSE OF A LACK OF ASSIGNED RESPONSIBILITY OR COORDINATION,EACH OF THESE UNITS FAILED TO TAKE NEEDED ACTIONS. THE POLICIESAND PROCEDURES DESIGNED CAUSED RESPONDENT NOT TORECOGNIZE SEVERAL RED FLAGS THAT ITS REPRESENTATIVE WASENGAGING IN INSIDER TRADING IN THE COMPANY'S SECURITIES. INADDITION THE RESPONDENT DID NOT EFFECTIVELY MAINTAIN ANDENFORCE THE POLICIES AND PROCEDURES. ADDITIONALLY, ALTHOUGHTHE POLICIES AND PROCEDURES REQUIRED "DAILY REVIEW TO IDENTIFYSITUATIONS WHEN PROFIT OR AVOIDANCE OF LOSS COULD MOST LIKELYRESULT FROM TRADING PRIOR TO THE PUBLIC RELEASE OFINFORMATION," FOR A TEN MONTH PERIOD THE RETAIL CONTROL GROUP(RCG), A UNIT IN THE FIRM'S COMPLIANCE DEPARTMENT, FAILED TOPERFORM REVIEWS IN A TIMELY MANNER OF AT LEAST 40 INSTANCES OFPOSSIBLE INSIDER TRADING FLAGGED FOR REVIEW. WHEN THERESPONDENT PRODUCED DOCUMENTS, AS REQUESTED BY THECOMMISSION, RELATING TO REVIEWS OF TRADING BY THE REGISTEREDREPRESENTATIVE WHO TRADED IN THE COMPANY'S SECURITIES, INRESPONSE TO THE COMMISSION'S REQUEST, DOCUMENTS RELATING TOTHE RCG REVIEW OF THE SECURITIES TRADING WERE NOT PRODUCED.RESPONDENT UNREASONABLY DELAYED, WITHOUT ANY EXPLANATION,FOR SIX MONTHS PRODUCING DOCUMENTS RELATING TO THE RCGREVIEW OF THE REPRESENTATIVE WHO TRADED IN THE COMPANY'SSECURITIES. WHEN THE DOCUMENTS WERE PRODUCED, THE FIRMFAILED TO PRODUCE AN ACCURATE RECORD OF THE REVIEW AS ITEXISTED AT THE TIME OF THE REQUEST. INSTEAD, IT PRODUCED ADOCUMENT THAT HAD BEEN ALTERED BY AN EMPLOYEE. WHENQUESTIONS AROSE SURROUNDING THE ALTERED DOCUMENT, THEEMPLOYEE WAS PLACED ON ADMINISTRATIVE LEAVE AND EVENTUALLYTERMINATED. AS A RESULT, RESPONDENT WILLFULLY VIOLATEDSECTIONS 15(G), 17(A), AND 17(B) OF THE EXCHANGE ACT AND RULE 17A-4(J) THEREUNDER AND SECTIONS 204(A) AND 204A OF THE ADVISERS ACT.
Current Status: Final
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Initiated By: UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Date Initiated: 09/22/2014
SEC ADMIN RELEASE 34-73175, IA RELEASE 40-3928 / SEPTEMBER 22, 2014:THE SECURITIES AND EXCHANGE COMMISSION DEEMS IT APPROPRIATEAND IN THE PUBLIC INTEREST THAT PUBLIC ADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS BE, AND HEREBY ARE, INSTITUTEDPURSUANT TO SECTIONS 15(B) AND 21C OF THE SECURITIES EXCHANGEACT OF 1934 AND SECTIONS 203(E) AND 203(K) OF THE INVESTMENTADVISERS ACT OF 1940 AGAINST WELLS FARGO ADVISORS, LLC ("WELLSFARGO ADVISORS" OR "RESPONDENT"). IN ANTICIPATION OF THEINSTITUTION OF THESE PROCEEDINGS, RESPONDENT HAS SUBMITTED ANOFFER OF SETTLEMENT WHICH THE COMMISSION HAS DETERMINED TOACCEPT. WELLS FARGO ADVISORS ADMITS THE FINDINGS,ACKNOWLEDGES THAT ITS CONDUCT VIOLATED THE FEDERALSECURITIES LAWS, ADMITS THE COMMISSION'S JURISDICTION OVER ITAND THE SUBJECT MATTER OF THESE PROCEEDINGS, AND CONSENTS TOTHE ENTRY OF THIS ORDER INSTITUTING ADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS. THIS CASE INVOLVES THE FAILURE OFWELLS FARGO ADVISORS TO ADEQUATELY ESTABLISH, MAINTAIN, ANDENFORCE POLICIES AND PROCEDURES REASONABLY DESIGNED TOPREVENT THE MISUSE OF MATERIAL NONPUBLIC INFORMATION,SPECIFICALLY, THE MATERIAL NONPUBLIC INFORMATION OBTAINED FROMITS CUSTOMERS AND ITS ADVISORY CLIENTS. WELLS FARGO ADVISORS'POLICIES AND PROCEDURES TO PREVENT THE MISUSE OF MATERIALNONPUBLIC INFORMATION WERE NOT REASONABLY DESIGNED TOADDRESS THE RISK THAT ITS ASSOCIATED PERSONS COULD OBTAINMATERIAL NONPUBLIC INFORMATION FROM ITS CUSTOMERS ANDADVISORY CLIENTS EVEN THOUGH THE FIRM EXPRESSLY IDENTIFIEDTHAT RISK IN MULTIPLE INTERNAL DOCUMENTS. THIS RISK MANIFESTEDITSELF IN 2010 WHEN ONE OF THE REGISTERED REPRESENTATIVES OFWELLS FARGO ADVISORS MISAPPROPRIATED INFORMATION FROM ONEOF HIS CUSTOMERS ABOUT A COMPANY'S SECURITIES, TRADED ON THEBASIS OF THAT INFORMATION, AND TIPPED OTHERS INCLUDING SEVERALOF HIS WELLS FARGO ADVISORS CUSTOMERS. THE MANNER IN WHICHTHE POLICIES AND PROCEDURES WERE DESIGNED AFFECTED THECOMPANY SECURITIES REVIEW. MULTIPLE UNITS WITHIN THE FIRMRECEIVED INDICATIONS SUGGESTING THAT THE REGISTEREDREPRESENTATIVE WAS MISUSING MATERIAL NONPUBLIC INFORMATIONOBTAINED FROM A CUSTOMER TO TRADE IN THE COMPANY'S SECURITIES.BECAUSE OF A LACK OF ASSIGNED RESPONSIBILITY OR COORDINATION,EACH OF THESE UNITS FAILED TO TAKE NEEDED ACTIONS. THE POLICIESAND PROCEDURES DESIGNED CAUSED RESPONDENT NOT TORECOGNIZE SEVERAL RED FLAGS THAT ITS REPRESENTATIVE WASENGAGING IN INSIDER TRADING IN THE COMPANY'S SECURITIES. INADDITION THE RESPONDENT DID NOT EFFECTIVELY MAINTAIN ANDENFORCE THE POLICIES AND PROCEDURES. ADDITIONALLY, ALTHOUGHTHE POLICIES AND PROCEDURES REQUIRED "DAILY REVIEW TO IDENTIFYSITUATIONS WHEN PROFIT OR AVOIDANCE OF LOSS COULD MOST LIKELYRESULT FROM TRADING PRIOR TO THE PUBLIC RELEASE OFINFORMATION," FOR A TEN MONTH PERIOD THE RETAIL CONTROL GROUP(RCG), A UNIT IN THE FIRM'S COMPLIANCE DEPARTMENT, FAILED TOPERFORM REVIEWS IN A TIMELY MANNER OF AT LEAST 40 INSTANCES OFPOSSIBLE INSIDER TRADING FLAGGED FOR REVIEW. WHEN THERESPONDENT PRODUCED DOCUMENTS, AS REQUESTED BY THECOMMISSION, RELATING TO REVIEWS OF TRADING BY THE REGISTEREDREPRESENTATIVE WHO TRADED IN THE COMPANY'S SECURITIES, INRESPONSE TO THE COMMISSION'S REQUEST, DOCUMENTS RELATING TOTHE RCG REVIEW OF THE SECURITIES TRADING WERE NOT PRODUCED.RESPONDENT UNREASONABLY DELAYED, WITHOUT ANY EXPLANATION,FOR SIX MONTHS PRODUCING DOCUMENTS RELATING TO THE RCGREVIEW OF THE REPRESENTATIVE WHO TRADED IN THE COMPANY'SSECURITIES. WHEN THE DOCUMENTS WERE PRODUCED, THE FIRMFAILED TO PRODUCE AN ACCURATE RECORD OF THE REVIEW AS ITEXISTED AT THE TIME OF THE REQUEST. INSTEAD, IT PRODUCED ADOCUMENT THAT HAD BEEN ALTERED BY AN EMPLOYEE. WHENQUESTIONS AROSE SURROUNDING THE ALTERED DOCUMENT, THEEMPLOYEE WAS PLACED ON ADMINISTRATIVE LEAVE AND EVENTUALLYTERMINATED. AS A RESULT, RESPONDENT WILLFULLY VIOLATEDSECTIONS 15(G), 17(A), AND 17(B) OF THE EXCHANGE ACT AND RULE 17A-4(J) THEREUNDER AND SECTIONS 204(A) AND 204A OF THE ADVISERS ACT.
81©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Principal Sanction(s)/ReliefSought:
Cease and Desist
Other Sanction(s)/ReliefSought:
Date Initiated: 09/22/2014
Docket/Case Number: 3-16153
Principal Product Type: Equity Listed (Common & Preferred Stock)
Other Product Type(s):
Resolution Date: 09/22/2014
Resolution:
Other Sanctions Ordered: UNDERTAKINGS
Sanction Details: RESPONDENT CEASE AND DESIST FROM COMMITTING OR CAUSING ANYVIOLATIONS AND ANY FUTURE VIOLATIONS OF SECTIONS 15(G), 17(A), AND17(B) OF THE EXCHANGE ACT AND RULE 17A-4(J) PROMULGATEDTHEREUNDER AND SECTIONS 204A AND 204(A) OF THE ADVISERS ACT.RESPONDENT IS CENSURED. RESPONDENT SHALL, WITHIN 10 DAYS OFTHE ENTRY OF THIS ORDER, PAY A CIVIL MONEY PENALTY IN THE AMOUNTOF $5,000,000. RESPONDENT SHALL COMPLY WITH THE UNDERTAKINGSENUMERATED IN THIS ORDER.
WILLFULLY VIOLATED SECTIONS 15(G), 17(A), AND 17(B) OF THEEXCHANGE ACT AND RULE 17A-4(J) THEREUNDER AND SECTIONS 204(A)AND 204A OF THE ADVISERS ACT.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: CensureMonetary/Fine $5,000,000.00Cease and Desist/Injunction
Order
iReporting Source: Firm
Allegations: SEC ADMIN RELEASE 34-73175, IA RELEASE 40-3928/SEPTEMBER 22, 2014:THE SECURITIES AND EXCHANGE COMMISSION DEEMS IT APPROPRIATEAND IN THE PUBLIC INTEREST THAT PUBLIC ADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS BE, AND HEREBY ARE, INSTITUTEDPURSUANT TO SECTIONS 15(B) AND 21C OF THE SECURITIES EXCHANGEACT OF 1934 AND SECTIONS 203(E) AND 203(K) OF THE INVESTMENTADVISERS ACT OF 1940 AGAINST WELLS FARGO ADVISORS, LLC ("WELLSFARGO ADVISORS" OR "RESPONDENT"). IN ANTICIPATION OF THEINSTITUTION OF THESE PROCEEDINGS,RESPONDENT HAS SUBMITTED ANOFFER OF SETTLEMENT WHICH THE COMMISSION HAS DETERMINED TOACCEPT. WELLS FARGO ADVISORS ADMITS THE FINDINGS,ACKNOWLEDGES THAT ITS CONDUCT VIOLATED THE FEDERALSECURITIES LAWS, ADMITS THE COMMISSION'S JURISDICTION OVER ITAND THE SUBJECT MATTER OF THESE PROCEEDINGS, AND CONSENTS TOTHE ENTRY OF THIS ORDER INSTITUTING ADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS. THIS CASE INVOLVES THE FAILURE OFWELLS FARGO ADVISORS TO ADEQUATELY ESTABLISH, MAINTAIN, ANDENFORCE POLICIES AND PROCEDURES REASONABLY DESIGNED TOPREVENT THE MISUSE OF MATERIAL NONPUBLIC INFORMATION,SPECIFICALLY, THE MATERIAL NONPUBLIC INFORMATION OBTAINED FROMITS CUSTOMERS AND ITS ADVISORY CLIENTS. WELLS FARGO ADVISORS'POLICIES AND PROCEDURES TO PREVENT THE MISUSE OF MATERIALNONPUBLIC INFORMATION WERE NOT REASONABLY DESIGNED TOADDRESS THERISK THAT ITS ASSOCIATED PERSONS COULD OBTAIN MATERIALNONPUBLIC INFORMATION FROM ITS CUSTOMERS AND ADVISORYCLIENTS EVEN THOUGH THE FIRM EXPRESSLY IDENTIFIED THAT RISK INMULTIPLE INTERNAL DOCUMENTS. THIS RISK MANIFESTED ITSELF IN 2010WHEN ONE OF THE REGISTERED REPRESENTATIVES OF WELLS FARGOADVISORS MISAPPROPRIATED INFORMATION FROM ONE OF HISCUSTOMERS ABOUT A COMPANY'S SECURITIES, TRADED ON THE BASISOF THAT INFORMATION,AND TIPPED OTHERS INCLUDING SEVERAL OF HISWELLS FARGO ADVISORS CUSTOMERS. THE MANNER IN WHICH THEPOLICIES AND PROCEDURES WERE DESIGNED AFFECTED THE COMPANYSECURITIES REVIEW. MULTIPLE UNITS WITHIN THE FIRM RECEIVEDINDICATIONS SUGGESTING THAT THE REGISTERED REPRESENTATIVEWAS MISUSING MATERIAL NONPUBLIC INFORMATION OBTAINED FROM ACUSTOMER TO TRADE IN THE COMPANY'S SECURITIES. BECAUSE OF ALACK OF ASSIGNED RESPONSIBILITY OR COORDINATION, EACH OF THESEUNITS FAILED TO TAKE NEEDED ACTIONS. THE POLICIES ANDPROCEDURES DESIGNED CAUSED RESPONDENT NOT TO RECOGNIZESEVERAL RED FLAGS THAT ITS REPRESENTATIVE WAS ENGAGING ININSIDER TRADING IN THE COMPANY'S SECURITIES. IN ADDITION THERESPONDENT DID NOT EFFECTIVELY MAINTAIN AND ENFORCE THEPOLICIES AND PROCEDURES. ADDITIONALLY, ALTHOUGH THE POLICIESAND PROCEDURES REQUIRED "DAILY REVIEW TO IDENTIFY SITUATIONSWHEN PROFIT OR AVOIDANCE OF LOSS COULD MOST LIKELY RESULTFROM TRADING PRIOR TO THE PUBLIC RELEASE OF INFORMATION," FOR ATEN MONTH PERIOD THE RETAIL CONTROL GROUP (RCG), A UNIT IN THEFIRM'S COMPLIANCE DEPARTMENT, FAILED TO PERFORM REVIEWS IN ATIMELY MANNER OF AT LEAST 40 INSTANCES OF POSSIBLE INSIDERTRADING FLAGGED FOR REVIEW.WHEN THE RESPONDENT PRODUCED DOCUMENTS, AS REQUESTED BYTHE COMMISSION,RELATING TO REVIEWS OF TRADING BY THEREGISTEREDREPRESENTATIVE WHO TRADED IN THE COMPANY'S SECURITIES, INRESPONSE TO THE COMMISSION'S REQUEST,DOCUMENTS RELATING TOTHE RCG REVIEW OF THE SECURITIES TRADING WERE NOT PRODUCED.RESPONDENT UNREASONABLY DELAYED,WITHOUT ANYEXPLANATION,FOR SIX MONTHS PRODUCING DOCUMENTS RELATING TOTHE RCG REVIEW OF THE REPRESENTATIVE WHO TRADED IN THECOMPANY'S SECURITIES. WHEN THE DOCUMENTS WERE PRODUCED, THEFIRM FAILED TO PRODUCE AN ACCURATE RECORD OF THE REVIEW AS ITEXISTED AT THE TIME OF THE REQUEST. INSTEAD, IT PRODUCED ADOCUMENT THAT HAD BEEN ALTERED BY AN EMPLOYEE. WHENQUESTIONS AROSE SURROUNDING THE ALTERED DOCUMENT, THEEMPLOYEE WAS PLACED ON ADMINISTRATIVE LEAVE AND EVENTUALLYTERMINATED. AS A RESULT, RESPONDENT WILLFULLY VIOLATEDSECTIONS 15(G), 17(A), AND 17(B) OF THE EXCHANGE ACT AND RULE 17A-4(J) THEREUNDER AND SECTIONS 204(A) AND 204A OF THE ADVISERS ACT.
Current Status: Final
82©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
SEC ADMIN RELEASE 34-73175, IA RELEASE 40-3928/SEPTEMBER 22, 2014:THE SECURITIES AND EXCHANGE COMMISSION DEEMS IT APPROPRIATEAND IN THE PUBLIC INTEREST THAT PUBLIC ADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS BE, AND HEREBY ARE, INSTITUTEDPURSUANT TO SECTIONS 15(B) AND 21C OF THE SECURITIES EXCHANGEACT OF 1934 AND SECTIONS 203(E) AND 203(K) OF THE INVESTMENTADVISERS ACT OF 1940 AGAINST WELLS FARGO ADVISORS, LLC ("WELLSFARGO ADVISORS" OR "RESPONDENT"). IN ANTICIPATION OF THEINSTITUTION OF THESE PROCEEDINGS,RESPONDENT HAS SUBMITTED ANOFFER OF SETTLEMENT WHICH THE COMMISSION HAS DETERMINED TOACCEPT. WELLS FARGO ADVISORS ADMITS THE FINDINGS,ACKNOWLEDGES THAT ITS CONDUCT VIOLATED THE FEDERALSECURITIES LAWS, ADMITS THE COMMISSION'S JURISDICTION OVER ITAND THE SUBJECT MATTER OF THESE PROCEEDINGS, AND CONSENTS TOTHE ENTRY OF THIS ORDER INSTITUTING ADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS. THIS CASE INVOLVES THE FAILURE OFWELLS FARGO ADVISORS TO ADEQUATELY ESTABLISH, MAINTAIN, ANDENFORCE POLICIES AND PROCEDURES REASONABLY DESIGNED TOPREVENT THE MISUSE OF MATERIAL NONPUBLIC INFORMATION,SPECIFICALLY, THE MATERIAL NONPUBLIC INFORMATION OBTAINED FROMITS CUSTOMERS AND ITS ADVISORY CLIENTS. WELLS FARGO ADVISORS'POLICIES AND PROCEDURES TO PREVENT THE MISUSE OF MATERIALNONPUBLIC INFORMATION WERE NOT REASONABLY DESIGNED TOADDRESS THERISK THAT ITS ASSOCIATED PERSONS COULD OBTAIN MATERIALNONPUBLIC INFORMATION FROM ITS CUSTOMERS AND ADVISORYCLIENTS EVEN THOUGH THE FIRM EXPRESSLY IDENTIFIED THAT RISK INMULTIPLE INTERNAL DOCUMENTS. THIS RISK MANIFESTED ITSELF IN 2010WHEN ONE OF THE REGISTERED REPRESENTATIVES OF WELLS FARGOADVISORS MISAPPROPRIATED INFORMATION FROM ONE OF HISCUSTOMERS ABOUT A COMPANY'S SECURITIES, TRADED ON THE BASISOF THAT INFORMATION,AND TIPPED OTHERS INCLUDING SEVERAL OF HISWELLS FARGO ADVISORS CUSTOMERS. THE MANNER IN WHICH THEPOLICIES AND PROCEDURES WERE DESIGNED AFFECTED THE COMPANYSECURITIES REVIEW. MULTIPLE UNITS WITHIN THE FIRM RECEIVEDINDICATIONS SUGGESTING THAT THE REGISTERED REPRESENTATIVEWAS MISUSING MATERIAL NONPUBLIC INFORMATION OBTAINED FROM ACUSTOMER TO TRADE IN THE COMPANY'S SECURITIES. BECAUSE OF ALACK OF ASSIGNED RESPONSIBILITY OR COORDINATION, EACH OF THESEUNITS FAILED TO TAKE NEEDED ACTIONS. THE POLICIES ANDPROCEDURES DESIGNED CAUSED RESPONDENT NOT TO RECOGNIZESEVERAL RED FLAGS THAT ITS REPRESENTATIVE WAS ENGAGING ININSIDER TRADING IN THE COMPANY'S SECURITIES. IN ADDITION THERESPONDENT DID NOT EFFECTIVELY MAINTAIN AND ENFORCE THEPOLICIES AND PROCEDURES. ADDITIONALLY, ALTHOUGH THE POLICIESAND PROCEDURES REQUIRED "DAILY REVIEW TO IDENTIFY SITUATIONSWHEN PROFIT OR AVOIDANCE OF LOSS COULD MOST LIKELY RESULTFROM TRADING PRIOR TO THE PUBLIC RELEASE OF INFORMATION," FOR ATEN MONTH PERIOD THE RETAIL CONTROL GROUP (RCG), A UNIT IN THEFIRM'S COMPLIANCE DEPARTMENT, FAILED TO PERFORM REVIEWS IN ATIMELY MANNER OF AT LEAST 40 INSTANCES OF POSSIBLE INSIDERTRADING FLAGGED FOR REVIEW.WHEN THE RESPONDENT PRODUCED DOCUMENTS, AS REQUESTED BYTHE COMMISSION,RELATING TO REVIEWS OF TRADING BY THEREGISTEREDREPRESENTATIVE WHO TRADED IN THE COMPANY'S SECURITIES, INRESPONSE TO THE COMMISSION'S REQUEST,DOCUMENTS RELATING TOTHE RCG REVIEW OF THE SECURITIES TRADING WERE NOT PRODUCED.RESPONDENT UNREASONABLY DELAYED,WITHOUT ANYEXPLANATION,FOR SIX MONTHS PRODUCING DOCUMENTS RELATING TOTHE RCG REVIEW OF THE REPRESENTATIVE WHO TRADED IN THECOMPANY'S SECURITIES. WHEN THE DOCUMENTS WERE PRODUCED, THEFIRM FAILED TO PRODUCE AN ACCURATE RECORD OF THE REVIEW AS ITEXISTED AT THE TIME OF THE REQUEST. INSTEAD, IT PRODUCED ADOCUMENT THAT HAD BEEN ALTERED BY AN EMPLOYEE. WHENQUESTIONS AROSE SURROUNDING THE ALTERED DOCUMENT, THEEMPLOYEE WAS PLACED ON ADMINISTRATIVE LEAVE AND EVENTUALLYTERMINATED. AS A RESULT, RESPONDENT WILLFULLY VIOLATEDSECTIONS 15(G), 17(A), AND 17(B) OF THE EXCHANGE ACT AND RULE 17A-4(J) THEREUNDER AND SECTIONS 204(A) AND 204A OF THE ADVISERS ACT.
83©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Initiated By: UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Principal Sanction(s)/ReliefSought:
Cease and Desist
Other Sanction(s)/ReliefSought:
Date Initiated: 09/22/2014
Docket/Case Number: 3-16153
Principal Product Type: Equity Listed (Common & Preferred Stock)
Other Product Type(s):
SEC ADMIN RELEASE 34-73175, IA RELEASE 40-3928/SEPTEMBER 22, 2014:THE SECURITIES AND EXCHANGE COMMISSION DEEMS IT APPROPRIATEAND IN THE PUBLIC INTEREST THAT PUBLIC ADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS BE, AND HEREBY ARE, INSTITUTEDPURSUANT TO SECTIONS 15(B) AND 21C OF THE SECURITIES EXCHANGEACT OF 1934 AND SECTIONS 203(E) AND 203(K) OF THE INVESTMENTADVISERS ACT OF 1940 AGAINST WELLS FARGO ADVISORS, LLC ("WELLSFARGO ADVISORS" OR "RESPONDENT"). IN ANTICIPATION OF THEINSTITUTION OF THESE PROCEEDINGS,RESPONDENT HAS SUBMITTED ANOFFER OF SETTLEMENT WHICH THE COMMISSION HAS DETERMINED TOACCEPT. WELLS FARGO ADVISORS ADMITS THE FINDINGS,ACKNOWLEDGES THAT ITS CONDUCT VIOLATED THE FEDERALSECURITIES LAWS, ADMITS THE COMMISSION'S JURISDICTION OVER ITAND THE SUBJECT MATTER OF THESE PROCEEDINGS, AND CONSENTS TOTHE ENTRY OF THIS ORDER INSTITUTING ADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS. THIS CASE INVOLVES THE FAILURE OFWELLS FARGO ADVISORS TO ADEQUATELY ESTABLISH, MAINTAIN, ANDENFORCE POLICIES AND PROCEDURES REASONABLY DESIGNED TOPREVENT THE MISUSE OF MATERIAL NONPUBLIC INFORMATION,SPECIFICALLY, THE MATERIAL NONPUBLIC INFORMATION OBTAINED FROMITS CUSTOMERS AND ITS ADVISORY CLIENTS. WELLS FARGO ADVISORS'POLICIES AND PROCEDURES TO PREVENT THE MISUSE OF MATERIALNONPUBLIC INFORMATION WERE NOT REASONABLY DESIGNED TOADDRESS THERISK THAT ITS ASSOCIATED PERSONS COULD OBTAIN MATERIALNONPUBLIC INFORMATION FROM ITS CUSTOMERS AND ADVISORYCLIENTS EVEN THOUGH THE FIRM EXPRESSLY IDENTIFIED THAT RISK INMULTIPLE INTERNAL DOCUMENTS. THIS RISK MANIFESTED ITSELF IN 2010WHEN ONE OF THE REGISTERED REPRESENTATIVES OF WELLS FARGOADVISORS MISAPPROPRIATED INFORMATION FROM ONE OF HISCUSTOMERS ABOUT A COMPANY'S SECURITIES, TRADED ON THE BASISOF THAT INFORMATION,AND TIPPED OTHERS INCLUDING SEVERAL OF HISWELLS FARGO ADVISORS CUSTOMERS. THE MANNER IN WHICH THEPOLICIES AND PROCEDURES WERE DESIGNED AFFECTED THE COMPANYSECURITIES REVIEW. MULTIPLE UNITS WITHIN THE FIRM RECEIVEDINDICATIONS SUGGESTING THAT THE REGISTERED REPRESENTATIVEWAS MISUSING MATERIAL NONPUBLIC INFORMATION OBTAINED FROM ACUSTOMER TO TRADE IN THE COMPANY'S SECURITIES. BECAUSE OF ALACK OF ASSIGNED RESPONSIBILITY OR COORDINATION, EACH OF THESEUNITS FAILED TO TAKE NEEDED ACTIONS. THE POLICIES ANDPROCEDURES DESIGNED CAUSED RESPONDENT NOT TO RECOGNIZESEVERAL RED FLAGS THAT ITS REPRESENTATIVE WAS ENGAGING ININSIDER TRADING IN THE COMPANY'S SECURITIES. IN ADDITION THERESPONDENT DID NOT EFFECTIVELY MAINTAIN AND ENFORCE THEPOLICIES AND PROCEDURES. ADDITIONALLY, ALTHOUGH THE POLICIESAND PROCEDURES REQUIRED "DAILY REVIEW TO IDENTIFY SITUATIONSWHEN PROFIT OR AVOIDANCE OF LOSS COULD MOST LIKELY RESULTFROM TRADING PRIOR TO THE PUBLIC RELEASE OF INFORMATION," FOR ATEN MONTH PERIOD THE RETAIL CONTROL GROUP (RCG), A UNIT IN THEFIRM'S COMPLIANCE DEPARTMENT, FAILED TO PERFORM REVIEWS IN ATIMELY MANNER OF AT LEAST 40 INSTANCES OF POSSIBLE INSIDERTRADING FLAGGED FOR REVIEW.WHEN THE RESPONDENT PRODUCED DOCUMENTS, AS REQUESTED BYTHE COMMISSION,RELATING TO REVIEWS OF TRADING BY THEREGISTEREDREPRESENTATIVE WHO TRADED IN THE COMPANY'S SECURITIES, INRESPONSE TO THE COMMISSION'S REQUEST,DOCUMENTS RELATING TOTHE RCG REVIEW OF THE SECURITIES TRADING WERE NOT PRODUCED.RESPONDENT UNREASONABLY DELAYED,WITHOUT ANYEXPLANATION,FOR SIX MONTHS PRODUCING DOCUMENTS RELATING TOTHE RCG REVIEW OF THE REPRESENTATIVE WHO TRADED IN THECOMPANY'S SECURITIES. WHEN THE DOCUMENTS WERE PRODUCED, THEFIRM FAILED TO PRODUCE AN ACCURATE RECORD OF THE REVIEW AS ITEXISTED AT THE TIME OF THE REQUEST. INSTEAD, IT PRODUCED ADOCUMENT THAT HAD BEEN ALTERED BY AN EMPLOYEE. WHENQUESTIONS AROSE SURROUNDING THE ALTERED DOCUMENT, THEEMPLOYEE WAS PLACED ON ADMINISTRATIVE LEAVE AND EVENTUALLYTERMINATED. AS A RESULT, RESPONDENT WILLFULLY VIOLATEDSECTIONS 15(G), 17(A), AND 17(B) OF THE EXCHANGE ACT AND RULE 17A-4(J) THEREUNDER AND SECTIONS 204(A) AND 204A OF THE ADVISERS ACT.
Resolution Date: 09/22/2014
Resolution:
Other Sanctions Ordered:
Sanction Details: RESPONDENT CEASE AND DESIST FROM COMMITTING OR CAUSING ANYVIOLATIONS AND ANY FUTURE VIOLATIONS OF SECTIONS 15(G), 17(A), AND17(B) OF THE EXCHANGE ACT AND RULE 17A-4(J) PROMULGATEDTHEREUNDER AND SECTIONS 204A AND 204(A) OF THE ADVISERS ACT.RESPONDENT IS CENSURED. RESPONDENT SHALL, WITHIN 10 DAYS OFTHE ENTRY OF THIS ORDER, PAY A CIVIL MONEY PENALTY IN THE AMOUNTOF $5,000,000. WILLFULLY VIOLATED SECTIONS 15(G), 17(A), AND 17(B) OFTHE EXCHANGE ACT AND RULE 17A-4(J) THEREUNDER AND SECTIONS204(A) AND 204A OF THE ADVISERS ACT.
Sanctions Ordered: CensureMonetary/Fine $5,000,000.00Cease and Desist/Injunction
Order
84©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Sanction Details: RESPONDENT CEASE AND DESIST FROM COMMITTING OR CAUSING ANYVIOLATIONS AND ANY FUTURE VIOLATIONS OF SECTIONS 15(G), 17(A), AND17(B) OF THE EXCHANGE ACT AND RULE 17A-4(J) PROMULGATEDTHEREUNDER AND SECTIONS 204A AND 204(A) OF THE ADVISERS ACT.RESPONDENT IS CENSURED. RESPONDENT SHALL, WITHIN 10 DAYS OFTHE ENTRY OF THIS ORDER, PAY A CIVIL MONEY PENALTY IN THE AMOUNTOF $5,000,000. WILLFULLY VIOLATED SECTIONS 15(G), 17(A), AND 17(B) OFTHE EXCHANGE ACT AND RULE 17A-4(J) THEREUNDER AND SECTIONS204(A) AND 204A OF THE ADVISERS ACT.
Firm Statement SEE SANCTION DETAILS IN 12.B.
Disclosure 23 of 158
i
Reporting Source: Regulator
Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other
Date Initiated: 06/02/2014
Docket/Case Number: 2010023976502
Principal Product Type: Other
Other Product Type(s): UNSPECIFIED SECURITIES
Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT IT, THROUGH AREGISTERED REPRESENTATIVE, DISSEMINATED SALES LITERATURE TOFIRM CUSTOMERS AND POTENTIAL CUSTOMERS THAT FAILED TO COMPLYWITH THE CONTENT STANDARDS OF NASD RULE 2210(D)(1). THE FINDINGSSTATED THAT THE FIRM APPROVED THREE ITERATIONS OF THE SALESLITERATURE, WHICH MARKETED THE REGISTERED REPRESENTATIVE'SSTOP-LOSS TRADING STRATEGY. THERE WERE NO SIGNIFICANTDIFFERENCES BETWEEN THE THREE VERSIONS OF THE ADVERTISEMENT.THE SALES LITERATURE CONTAINED UNWARRANTED STATEMENTS ANDCLAIMS AND FAILED TO PROVIDE A SOUND BASIS FOR EVALUATING ALL OFTHE FACTS ABOUT THE TRADING STRATEGY. IT FAILED TO PROVIDE ACOMPREHENSIVE DESCRIPTION OF THE STOP-LOSS TRADING STRATEGYBECAUSE IT FAILED TO DESCRIBE THE MECHANICS OF THE STRATEGYAND PROVIDE A BALANCED DISCUSSION OF THE BENEFITS ANDSHORTCOMINGS OF THE STRATEGY, AND THE ILLUSTRATION OF THEHYPOTHETICAL INVESTMENT INCLUDED IN THE SALES LITERATUREFAILED TO PROVIDE A COMPREHENSIVE DESCRIPTION OF THEINVESTMENT RETURNS.
Current Status: Final
85©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Principal Sanction(s)/ReliefSought:
Other
Other Sanction(s)/ReliefSought:
N/A
Resolution Date: 06/02/2014
Resolution:
Other Sanctions Ordered:
Sanction Details: SEE ABOVE
Regulator Statement FINE PAID JUNE 12, 2014
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: CensureMonetary/Fine $25,000.00
Acceptance, Waiver & Consent(AWC)
iReporting Source: Firm
Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 06/02/2014
Docket/Case Number: 2010023976502
Principal Product Type: Other
Other Product Type(s): ETF
Allegations: WELLS FARGO ADVISORS, LLC ("WFA") IS THE SUCCESSOR TO WELLSFARGO INVESTMENTS, LLC ("WFI") (CRD-10582). THE ALLEGATIONSSOLELY INVOLVE WFI'S DISSEMINATION OF SALES LITERATURE THATFAILED TO CONFORM TO THE CONTENT STANDARDS OF NASD RULE2210 AND FINRA RULE 2010.
Current Status: Final
Resolution: Acceptance, Waiver & Consent(AWC) 86©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Resolution Date: 06/02/2014
Resolution:
Other Sanctions Ordered:
Sanction Details: WELLS FARGO ADVISORS, LLC ("WFA") IS THE SUCCESSOR TO WELLSFARGO INVESTMENTS, LLC ("WFI") (CRD-10582). THE ALLEGATIONS SOLEYINVOLVE WFI'S DISSEMINATION OF SALES LITERATURE THAT FAILED TOCONFORM TO THE CONTENT STANDARDS OF NASD RULE 2210 AND FINRA2010. WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRMTHROUGH ITS SUCCESSOR CONSENTED TO A CENSURE AND $25,000MONETARY FINE. THE FIRM SENT PAYMENT TO FINRA ON OR ABOUT JUNE11, 2014. FINE PAID JUNE 12, 2014
Sanctions Ordered: CensureMonetary/Fine $25,000.00
Acceptance, Waiver & Consent(AWC)
Disclosure 24 of 158
i
Reporting Source: Regulator
Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 07/15/2014
Docket/Case Number: 2012033330501
Principal Product Type: Other
Other Product Type(s): AGENCY BONDS
Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT IT SOLDAGENCY BONDS TO ITS CUSTOMERS AND FAILED TO BUY OR SELL SUCHBONDS AT A PRICE THAT WAS FAIR, TAKING INTO CONSIDERATION ALLRELEVANT CIRCUMSTANCES, INCLUDING MARKET CONDITIONS WITHRESPECT TO EACH AT THE TIME OF THE TRANSACTION, THE EXPENSEINVOLVED AND THAT THE FIRM WAS ENTITLED TO A PROFIT.
Current Status: Final
Resolution Date: 07/15/2014
Resolution:
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Acceptance, Waiver & Consent(AWC)
87©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Other Sanctions Ordered: ORDERED TO PAY RESTITUTION TO FIRM CUSTOMERS IN THE AMOUNT OF$5,032.12, PLUS INTEREST
Sanction Details: SEE ABOVE
Regulator Statement FINE PAID IN FULL ON JULY 31, 2014.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: CensureMonetary/Fine $10,000.00Disgorgement/Restitution
iReporting Source: Firm
Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 07/15/2014
Docket/Case Number: 2012033330501
Principal Product Type: Other
Other Product Type(s): AGENCY BONDS
Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AND TO THE ENTRY OFFINDINGS THAT IT SOLD AGENCY BONDS TO ITS CUSTOMERS AND FAILEDTO BUY OR SELL SUCH BONDS AT A PRICETHAT WAS FAIR, TAKING INTO CONSIDERATION ALL RELEVANTCIRCUMSTANCES, INCLUDING MARKET CONDITIONSWITH RESPECT TO EACH AT THE TIME OF THE TRANSACTION, THEEXPENSE INVOLVED AND THAT THE FIRM WASENTITLED TO A PROFIT.
Current Status: Final
Resolution Date: 07/15/2014
Resolution: Acceptance, Waiver & Consent(AWC)
88©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Other Sanctions Ordered: ORDERED TO PAY RESTITUTION TO FIRM CUSTOMERS IN THE AMOUNT OF$5,032.12, PLUS INTEREST
Sanction Details: SEE ABOVE
Sanctions Ordered: CensureMonetary/Fine $10,000.00Disgorgement/Restitution
Disclosure 25 of 158
i
Reporting Source: Regulator
Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 12/23/2013
Docket/Case Number: 2009020171701
Principal Product Type: Debt - Municipal
Other Product Type(s): AGENCY BONDS
Allegations: FINRA RULE 2010, MSRB RULES G-17, G-30(A) - WELLS FARGO ADVISORS,LLC BOUGHT OR SOLD MUNICIPAL SECURITIES FOR ITS OWN ACCOUNTFROM CUSTOMERS AND/OR SOLD MUNICIPAL SECURITIES TOCUSTOMERS AT AN AGGREGATE PRICE (INCLUDING ANY MARKUP ORMARKDOWN) THAT WAS NOT FAIR AND REASONABLE, TAKING INTOCONSIDERATION ALL RELEVANT FACTORS, INCLUDING THE BESTJUDGMENT OF THE BROKER, DEALER, OR MUNICIPAL SECURITIESDEALER AS TO THE FAIR MARKET VALUE OF THE SECURITIES AT THE TIMEOF THE TRANSACTION AND OF ANY SECURITIES EXCHANGED OR TRADEDIN CONNECTION WITH THE TRANSACTION, THE EXPENSE INVOLVED INEFFECTING THE TRANSACTION, THE FACT THAT THE BROKER, DEALER,OR MUNICIPAL SECURITIES IS ENTITLED TO A PROFIT, AND THE TOTALDOLLAR AMOUNT OF THE TRANSACTION. THE FIRM SOLD AGENCY BONDSTO ITS CUSTOMERS AND FAILED TO SELL SUCH BONDS AT A PRICE THATWAS FAIR, TAKING INTO CONSIDERATION ALL RELEVANTCIRCUMSTANCES, INCLUDINGMARKET CONDITIONS WITH RESPECT TO EACH AT THE TIME OF THETRANSACTION, THE EXPENSE INVOLVED, AND THAT THE FIRM WASENTITLED TO A PROFIT.
Current Status: Final
89©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Resolution Date: 12/23/2013
Resolution:
Other Sanctions Ordered:
Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS;THEREFORE, THE FIRM IS CENSURED, FINED $20,000, OF WHICH $10,000IS FOR MSRB RULE VIOLATIONS, AND ORDERED TO PAY $8,660.93, PLUSINTEREST, IN RESTITUTION TO CUSTOMERS. THE FIRM HAS ALREADY PAIDFULL OR PARTIAL RESTITUTION FOR SEVERAL OF THE TRANSACTIONS. AREGISTERED FIRM PRINCIPAL SHALL SUBMIT SATISFACTORY PROOF OFPAYMENT OF RESTITUTION OR OF REASONABLE AND DOCUMENTEDEFFORTS UNDERTAKEN TO EFFECT RESTITUTION TO FINRA NO LATERTHAN 120 DAYS AFTER ACCEPTANCE OF THIS AWC. THE FIRM SHALLFORWARD ANY UNDISTRIBUTED RESTITUTION AND INTEREST TO THEAPPROPRIATE ESCHEAT, UNCLAIMED-PROPERTY OR ABANDONED-PROPERTY FUND FOR THE STATE IN WHICH THE CUSTOMER IS KNOWN TOHAVE LAST RESIDED. FINE PAID IN FULL ON JANUARY 8, 2014.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: CensureMonetary/Fine $20,000.00Disgorgement/Restitution
Acceptance, Waiver & Consent(AWC)
iReporting Source: Firm
Allegations: FINRA RULE 2010, MSRB RULES G-17, G-30(A) - WELLS FARGO ADVISORS,LLC BOUGHT OR SOLD MUNICIPAL SECURITIES FOR ITS OWN ACCOUNTFROM CUSTOMERS AND/OR SOLD MUNICIPAL SECURITIES TOCUSTOMERS AT AN AGGREGATE PRICE (INCLUDING ANY MARKUP ORMARKDOWN) THAT WAS NOT FAIR AND REASONABLE, TAKING INTOCONSIDERATION ALL RELEVANT FACTORS, INCLUDING THE BESTJUDGMENT OF THE BROKER, DEALER, OR MUNICIPAL SECURITIESDEALER AS TO THE FAIR MARKET VALUE OF THE SECURITIES AT THE TIMEOF THE TRANSACTION AND OF ANY SECURITIES EXCHANGED OR TRADEDIN CONNECTION WITH THE TRANSACTION, THE EXPENSE INVOLVED INEFFECTING THE TRANSACTION, THE FACT THAT THE BROKER, DEALER,OR MUNICIPAL SECURITIES IS ENTITLED TO A PROFIT, AND THE TOTALDOLLAR AMOUNT OF THE TRANSACTION. THE FIRM SOLD AGENCY BONDSTO ITS CUSTOMERS AND FAILED TO SELL SUCH BONDS AT A PRICE THATWAS FAIR, TAKING INTO CONSIDERATION ALL RELEVANTCIRCUMSTANCES, INCLUDING MARKET CONDITIONS WITH RESPECT TOEACH AT THE TIME OF THE TRANSACTION, THE EXPENSE INVOLVED, ANDTHAT THE FIRM WAS ENTITLED TO A PROFIT.
Current Status: Final
90©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 12/23/2013
Docket/Case Number: 2009020171701
Principal Product Type: Debt - Municipal
Other Product Type(s): AGENCY BONDS
FINRA RULE 2010, MSRB RULES G-17, G-30(A) - WELLS FARGO ADVISORS,LLC BOUGHT OR SOLD MUNICIPAL SECURITIES FOR ITS OWN ACCOUNTFROM CUSTOMERS AND/OR SOLD MUNICIPAL SECURITIES TOCUSTOMERS AT AN AGGREGATE PRICE (INCLUDING ANY MARKUP ORMARKDOWN) THAT WAS NOT FAIR AND REASONABLE, TAKING INTOCONSIDERATION ALL RELEVANT FACTORS, INCLUDING THE BESTJUDGMENT OF THE BROKER, DEALER, OR MUNICIPAL SECURITIESDEALER AS TO THE FAIR MARKET VALUE OF THE SECURITIES AT THE TIMEOF THE TRANSACTION AND OF ANY SECURITIES EXCHANGED OR TRADEDIN CONNECTION WITH THE TRANSACTION, THE EXPENSE INVOLVED INEFFECTING THE TRANSACTION, THE FACT THAT THE BROKER, DEALER,OR MUNICIPAL SECURITIES IS ENTITLED TO A PROFIT, AND THE TOTALDOLLAR AMOUNT OF THE TRANSACTION. THE FIRM SOLD AGENCY BONDSTO ITS CUSTOMERS AND FAILED TO SELL SUCH BONDS AT A PRICE THATWAS FAIR, TAKING INTO CONSIDERATION ALL RELEVANTCIRCUMSTANCES, INCLUDING MARKET CONDITIONS WITH RESPECT TOEACH AT THE TIME OF THE TRANSACTION, THE EXPENSE INVOLVED, ANDTHAT THE FIRM WAS ENTITLED TO A PROFIT.
Resolution Date: 12/23/2013
Resolution:
Other Sanctions Ordered:
Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS;THEREFORE, THE FIRM IS CENSURED, FINED $20,000, OF WHICH $10,000IS FOR MSRB RULE VIOLATIONS, AND ORDERED TO PAY $8,660.93, PLUSINTEREST, IN RESTITUTION TO CUSTOMERS. THE FIRM HAS ALREADY PAIDFULL OR PARTIAL RESTITUTION FOR SEVERAL OF THE TRANSACTIONS. AREGISTERED FIRM PRINCIPAL SHALL SUBMIT SATISFACTORY PROOF OFPAYMENT OF RESTITUTION OR OF REASONABLE AND DOCUMENTEDEFFORTS UNDERTAKEN TO EFFECT RESTITUTION TO FINRA NO LATERTHAN 120 DAYS AFTER ACCEPTANCE OF THIS AWC. THE FIRM SHALLFORWARD ANY UNDISTRIBUTED RESTITUTION AND INTEREST TO THEAPPROPRIATE ESCHEAT, UNCLAIMED-PROPERTY OR ABANDONED-PROPERTY FUND FOR THE STATE IN WHICH THE CUSTOMER IS KNOWN TOHAVE LAST RESIDED. FINE PAID IN FULL ON JANUARY 8, 2014.
Sanctions Ordered: CensureMonetary/Fine $20,000.00Disgorgement/Restitution
Acceptance, Waiver & Consent(AWC)
Disclosure 26 of 158
i
91©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Disclosure 26 of 158
Reporting Source: Regulator
Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 11/18/2013
Docket/Case Number: 2011028036801
Principal Product Type: Equity - OTC
Other Product Type(s):
Allegations: FINRA RULE 2010, NASD INTERPRETATIVE MATERIAL 2110-2 - WELLSFARGO ADVISORS,LLC FAILED TO CONTEMPORANEOUSLY EXECUTECUSTOMER LIMIT ORDERS IN OVER-THE-COUNTER (OTC) SECURITIESAFTER IT TRADED EACH SUBJECT SECURITY FOR ITS OWN MARKET-MAKING ACCOUNT AT A PRICE THAT WOULD HAVE SATISFIED EACHCUSTOMER'S LIMIT ORDER.
Current Status: Final
Resolution Date: 11/18/2013
Resolution:
Other Sanctions Ordered:
Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE DESCRIBED SANCTION AND TO THE ENTRY OF FINDINGS;THEREFORE, THE FIRM IS FINED $5,000. THE FIRM HAS ALREADY MADERESTITUTION TO THE CUSTOMERS WHO RECEIVED INFERIOR PRICES ASA RESULT OF THESE VIOLATIONS.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: Monetary/Fine $5,000.00
Acceptance, Waiver & Consent(AWC)
iReporting Source: Firm
92©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 11/18/2013
Docket/Case Number: 2011028036801
Principal Product Type: Equity - OTC
Other Product Type(s):
Allegations: FINRA RULE 2010, NASD INTERPRETATIVE MATERIAL 2110-2 - WELLSFARGO ADVISORS,LLC FAILED TO CONTEMPORANEOUSLY EXECUTECUSTOMER LIMIT ORDERS IN OVER-THE-COUNTER (OTC) SECURITIESAFTER IT TRADED EACH SUBJECT SECURITY FOR ITS OWN MARKET-MAKING ACCOUNT AT A PRICE THAT WOULD HAVE SATISFIED EACHCUSTOMER'S LIMIT ORDER.
Current Status: Final
Resolution Date: 11/18/2013
Resolution:
Other Sanctions Ordered:
Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE DESCRIBED SANCTION AND TO THE ENTRY OF FINDINGS;THEREFORE, THE FIRM IS FINED $5,000.
Sanctions Ordered: Monetary/Fine $5,000.00
Acceptance, Waiver & Consent(AWC)
Disclosure 27 of 158
i
Reporting Source: Regulator
Allegations: FINRA RULE 2010, NASD RULES 3010 AND 3012(A)(2)(B)(I):WELLS FARGO'S SUPERVISORY CONTROL SYSTEM FAILED TO INCLUDE APOLICY OR PROCEDURE REQUIRING A REVIEW TO DETECT OR PREVENTMULTIPLE TRANSMITTALS OF FUNDS FROM MULTIPLE CUSTOMERS GOINGTO THE SAME THIRD PARTY ACCOUNTS. THE FIRM'S SYSTEM ALSO FAILEDTO INCLUDE EXCEPTION REPORTS THAT WOULD HAVE IDENTIFIEDMULTIPLE CUSTOMER WIRES GOING TO THE SAME THIRD PARTYACCOUNT. CONSEQUENTLY, WELLS FARGO FAILED TO DETECT THAT AREGISTERED REPRESENTATIVE HAD INITIATED FUND TRANSFERS,TOTALING APPROXIMATELY $258,000, OUT OF TWO CUSTOMERACCOUNTS, TO BANK ACCOUNTS THAT SHE OR HER FAMILY MEMBERAPPARENTLY CONTROLLED.WELLS FARGO FAILED TO ESTABLISH, MAINTAIN AND ENFORCE ASUPERVISORY SYSTEM THAT WAS REASONABLY DESIGNED TOADEQUATELY REVIEW AND MONITOR THE TRANSMITTALS OF FUNDSFROM THE ACCOUNTS OF CUSTOMERS TO THIRD PARTY ACCOUNTS ANDOUTSIDE ENTITIES.
Current Status: Final
93©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 09/12/2013
Docket/Case Number: 2012031047501
Principal Product Type: No Product
Other Product Type(s):
FINRA RULE 2010, NASD RULES 3010 AND 3012(A)(2)(B)(I):WELLS FARGO'S SUPERVISORY CONTROL SYSTEM FAILED TO INCLUDE APOLICY OR PROCEDURE REQUIRING A REVIEW TO DETECT OR PREVENTMULTIPLE TRANSMITTALS OF FUNDS FROM MULTIPLE CUSTOMERS GOINGTO THE SAME THIRD PARTY ACCOUNTS. THE FIRM'S SYSTEM ALSO FAILEDTO INCLUDE EXCEPTION REPORTS THAT WOULD HAVE IDENTIFIEDMULTIPLE CUSTOMER WIRES GOING TO THE SAME THIRD PARTYACCOUNT. CONSEQUENTLY, WELLS FARGO FAILED TO DETECT THAT AREGISTERED REPRESENTATIVE HAD INITIATED FUND TRANSFERS,TOTALING APPROXIMATELY $258,000, OUT OF TWO CUSTOMERACCOUNTS, TO BANK ACCOUNTS THAT SHE OR HER FAMILY MEMBERAPPARENTLY CONTROLLED.WELLS FARGO FAILED TO ESTABLISH, MAINTAIN AND ENFORCE ASUPERVISORY SYSTEM THAT WAS REASONABLY DESIGNED TOADEQUATELY REVIEW AND MONITOR THE TRANSMITTALS OF FUNDSFROM THE ACCOUNTS OF CUSTOMERS TO THIRD PARTY ACCOUNTS ANDOUTSIDE ENTITIES.
Resolution Date: 09/12/2013
Resolution:
Other Sanctions Ordered:
Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS,THEREFORE IT IS CENSURED AND FINED $150,000. FINE PAID IN FULL ONSEPTEMBER 27, 2013.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: CensureMonetary/Fine $150,000.00
Acceptance, Waiver & Consent(AWC)
iReporting Source: Firm
Allegations: FINRA RULE 2010, NASD RULES 3010 AND 3012(A)(2)(B)(I): WELLS FARGO'SSUPERVISORY CONTROL SYSTEM FAILED TO INCLUDE A POLICY ORPROCEDURE REQUIRING A REVIEW TO DETECT OR PREVENT MULTIPLETRANSMITTALS OF FUNDS FROM MULTIPLE CUSTOMERS GOING TO THESAME THIRD PARTY ACCOUNTS. THE FIRM'S SYSTEM ALSO FAILED TOINCLUDE EXCEPTION REPORTS THAT WOULD HAVE IDENTIFIED MULTIPLECUSTOMER WIRES GOING TO THE SAME THIRD PARTY ACCOUNT.CONSEQUENTLY, WELLS FARGO FAILED TO DETECT THAT A REGISTEREDREPRESENTATIVE HAD INITIATED FUND TRANSFERS, TOTALINGAPPROXIMATELY $258,000, OUT OF TWO CUSTOMER ACCOUNTS, TO BANKACCOUNTS THAT SHE OR HER FAMILY MEMBER APPARENTLYCONTROLLED. WELLS FARGO FAILED TO ESTABLISH, MAINTAIN ANDENFORCE A SUPERVISORY SYSTEM THAT WAS REASONABLY DESIGNEDTO ADEQUATELY REVIEW AND MONITOR THE TRANSMITTALS OF FUNDSFROM THE ACCOUNTS OF CUSTOMERS TO THIRD PARTY ACCOUNTS ANDOUTSIDE ENTITIES.
Current Status: Final
94©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 09/12/2013
Docket/Case Number: 2012031047501
Principal Product Type: No Product
Other Product Type(s):
Allegations: FINRA RULE 2010, NASD RULES 3010 AND 3012(A)(2)(B)(I): WELLS FARGO'SSUPERVISORY CONTROL SYSTEM FAILED TO INCLUDE A POLICY ORPROCEDURE REQUIRING A REVIEW TO DETECT OR PREVENT MULTIPLETRANSMITTALS OF FUNDS FROM MULTIPLE CUSTOMERS GOING TO THESAME THIRD PARTY ACCOUNTS. THE FIRM'S SYSTEM ALSO FAILED TOINCLUDE EXCEPTION REPORTS THAT WOULD HAVE IDENTIFIED MULTIPLECUSTOMER WIRES GOING TO THE SAME THIRD PARTY ACCOUNT.CONSEQUENTLY, WELLS FARGO FAILED TO DETECT THAT A REGISTEREDREPRESENTATIVE HAD INITIATED FUND TRANSFERS, TOTALINGAPPROXIMATELY $258,000, OUT OF TWO CUSTOMER ACCOUNTS, TO BANKACCOUNTS THAT SHE OR HER FAMILY MEMBER APPARENTLYCONTROLLED. WELLS FARGO FAILED TO ESTABLISH, MAINTAIN ANDENFORCE A SUPERVISORY SYSTEM THAT WAS REASONABLY DESIGNEDTO ADEQUATELY REVIEW AND MONITOR THE TRANSMITTALS OF FUNDSFROM THE ACCOUNTS OF CUSTOMERS TO THIRD PARTY ACCOUNTS ANDOUTSIDE ENTITIES.
Resolution Date: 09/12/2013
Resolution:
Other Sanctions Ordered:
Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS,THEREFORE IT IS CENSURED AND FINED $150,000. WELLS FARGOADVISORS, LLC FULLY COMPENSATED THE AFFECTED CLIENTS, ANDREPORTED THIS MATTER TO REGULATORS. THE FIRM ALSO REPORTEDTHE MATTER TO LAW ENFORCEMENT AND HAS COOPERATED WITH THEIREFFORTS TO RESOLVE THIS MATTER."
Sanctions Ordered: CensureMonetary/Fine $150,000.00
Acceptance, Waiver & Consent(AWC)
Disclosure 28 of 158
i95©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Disclosure 28 of 158
Reporting Source: Regulator
Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 07/02/2013
Docket/Case Number: 2011026083001
Principal Product Type: Other
Other Product Type(s): AGENCY SECURITIES
Allegations: FINRA RULE 2010: IN 25 TRANSACTIONS, THE FIRM PURCHASED AGENCYSECURITIES FOR ITS OWN ACCOUNT FROM A CUSTOMER AND/OR SOLDAGENCY SECURITIES FOR ITS OWN ACCOUNT TO A CUSTOMER IN THECOURSE OF ITS BUSINESS AT AN AGGREGATE PRICE THAT WAS NOT FAIRAND REASONABLE, AND IN SO DOING FAILED TO OBSERVE HIGHSTANDARDS OF COMMERCIAL HONOR AND JUST AND EQUITABLEPRINCIPLES OF TRADE.
Current Status: Final
Resolution Date: 07/02/2013
Resolution:
Other Sanctions Ordered:
Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS;THEREFORE, IT IS CENSURED, FINED $35,000 AND ORDERED TO PAY$17,384.81, PLUS INTEREST, IN RESTITUTION TO CUSTOMERS. AREGISTERED FIRM PRINCIPAL SHALL SUBMIT SATISFACTORY PROOF OFPAYMENT OF THE RESTITUTION, OR OF REASONABLE AND DOCUMENTEDEFFORTS UNDERTAKEN TO EFFECT RESTITUTION, TO FINRA NO LATERTHAN 120 DAYS AFTER ACCEPTANCE OF THIS AWC. ANY UNDISTRIBUTEDRESTITUTION AND INTEREST SHALL BE FORWARDED TO THEAPPROPRIATE ESCHEAT, UNCLAIMED PROPERTY OR ABANDONEDPROPERTY FUND FOR THE STATE IN WHICH THE CUSTOMER LASTRESIDED.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: CensureMonetary/Fine $35,000.00Disgorgement/Restitution
Acceptance, Waiver & Consent(AWC)
96©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS;THEREFORE, IT IS CENSURED, FINED $35,000 AND ORDERED TO PAY$17,384.81, PLUS INTEREST, IN RESTITUTION TO CUSTOMERS. AREGISTERED FIRM PRINCIPAL SHALL SUBMIT SATISFACTORY PROOF OFPAYMENT OF THE RESTITUTION, OR OF REASONABLE AND DOCUMENTEDEFFORTS UNDERTAKEN TO EFFECT RESTITUTION, TO FINRA NO LATERTHAN 120 DAYS AFTER ACCEPTANCE OF THIS AWC. ANY UNDISTRIBUTEDRESTITUTION AND INTEREST SHALL BE FORWARDED TO THEAPPROPRIATE ESCHEAT, UNCLAIMED PROPERTY OR ABANDONEDPROPERTY FUND FOR THE STATE IN WHICH THE CUSTOMER LASTRESIDED.
iReporting Source: Firm
Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 07/02/2013
Docket/Case Number: 2011026083001
Principal Product Type: Other
Other Product Type(s): AGENCY SECURITIES
Allegations: WELLS FARGO ADVISORS, LLC IS THE SUCCESSOR OF WELLS FARGOINVESTMENTS. THE ALLEGATIONS RELATE SOLEY TO WELLS FARGOINVESTMENTS, LLC (CRD-10582)AND TRANSACTIONS AFFECTED BY IT,PRIOR TO JANUARY 2011, WHEN IT CEASED DOING BUSINESS. FINRA RULE2010: IN 25 TRANSACTIONS, THE FIRM PURCHASED AGENCY SECURITIESFOR ITS OWN ACCOUNT FROM A CUSTOMER AND/OR SOLD AGENCYSECURITIES FOR ITS OWN ACCOUNT TO A CUSTOMER IN THE COURSE OFITS BUSINESS AT AN AGGREGATE PRICE THAT WAS NOT FAIR ANDREASONABLE, AND IN SO DOING FAILED TO OBSERVE HIGH STANDARDSOF COMMERCIAL HONOR AND JUST AND EQUITABLE PRINCIPLES OFTRADE.
Current Status: Final
Resolution Date: 07/02/2013
Resolution:
Other Sanctions Ordered:
Sanction Details: WELLS FARGO ADVISORS, LLC IS THE SUCCESSOR OF WELLS FARGOINVESTMENTS. THE ALLEGATIONS RELATE SOLEY TO WELLS FARGOINVESTMENTS, LLC (CRD-10582)AND TRANSACTIONS AFFECTED BY IT,PRIOR TO JANUARY 2011, WHEN IT CEASED DOING BUSINESS. WITHOUTADMITTING OR DENYING THE FINDINGS, THE FIRM THROUGH ITSSUCCESSOR CONSENTED TO THE DESCRIBED SANCTIONS AND TO THEENTRY OF FINDINGS; THEREFORE, IT IS CENSURED, FINED $35,000 ANDORDERED TO PAY $17,384.81, PLUS INTEREST, IN RESTITUTION TOCUSTOMERS. A REGISTERED FIRM PRINCIPAL SHALL SUBMITSATISFACTORY PROOF OF PAYMENT OF THE RESTITUTION, OR OFREASONABLE AND DOCUMENTED EFFORTS UNDERTAKEN TO EFFECTRESTITUTION, TO FINRA NO LATER THAN 120 DAYS AFTER ACCEPTANCEOF THIS AWC. ANY UNDISTRIBUTED RESTITUTION AND INTEREST SHALLBE FORWARDED TO THE APPROPRIATE ESCHEAT, UNCLAIMED PROPERTYOR ABANDONED PROPERTY FUND FOR THE STATE IN WHICH THECUSTOMER LAST RESIDED.
Sanctions Ordered: CensureMonetary/Fine $35,000.00Disgorgement/Restitution
Acceptance, Waiver & Consent(AWC)
97©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Sanction Details: WELLS FARGO ADVISORS, LLC IS THE SUCCESSOR OF WELLS FARGOINVESTMENTS. THE ALLEGATIONS RELATE SOLEY TO WELLS FARGOINVESTMENTS, LLC (CRD-10582)AND TRANSACTIONS AFFECTED BY IT,PRIOR TO JANUARY 2011, WHEN IT CEASED DOING BUSINESS. WITHOUTADMITTING OR DENYING THE FINDINGS, THE FIRM THROUGH ITSSUCCESSOR CONSENTED TO THE DESCRIBED SANCTIONS AND TO THEENTRY OF FINDINGS; THEREFORE, IT IS CENSURED, FINED $35,000 ANDORDERED TO PAY $17,384.81, PLUS INTEREST, IN RESTITUTION TOCUSTOMERS. A REGISTERED FIRM PRINCIPAL SHALL SUBMITSATISFACTORY PROOF OF PAYMENT OF THE RESTITUTION, OR OFREASONABLE AND DOCUMENTED EFFORTS UNDERTAKEN TO EFFECTRESTITUTION, TO FINRA NO LATER THAN 120 DAYS AFTER ACCEPTANCEOF THIS AWC. ANY UNDISTRIBUTED RESTITUTION AND INTEREST SHALLBE FORWARDED TO THE APPROPRIATE ESCHEAT, UNCLAIMED PROPERTYOR ABANDONED PROPERTY FUND FOR THE STATE IN WHICH THECUSTOMER LAST RESIDED.
Disclosure 29 of 158
i
Reporting Source: Regulator
Allegations: THIS ACTION RELATES TO CONDUCT THAT OCCURRED AT WELLS FARGOINVESTMENTS, LLC (CRD #10582). WELLS FARGO ADVISORS, LLC ISNAMED AS A RESPONDENT SOLELY AS SUCCESSOR IN LIABILITY FORWELLS FARGO INVESTMENTS, LLC. FINRA RULE 2010, NASD RULES 2110,2310, 3010: WELLS FARGO INVESTMENTS REGISTERED REPRESENTATIVESMADE RECOMMENDATIONS TO CUSTOMERS TO PURCHASE FLOATINGRATE LOAN FUNDS THAT WERE UNSUITABLE FOR THOSE CUSTOMERS INLIGHT OF THEIR FINANCIAL SITUATIONS AND NEEDS. IN PARTICULAR,WELLS FARGO INVESTMENTS MADE NUMEROUS RECOMMENDATIONS TOCUSTOMERS WHOSE RISK TOLERANCES AND INVESTMENT OBJECTIVESWERE INCONSISTENT WITH THE RISKS AND FEATURES OF FLOATING RATELOAN FUNDS. THE FLOATING RATE LOAN FUNDS SOLD BY WELLS FARGOINVESTMENTS WERE SUBJECT TO SIGNIFICANT CREDIT AND LIQUIDITYRISKS. ACCORDINGLY, THE FUNDS WERE NOT TYPICALLY SUITABLE FORINVESTORS WITH AN INVESTMENT OBJECTIVE OF INCOME AND ACONSERVATIVE RISK TOLERANCE OR THOSE CUSTOMERS WHO WERESEEKING TO PRESERVE PRINCIPAL, PARTICULARLY WHEN THOSECUSTOMERS' PURCHASES CONSTITUTED A LARGE PERCENTAGE OFTHEIR INVESTIBLE ASSETS OR LIQUID NET WORTH. MOREOVER,FLOATING RATE LOAN FUNDS, PARTICULARLY THOSE WITH RESTRICTIVEREDEMPTION POLICIES, WERE NOT TYPICALLY SUITABLE FOR INVESTORSWITH SHORT INVESTMENT TIME HORIZONS. IN SPITE OF THESEFEATURES OF FLOATING RATE FUNDS, WELLS FARGO INVESTMENTSRECOMMENDED FLOATING RATE FUND INVESTMENTS TO HUNDREDS OFCUSTOMERS FOR WHOM THE INVESTMENT WAS UNSUITABLE IN LIGHT OFTHE CUSTOMERS' FINANCIAL SITUATIONS, RISK TOLERANCES, ANDINVESTMENT OBJECTIVES. BETWEEN 2007 AND EARLY 2009, THE NETASSET VALUE OF THE TYPICAL FLOATING RATE LOAN FUNDS DECLINEDSUBSTANTIALLY. SINCE THAT TIME, THE NET ASSET VALUE OF THETYPICAL FLOATING RATE LOAN FUND HAS PARTIALLY RECOVERED.HOWEVER, MANY WELLS FARGO INVESTMENTS CUSTOMERS FOR WHOMA FLOATING RATE LOAN FUND WAS UNSUITABLE SOLD THEIR HOLDINGSIN FLOATING RATE LOAN FUNDS AND INCURRED NET LOSSES. WELLSFARGO INVESTMENTS CUSTOMERS SUFFERED LOSSES IN THE TOTALAMOUNT OF $1,962,000 AS A RESULT OF UNSUITABLE TRANSACTIONS INFLOATING RATE LOAN FUNDS RECOMMENDED BY THE FIRM. WELLSFARGO INVESTMENTS FAILED TO ESTABLISH AND MAINTAIN A SYSTEMFOR SUPERVISING ITS SALES OF FLOATING RATE LOAN FUNDS THAT WASREASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITH THE SUITABILITYREQUIREMENTS OF NASD AND FINRA RULES. WELLS FARGOINVESTMENTS SOLD BILLIONS OF DOLLARS OF FLOATING RATE LOANFUNDS TO ITS CUSTOMERS. THOSE SALES WERE A SIGNIFICANT PART OFWELLS FARGO INVESTMENTS' MUTUAL FUND BUSINESS. BY AUGUST 2007,FLOATING RATE LOAN FUNDS CONSTITUTED APPROXIMATELY 16PERCENT OF THE FIRM'S TOTAL MUTUAL FUNDS SALES. DESPITE THIS,WELLS FARGO INVESTMENTS FAILED TO PROVIDE SUFFICIENT GUIDANCETO REGISTERED REPRESENTATIVES OR SUPERVISORS TO DETERMINEWHETHER FLOATING RATE LOAN FUNDS WERE SUITABLE FOR ITSCLIENTS. WELLS FARGO INVESTMENTS ALSO FAILED TO ADEQUATELYTRAIN ITS REGISTERED PERSONS ABOUT THE CREDIT AND LIQUIDITYRISKS ASSOCIATED WITH FLOATING RATE FUNDS, OR THE CUSTOMERSFOR WHOM SUCH FUNDS WOULD BE SUITABLE. WELLS FARGOINVESTMENTS FAILED TO IMPLEMENT PROCEDURES REASONABLYDESIGNED TO ENSURE THAT ITS SALES OF FLOATING RATE LOAN FUNDSWERE SUITABLE FOR ITS CUSTOMERS EVEN AFTER POTENTIALCONCERNS WERE RAISED INTERNALLY ABOUT THOSE SALES. THE FIRM'SMUTUAL FUND PRODUCT TEAM CONDUCTED A REVIEW OF FLOATINGRATE LOAN FUNDS IN 2007 AND RECOMMENDED THAT WELLS FARGOINVESTMENTS REMIND SELLING REPRESENTATIVES THAT THE FUNDSSHOULD BE PART OF AN OVERALL ASSET ALLOCATION STRATEGY ANDNOT SOLD AS A HIGH YIELDING ALTERNATIVE TO MONEY MARKET FUNDS.THE TEAM ALSO PREPARED A PRESENTATION WHICH INCLUDEDGUIDANCE REGARDING CUSTOMERS FOR WHOM FLOATING RATE LOANFUNDS MIGHT BE SUITABLE. HOWEVER, WELLS FARGO INVESTMENTSFAILED TO ADEQUATELY DISTRIBUTE THIS INFORMATION TO REGISTEREDREPRESENTATIVES OR TAKE ACTION TO ENSURE THAT THE PRODUCTTEAM'S CONCERNS WERE TAKEN INTO ACCOUNT WHEN FLOATING RATELOAN FUND PURCHASES WERE RECOMMENDED TO CUSTOMERS.
Current Status: Final
98©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Initiated By: FINRA
THIS ACTION RELATES TO CONDUCT THAT OCCURRED AT WELLS FARGOINVESTMENTS, LLC (CRD #10582). WELLS FARGO ADVISORS, LLC ISNAMED AS A RESPONDENT SOLELY AS SUCCESSOR IN LIABILITY FORWELLS FARGO INVESTMENTS, LLC. FINRA RULE 2010, NASD RULES 2110,2310, 3010: WELLS FARGO INVESTMENTS REGISTERED REPRESENTATIVESMADE RECOMMENDATIONS TO CUSTOMERS TO PURCHASE FLOATINGRATE LOAN FUNDS THAT WERE UNSUITABLE FOR THOSE CUSTOMERS INLIGHT OF THEIR FINANCIAL SITUATIONS AND NEEDS. IN PARTICULAR,WELLS FARGO INVESTMENTS MADE NUMEROUS RECOMMENDATIONS TOCUSTOMERS WHOSE RISK TOLERANCES AND INVESTMENT OBJECTIVESWERE INCONSISTENT WITH THE RISKS AND FEATURES OF FLOATING RATELOAN FUNDS. THE FLOATING RATE LOAN FUNDS SOLD BY WELLS FARGOINVESTMENTS WERE SUBJECT TO SIGNIFICANT CREDIT AND LIQUIDITYRISKS. ACCORDINGLY, THE FUNDS WERE NOT TYPICALLY SUITABLE FORINVESTORS WITH AN INVESTMENT OBJECTIVE OF INCOME AND ACONSERVATIVE RISK TOLERANCE OR THOSE CUSTOMERS WHO WERESEEKING TO PRESERVE PRINCIPAL, PARTICULARLY WHEN THOSECUSTOMERS' PURCHASES CONSTITUTED A LARGE PERCENTAGE OFTHEIR INVESTIBLE ASSETS OR LIQUID NET WORTH. MOREOVER,FLOATING RATE LOAN FUNDS, PARTICULARLY THOSE WITH RESTRICTIVEREDEMPTION POLICIES, WERE NOT TYPICALLY SUITABLE FOR INVESTORSWITH SHORT INVESTMENT TIME HORIZONS. IN SPITE OF THESEFEATURES OF FLOATING RATE FUNDS, WELLS FARGO INVESTMENTSRECOMMENDED FLOATING RATE FUND INVESTMENTS TO HUNDREDS OFCUSTOMERS FOR WHOM THE INVESTMENT WAS UNSUITABLE IN LIGHT OFTHE CUSTOMERS' FINANCIAL SITUATIONS, RISK TOLERANCES, ANDINVESTMENT OBJECTIVES. BETWEEN 2007 AND EARLY 2009, THE NETASSET VALUE OF THE TYPICAL FLOATING RATE LOAN FUNDS DECLINEDSUBSTANTIALLY. SINCE THAT TIME, THE NET ASSET VALUE OF THETYPICAL FLOATING RATE LOAN FUND HAS PARTIALLY RECOVERED.HOWEVER, MANY WELLS FARGO INVESTMENTS CUSTOMERS FOR WHOMA FLOATING RATE LOAN FUND WAS UNSUITABLE SOLD THEIR HOLDINGSIN FLOATING RATE LOAN FUNDS AND INCURRED NET LOSSES. WELLSFARGO INVESTMENTS CUSTOMERS SUFFERED LOSSES IN THE TOTALAMOUNT OF $1,962,000 AS A RESULT OF UNSUITABLE TRANSACTIONS INFLOATING RATE LOAN FUNDS RECOMMENDED BY THE FIRM. WELLSFARGO INVESTMENTS FAILED TO ESTABLISH AND MAINTAIN A SYSTEMFOR SUPERVISING ITS SALES OF FLOATING RATE LOAN FUNDS THAT WASREASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITH THE SUITABILITYREQUIREMENTS OF NASD AND FINRA RULES. WELLS FARGOINVESTMENTS SOLD BILLIONS OF DOLLARS OF FLOATING RATE LOANFUNDS TO ITS CUSTOMERS. THOSE SALES WERE A SIGNIFICANT PART OFWELLS FARGO INVESTMENTS' MUTUAL FUND BUSINESS. BY AUGUST 2007,FLOATING RATE LOAN FUNDS CONSTITUTED APPROXIMATELY 16PERCENT OF THE FIRM'S TOTAL MUTUAL FUNDS SALES. DESPITE THIS,WELLS FARGO INVESTMENTS FAILED TO PROVIDE SUFFICIENT GUIDANCETO REGISTERED REPRESENTATIVES OR SUPERVISORS TO DETERMINEWHETHER FLOATING RATE LOAN FUNDS WERE SUITABLE FOR ITSCLIENTS. WELLS FARGO INVESTMENTS ALSO FAILED TO ADEQUATELYTRAIN ITS REGISTERED PERSONS ABOUT THE CREDIT AND LIQUIDITYRISKS ASSOCIATED WITH FLOATING RATE FUNDS, OR THE CUSTOMERSFOR WHOM SUCH FUNDS WOULD BE SUITABLE. WELLS FARGOINVESTMENTS FAILED TO IMPLEMENT PROCEDURES REASONABLYDESIGNED TO ENSURE THAT ITS SALES OF FLOATING RATE LOAN FUNDSWERE SUITABLE FOR ITS CUSTOMERS EVEN AFTER POTENTIALCONCERNS WERE RAISED INTERNALLY ABOUT THOSE SALES. THE FIRM'SMUTUAL FUND PRODUCT TEAM CONDUCTED A REVIEW OF FLOATINGRATE LOAN FUNDS IN 2007 AND RECOMMENDED THAT WELLS FARGOINVESTMENTS REMIND SELLING REPRESENTATIVES THAT THE FUNDSSHOULD BE PART OF AN OVERALL ASSET ALLOCATION STRATEGY ANDNOT SOLD AS A HIGH YIELDING ALTERNATIVE TO MONEY MARKET FUNDS.THE TEAM ALSO PREPARED A PRESENTATION WHICH INCLUDEDGUIDANCE REGARDING CUSTOMERS FOR WHOM FLOATING RATE LOANFUNDS MIGHT BE SUITABLE. HOWEVER, WELLS FARGO INVESTMENTSFAILED TO ADEQUATELY DISTRIBUTE THIS INFORMATION TO REGISTEREDREPRESENTATIVES OR TAKE ACTION TO ENSURE THAT THE PRODUCTTEAM'S CONCERNS WERE TAKEN INTO ACCOUNT WHEN FLOATING RATELOAN FUND PURCHASES WERE RECOMMENDED TO CUSTOMERS.
99©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Principal Sanction(s)/ReliefSought:
Other
Other Sanction(s)/ReliefSought:
N/A
Date Initiated: 06/04/2013
Docket/Case Number: 2008014350501
Principal Product Type: Other
Other Product Type(s): FLOATING RATE LOAN FUNDS
Resolution Date: 06/04/2013
Resolution:
Other Sanctions Ordered:
Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS;THEREFORE IT IS CENSURED, FINED $1,250,000 AND MUST PAYRESTITUTION TO CUSTOMERS IN THE AMOUNT OF $1,981,561.70. AREGISTERED PRINCIPAL ON BEHALF OF THE FIRM SHALL SUBMITSATISFACTORY PROOF OF PAYMENT OF RESTITUTION OR OFREASONABLE AND DOCUMENTED EFFORTS UNDERTAKEN TO EFFECTRESTITUTION TO FINRA NO LATER THAN 120 DAYS AFTER ACCEPTANCEOF THE AWC. IF FOR ANY REASON THE FIRM CANNOT LOCATE ANY OF THECUSTOMERS RECEIVING RESTITUTION AFTER REASONABLE ANDDOCUMENTED EFFORTS WITHIN 120 DAYS FROM THE DATE THE AWC ISACCEPTED, OR SUCH ADDITIONAL PERIOD AGREED TO BY FINRA, THEFIRM SHALL FORWARD ANY UNDISTRIBUTED RESTITUTION AND INTERESTTO THE APPROPRIATE ESCHEAT, UNCLAIMED PROPERTY OR ABANDONEDPROPERTY FUND FOR THE STATE IN WHICH THE CUSTOMER IS LASTKNOWN TO HAVE RESIDED. THE FIRM SHALL PROVIDE SATISFACTORYPROOF OF SUCH ACTION TO FINRA WITHIN 14 DAYS OF FORWARDING THEUNDISTRIBUTED RESTITUTION AND INTEREST TO THE APPROPRIATESTATE AUTHORITY.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: CensureMonetary/Fine $1,250,000.00Disgorgement/Restitution
Acceptance, Waiver & Consent(AWC)
100©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
iReporting Source: Firm
Initiated By: FINRA
Allegations: THIS ACTION RELATES TO CONDUCT THAT OCCURRED AT WELLS FARGOINVESTMENTS, LLC (CRD #10582). WELLS FARGO ADVISORS, LLC WAS NOTAFFILIATED WITH WELLS FARGO INVESTMENTS DURING THE RELEVANTPERIOD AND IS NAMED AS A RESPONDENT SOLELY AS SUCCESSOR INLIABILITY FOR WELLS FARGO INVESTMENTS, LLC. FINRA RULE 2010, NASDRULES 2110, 2310, 3010: BETWEEN JANUARY 1, 2007 AND DECEMBER 31,2008 WELLS FARGO INVESTMENTS REGISTERED REPRESENTATIVESMADE RECOMMENDATIONS TO CUSTOMERS TO PURCHASE FLOATINGRATE LOAN FUNDS THAT WERE UNSUITABLE FOR THOSE CUSTOMERS INLIGHT OF THEIR FINANCIAL SITUATIONS AND NEEDS. IN PARTICULAR,WELLS FARGO INVESTMENTS MADE NUMEROUS RECOMMENDATIONS TOCUSTOMERS WHOSE RISK TOLERANCES AND INVESTMENT OBJECTIVESWERE INCONSISTENT WITH THE RISKS AND FEATURES OF FLOATING RATELOAN FUNDS. THE FLOATING RATE LOAN FUNDS SOLD BY WELLS FARGOINVESTMENTS WERE SUBJECT TO SIGNIFICANT CREDIT AND LIQUIDITYRISKS. ACCORDINGLY, THE FUNDS WERE NOT TYPICALLY SUITABLE FORINVESTORS WITH AN INVESTMENT OBJECTIVE OF INCOME AND ACONSERVATIVE RISK TOLERANCE OR THOSE CUSTOMERS WHO WERESEEKING TO PRESERVE PRINCIPAL, PARTICULARLY WHEN THOSECUSTOMERS' PURCHASES CONSTITUTED A LARGE PERCENTAGE OFTHEIR INVESTIBLE ASSETS OR LIQUID NET WORTH. MOREOVER,FLOATING RATE LOAN FUNDS, PARTICULARLY THOSE WITH RESTRICTIVEREDEMPTION POLICIES, WERE NOT TYPICALLY SUITABLE FOR INVESTORSWITH SHORT INVESTMENT TIME HORIZONS. BETWEEN 2007 AND EARLY2009, THE NET ASSET VALUE OF THE TYPICAL FLOATING RATE LOANFUNDS DECLINED SUBSTANTIALLY AND SINCE THAT TIME HAS PARTIALLYRECOVERED. HOWEVER, MANY WELLS FARGO INVESTMENTSCUSTOMERS FOR WHOM A FLOATING RATE LOAN FUND WAS UNSUITABLESOLD THEIR HOLDINGS IN FLOATING RATE LOAN FUNDS AND INCURREDNET LOSSES. WELLS FARGO INVESTMENTS ALSO FAILED TO ESTABLISHAND MAINTAIN A SYSTEM FOR SUPERVISING ITS SALES OF FLOATINGRATE LOAN FUNDS THAT WAS REASONABLY DESIGNED TO ACHIEVECOMPLIANCE WITH THE SUITABILITY REQUIREMENTS OF NASD AND FINRARULES. EVEN AFTER POTENTIAL CONCERNS WERE RAISED INTERNALLY,WELLS FARGO INVESTMENTS FAILED TO PROVIDE SUFFICIENT GUIDANCEOR TRAINING TO REGISTERED REPRESENTATIVES OR SUPERVISORS TODETERMINE WHETHER FLOATING RATE LOAN FUNDS WERE SUITABLEFOR ITS CLIENTS AND THE CREDIT AND LIQUIDITY RISKS ASSOCIATEDWITH FLOATING RATE FUNDS.
Current Status: Final
101©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Principal Sanction(s)/ReliefSought:
Other
Other Sanction(s)/ReliefSought:
NA
Date Initiated: 06/04/2013
Docket/Case Number: 2008014350501
Principal Product Type: Other
Other Product Type(s): FLOATING RATE FUNDS
Resolution Date: 06/04/2013
Resolution:
Other Sanctions Ordered:
Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS;THEREFORE IT IS CENSURED, FINED $1,250,000 AND MUST PAYRESTITUTION TO CUSTOMERS IN THE AMOUNT OF $1,981,561.70. AREGISTERED PRINCIPAL ON BEHALF OF THE FIRM SHALL SUBMITSATISFACTORY PROOF OF PAYMENT OF RESTITUTION OR OFREASONABLE AND DOCUMENTED EFFORTS UNDERTAKEN TO EFFECTRESTITUTION TO FINRA NO LATER THAN 120 DAYS AFTER ACCEPTANCEOF THE AWC. IF FOR ANY REASON THE FIRM CANNOT LOCATE ANY OF THECUSTOMERS RECEIVING RESTITUTION AFTER REASONABLE ANDDOCUMENTED EFFORTS WITHIN 120 DAYS FROM THE DATE THE AWC ISACCEPTED, OR SUCH ADDITIONAL PERIOD AGREED TO BY FINRA, THEFIRM SHALL FORWARD ANY UNDISTRIBUTED RESTITUTION AND INTERESTTO THE APPROPRIATE ESCHEAT, UNCLAIMED PROPERTY OR ABANDONEDPROPERTY FUND FOR THE STATE IN WHICH THE CUSTOMER IS LASTKNOWN TO HAVE RESIDED. THE FIRM SHALL PROVIDE SATISFACTORYPROOF OF SUCH ACTION TO FINRA WITHIN 14 DAYS OF FORWARDING THEUNDISTRIBUTED RESTITUTION AND INTEREST TO THE APPROPRIATESTATE AUTHORITY.
Sanctions Ordered: CensureMonetary/Fine $1,250,000.00Disgorgement/Restitution
Acceptance, Waiver & Consent(AWC)
Disclosure 30 of 158
i
Reporting Source: Regulator
Allegations: FINRA BY-LAWS ARTICLE V, SECTION 2; FINRA RULES 1122, 2010; NASDRULES 2110, 3010, 3070, CAUSED VIOLATIONS OF FINRA RULE 3240(A),NASD RULE 2370(A): WELLS FARGO PERMITTED CERTAIN CUSTOMERS TOBORROW MONEY FROM THE MEMBER FIRM BY WITHDRAWING MOREFUNDS THAN WERE AVAILABLE IN THE CUSTOMERS' ACCOUNTS,THROUGH THE USE OF AMONG OTHER THINGS, ONLINE PAYMENTS,CHECKS, AND DEBIT CARDS. THE REGISTERED REPRESENTATIVESASSIGNED TO THE ACCOUNTS, WITH THE CONCURRENCE OF THEBRANCH MANAGERS AND THE FIRM'S CREDIT AND MARGIN DEPARTMENT,DETERMINED WHETHER TO ALLOW THESE TYPES OF WITHDRAWALS TOGO THROUGH. IF THE OVERDRAFTS WERE ALLOWED TO OCCUR, THECUSTOMERS WERE RESPONSIBLE FOR SATISFYING THE OVERDRAFTTHROUGH A SAME DAY DEPOSIT OF FUNDS, WIRE TRANSFER, ORCOLLATERAL OR SALE OF SECURITIES. ACCORDING TO THE FIRM'SPOLICY, IF A CUSTOMER DID NOT SATISFY AN OVERDRAFT ON THE SAMEDAY, THE DEBIT WOULD NOT BE HONORED. HOWEVER, DURING THE TIMEPERIOD AT ISSUE, THE FIRM ALLOWED EXCEPTIONS TO THIS POLICY ONAN OCCASIONAL, THOUGH NOT FREQUENT, BASIS AND PERMITTEDOVERDRAFTS IN SITUATIONS WHERE CUSTOMERS DID NOT COVER THEDEBIT ON THE SAME DAY, THEREBY LOANING MONEY TO THOSECUSTOMERS. IN THOSE INSTANCES, IN ACCORDANCE WITH THE FIRM'SPOLICIES AND PROCEDURES, IF THE OVERDRAFT WAS NOT REPAIDAFTER A PERIOD OF TIME, THE UNSECURED DEBIT WAS CHARGEDAGAINST THE REGISTERED REPRESENTATIVE'S PRODUCTION.ONCE AN OVERDRAFT WAS CHARGED AGAINST A REGISTEREDREPRESENTATIVE'S PRODUCTION, THE REGISTEREDREPRESENTATIVE COULD REQUEST THAT THE DEBT BE SENT TOCOLLECTIONS, THROUGH THE FIRM, FOR RECOVERY FROM THECUSTOMER. AMOUNTS RECOVERED FROM THE CUSTOMER WERE PAIDTO THE REGISTERED REPRESENTATIVE, MINUS ANY COLLECTIONSEXPENSES. BY TRANSFERRING RESPONSIBILITY FOR THE LOAN TOREGISTERED REPRESENTATIVES AND ALLOWING REGISTEREDREPRESENTATIVES TO OBTAIN REPAYMENT FROM THE CUSTOMERS, THEFIRM CAUSED REGISTERED REPRESENTATIVES TO LOAN MONEY TOCUSTOMERS.THE FIRM ALSO ALLOWED THE LOANS TO OCCUR WITHOUT ANY SYSTEMOR PROCEDURE IN PLACE TO DETERMINE WHETHER THE LOANS MET THECONDITIONS OF FINRA RULE 3240(A) AND NASD RULE 2370(A).THEREFORE IT FAILED TO ESTABLISH AND MAINTAIN A SUPERVISORYSYSTEM REASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITH FINRAAND NASD RULES.TWO CUSTOMERS ALLEGED IN WRITING THAT A REGISTEREDREPRESENTATIVE HAD MADE JOURNAL TRANSFERS OF FUNDS TO OTHERCUSTOMERS WITHOUT THEIR AUTHORIZATION. THE FIRM SETTLED ONECOMPLAINT FOR $16,500 WHILE THE OTHER WAS RESOLVED WITHOUT AMONETARY SETTLEMENT. THE FIRM NEVER REPORTED EITHER OF THESECOMPLAINTS ON THE REGISTERED REPRESENTATIVE'S FORM U4, ANDNEVER DISCLOSED THE SETTLEMENT OF THE SECOND COMPLAINT FORMORE THAN $15,000.THE CUSTOMER COMPLAINTS ALLEGED MISAPPROPRIATION OF FUNDSWHICH REQUIRES DISCLOSURE UNDER NASD RULE 3070 WITHIN TENDAYS. ONE COMPLAINT WAS NOT REPORTED UNTIL THREE AND ONE-HALFMONTHS AFTER IT WAS RECEIVED WHILE TO OTHER WAS NEVERREPORTED.
Current Status: Final
102©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Allegations: FINRA BY-LAWS ARTICLE V, SECTION 2; FINRA RULES 1122, 2010; NASDRULES 2110, 3010, 3070, CAUSED VIOLATIONS OF FINRA RULE 3240(A),NASD RULE 2370(A): WELLS FARGO PERMITTED CERTAIN CUSTOMERS TOBORROW MONEY FROM THE MEMBER FIRM BY WITHDRAWING MOREFUNDS THAN WERE AVAILABLE IN THE CUSTOMERS' ACCOUNTS,THROUGH THE USE OF AMONG OTHER THINGS, ONLINE PAYMENTS,CHECKS, AND DEBIT CARDS. THE REGISTERED REPRESENTATIVESASSIGNED TO THE ACCOUNTS, WITH THE CONCURRENCE OF THEBRANCH MANAGERS AND THE FIRM'S CREDIT AND MARGIN DEPARTMENT,DETERMINED WHETHER TO ALLOW THESE TYPES OF WITHDRAWALS TOGO THROUGH. IF THE OVERDRAFTS WERE ALLOWED TO OCCUR, THECUSTOMERS WERE RESPONSIBLE FOR SATISFYING THE OVERDRAFTTHROUGH A SAME DAY DEPOSIT OF FUNDS, WIRE TRANSFER, ORCOLLATERAL OR SALE OF SECURITIES. ACCORDING TO THE FIRM'SPOLICY, IF A CUSTOMER DID NOT SATISFY AN OVERDRAFT ON THE SAMEDAY, THE DEBIT WOULD NOT BE HONORED. HOWEVER, DURING THE TIMEPERIOD AT ISSUE, THE FIRM ALLOWED EXCEPTIONS TO THIS POLICY ONAN OCCASIONAL, THOUGH NOT FREQUENT, BASIS AND PERMITTEDOVERDRAFTS IN SITUATIONS WHERE CUSTOMERS DID NOT COVER THEDEBIT ON THE SAME DAY, THEREBY LOANING MONEY TO THOSECUSTOMERS. IN THOSE INSTANCES, IN ACCORDANCE WITH THE FIRM'SPOLICIES AND PROCEDURES, IF THE OVERDRAFT WAS NOT REPAIDAFTER A PERIOD OF TIME, THE UNSECURED DEBIT WAS CHARGEDAGAINST THE REGISTERED REPRESENTATIVE'S PRODUCTION.ONCE AN OVERDRAFT WAS CHARGED AGAINST A REGISTEREDREPRESENTATIVE'S PRODUCTION, THE REGISTEREDREPRESENTATIVE COULD REQUEST THAT THE DEBT BE SENT TOCOLLECTIONS, THROUGH THE FIRM, FOR RECOVERY FROM THECUSTOMER. AMOUNTS RECOVERED FROM THE CUSTOMER WERE PAIDTO THE REGISTERED REPRESENTATIVE, MINUS ANY COLLECTIONSEXPENSES. BY TRANSFERRING RESPONSIBILITY FOR THE LOAN TOREGISTERED REPRESENTATIVES AND ALLOWING REGISTEREDREPRESENTATIVES TO OBTAIN REPAYMENT FROM THE CUSTOMERS, THEFIRM CAUSED REGISTERED REPRESENTATIVES TO LOAN MONEY TOCUSTOMERS.THE FIRM ALSO ALLOWED THE LOANS TO OCCUR WITHOUT ANY SYSTEMOR PROCEDURE IN PLACE TO DETERMINE WHETHER THE LOANS MET THECONDITIONS OF FINRA RULE 3240(A) AND NASD RULE 2370(A).THEREFORE IT FAILED TO ESTABLISH AND MAINTAIN A SUPERVISORYSYSTEM REASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITH FINRAAND NASD RULES.TWO CUSTOMERS ALLEGED IN WRITING THAT A REGISTEREDREPRESENTATIVE HAD MADE JOURNAL TRANSFERS OF FUNDS TO OTHERCUSTOMERS WITHOUT THEIR AUTHORIZATION. THE FIRM SETTLED ONECOMPLAINT FOR $16,500 WHILE THE OTHER WAS RESOLVED WITHOUT AMONETARY SETTLEMENT. THE FIRM NEVER REPORTED EITHER OF THESECOMPLAINTS ON THE REGISTERED REPRESENTATIVE'S FORM U4, ANDNEVER DISCLOSED THE SETTLEMENT OF THE SECOND COMPLAINT FORMORE THAN $15,000.THE CUSTOMER COMPLAINTS ALLEGED MISAPPROPRIATION OF FUNDSWHICH REQUIRES DISCLOSURE UNDER NASD RULE 3070 WITHIN TENDAYS. ONE COMPLAINT WAS NOT REPORTED UNTIL THREE AND ONE-HALFMONTHS AFTER IT WAS RECEIVED WHILE TO OTHER WAS NEVERREPORTED.
103©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 04/09/2013
Docket/Case Number: 2010022380001
Principal Product Type: Other
Other Product Type(s): N/A
FINRA BY-LAWS ARTICLE V, SECTION 2; FINRA RULES 1122, 2010; NASDRULES 2110, 3010, 3070, CAUSED VIOLATIONS OF FINRA RULE 3240(A),NASD RULE 2370(A): WELLS FARGO PERMITTED CERTAIN CUSTOMERS TOBORROW MONEY FROM THE MEMBER FIRM BY WITHDRAWING MOREFUNDS THAN WERE AVAILABLE IN THE CUSTOMERS' ACCOUNTS,THROUGH THE USE OF AMONG OTHER THINGS, ONLINE PAYMENTS,CHECKS, AND DEBIT CARDS. THE REGISTERED REPRESENTATIVESASSIGNED TO THE ACCOUNTS, WITH THE CONCURRENCE OF THEBRANCH MANAGERS AND THE FIRM'S CREDIT AND MARGIN DEPARTMENT,DETERMINED WHETHER TO ALLOW THESE TYPES OF WITHDRAWALS TOGO THROUGH. IF THE OVERDRAFTS WERE ALLOWED TO OCCUR, THECUSTOMERS WERE RESPONSIBLE FOR SATISFYING THE OVERDRAFTTHROUGH A SAME DAY DEPOSIT OF FUNDS, WIRE TRANSFER, ORCOLLATERAL OR SALE OF SECURITIES. ACCORDING TO THE FIRM'SPOLICY, IF A CUSTOMER DID NOT SATISFY AN OVERDRAFT ON THE SAMEDAY, THE DEBIT WOULD NOT BE HONORED. HOWEVER, DURING THE TIMEPERIOD AT ISSUE, THE FIRM ALLOWED EXCEPTIONS TO THIS POLICY ONAN OCCASIONAL, THOUGH NOT FREQUENT, BASIS AND PERMITTEDOVERDRAFTS IN SITUATIONS WHERE CUSTOMERS DID NOT COVER THEDEBIT ON THE SAME DAY, THEREBY LOANING MONEY TO THOSECUSTOMERS. IN THOSE INSTANCES, IN ACCORDANCE WITH THE FIRM'SPOLICIES AND PROCEDURES, IF THE OVERDRAFT WAS NOT REPAIDAFTER A PERIOD OF TIME, THE UNSECURED DEBIT WAS CHARGEDAGAINST THE REGISTERED REPRESENTATIVE'S PRODUCTION.ONCE AN OVERDRAFT WAS CHARGED AGAINST A REGISTEREDREPRESENTATIVE'S PRODUCTION, THE REGISTEREDREPRESENTATIVE COULD REQUEST THAT THE DEBT BE SENT TOCOLLECTIONS, THROUGH THE FIRM, FOR RECOVERY FROM THECUSTOMER. AMOUNTS RECOVERED FROM THE CUSTOMER WERE PAIDTO THE REGISTERED REPRESENTATIVE, MINUS ANY COLLECTIONSEXPENSES. BY TRANSFERRING RESPONSIBILITY FOR THE LOAN TOREGISTERED REPRESENTATIVES AND ALLOWING REGISTEREDREPRESENTATIVES TO OBTAIN REPAYMENT FROM THE CUSTOMERS, THEFIRM CAUSED REGISTERED REPRESENTATIVES TO LOAN MONEY TOCUSTOMERS.THE FIRM ALSO ALLOWED THE LOANS TO OCCUR WITHOUT ANY SYSTEMOR PROCEDURE IN PLACE TO DETERMINE WHETHER THE LOANS MET THECONDITIONS OF FINRA RULE 3240(A) AND NASD RULE 2370(A).THEREFORE IT FAILED TO ESTABLISH AND MAINTAIN A SUPERVISORYSYSTEM REASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITH FINRAAND NASD RULES.TWO CUSTOMERS ALLEGED IN WRITING THAT A REGISTEREDREPRESENTATIVE HAD MADE JOURNAL TRANSFERS OF FUNDS TO OTHERCUSTOMERS WITHOUT THEIR AUTHORIZATION. THE FIRM SETTLED ONECOMPLAINT FOR $16,500 WHILE THE OTHER WAS RESOLVED WITHOUT AMONETARY SETTLEMENT. THE FIRM NEVER REPORTED EITHER OF THESECOMPLAINTS ON THE REGISTERED REPRESENTATIVE'S FORM U4, ANDNEVER DISCLOSED THE SETTLEMENT OF THE SECOND COMPLAINT FORMORE THAN $15,000.THE CUSTOMER COMPLAINTS ALLEGED MISAPPROPRIATION OF FUNDSWHICH REQUIRES DISCLOSURE UNDER NASD RULE 3070 WITHIN TENDAYS. ONE COMPLAINT WAS NOT REPORTED UNTIL THREE AND ONE-HALFMONTHS AFTER IT WAS RECEIVED WHILE TO OTHER WAS NEVERREPORTED.
Resolution Date: 04/09/2013
Resolution:
Other Sanctions Ordered: UNDERTAKING
Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS,THEREFORE IT IS CENSURED AND FINED $50,000. THE FIRM FURTHERUNDERTOOK AND AGREED TO CONDUCT A COMPREHENSIVE REVIEW OFITS SYSTEMS, POLICIES AND PROCEDURES TO ENSURE THAT THOSEPOLICIES AND PROCEDURES ARE REASONABLY DESIGNED TO ACHIEVECOMPLIANCE WITH FINRA RULES AND THE FEDERAL SECURITIES LAWSREGARDING BORROWING MONEY FROM, OR LENDING MONEY TO,CUSTOMERS BY REGISTERED REPRESENTATIVES. WITHIN 120 DAYS OFTHE ISSUANCE OF A NOTICE OF ACCEPTANCE OF THIS AWC, AN OFFICEROF THE FIRM SHALL CERTIFY IN WRITING TO FINRA THAT (I) THE FIRM HASENGAGED IN THE COMPREHENSIVE REVIEW; AND (II) AS OF THE DATE OFTHE CERTIFICATION, THE FIRM HAS IN PLACE POLICIES ANDPROCEDURES TO REASONABLY DESIGNED TO ADDRESS AND CORRECTTHE VIOLATIONS RELATING TO SUPERVISION DESCRIBED IN THIS AWC.FINE PAID MAY 29, 2013.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: CensureMonetary/Fine $50,000.00
Acceptance, Waiver & Consent(AWC)
104©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS,THEREFORE IT IS CENSURED AND FINED $50,000. THE FIRM FURTHERUNDERTOOK AND AGREED TO CONDUCT A COMPREHENSIVE REVIEW OFITS SYSTEMS, POLICIES AND PROCEDURES TO ENSURE THAT THOSEPOLICIES AND PROCEDURES ARE REASONABLY DESIGNED TO ACHIEVECOMPLIANCE WITH FINRA RULES AND THE FEDERAL SECURITIES LAWSREGARDING BORROWING MONEY FROM, OR LENDING MONEY TO,CUSTOMERS BY REGISTERED REPRESENTATIVES. WITHIN 120 DAYS OFTHE ISSUANCE OF A NOTICE OF ACCEPTANCE OF THIS AWC, AN OFFICEROF THE FIRM SHALL CERTIFY IN WRITING TO FINRA THAT (I) THE FIRM HASENGAGED IN THE COMPREHENSIVE REVIEW; AND (II) AS OF THE DATE OFTHE CERTIFICATION, THE FIRM HAS IN PLACE POLICIES ANDPROCEDURES TO REASONABLY DESIGNED TO ADDRESS AND CORRECTTHE VIOLATIONS RELATING TO SUPERVISION DESCRIBED IN THIS AWC.FINE PAID MAY 29, 2013.
iReporting Source: Firm
Allegations: FINRA BY-LAWS ARTICLE V, SECTION 2; FINRA RULES 1122, 2010; NASDRULES 2110, 3010, 3070, CAUSED VIOLATIONS OF FINRA RULE 3240(A),NASD RULE 2370(A): WELLS FARGO PERMITTED CERTAIN CUSTOMERS TOBORROW MONEY FROM THE MEMBER FIRM BY WITHDRAWING MOREFUNDS THAN WERE AVAILABLE IN THE CUSTOMERS' ACCOUNTS,THROUGH THE USE OF AMONG OTHER THINGS, ONLINE PAYMENTS,CHECKS, AND DEBIT CARDS. THE REGISTERED REPRESENTATIVESASSIGNED TO THE ACCOUNTS, WITH THE CONCURRENCE OF THEBRANCH MANAGERS AND THE FIRM'S CREDIT AND MARGIN DEPARTMENT,DETERMINED WHETHER TO ALLOW THESE TYPES OF WITHDRAWALS TOGO THROUGH. IF THE OVERDRAFTS WERE ALLOWED TO OCCUR, THECUSTOMERS WERE RESPONSIBLE FOR SATISFYING THE OVERDRAFTTHROUGH A SAME DAY DEPOSIT OF FUNDS, WIRE TRANSFER, ORCOLLATERAL OR SALE OF SECURITIES. ACCORDING TO THE FIRM'SPOLICY, IF A CUSTOMER DID NOT SATISFY AN OVERDRAFT ON THE SAMEDAY, THE DEBIT WOULD NOT BE HONORED. HOWEVER, DURING THE TIMEPERIOD AT ISSUE, THE FIRM ALLOWED EXCEPTIONS TO THIS POLICY ONAN OCCASIONAL, THOUGH NOT FREQUENT, BASIS AND PERMITTEDOVERDRAFTS IN SITUATIONS WHERE CUSTOMERS DID NOT COVER THEDEBIT ON THE SAME DAY, THEREBY LOANING MONEY TO THOSECUSTOMERS. IN THOSE INSTANCES, IN ACCORDANCE WITH THE FIRM'SPOLICIES AND PROCEDURES, IF THE OVERDRAFT WAS NOT REPAIDAFTER A PERIOD OF TIME, THE UNSECURED DEBIT WAS CHARGEDAGAINST THE REGISTERED REPRESENTATIVE'S PRODUCTION. ONCE ANOVERDRAFT WAS CHARGED AGAINST A REGISTERED REPRESENTATIVE'SPRODUCTION, THE REGISTERED REPRESENTATIVE COULD REQUESTTHAT THE DEBT BE SENT TO COLLECTIONS, THROUGH THE FIRM, FORRECOVERY FROM THE CUSTOMER. AMOUNTS RECOVERED FROM THECUSTOMER WERE PAID TO THE REGISTERED REPRESENTATIVE, MINUSANY COLLECTIONS EXPENSES. BY TRANSFERRING RESPONSIBILITY FORTHE LOAN TO REGISTERED REPRESENTATIVES AND ALLOWINGREGISTERED REPRESENTATIVES TO OBTAIN REPAYMENT FROM THECUSTOMERS, THE FIRM CAUSED REGISTERED REPRESENTATIVES TOLOAN MONEY TO CUSTOMERS. THE FIRM ALSO ALLOWED THE LOANS TOOCCUR WITHOUT ANY SYSTEM OR PROCEDURE IN PLACE TO DETERMINEWHETHER THE LOANS MET THE CONDITIONS OF FINRA RULE 3240(A) ANDNASD RULE 2370(A). THEREFORE IT FAILED TO ESTABLISH AND MAINTAIN ASUPERVISORY SYSTEM REASONABLY DESIGNED TO ACHIEVECOMPLIANCE WITH FINRA AND NASD RULES. TWO CUSTOMERS ALLEGEDIN WRITING THAT A REGISTERED REPRESENTATIVE HAD MADE JOURNALTRANSFERS OF FUNDS TO OTHER CUSTOMERS WITHOUT THEIRAUTHORIZATION. THE FIRM SETTLED ONE COMPLAINT FOR $16,500 WHILETHE OTHER WAS RESOLVED WITHOUT A MONETARY SETTLEMENT. THEFIRM NEVER REPORTED EITHER OF THESE COMPLAINTS ON THEREGISTERED REPRESENTATIVE'S FORM U4, AND NEVER DISCLOSED THESETTLEMENT OF THE SECOND COMPLAINT FOR MORE THAN $15,000. THECUSTOMER COMPLAINTS ALLEGED MISAPPROPRIATION OF FUNDS WHICHREQUIRES DISCLOSURE UNDER NASD RULE 3070 WITHIN TEN DAYS. ONECOMPLAINT WAS NOT REPORTED UNTIL THREE AND ONE-HALF MONTHSAFTER IT WAS RECEIVED WHILE TO OTHER WAS NEVER REPORTED.
Current Status: Final
105©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
CENSURE AND UNDERTAKING
Date Initiated: 04/09/2013
Docket/Case Number: 2010022380001
Principal Product Type: Other
Other Product Type(s): NA
FINRA BY-LAWS ARTICLE V, SECTION 2; FINRA RULES 1122, 2010; NASDRULES 2110, 3010, 3070, CAUSED VIOLATIONS OF FINRA RULE 3240(A),NASD RULE 2370(A): WELLS FARGO PERMITTED CERTAIN CUSTOMERS TOBORROW MONEY FROM THE MEMBER FIRM BY WITHDRAWING MOREFUNDS THAN WERE AVAILABLE IN THE CUSTOMERS' ACCOUNTS,THROUGH THE USE OF AMONG OTHER THINGS, ONLINE PAYMENTS,CHECKS, AND DEBIT CARDS. THE REGISTERED REPRESENTATIVESASSIGNED TO THE ACCOUNTS, WITH THE CONCURRENCE OF THEBRANCH MANAGERS AND THE FIRM'S CREDIT AND MARGIN DEPARTMENT,DETERMINED WHETHER TO ALLOW THESE TYPES OF WITHDRAWALS TOGO THROUGH. IF THE OVERDRAFTS WERE ALLOWED TO OCCUR, THECUSTOMERS WERE RESPONSIBLE FOR SATISFYING THE OVERDRAFTTHROUGH A SAME DAY DEPOSIT OF FUNDS, WIRE TRANSFER, ORCOLLATERAL OR SALE OF SECURITIES. ACCORDING TO THE FIRM'SPOLICY, IF A CUSTOMER DID NOT SATISFY AN OVERDRAFT ON THE SAMEDAY, THE DEBIT WOULD NOT BE HONORED. HOWEVER, DURING THE TIMEPERIOD AT ISSUE, THE FIRM ALLOWED EXCEPTIONS TO THIS POLICY ONAN OCCASIONAL, THOUGH NOT FREQUENT, BASIS AND PERMITTEDOVERDRAFTS IN SITUATIONS WHERE CUSTOMERS DID NOT COVER THEDEBIT ON THE SAME DAY, THEREBY LOANING MONEY TO THOSECUSTOMERS. IN THOSE INSTANCES, IN ACCORDANCE WITH THE FIRM'SPOLICIES AND PROCEDURES, IF THE OVERDRAFT WAS NOT REPAIDAFTER A PERIOD OF TIME, THE UNSECURED DEBIT WAS CHARGEDAGAINST THE REGISTERED REPRESENTATIVE'S PRODUCTION. ONCE ANOVERDRAFT WAS CHARGED AGAINST A REGISTERED REPRESENTATIVE'SPRODUCTION, THE REGISTERED REPRESENTATIVE COULD REQUESTTHAT THE DEBT BE SENT TO COLLECTIONS, THROUGH THE FIRM, FORRECOVERY FROM THE CUSTOMER. AMOUNTS RECOVERED FROM THECUSTOMER WERE PAID TO THE REGISTERED REPRESENTATIVE, MINUSANY COLLECTIONS EXPENSES. BY TRANSFERRING RESPONSIBILITY FORTHE LOAN TO REGISTERED REPRESENTATIVES AND ALLOWINGREGISTERED REPRESENTATIVES TO OBTAIN REPAYMENT FROM THECUSTOMERS, THE FIRM CAUSED REGISTERED REPRESENTATIVES TOLOAN MONEY TO CUSTOMERS. THE FIRM ALSO ALLOWED THE LOANS TOOCCUR WITHOUT ANY SYSTEM OR PROCEDURE IN PLACE TO DETERMINEWHETHER THE LOANS MET THE CONDITIONS OF FINRA RULE 3240(A) ANDNASD RULE 2370(A). THEREFORE IT FAILED TO ESTABLISH AND MAINTAIN ASUPERVISORY SYSTEM REASONABLY DESIGNED TO ACHIEVECOMPLIANCE WITH FINRA AND NASD RULES. TWO CUSTOMERS ALLEGEDIN WRITING THAT A REGISTERED REPRESENTATIVE HAD MADE JOURNALTRANSFERS OF FUNDS TO OTHER CUSTOMERS WITHOUT THEIRAUTHORIZATION. THE FIRM SETTLED ONE COMPLAINT FOR $16,500 WHILETHE OTHER WAS RESOLVED WITHOUT A MONETARY SETTLEMENT. THEFIRM NEVER REPORTED EITHER OF THESE COMPLAINTS ON THEREGISTERED REPRESENTATIVE'S FORM U4, AND NEVER DISCLOSED THESETTLEMENT OF THE SECOND COMPLAINT FOR MORE THAN $15,000. THECUSTOMER COMPLAINTS ALLEGED MISAPPROPRIATION OF FUNDS WHICHREQUIRES DISCLOSURE UNDER NASD RULE 3070 WITHIN TEN DAYS. ONECOMPLAINT WAS NOT REPORTED UNTIL THREE AND ONE-HALF MONTHSAFTER IT WAS RECEIVED WHILE TO OTHER WAS NEVER REPORTED.
Resolution Date: 04/09/2013
Resolution:
Other Sanctions Ordered: UNDERTAKING
Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS,THEREFORE IT IS CENSURED AND FINED $50,000. THE FIRM FURTHERUNDERTOOK AND AGREED TO CONDUCT A COMPREHENSIVE REVIEW OFITS SYSTEMS, POLICIES AND PROCEDURES TO ENSURE THAT THOSEPOLICIES AND PROCEDURES ARE REASONABLY DESIGNED TO ACHIEVECOMPLIANCE WITH FINRA RULES AND THE FEDERAL SECURITIES LAWSREGARDING BORROWING MONEY FROM, OR LENDING MONEY TO,CUSTOMERS BY REGISTERED REPRESENTATIVES. WITHIN 120 DAYS OFTHE ISSUANCE OF A NOTICE OF ACCEPTANCE OF THIS AWC, AN OFFICEROF THE FIRM SHALL CERTIFY IN WRITING TO FINRA THAT (I) THE FIRM HASENGAGED IN THE COMPREHENSIVE REVIEW; AND (II) AS OF THE DATE OFTHE CERTIFICATION, THE FIRM HAS IN PLACE POLICIES ANDPROCEDURES TO REASONABLY DESIGNED TO ADDRESS AND CORRECTTHE VIOLATIONS RELATING TO SUPERVISION DESCRIBED IN THIS AWC.
Sanctions Ordered: CensureMonetary/Fine $50,000.00
Acceptance, Waiver & Consent(AWC)
106©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS,THEREFORE IT IS CENSURED AND FINED $50,000. THE FIRM FURTHERUNDERTOOK AND AGREED TO CONDUCT A COMPREHENSIVE REVIEW OFITS SYSTEMS, POLICIES AND PROCEDURES TO ENSURE THAT THOSEPOLICIES AND PROCEDURES ARE REASONABLY DESIGNED TO ACHIEVECOMPLIANCE WITH FINRA RULES AND THE FEDERAL SECURITIES LAWSREGARDING BORROWING MONEY FROM, OR LENDING MONEY TO,CUSTOMERS BY REGISTERED REPRESENTATIVES. WITHIN 120 DAYS OFTHE ISSUANCE OF A NOTICE OF ACCEPTANCE OF THIS AWC, AN OFFICEROF THE FIRM SHALL CERTIFY IN WRITING TO FINRA THAT (I) THE FIRM HASENGAGED IN THE COMPREHENSIVE REVIEW; AND (II) AS OF THE DATE OFTHE CERTIFICATION, THE FIRM HAS IN PLACE POLICIES ANDPROCEDURES TO REASONABLY DESIGNED TO ADDRESS AND CORRECTTHE VIOLATIONS RELATING TO SUPERVISION DESCRIBED IN THIS AWC.
Disclosure 31 of 158
i
Reporting Source: Firm
Initiated By: NEW YORK DEPARTMENT OF FINANCIAL SERVICES
Principal Sanction(s)/ReliefSought:
Other
Other Sanction(s)/ReliefSought:
STIPULATION
Date Initiated: 02/27/2013
Docket/Case Number: 2012-0184-S
Principal Product Type: Insurance
Other Product Type(s):
Allegations: THE NEW YORK STATE DEPARTMENT OF FINANCIAL SERVICES ALLEGEDTHAT DURING THE APPROXIMATE PERIOD OF JANUARY 2007 THROUGHDECEMBER 2010 WELLS FARGO ADVISORS, LLC, AN UNLICENSED ENTITY,ACCEPTED INSURANCE COMMISSIONS FROM WELLS FARGO ADVISORSINSURANCE AGENCY LLC, IN VIOLATION OF NEW YORK INSURANCE LAW.THE DEPARTMENT FURTHER ALLEGED THAT BOTH WELLS FARGOADVISORS LLC AND WELLS FARGO ADVISORS FINANCIAL NETWORK LLCPROVIDED MATERIALLY INCOMPLETE INFORMATION IN THEIR RESPECTIVEINSURANCE LICENSE APPLICATIONS SUBMITTED TO THE STATE ON ORABOUT JANUARY 27, 2012.
Current Status: Final
Resolution Date: 02/27/2013
Resolution:
Other Sanctions Ordered:
Sanction Details: WELLS FARGO ADVISORS AND AFFILIATES PAID A $50,000 FINE ANDAGREED TO TAKE ALL NECESSARY STEPS TO PREVENT THEREOCCURRENCE OF SIMILAR VIOLATIONS.
Sanctions Ordered: Monetary/Fine $50,000.00
Stipulation and Consent
107©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Sanction Details: WELLS FARGO ADVISORS AND AFFILIATES PAID A $50,000 FINE ANDAGREED TO TAKE ALL NECESSARY STEPS TO PREVENT THEREOCCURRENCE OF SIMILAR VIOLATIONS.
Disclosure 32 of 158
i
Reporting Source: Regulator
Initiated By: FLORIDA OFFICE OF FINANCIAL REGULATION ("OFR")
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 03/16/2012
Docket/Case Number: 0672-S-9/12
URL for Regulatory Action:
Principal Product Type: Other
Other Product Type(s):
Allegations: ON DECEMBER 15, 2010, WELLS FARGO, A FEDERALLY COVEREDINVESTMENT ADVISER, INFORMED THE OFFICE BY LETTER THAT ANANOMALY IN ITS AUTOMATED SYSTEMS HAD CAUSED A NUMBER OFINDIVIDUALS TO ENGAGE IN INVESTMENT ADVISORY BUSINESS INFLORIDA WITHOUT BENEFIT OF INVESTMENT ADVISER REPRESENTATIVEREGISTRATION. IN EARLY 2012, WELLS FARGO ADVISORS, LLC NOTIFIEDTHE OFFICE THAT IT HAD ADDITIONAL FINANCIAL ADVISORS, INCLUDINGSHAPIRO AND BEACH, THAT POTENTIALLY NEEDED INVESTMENT ADVISERREPRESENTATIVE REGISTRATION IN FLORIDA. SHAPIRO AND BEACH AREPROPERLY REGISTERED WITH THE OFFICE TO SELL SECURITIES. ONMARCH 16,2012, THE OFFICE ISSUED A LETTER TO DETERMINE IFSHAPIRO AND BEACH HAD ENGAGED IN INVESTMENT ADVISORYBUSINESS FROM OFFICES IN FLORIDA. IN RESPONSE TO THE OFFICE'SINQUIRY, SHAPIRO INDICATED THAT HE HAD ENGAGED IN BUSINESS FORTHREE MONTHS OUT OF THE YEAR SINCE 2008, AND BEACH INDICATEDTHAT HE HAD ENGAGED IN BUSINESS FOR TWO TO FOUR MONTHS PERYEAR SINCE 2009, PRIOR TO THEM EACH OBTAINING PROPERREGISTRATION IN FLORIDA.
Current Status: Final
Resolution Date: 02/12/2013
Resolution:
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Order
108©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Other Sanctions Ordered:
Sanction Details: ON 2/12/2013, THE OFFICE OF FINANCIAL REGULATION ("OFFICE")ENTERED A FINAL ORDER ADOPTING THE STIPULATION AND CONSENTAGREEMENT IN THE MATTER OF WELLS FARGO ADVISORS, LLC, MARTINSHAPIRO, AND SAMUEL BEACH JR ("RESPONDENTS"). RESPONDENTSNEITHER ADMITTED NOR DENIED THE FINDINGS BUT CONSENTED TO THEENTRY OF FINDINGS BY THE OFFICE. WELLS FARGO ADVISORS, LLCAGREES TO CEASE AND DESIST FROM ANY AND ALL FUTURE VIOLATIONSOF CHAPTER 517, F.S. AND THE ADMINISTRATIVE RULES THEREUNDERAND AGREES TO PAY AN ADMINISTRATIVE FINE OF $30,000.00.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: Monetary/Fine $30,000.00
iReporting Source: Firm
Initiated By: FLORIDA OFFICE OF FINANCIAL REGULATION ("OFR")
Date Initiated: 02/12/2013
Allegations: ON DECEMBER 15, 2010, WELLS FARGO, A FEDERALLY COVEREDINVESTMENT ADVISER, INFORMED THE OFFICE BY LETTER THAT ANANOMALY IN ITS AUTOMATED SYSTEMS HAD CAUSED A NUMBER OFINDIVIDUALS TO ENGAGE IN INVESTMENT ADVISORY BUSINESS INFLORIDA WITHOUT BENEFIT OF INVESTMENT ADVISER REPRESENTATIVEREGISTRATION. IN EARLY 2012, WELLS FARGO ADVISORS, LLC NOTIFIEDTHE OFFICE THAT IT HAD ADDITIONAL FINANCIAL ADVISORS, INCLUDINGTWO OTHER REGISTERED ASSOCIATES, THAT POTENTIALLY NEEDEDINVESTMENT ADVISER REPRESENTATIVE REGISTRATION IN FLORIDA. THEREGISTERED ASSOCIATAED ARE PROPERLY REGISTERED WITH THEOFFICE TO SELL SECURITIES. ON MARCH 16,2012, THE OFFICE ISSUED ALETTER TO DETERMINE IF THEY HAD ENGAGED IN INVESTMENTADVISORY BUSINESS FROM OFFICES IN FLORIDA. IN RESPONSE TO THEOFFICE'S INQUIRY, A REGISTERED ASSOCIATE INDICATED THAT HE HADENGAGED IN BUSINESS FOR THREE MONTHS OUT OF THE YEAR SINCE2008, AND ANOTHER REGISTERED ASSOCIATE INDICATED THAT HE HADENGAGED IN BUSINESS FOR TWO TO FOUR MONTHS PER YEAR SINCE2009, PRIOR TO THEM EACH OBTAINING PROPER REGISTRATION INFLORIDA.
Current Status: Final
109©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 02/12/2013
Docket/Case Number: 0672-S-9/12
Principal Product Type: No Product
Other Product Type(s):
Resolution Date: 02/12/2013
Resolution:
Other Sanctions Ordered:
Sanction Details: ON 2/12/2013, THE OFFICE OF FINANCIAL REGULATION ("OFFICE")ENTERED A FINAL ORDER ADOPTING THE STIPULATION AND CONSENTAGREEMENT IN THE MATTER OF WELLS FARGO ADVISORS, LLC, AND TWOOTHER REGISTERED ASSOCIATES ("RESPONDENTS"). RESPONDENTSNEITHER ADMITTED NOR DENIED THE FINDINGS BUT CONSENTED TO THEENTRY OF FINDINGS BY THE OFFICE. WELLS FARGO ADVISORS, LLCAGREES TO CEASE AND DESIST FROM ANY AND ALL FUTURE VIOLATIONSOF CHAPTER 517, F.S. AND THE ADMINISTRATIVE RULES THEREUNDERAND AGREES TO PAY AN ADMINISTRATIVE FINE OF $30,000.00.
Sanctions Ordered: Monetary/Fine $30,000.00
Order
Disclosure 33 of 158
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Reporting Source: Regulator
Allegations: FINRA RULE 2010, NASD RULES 2110, 2310, 3010 - WELLS FARGOADVISORS, LLC FAILED TO ESTABLISH AND MAINTAIN A SUPERVISORYSYSTEM, INCLUDING WRITTEN PROCEDURES, REASONABLY DESIGNEDTO ACHIEVE COMPLIANCE WITH NASD AND FINRA RULES IN CONNECTIONWITH THE SALE OF NON-TRADITIONAL EXCHANGE-TRADED FUNDS (ETFS)IN ACCOUNTS WHERE THE FIRM PROVIDED BROKERAGE SERVICES TOCERTAIN RETAIL CUSTOMERS AND THE FIRM FAILED TO PROVIDEADEQUATE FORMAL TRAINING AND GUIDANCE TO ITS REGISTEREDREPRESENTATIVES AND SUPERVISORS REGARDING NON-TRADITIONALETFS. THE FIRM ALLOWED ITS REGISTERED REPRESENTATIVES TORECOMMEND A NON-TRADITIONAL ETF TO CUSTOMERS WITHOUTPERFORMING REASONABLE DILIGENCE TO UNDERSTAND THE RISKS ANDFEATURES ASSOCIATED WITH IT. CERTAIN FIRM REGISTEREDREPRESENTATIVES MADE UNSUITABLE RECOMMENDATION OF NON-TRADITIONAL ETFS TO CERTAIN CUSTOMERS WITH CONSERVATIVEINCOME OR CONSERVATIVE GROWTH & INCOME INVESTMENTOBJECTIVES AND/OR RISK TOLERANCES.
Current Status: Final
110©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 05/01/2012
Docket/Case Number: 2009019113901
Principal Product Type: Other
Other Product Type(s): NON-TRADITIONAL EXCHANGE TRADED FUNDS
FINRA RULE 2010, NASD RULES 2110, 2310, 3010 - WELLS FARGOADVISORS, LLC FAILED TO ESTABLISH AND MAINTAIN A SUPERVISORYSYSTEM, INCLUDING WRITTEN PROCEDURES, REASONABLY DESIGNEDTO ACHIEVE COMPLIANCE WITH NASD AND FINRA RULES IN CONNECTIONWITH THE SALE OF NON-TRADITIONAL EXCHANGE-TRADED FUNDS (ETFS)IN ACCOUNTS WHERE THE FIRM PROVIDED BROKERAGE SERVICES TOCERTAIN RETAIL CUSTOMERS AND THE FIRM FAILED TO PROVIDEADEQUATE FORMAL TRAINING AND GUIDANCE TO ITS REGISTEREDREPRESENTATIVES AND SUPERVISORS REGARDING NON-TRADITIONALETFS. THE FIRM ALLOWED ITS REGISTERED REPRESENTATIVES TORECOMMEND A NON-TRADITIONAL ETF TO CUSTOMERS WITHOUTPERFORMING REASONABLE DILIGENCE TO UNDERSTAND THE RISKS ANDFEATURES ASSOCIATED WITH IT. CERTAIN FIRM REGISTEREDREPRESENTATIVES MADE UNSUITABLE RECOMMENDATION OF NON-TRADITIONAL ETFS TO CERTAIN CUSTOMERS WITH CONSERVATIVEINCOME OR CONSERVATIVE GROWTH & INCOME INVESTMENTOBJECTIVES AND/OR RISK TOLERANCES.
Resolution Date: 05/01/2012
Resolution:
Other Sanctions Ordered:
Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS;THEREFORE, THE FIRM IS CENSURED, FINED $2.1 MILLION AND ORDEREDTO PAY $641,489 IN RESTITUTION, JOINTLY AND SEVERALLY. AREGISTERED FIRM PRINCIPAL SHALL SUBMIT SATISFACTORY PROOF OFPAYMENT OF RESTITUTION OR OF REASONABLE AND DOCUMENTEDEFFORTS UNDERTAKEN TO EFFECT RESTITUTION TO FINRA NO LATERTHAN 120 DAYS AFTER ACCEPTANCE OF THE AWC. ANY UNDISTRIBUTEDRESTITUTION SHALL BE FORWARDED TO THE APPROPRIATE ESCHEAT,UNCLAIMED PROPERTY OR ABANDONED PROPERTY FUND FOR THESTATE IN WHICH THE CUSTOMER LAST RESIDED. THE FIRM SHALLPROVIDE SATISFACTORY PROOF OF SUCH ACTION TO FINRA WITHIN 14DAYS OF FORWARDING THE UNDISTRIBUTED RESTITUTION TO THEAPPROPRIATE STATE AUTHORITY. FINE PAID IN FULL ON MAY 16, 2012.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: CensureMonetary/Fine $2,100,000.00Disgorgement/Restitution
Acceptance, Waiver & Consent(AWC)
111©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS;THEREFORE, THE FIRM IS CENSURED, FINED $2.1 MILLION AND ORDEREDTO PAY $641,489 IN RESTITUTION, JOINTLY AND SEVERALLY. AREGISTERED FIRM PRINCIPAL SHALL SUBMIT SATISFACTORY PROOF OFPAYMENT OF RESTITUTION OR OF REASONABLE AND DOCUMENTEDEFFORTS UNDERTAKEN TO EFFECT RESTITUTION TO FINRA NO LATERTHAN 120 DAYS AFTER ACCEPTANCE OF THE AWC. ANY UNDISTRIBUTEDRESTITUTION SHALL BE FORWARDED TO THE APPROPRIATE ESCHEAT,UNCLAIMED PROPERTY OR ABANDONED PROPERTY FUND FOR THESTATE IN WHICH THE CUSTOMER LAST RESIDED. THE FIRM SHALLPROVIDE SATISFACTORY PROOF OF SUCH ACTION TO FINRA WITHIN 14DAYS OF FORWARDING THE UNDISTRIBUTED RESTITUTION TO THEAPPROPRIATE STATE AUTHORITY. FINE PAID IN FULL ON MAY 16, 2012.
iReporting Source: Firm
Initiated By: FINANCIAL INDUSTRY REGULATORY AUTHORITY (FINRA)
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
CENSURERESTITUTION
Date Initiated: 05/01/2012
Docket/Case Number: 20090191139
Principal Product Type: Other
Other Product Type(s): NON-TRADITIONAL EXCHANGE TRADED FUNDS
Allegations: FINRA RULE 2010, NASD RULES 2110, 2310, 3010 - WELLS FARGOADVISORS, LLC FAILED TO ESTABLISH AND MAINTAIN A SUPERVISORYSYSTEM, INCLUDING WRITTEN PROCEDURES, REASONABLY DESIGNEDTO ACHIEVE COMPLIANCE WITH NASD AND FINRA RULES IN CONNECTIONWITH THE SALE OF NON-TRADITIONAL EXCHANGE-TRADED FUNDS (ETFS)IN ACCOUNTS WHERE THE FIRM PROVIDED BROKERAGE SERVICES TOCERTAIN RETAIL CUSTOMERS AND THE FIRM FAILED TO PROVIDEADEQUATE FORMAL TRAINING AND GUIDANCE TO ITS REGISTEREDREPRESENTATIVES AND SUPERVISORS REGARDING NON-TRADITIONALETFS. THE FIRM ALLOWED ITS REGISTERED REPRESENTATIVES TORECOMMEND A NON-TRADITIONAL ETF TO CUSTOMERS WITHOUTPERFORMING REASONABLE DILIGENCE TO UNDERSTAND THE RISKS ANDFEATURES ASSOCIATED WITH IT. CERTAIN FIRM REGISTEREDREPRESENTATIVES MADE UNSUITABLE RECOMMENDATION OF NON-TRADITIONAL ETFS TO CERTAIN CUSTOMERS WITH CONSERVATIVEINCOME OR CONSERVATIVE GROWTH & INCOME INVESTMENTOBJECTIVES AND/OR RISK TOLERANCES.
Current Status: Final
Resolution Date: 05/01/2012
Resolution:
Other Sanctions Ordered:
Sanctions Ordered: CensureMonetary/Fine $2,100,000.00Disgorgement/Restitution
Acceptance, Waiver & Consent(AWC)
112©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Other Sanctions Ordered:
Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS;THEREFORE, THE FIRM IS CENSURED, AND WITH ITS AFFILIATE WELLSFARGO ADVISORS FINANCIAL NETWORK, LLC IS FINED $2.1 MILLION ANDORDERED TO PAY $641,489 IN RESTITUTION, JOINTLY AND SEVERALLY. AREGISTERED FIRM PRINCIPAL SHALL SUBMIT SATISFACTORY PROOF OFPAYMENT OF RESTITUTION OR OF REASONABLE AND DOCUMENTEDEFFORTS UNDERTAKEN TO EFFECT RESTITUTION TO FINRA NO LATERTHAN 120 DAYS AFTER ACCEPTANCE OF THE AWC. ANY UNDISTRIBUTEDRESTITUTION SHALL BE FORWARDED TO THE APPROPRIATE ESCHEAT,UNCLAIMED PROPERTY OR ABANDONED PROPERTY FUND FOR THESTATE IN WHICH THE CUSTOMER LAST RESIDED. THE FIRM SHALLPROVIDE SATISFACTORY PROOF OF SUCH ACTION TO FINRA WITHIN 14DAYS OF FORWARDING THE UNDISTRIBUTED RESTITUTION TO THEAPPROPRIATE STATE AUTHORITY.
Disclosure 34 of 158
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Reporting Source: Regulator
Allegations: NASD RULES 2110, 3010(B)(1): THE FIRM FAILED TO ESTABLISH, MAINTAINAND ENFORCE ADEQUATE WRITTEN PROCEDURES RELATED TO THERESTORATION OR RELEASE OF ACCOUNTS FROM ABANDONED STATUS.THE FIRM'S WRITTEN PROCEDURES REQUIRED THAT EMPLOYEESWISHING TO RESTORE CUSTOMER ACCOUNTS FROM AN ABANDONEDSTATUS SEND A WRITTEN REQUEST TO ITS ESCHEATMENT GROUP TORESTORE THE ACCOUNT. THE FIRM'S WRITTEN PROCEDURES FAILED TOIDENTIFY THE FIRM PERSONNEL WHO WERE AUTHORIZED TO SUBMITREQUESTS TO HAVE ABANDONED ACCOUNTS RESTORED OR RELEASEDFROM ABANDONED STATUS. ESCHEATMENT ACCEPTED REQUESTS TORESTORE ABANDONED ACCOUNTS FROM BRANCH OFFICE PERSONNELWORKING IN THE BRANCH OFFICE WHERE THE ABANDONED ACCOUNTWAS LAST SERVICED. THE FIRM'S WRITTEN PROCEDURES DID NOTREQUIRE THAT THE REQUESTOR OBTAIN SUPERVISORY APPROVALBEFORE SUBMITTING REQUESTS TO HAVE ABANDONED ACCOUNTSRESTORED OR RELEASED FROM ABANDONED STATUS, DID NOT REQUIRETHE REQUESTOR TO SUBMIT PROOF TO ESCHEATMENT THAT ACUSTOMER HAD BEEN LOCATED AND DID NOT REQUIRE THE REQUESTORTO SUBMIT PROOF TO ESCHEATMENT OF THE CUSTOMER'S NEWADDRESS. THE FIRM'S PROCEDURES ALSO DID NOT REQUIRE THATESCHEATMENT NOTIFY BRANCH OFFICE MANAGERS WHEN ACCOUNTSWERE RESTORED TO ACTIVE STATUS. AFTER THE RESTORATION OF ANABANDONED ACCOUNT, THE REQUESTOR WAS REQUIRED TO SUBMIT ACHANGE OF ADDRESS REQUEST WITH THE CUSTOMER'S NEW ADDRESSTO THE FIRM'S NEW ACCOUNTS GROUP. UPON RECEIPT OF THE ADDRESSCHANGE REQUESTS, THE FIRM CHANGED THE ADDRESS OF RECORD OFTHE RESTORED ACCOUNT AND SENT LETTERS CONFIRMING THE CHANGEOF ADDRESS TO BOTH THE CUSTOMER'S NEW AND OLD ADDRESS,ALTHOUGH THE OLD ADDRESS WAS INVARIABLY AN INVALID ADDRESS.THE FIRM'S DEFICIENT PROCEDURES FACILITATED A FIRM OPERATIONSMANAGER'S CONVERSION OF APPROXIMATELY $850,000 IN CUSTOMERS'FUNDS FOR HER PERSONAL USE AND ENABLED THE OPERATIONSMANAGER'S CONDUCT TO ESCAPE DETECTION BY THE FIRM.
Current Status: Final
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Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other
Other Sanction(s)/ReliefSought:
N/A
Date Initiated: 10/24/2011
Docket/Case Number: 2009020630701
Principal Product Type: No Product
Other Product Type(s):
NASD RULES 2110, 3010(B)(1): THE FIRM FAILED TO ESTABLISH, MAINTAINAND ENFORCE ADEQUATE WRITTEN PROCEDURES RELATED TO THERESTORATION OR RELEASE OF ACCOUNTS FROM ABANDONED STATUS.THE FIRM'S WRITTEN PROCEDURES REQUIRED THAT EMPLOYEESWISHING TO RESTORE CUSTOMER ACCOUNTS FROM AN ABANDONEDSTATUS SEND A WRITTEN REQUEST TO ITS ESCHEATMENT GROUP TORESTORE THE ACCOUNT. THE FIRM'S WRITTEN PROCEDURES FAILED TOIDENTIFY THE FIRM PERSONNEL WHO WERE AUTHORIZED TO SUBMITREQUESTS TO HAVE ABANDONED ACCOUNTS RESTORED OR RELEASEDFROM ABANDONED STATUS. ESCHEATMENT ACCEPTED REQUESTS TORESTORE ABANDONED ACCOUNTS FROM BRANCH OFFICE PERSONNELWORKING IN THE BRANCH OFFICE WHERE THE ABANDONED ACCOUNTWAS LAST SERVICED. THE FIRM'S WRITTEN PROCEDURES DID NOTREQUIRE THAT THE REQUESTOR OBTAIN SUPERVISORY APPROVALBEFORE SUBMITTING REQUESTS TO HAVE ABANDONED ACCOUNTSRESTORED OR RELEASED FROM ABANDONED STATUS, DID NOT REQUIRETHE REQUESTOR TO SUBMIT PROOF TO ESCHEATMENT THAT ACUSTOMER HAD BEEN LOCATED AND DID NOT REQUIRE THE REQUESTORTO SUBMIT PROOF TO ESCHEATMENT OF THE CUSTOMER'S NEWADDRESS. THE FIRM'S PROCEDURES ALSO DID NOT REQUIRE THATESCHEATMENT NOTIFY BRANCH OFFICE MANAGERS WHEN ACCOUNTSWERE RESTORED TO ACTIVE STATUS. AFTER THE RESTORATION OF ANABANDONED ACCOUNT, THE REQUESTOR WAS REQUIRED TO SUBMIT ACHANGE OF ADDRESS REQUEST WITH THE CUSTOMER'S NEW ADDRESSTO THE FIRM'S NEW ACCOUNTS GROUP. UPON RECEIPT OF THE ADDRESSCHANGE REQUESTS, THE FIRM CHANGED THE ADDRESS OF RECORD OFTHE RESTORED ACCOUNT AND SENT LETTERS CONFIRMING THE CHANGEOF ADDRESS TO BOTH THE CUSTOMER'S NEW AND OLD ADDRESS,ALTHOUGH THE OLD ADDRESS WAS INVARIABLY AN INVALID ADDRESS.THE FIRM'S DEFICIENT PROCEDURES FACILITATED A FIRM OPERATIONSMANAGER'S CONVERSION OF APPROXIMATELY $850,000 IN CUSTOMERS'FUNDS FOR HER PERSONAL USE AND ENABLED THE OPERATIONSMANAGER'S CONDUCT TO ESCAPE DETECTION BY THE FIRM.
Resolution Date: 10/24/2011
Resolution:
Other Sanctions Ordered:
Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS;THEREFORE IT IS CENSURED AND FINED $350,000.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: CensureMonetary/Fine $350,000.00
Acceptance, Waiver & Consent(AWC)
iReporting Source: Firm
114©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Initiated By: FINANCIAL INDUSTRY REGULATORY AUTHORITY (FINRA)
Principal Sanction(s)/ReliefSought:
Censure
Other Sanction(s)/ReliefSought:
MONETARY FINE OF $350,000.00
Date Initiated: 10/24/2011
Docket/Case Number: 20090206307
Principal Product Type: No Product
Other Product Type(s):
Allegations: NASD RULES 2110, 3010(B)(1): THE FIRM FAILED TO ESTABLISH, MAINTAINAND ENFORCE ADEQUATE WRITTEN PROCEDURES RELATED TO THERESTORATION OR RELEASE OF ACCOUNTS FROM ABANDONED STATUS.THE FIRM'S WRITTEN PROCEDURES REQUIRED THAT EMPLOYEESWISHING TO RESTORE CUSTOMER ACCOUNTS FROM AN ABANDONEDSTATUS SEND A WRITTEN REQUEST TO ITS ESCHEATMENT GROUP TORESTORE THE ACCOUNT. THE FIRM'S WRITTEN PROCEDURES FAILED TOIDENTIFY THE FIRM PERSONNEL WHO WERE AUTHORIZED TO SUBMITREQUESTS TO HAVE ABANDONED ACCOUNTS RESTORED OR RELEASEDFROM ABANDONED STATUS. ESCHEATMENT ACCEPTED REQUESTS TORESTORE ABANDONED ACCOUNTS FROM BRANCH OFFICE PERSONNELWORKING IN THE BRANCH OFFICE WHERE THE ABANDONED ACCOUNTWAS LAST SERVICED. THE FIRM'S WRITTEN PROCEDURES DID NOTREQUIRE THAT THE REQUESTOR OBTAIN SUPERVISORY APPROVALBEFORE SUBMITTING REQUESTS TO HAVE ABANDONED ACCOUNTSRESTORED OR RELEASED FROM ABANDONED STATUS, DID NOT REQUIRETHE REQUESTOR TO SUBMIT PROOF TO ESCHEATMENT THAT ACUSTOMER HAD BEEN LOCATED AND DID NOT REQUIRE THE REQUESTORTO SUBMIT PROOF TO ESCHEATMENT OF THE CUSTOMER'S NEWADDRESS. THE FIRM'S PROCEDURES ALSO DID NOT REQUIRE THATESCHEATMENT NOTIFY BRANCH OFFICE MANAGERS WHEN ACCOUNTSWERE RESTORED TO ACTIVE STATUS. AFTER THE RESTORATION OF ANABANDONED ACCOUNT, THE REQUESTOR WAS REQUIRED TO SUBMIT ACHANGE OF ADDRESS REQUEST WITH THE CUSTOMER'S NEW ADDRESSTO THE FIRM'S NEW ACCOUNTS GROUP. UPON RECEIPT OF THE ADDRESSCHANGE REQUESTS, THE FIRM CHANGED THE ADDRESS OF RECORD OFTHE RESTORED ACCOUNT AND SENT LETTERS CONFIRMING THE CHANGEOF ADDRESS TO BOTH THE CUSTOMER'S NEW AND OLD ADDRESS,ALTHOUGH THE OLD ADDRESS WAS INVARIABLY AN INVALID ADDRESS.THE FIRM'S DEFICIENT PROCEDURES FACILITATED A FIRM OPERATIONSMANAGER'S CONVERSION OF APPROXIMATELY $850,000 IN CUSTOMERS'FUNDS FOR HER PERSONAL USE AND ENABLED THE OPERATIONSMANAGER'S CONDUCT TO ESCAPE DETECTION BY THE FIRM.
Current Status: Final
115©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Other Sanction(s)/ReliefSought:
MONETARY FINE OF $350,000.00
Resolution Date: 10/24/2011
Resolution:
Other Sanctions Ordered:
Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS;THEREFORE IT IS CENSURED AND FINED $350,000.
Firm Statement IN APRIL 2011, THE FINANCIAL INDUSTRY REGULATORY AUTHORITY("FINRA") NOTIFIED WELLS FARGO ADVISORS, L.L.C. ("WELLS FARGO") OFITS INTENT TO RECOMMEND THAT WELLS FARGO BE SUBJECT TODISCIPLINARY ACTION FOR VIOLATIONS OF NASD RULE 3010(B)(1) ANDFINRA RULE 2010 FOR ITS FAILURE, FROM OCTOBER 2005 - MARCH 2007,TO ESTABLISH AND MAINTAIN ADEQUATE PROCEDURES FOR THERESTORATION OF ACCOUNTS FROM "ABANDONED" TO "ACTIVE" STATUS.DURING THAT TIME, A REGISTERED PRINCIPAL OF WACHOVIA SECURITIES,LLC ("WACHOVIA"), N/K/A WELLS FARGO ADVISORS,LLCMISAPPROPRIATED APPROXIMATELY $847,188.87 OF ASSETS FROMABANDONED CLIENT ACCOUNTS BY FRAUDULENTLY RESTORING "ABANDONED" ACCOUNTS TO "ACTIVE" STATUS AND THEREAFTERFORGING CHECK AND WIRE TRANSFER DOCUMENTATION TO CONVERT "ABANDONED" ASSETS TO HER OWN USE AND BENEFIT. WACHOVIA WASA REGISTERED BROKER-DEALER AND WHOLLY-OWNED SUBSIDIARY OFWACHOVIA CORPORATION. WACHOVIA SECURITIES, LLC WAS RENAMEDWELLS FARGO ADVISORS, L.L.C. AFTER WACHOVIA CORPORATIONMERGED WITH WELLS FARGO & COMPANY ON DECEMBER 31, 2008.
AFTER DISCOVERING THE FRAUDULENT ACTIVITY, WACHOVIA RESTOREDALL FUNDS TO EACH AFFECTED ACCOUNT AND IMPLEMENTEDADDITIONAL POLICIES AND PROCEDURES TO STRENGTHEN OVERSIGHTOF THE PROCESS THROUGH WHICH ACCOUNTS ARE RESTORED FROM "ABANDONED" TO "ACTIVE" STATUS. WELLS FARGO HAS FULLYCOOPERATED WITH THE FINRA INVESTIGATION.
Sanctions Ordered: CensureMonetary/Fine $350,000.00
Acceptance, Waiver & Consent(AWC)
Disclosure 35 of 158
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Reporting Source: Regulator
Allegations: BY THE TERMS, WACHOVIA SECURITIES, LLC (RESPONDENT) DOES NOTADMIT OR DENY THE ALLEGATIONS OF THE PENNSYLVANIA SECURITIESCOMMISSION THAT THE RESPONDENT FAILED TO PROPERLY SUPERVISEITS REGISTERED REPRESENTATIVE IN VIOLATION OF THE PROVISIONS OFTHE PA SECURITIES ACT OF 1972.
Current Status: Final
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Initiated By: PENNSYLVANIA CONTACT: COUNSEL DANIEL J. GALLAGHER (717)-783-4226
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
WACHOVIA SECURITIES, LLC IS ORDERED TO PAY $150,000.00 TO THECOMMONWEALTH OF PENNSYLVANIA WITHIN 30 DAYS OF THE DATE OFTHIS ORDER, WHICH AMOUNT REPRESENTS AN ADMINISTRATIVEASSESSMENT.
Date Initiated: 09/20/2011
Docket/Case Number: 2010-03-23
URL for Regulatory Action:
Principal Product Type: No Product
Other Product Type(s):
Allegations: BY THE TERMS, WACHOVIA SECURITIES, LLC (RESPONDENT) DOES NOTADMIT OR DENY THE ALLEGATIONS OF THE PENNSYLVANIA SECURITIESCOMMISSION THAT THE RESPONDENT FAILED TO PROPERLY SUPERVISEITS REGISTERED REPRESENTATIVE IN VIOLATION OF THE PROVISIONS OFTHE PA SECURITIES ACT OF 1972.
Resolution Date: 09/20/2011
Resolution:
Other Sanctions Ordered:
Sanction Details: WACHOVIA SECURITIES, LLC IS ORDERED TO PAY $150,000.00 TO THECOMMONWEALTH OF PENNSYLVANIA WITHIN 30 DAYS OF THE DATE OFTHIS ORDER, WHICH AMOUNT REPRESENTS AN ADMINISTRATIVEASSESSMENT. WACHOVIA SECURITIES, LLC IS ORDERED TO PAY $8,557.85TO THE COMMONWEALTH OF PENNSYLVANIA WITHIN 30 DAYS OF THEDATE OF THIS ORDER, WHICH AMOUNT REPRESENTS LEGAL ANDINVESTIGATIVE COSTS.
Regulator Statement FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER ISSUED TOWACHOVICA SECURITIES, LLC.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: Monetary/Fine $150,000.00
Settled
117©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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iReporting Source: Firm
Initiated By: PENNSYLVANIA SECURITIES COMMISSION
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
WACHOVIA SECURITIES, LLC IS ORDERED TO PAY $150,000.00 TO THECOMMONWEALTH OF PENNSYLVANIA WITHIN 30DAYS OF THE DATE OF THIS ORDER, WHICH AMOUNT REPRESENTS ANADMINISTRATIVE ASSESSMENT.
Date Initiated: 09/20/2011
Docket/Case Number: 2010-03-23
Principal Product Type: Options
Other Product Type(s):
Allegations: THE COMMONWEALTH OF PENNSYLVANIA ALLEGED THAT THE FIRMFAILED TO SUPERVISE AN AGENT LOCATED IN MORGANTOWN, WV FROMJUNE 2007 TO OCTOBER 2008. WITHOUT ADMITTING ANY LIABILITY ORWRONGDOING, THE FIRM SETTLED THIS MATTER ON SEPTEMBER 20, 2011WITH THE CLIENT FOR THE AMOUNT OF $158,557.85. FINRA MATTER #WAS 20100226488.
Current Status: Final
Resolution Date: 09/20/2011
Resolution:
Other Sanctions Ordered: WITHIN 30 DAYS OF THE DATE OF THIS ORDER, WACHOVIA SECURITIES,LLC IS ORDERED TO PAY $8,557.85 TO THE COMMONWEALTH OFPENNSYLVANIA FOR LEGAL AND INVESTIGATIVE COSTS.
Sanction Details: WACHOVIA SECURITIES, LLC IS ORDERED TO PAY AN ADMINISTRATIVEASSESSMENT OF $150,000.00 AND LEGAL AND INVESTIGATIVE COSTS OF$8,557.85 TO THE COMMONWEALTH OF PENNSYLVANIA WITHIN 30 DAYS OFTHE DATE OF THIS ORDER. .
Firm Statement THE COMMONWEALTH OF PENNSYLVANIA ALLEGED THAT THE FIRMFAILED TO SUPERVISE AN AGENT LOCATED IN MORGANTOWN, WVDURING THE TIME PERIOD OF JUNE 2007 TO OCTOBER 2008. WITHOUTADMITTING ANY LIABILITY OR WRONGDOING, THE FIRM SETTLED THISMATTER WITH THE CLIENT ON SEPTEMBER 20, 2011 FOR THE AMOUNT OF$158,557.85. FINRA MATTER # 20100226488.
Sanctions Ordered: Monetary/Fine $150,000.00
Settled
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Disclosure 36 of 158
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Reporting Source: Firm
Initiated By: STATE OF NEW JERSEYOFFICE OF THE ATTORNEY GENERALBUREAU OF SECURITIES
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 09/27/2011
Docket/Case Number: CONSENT ORDER
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES (ARS)
Allegations: THE STATE OF NEW JERSEY HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES TOCUSTOMERS.
Current Status: Final
Resolution Date: 09/27/2011
Resolution:
Other Sanctions Ordered: OFFER TO REPURCHASE ARS THAT ARE SUBJECT TO AUCTIONSTHAT ARE NOT SUCCESSFUL AND ARE NOT SUBJECT TOCURRENT CALLS OR REDEMPTION IN THE RELEVANT CLASS
Sanction Details: THE FINE IS DUE TO THE STATE OF NEW JERSEY ON OCTOBER 7, 2011.
Sanctions Ordered: CensureMonetary/Fine $3,234,065.06Disgorgement/Restitution
Consent
Disclosure 37 of 158
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Reporting Source: Firm
Allegations: IN AMENDED CONSENT ORDER, DOCKET NO. 2011-0312, IN THE MATTEROF WELLS FARGO ADVISORS, LLC, THE MARYLAND DIVISION OFSECURITIES ALLEGED THAT WELLS FARGO ADVISORS, LLC EMPLOYEDEIGHT INVESTMENT ADVISER REPRESENTATIVES WHO PROVIDEDINVESTMENT ADVISORY SERVICES TO CLIENTS PRIOR TO BEINGREGISTERED WITH THE SECURITIES DIVISION AS INVESTMENT ADVISERREPRESENTATIVES PURSUANT TO SECTION 11-402 OF THE MARYLANDSECURITIES ACT. THE DIVISION ALSO ALLEGED THAT THE FIRM FAILED TOTIMELY AMEND THE FORMS U4 OF TWO OF ITS AGENTS TO REFLECT THECHANGE IN THEIR EMPLOYMENT ADDRESS PURSUANT TO SECTION 11-411(D) OF THE MARYLAND SECURITIES ACT AND REGULATION 02.02.02.07OF THE CODE OF MARYLAND REGULATIONS. THE FIRM WAS ORDERED TOPAY A FINE OF $50,000 TO THE MARYLAND SECURITIES DIVISION, LESSTHE $5,000 FINE THE FIRM PAID TO THE DIVISION IN AUGUST 2011PURSUANT TO THE ORIGINAL CONSENT ORDER ISSUED IN THIS MATTER.THE FIRM WAS ALSO ORDERED TO FOLLOW THE COMPLIANCE POLICIESAND PROCEDURES PROVIDED TO THE DIVISION IN CONNECTION WITHTHE MATTER, AND COMPLY FULLY WITH THE MARYLAND SECURITIES ACTAND RULES AND REGULATIONS PROMULGATED THEREUNDER.
Current Status: Final
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Initiated By: STATE OF MARYLAND ATTORNEY GENERAL - SECURITIES DIVISION
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 03/12/2012
Docket/Case Number: 2011-0312 (AMENDED)
Principal Product Type: No Product
Other Product Type(s): INVESTMENT ADVISORY SERVICES
IN AMENDED CONSENT ORDER, DOCKET NO. 2011-0312, IN THE MATTEROF WELLS FARGO ADVISORS, LLC, THE MARYLAND DIVISION OFSECURITIES ALLEGED THAT WELLS FARGO ADVISORS, LLC EMPLOYEDEIGHT INVESTMENT ADVISER REPRESENTATIVES WHO PROVIDEDINVESTMENT ADVISORY SERVICES TO CLIENTS PRIOR TO BEINGREGISTERED WITH THE SECURITIES DIVISION AS INVESTMENT ADVISERREPRESENTATIVES PURSUANT TO SECTION 11-402 OF THE MARYLANDSECURITIES ACT. THE DIVISION ALSO ALLEGED THAT THE FIRM FAILED TOTIMELY AMEND THE FORMS U4 OF TWO OF ITS AGENTS TO REFLECT THECHANGE IN THEIR EMPLOYMENT ADDRESS PURSUANT TO SECTION 11-411(D) OF THE MARYLAND SECURITIES ACT AND REGULATION 02.02.02.07OF THE CODE OF MARYLAND REGULATIONS. THE FIRM WAS ORDERED TOPAY A FINE OF $50,000 TO THE MARYLAND SECURITIES DIVISION, LESSTHE $5,000 FINE THE FIRM PAID TO THE DIVISION IN AUGUST 2011PURSUANT TO THE ORIGINAL CONSENT ORDER ISSUED IN THIS MATTER.THE FIRM WAS ALSO ORDERED TO FOLLOW THE COMPLIANCE POLICIESAND PROCEDURES PROVIDED TO THE DIVISION IN CONNECTION WITHTHE MATTER, AND COMPLY FULLY WITH THE MARYLAND SECURITIES ACTAND RULES AND REGULATIONS PROMULGATED THEREUNDER.
Resolution Date: 03/12/2012
Resolution:
Other Sanctions Ordered: FOLLOW THE COMPLIANCE POLICIES AND PROCEDURES THAT THE FIRMDESIGNED TO PREVENT ANY FURTHER UNREGISTERED INVESTMENTADVISOR REPRESENTATIVE ACTIVITIES AND LATE AMENDMENT FILINGSAND COMPLY FULLY WITH THE MARYLAND SECURITIES ACT AND THERULES AND REGULATIONS PROMULGATED THEREUNDER.
Sanction Details: THE FIRM WAS ORDERED TO PAY A FINE OF $50,000 TO THE MARYLANDSECURITIES DIVISION, LESS THE $5,000 FINE THE FIRM PAID TO THEDIVISION IN AUGUST 2011 PURSUANT TO THE ORIGINAL CONSENT ORDERISSUED IN THIS MATTER.
Firm Statement IN AMENDED CONSENT ORDER, DOCKET NO. 2011-0312, IN THE MATTEROF WELLS FARGO ADVISORS, LLC, THE MARYLAND DIVISION OFSECURITIES ALLEGED THAT WELLS FARGO ADVISORS, LLC EMPLOYEDEIGHT INVESTMENT ADVISER REPRESENTATIVES WHO PROVIDEDINVESTMENT ADVISORY SERVICES TO CLIENTS PRIOR TO BEINGREGISTERED WITH THE SECURITIES DIVISION AS INVESTMENT ADVISERREPRESENTATIVES PURSUANT TO SECTION 11-402 OF THE MARYLANDSECURITIES ACT. THE DIVISION ALSO ALLEGED THAT THE FIRM FAILED TOTIMELY AMEND THE FORMS U4 OF TWO OF ITS AGENTS TO REFLECT THECHANGE IN THEIR EMPLOYMENT ADDRESS PURSUANT TO SECTION 11-411(D) OF THE MARYLAND SECURITIES ACT AND REGULATION 02.02.02.07OF THE CODE OF MARYLAND REGULATIONS. THE FIRM WAS ORDERED TOPAY A FINE OF $50,000 TO THE MARYLAND SECURITIES DIVISION, LESSTHE $5,000 FINE THE FIRM PAID TO THE DIVISION IN AUGUST 2011PURSUANT TO THE ORIGINAL CONSENT ORDER ISSUED IN THIS MATTER.THE FIRM WAS ALSO ORDERED TO FOLLOW THE COMPLIANCE POLICIESAND PROCEDURES PROVIDED TO THE DIVISION IN CONNECTION WITHTHE MATTER, AND COMPLY FULLY WITH THE MARYLAND SECURITIES ACTAND RULES AND REGULATIONS PROMULGATED THEREUNDER.
Sanctions Ordered: Monetary/Fine $50,000.00
Consent
120©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Firm Statement IN AMENDED CONSENT ORDER, DOCKET NO. 2011-0312, IN THE MATTEROF WELLS FARGO ADVISORS, LLC, THE MARYLAND DIVISION OFSECURITIES ALLEGED THAT WELLS FARGO ADVISORS, LLC EMPLOYEDEIGHT INVESTMENT ADVISER REPRESENTATIVES WHO PROVIDEDINVESTMENT ADVISORY SERVICES TO CLIENTS PRIOR TO BEINGREGISTERED WITH THE SECURITIES DIVISION AS INVESTMENT ADVISERREPRESENTATIVES PURSUANT TO SECTION 11-402 OF THE MARYLANDSECURITIES ACT. THE DIVISION ALSO ALLEGED THAT THE FIRM FAILED TOTIMELY AMEND THE FORMS U4 OF TWO OF ITS AGENTS TO REFLECT THECHANGE IN THEIR EMPLOYMENT ADDRESS PURSUANT TO SECTION 11-411(D) OF THE MARYLAND SECURITIES ACT AND REGULATION 02.02.02.07OF THE CODE OF MARYLAND REGULATIONS. THE FIRM WAS ORDERED TOPAY A FINE OF $50,000 TO THE MARYLAND SECURITIES DIVISION, LESSTHE $5,000 FINE THE FIRM PAID TO THE DIVISION IN AUGUST 2011PURSUANT TO THE ORIGINAL CONSENT ORDER ISSUED IN THIS MATTER.THE FIRM WAS ALSO ORDERED TO FOLLOW THE COMPLIANCE POLICIESAND PROCEDURES PROVIDED TO THE DIVISION IN CONNECTION WITHTHE MATTER, AND COMPLY FULLY WITH THE MARYLAND SECURITIES ACTAND RULES AND REGULATIONS PROMULGATED THEREUNDER.
Disclosure 38 of 158
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Reporting Source: Regulator
Initiated By: FLORIDA OFFICE OF FINANCIAL REGULATION
Principal Sanction(s)/ReliefSought:
Cease and Desist
Other Sanction(s)/ReliefSought:
ADMINISTRATIVE FINE
Date Initiated: 06/21/2011
Docket/Case Number: 0154-SR-5/11
URL for Regulatory Action:
Principal Product Type: No Product
Other Product Type(s):
Allegations: N/A
Current Status: Final
Resolution Date: 06/21/2011
Resolution:
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Stipulation and Consent
121©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Other Sanctions Ordered:
Sanction Details: $65,000 ADMINISTRATIVE FINE WAS LEVIED AGAINST WELLS FARGOADVISORS LLC. THE FINE WAS PAID IN FULL ON 6/21/2011.
Regulator Statement ON 6/21/2011 THE OFFICE OF FINANCIAL REGULATION ENTERED A FINALORDER ADOPTING THE STIPULATION AND CONSENT AGREEMENT IN THEMATTER OF WELLS FARGO ADVISORS, LLC. WELLS FARGO ADVISORS LLCNEITHER ADMITTED NOR DENIED THE FINDINGS BUT CONSENT TO THEENTRY OF FINDINGS BY THE OFFICE.THE OFFICE FOUND THAT BEGINNING IN OCTOBER 2004, WELLS FARGOADVISORS LLC, ACTING THROUGH 13 INDIVIDUALS, ENGAGED ININVESTMENT ADVISORY BUSINESS FROM OFFICES WITHIN THIS STATEWITHOUT THE 13 INDIVIDUALS BEING LAWFULLY REGISTRATION IN THESTATE OF FLORIDA IN VIOLATION OF SECTION 517.12(4), F. S. WELLSFARGO ADVISORS LLC AGREED TO CEASE AND DESIST FROM ALLPRESENT AND FUTURE VIOLATIONS OF CHAPTER 517, F.S. AND THEADMINISTRATIVE RULES THEREUNDER; AND TO PAY AN ADMINISTRATIVEFINE IN THE AMOUNT OF $65,000.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: Monetary/Fine $65,000.00Cease and Desist/Injunction
iReporting Source: Firm
Initiated By: FLORIDA OFFICE OF FINANCIAL REGULATION
Date Initiated: 06/21/2011
Docket/Case Number: 0154-SR-5/11
Principal Product Type: No Product
Other Product Type(s):
Allegations: THE OFFICE FOUND THAT BEGINNING IN OCTOBER 2004, WELLS FARGOADVISORS LLC, ACTING THROUGH 13 INDIVIDUALS, ENGAGED ININVESTMENT ADVISORY BUSINESS FROM OFFICES WITHIN THIS STATEWITHOUT THE 13 INDIVIDUALS BEING LAWFULLY REGISTERED IN THESTATE OF FLORIDA AS INVESTMENT ADVISOR REPRESENTATIVES FORTHE FIRM IN VIOLATION OF SECTION 517.12(4), F. S.
Current Status: Final
122©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Principal Sanction(s)/ReliefSought:
Cease and Desist
Other Sanction(s)/ReliefSought:
ADMINISTRATIVE FINE
Other Product Type(s):
Resolution Date: 06/21/2011
Resolution:
Other Sanctions Ordered:
Sanction Details: $65,000 ADMINISTRATIVE FINE WAS LEVIED AGAINST WELLS FARGOADVISORS LLC. THE FINE WAS PAID IN FULL ON6/21/2011.
Firm Statement ON 6/21/2011 THE OFFICE OF FINANCIAL REGULATION ENTERED A FINALORDER ADOPTING THE STIPULATION AND CONSENT AGREEMENT IN THEMATTER OF WELLS FARGO ADVISORS, LLC.WELLS FARGO ADVISORS LLC NEITHER ADMITTED NOR DENIED THEFINDINGS BUT CONSENTED TO THE ENTRY OF FINDINGS BY THE OFFICE.THE OFFICE FOUND THAT BEGINNING IN OCTOBER 2004, WELLS FARGOADVISORS LLC, ACTING THROUGH 13 INDIVIDUALS, ENGAGED ININVESTMENT ADVISORY BUSINESS FROM OFFICES WITHIN THIS STATEWITHOUT THE 13 INDIVIDUALS BEING LAWFULLYREGISTERED IN THE STATE OF FLORIDA IN VIOLATION OF SECTION 517.12(4), F. S. WELLS FARGO ADVISORS LLC AGREED TO CEASE AND DESISTFROM ALL PRESENT AND FUTURE VIOLATIONS OF CHAPTER 517, F.S. ANDTHE ADMINISTRATIVE RULES THEREUNDER; AND TO PAY ANADMINISTRATIVE FINE IN THE AMOUNT OF $65,000.
Sanctions Ordered: Monetary/Fine $65,000.00Cease and Desist/Injunction
Stipulation and Consent
Disclosure 39 of 158
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Reporting Source: Regulator
Initiated By: FINRA
Allegations: MSRB RULES G-14(B)(II), G-15(A)(I) - WELLS FARGO ADVISORS, LLC FAILEDTO REPORT THE CORRECT YIELD TO THE REAL-TIME TRANSACTIONREPORTING SYSTEM (RTRS) IN REPORTS OF TRANSACTIONS INMUNICIPAL SECURITIES. THE FIRM FAILED TO PROVIDE WRITTENNOTIFICATION DISCLOSING TO ITS CUSTOMER THE CORRECT LOWESTEFFECTED YIELD IN MOST OF THESE TRANSACTIONS IN MUNICIPALSECURITIES.
Current Status: Final
123©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 06/17/2011
Docket/Case Number: 2009020728001
Principal Product Type: Debt - Municipal
Other Product Type(s):
Resolution Date: 06/17/2011
Resolution:
Other Sanctions Ordered:
Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS;THEREFORE, THE FIRM IS CENSURED AND FINED $20,000 FOR VIOLATIONSOF MSRB RULES G-14(B)(II) AND G-15(A)(I).
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: CensureMonetary/Fine $20,000.00
Acceptance, Waiver & Consent(AWC)
iReporting Source: Firm
Initiated By: FINANCIAL INDUSTRY REGULATORY AUTHORITY (FINRA)
Date Initiated: 06/17/2011
Allegations: MSRB RULES G-14(B)(II), G-15(A)(I) - WELLS FARGO ADVISORS, LLC FAILEDTO REPORT THE CORRECT YIELD TO THE REAL-TIME TRANSACTIONREPORTING SYSTEM (RTRS) IN REPORTS OF TRANSACTIONS INMUNICIPAL SECURITIES. THE FIRM FAILED TO PROVIDE WRITTENNOTIFICATION DISCLOSING TO ITS CUSTOMER THE CORRECT LOWESTEFFECTED YIELD IN MOST OF THESE TRANSACTIONS IN MUNICIPALSECURITIES.
Current Status: Final
124©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
CENSURE
Date Initiated: 06/17/2011
Docket/Case Number: 2009020728001
Principal Product Type: Debt - Municipal
Other Product Type(s):
Resolution Date: 06/17/2011
Resolution:
Other Sanctions Ordered:
Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE DESCRIBED SANCTIONS AND TOTHE ENTRY OF FINDINGS; THEREFORE, THE FIRM IS CENSURED ANDFINED $20,000 FOR VIOLATIONS OF MSRB RULESG-14(B)(II) AND G-15(A)(I).
Sanctions Ordered: CensureMonetary/Fine $20,000.00
Acceptance, Waiver & Consent(AWC)
Disclosure 40 of 158
i
Reporting Source: Firm
Initiated By: STATE OF NEW HAMPSHIREDEPARTMENT OF STATEBUREAU OF SECURITIES REGULATIONS
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Date Initiated: 05/02/2011
Docket/Case Number: ADMINISTRATIVE CONSENT ORDER: INV- 2009000015
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES (ARS)
Allegations: THE STATE OF NEW HAMPSHIRE-DEPARTMENT OF STATE-BUREAU OFSECURITIES REGULATIONS HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES TOCUSTOMERS.
Current Status: Final
125©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Resolution Date: 05/02/2011
Resolution:
Other Sanctions Ordered: OFFER TO REPURCHASE ARS THAT ARE SUBJECT TO AUCTIONS THAT ARENOT SUCCESSFUL AND ARE NOT SUBJECT TOCURRENT CALLS OR REDEMPTION IN THE RELEVANT CLASS.
Sanction Details: THE FINE WAS SENT TO THE STATE OF NEW HAMPSHIRE-DEPARTMENT OFSTATE-BUREAU OF SECURITIES REGULATIONS ON MAY 9, 2011.
Sanctions Ordered: Monetary/Fine $289,021.88Disgorgement/RestitutionCease and Desist/Injunction
Consent
Disclosure 41 of 158
i
Reporting Source: Regulator
Allegations: FINRA BY-LAWS ARTICLE V, SECTIONS 2(C) AND 3(B), FINRA RULE 2010,NASD RULE 2110: THE FIRM WAS REQUIRED TO PROVIDE EACH OF ITSCUSTOMERS WHO PURCHASED A MUTUAL FUND A PHYSICAL COPY OF APROSPECTUS FOR THAT FUND NO LATER THAN THREE BUSINESS DAYSAFTER THE TRANSACTION, BUT IT FAILED TO DELIVER PROSPECTUS TOITS CUSTOMERS WITHIN THREE DAYS OF THEIR PURCHASES IN 934,074MUTUAL FUND TRANSACTIONS ACTING IN CONTRAVENTION OF SECTION5(B)(2) OF THE SECURITIES ACT OF 1933 AND THEREBY VIOLATED FINRARULE 2010. SECTION 5(B)(2) OF THE SECURITIES ACT PROHIBITS THEDELIVERY OF CERTAIN SECURITIES UNLESS SUCH DELIVERY ISACCOMPANIED BY OR PRECEDED BY A PHYSICAL COPY OF APROSPECTUS THAT MEETS THE REQUIREMENTS OF THE SECURITIES ACT.THE FEDERAL SECURITIES LAWS REQUIRE THE DELIVERY OF APROSPECTUS TO INVESTORS BECAUSE IT PROVIDES THEM WITHIMPORTANT DISCLOSURE INFORMATION REGARDING THE PRODUCTBEING PURCHASED. THE FIRM SATISFIED ITS PROSPECTUS DELIVERYOBLIGATION BY CONTRACTING WITH A THIRD PARTY SERVICE PROVIDERFOR THE DELIVERY OF PROSPECTUSES. THE FIRM'S PERSONNEL HADDAILY CONTACT WITH THE SERVICE PROVIDER'S PERSONNEL TORESOLVE EXCEPTIONS ON THE REPORTS, ALONG WITH OTHER ISSUESRELATING TO DELIVERY OF PROSPECTUSES. THE FIRM DID NOT TIMELYDELIVER, OR DID NOT ENSURE THAT THE SERVICE PROVIDER TIMELYDELIVERED, PROSPECTUSES TO CERTAIN CUSTOMERS WHO PURCHASEDMUTUAL FUNDS. IN 934,074 SEPARATE INSTANCES THE FIRM'SCUSTOMERS WHO PURCHASED MUTUAL FUNDS DID NOT RECEIVE APROSPECTUS WITHIN THREE BUSINESS DAYS OF THE TRANSACTION.THOSE CUSTOMERS RECEIVED THE PROSPECTUSES BETWEEN ONE AND153 DAYS LATE. OUT OF THE 934,074 SEPARATE INSTANCES IN WHICHDELIVERY WAS UNTIMELY, 47% WERE DELIVERED WITHIN THREE DAYS OFSETTLEMENT DATE, 69% WERE DELIVERED WITHIN SEVEN DAYS OFSETTLEMENT, AND 94% WERE DELIVERED WITHIN 14 DAYS OFSETTLEMENT DATE. THE PRIMARY CAUSE OF THE LATE DELIVERIES WASTHE FAILURE OF CERTAIN MUTUAL FUND COMPANIES TO MAINTAINADEQUATE SUPPLIES OF PAPER COPIES OF PROSPECTUSES. AS ARESULT, FOR MANY PURCHASES FROM THESE FUND COMPANIES,NEITHER THE SERVICE PROVIDER NOR THE FIRM COULD OBTAIN APROSPECTUS TO TIMELY PROVIDE TO THE CUSTOMER. THE FIRM DIDNOT TAKE STEPS TO CHANGE THE PRACTICES OF THOSE FUNDCOMPANIES THAT DID NOT KEEP ADEQUATE STOCKS OF PROSPECTUSES.THE FIRM ALSO DID NOT TAKE REMEDIAL STEPS AVAILABLE TO IT TOENSURE THAT ITS CUSTOMERS WERE RECEIVING PROSPECTUSES IN ATIMELY FASHION. FOR INSTANCE, THE SERVICE PROVIDER OFFERED A "PRINT ON DEMAND" ("POD") SERVICE AND POD SERVICE ALLOWED THESERVICE PROVIDER TO OBTAIN ELECTRONIC COPIES OF MUTUAL FUNDPROSPECTUSES FROM THOSE MUTUAL FUND COMPANIES THAT OFFEREDTHEM, AND TO THEN PRINT COPIES OF THE PROSPECTUSES AND SENDTHEM TO THE FIRM'S CUSTOMERS. WITH POD, EVEN IF THE MUTUAL FUNDCOMPANY DID NOT HAVE ADEQUATE SUPPLIES OF PAPER COPIES OFPROSPECTUSES IN STOCK, THE SERVICE PROVIDER COULD PRINT THEELECTRONICALLY-AVAILABLE PROSPECTUS, AND SEND IT TO THECUSTOMER. THE FIRM DID NOT USE THIS SERVICE EXTENSIVELY DURINGTHE RELEVANT PERIOD. THE FIRM HAD NOTICE THAT ITS CUSTOMERSWERE NOT RECEIVING PROSPECTUSES ON A TIMELY BASIS BOTHBEFORE AND DURING THE RELEVANT PERIOD. THE REPORTS PROVIDEDBY THE SERVICE PROVIDER IDENTIFIED THE EXTENT OF THE UN-TIMELINESS OF EACH PROSPECTUS THAT HAD NOT YET BEENDELIVERED. IN ALMOST ALL INSTANCES IN WHICH A FIRM CUSTOMERRECEIVED A PROSPECTUS LATE, THE DAILY REPORTS PROVIDED BY THESERVICE PROVIDER WOULD HAVE IDENTIFIED THE TRANSACTION ON ADAILY BASIS UNTIL THE PROSPECTUS WAS DELIVERED TO THECUSTOMER. FURTHER, THE FIRM OPERATIONS PERSONNEL WHOREVIEWED THESE DAILY REPORTS AND UPDATED INFORMATION FOR THESERVICE PROVIDER WOULD HAVE HAD REGULAR CONTACT WITH THESERVICE PROVIDER TO RESOLVE ISSUES RELATING TO PROSPECTUSESTHAT HAD NOT YET BEEN DELIVERED TO THE FIRM'S CUSTOMERS.(CONTINUE IN THE COMMENT SECTION)
Current Status: Final
126©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Initiated By: FINRA
FINRA BY-LAWS ARTICLE V, SECTIONS 2(C) AND 3(B), FINRA RULE 2010,NASD RULE 2110: THE FIRM WAS REQUIRED TO PROVIDE EACH OF ITSCUSTOMERS WHO PURCHASED A MUTUAL FUND A PHYSICAL COPY OF APROSPECTUS FOR THAT FUND NO LATER THAN THREE BUSINESS DAYSAFTER THE TRANSACTION, BUT IT FAILED TO DELIVER PROSPECTUS TOITS CUSTOMERS WITHIN THREE DAYS OF THEIR PURCHASES IN 934,074MUTUAL FUND TRANSACTIONS ACTING IN CONTRAVENTION OF SECTION5(B)(2) OF THE SECURITIES ACT OF 1933 AND THEREBY VIOLATED FINRARULE 2010. SECTION 5(B)(2) OF THE SECURITIES ACT PROHIBITS THEDELIVERY OF CERTAIN SECURITIES UNLESS SUCH DELIVERY ISACCOMPANIED BY OR PRECEDED BY A PHYSICAL COPY OF APROSPECTUS THAT MEETS THE REQUIREMENTS OF THE SECURITIES ACT.THE FEDERAL SECURITIES LAWS REQUIRE THE DELIVERY OF APROSPECTUS TO INVESTORS BECAUSE IT PROVIDES THEM WITHIMPORTANT DISCLOSURE INFORMATION REGARDING THE PRODUCTBEING PURCHASED. THE FIRM SATISFIED ITS PROSPECTUS DELIVERYOBLIGATION BY CONTRACTING WITH A THIRD PARTY SERVICE PROVIDERFOR THE DELIVERY OF PROSPECTUSES. THE FIRM'S PERSONNEL HADDAILY CONTACT WITH THE SERVICE PROVIDER'S PERSONNEL TORESOLVE EXCEPTIONS ON THE REPORTS, ALONG WITH OTHER ISSUESRELATING TO DELIVERY OF PROSPECTUSES. THE FIRM DID NOT TIMELYDELIVER, OR DID NOT ENSURE THAT THE SERVICE PROVIDER TIMELYDELIVERED, PROSPECTUSES TO CERTAIN CUSTOMERS WHO PURCHASEDMUTUAL FUNDS. IN 934,074 SEPARATE INSTANCES THE FIRM'SCUSTOMERS WHO PURCHASED MUTUAL FUNDS DID NOT RECEIVE APROSPECTUS WITHIN THREE BUSINESS DAYS OF THE TRANSACTION.THOSE CUSTOMERS RECEIVED THE PROSPECTUSES BETWEEN ONE AND153 DAYS LATE. OUT OF THE 934,074 SEPARATE INSTANCES IN WHICHDELIVERY WAS UNTIMELY, 47% WERE DELIVERED WITHIN THREE DAYS OFSETTLEMENT DATE, 69% WERE DELIVERED WITHIN SEVEN DAYS OFSETTLEMENT, AND 94% WERE DELIVERED WITHIN 14 DAYS OFSETTLEMENT DATE. THE PRIMARY CAUSE OF THE LATE DELIVERIES WASTHE FAILURE OF CERTAIN MUTUAL FUND COMPANIES TO MAINTAINADEQUATE SUPPLIES OF PAPER COPIES OF PROSPECTUSES. AS ARESULT, FOR MANY PURCHASES FROM THESE FUND COMPANIES,NEITHER THE SERVICE PROVIDER NOR THE FIRM COULD OBTAIN APROSPECTUS TO TIMELY PROVIDE TO THE CUSTOMER. THE FIRM DIDNOT TAKE STEPS TO CHANGE THE PRACTICES OF THOSE FUNDCOMPANIES THAT DID NOT KEEP ADEQUATE STOCKS OF PROSPECTUSES.THE FIRM ALSO DID NOT TAKE REMEDIAL STEPS AVAILABLE TO IT TOENSURE THAT ITS CUSTOMERS WERE RECEIVING PROSPECTUSES IN ATIMELY FASHION. FOR INSTANCE, THE SERVICE PROVIDER OFFERED A "PRINT ON DEMAND" ("POD") SERVICE AND POD SERVICE ALLOWED THESERVICE PROVIDER TO OBTAIN ELECTRONIC COPIES OF MUTUAL FUNDPROSPECTUSES FROM THOSE MUTUAL FUND COMPANIES THAT OFFEREDTHEM, AND TO THEN PRINT COPIES OF THE PROSPECTUSES AND SENDTHEM TO THE FIRM'S CUSTOMERS. WITH POD, EVEN IF THE MUTUAL FUNDCOMPANY DID NOT HAVE ADEQUATE SUPPLIES OF PAPER COPIES OFPROSPECTUSES IN STOCK, THE SERVICE PROVIDER COULD PRINT THEELECTRONICALLY-AVAILABLE PROSPECTUS, AND SEND IT TO THECUSTOMER. THE FIRM DID NOT USE THIS SERVICE EXTENSIVELY DURINGTHE RELEVANT PERIOD. THE FIRM HAD NOTICE THAT ITS CUSTOMERSWERE NOT RECEIVING PROSPECTUSES ON A TIMELY BASIS BOTHBEFORE AND DURING THE RELEVANT PERIOD. THE REPORTS PROVIDEDBY THE SERVICE PROVIDER IDENTIFIED THE EXTENT OF THE UN-TIMELINESS OF EACH PROSPECTUS THAT HAD NOT YET BEENDELIVERED. IN ALMOST ALL INSTANCES IN WHICH A FIRM CUSTOMERRECEIVED A PROSPECTUS LATE, THE DAILY REPORTS PROVIDED BY THESERVICE PROVIDER WOULD HAVE IDENTIFIED THE TRANSACTION ON ADAILY BASIS UNTIL THE PROSPECTUS WAS DELIVERED TO THECUSTOMER. FURTHER, THE FIRM OPERATIONS PERSONNEL WHOREVIEWED THESE DAILY REPORTS AND UPDATED INFORMATION FOR THESERVICE PROVIDER WOULD HAVE HAD REGULAR CONTACT WITH THESERVICE PROVIDER TO RESOLVE ISSUES RELATING TO PROSPECTUSESTHAT HAD NOT YET BEEN DELIVERED TO THE FIRM'S CUSTOMERS.(CONTINUE IN THE COMMENT SECTION)
127©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other
Other Sanction(s)/ReliefSought:
N/A
Date Initiated: 05/04/2011
Docket/Case Number: 2010022921801
Principal Product Type: Mutual Fund(s)
Other Product Type(s):
Resolution Date: 05/04/2011
Resolution:
Other Sanctions Ordered: UNDERTAKINGS
Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS,THEREFORE THE FIRM IS CENSURED AND FINED $1,000,000. THE FIRMFURTHER UNDERTAKES TO COMPLETE THE FOLLOWING WITHIN 120 DAYSOF NOTICES OF ACCEPTANCE OF THIS AWC: (I) ADOPT AND IMPLEMENTSYSTEMS AND PROCEDURES REASONABLY DESIGNED TO ACHIEVECOMPLIANCE WITH THE FEDERAL SECURITIES LAWS AND FINRA RULESAPPLICABLE TO FILING, AND TIMELY FILING, OF FORMS U4 AND U5, AND (II)PROVIDE A WRITTEN CERTIFICATION BY A DULY AUTHORIZED SENIOROFFICER OF THE FIRM THAT THE FIRM HAS ADOPTED AND IMPLEMENTEDSUPERVISORY SYSTEMS AND PROCEDURES REASONABLY DESIGNED TOACHIEVE COMPLIANCE WITH THE FEDERAL SECURITIES LAWS AND FINRARULES APPLICABLE TO FILING, AND TIMELY FILING, OF FORMS U4 AND U5.
Regulator Statement ALSO, THE SERVICE PROVIDER MET WITH THE FIRM OFFICIALS ON AQUARTERLY BASIS THROUGHOUT THE RELEVANT PERIOD TO PROVIDESTATISTICAL DATA REGARDING AMONG OTHER THINGS, MUTUAL FUNDPROSPECTUS DELIVERY. DURING THESE MEETING, THE FIRM RECEIVEDSTATISTICAL DATA INDICATING THAT THE FIRM'S CUSTOMERS WERE NOTTIMELY RECEIVING PROSPECTUSES IN 4% TO 9% OF THE MUTUAL FUNDTRANSACTIONS CONDUCTED BY THE FIRM DURING THIS TIME. THE FIRMALSO ITSELF CREATED AND ANALYZED DATA INDICATING THAT ITSCUSTOMERS WERE NOT RECEIVING PROSPECTUSES ON A TIMELY BASIS.BOTH PRIOR TO AND THROUGHOUT THE RELEVANT PERIOD THE FIRM'SMANAGEMENT SUPERVISORY GROUP RESPONSIBLE FOR PROSPECTUSDELIVERY CONDUCTED A MONTHLY REVIEW IDENTIFYING STATISTICALINFORMATION REGARDING PROSPECTUS DELIVERY FOR, AMONG OTHERTHINGS, MUTUAL FUNDS. THIS DATA FURTHER SHOWED THAT THE FIRM'SCUSTOMERS WERE NOT TIMELY RECEIVING MUTUAL FUNDPROSPECTUSES. BECAUSE OF THE FIRM'S FAILURE TO TIMELY DELIVERPROSPECTUSES TO ITS CUSTOMERS WHO PURCHASED MUTUAL FUNDS,THESE CUSTOMERS WERE NOT PROVIDED WITH IMPORTANTDISCLOSURE INFORMATION AMOUNT THESE PRODUCTS. THE FIRM FILED147 LATE AMENDMENTS TO FORMS U4, RELATING TO CUSTOMERCOMPLAINTS, ARBITRATIONS, CIVIL LITIGATION, REGULATORY MATTERSAND BANKRUPTCIES. THIS REPRESENTED 8.1% OF THE 1,808 FORM U4AMENDMENTS THE FIRM WAS REQUIRED TO FILE. THE FIRM FILED 40 LATEAMENDMENTS TO FORMS U5, RELATING TO CUSTOMER COMPLAINTS,ARBITRATIONS, AND CIVIL LITIGATION. THIS REPRESENTED 7.6% OF THE522 FORM U5 AMENDMENTS THE FIRM WAS REQUIRED TO FILE DURINGTHIS PERIOD.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: CensureMonetary/Fine $1,000,000.00
Acceptance, Waiver & Consent(AWC)
128©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User GuidanceALSO, THE SERVICE PROVIDER MET WITH THE FIRM OFFICIALS ON AQUARTERLY BASIS THROUGHOUT THE RELEVANT PERIOD TO PROVIDESTATISTICAL DATA REGARDING AMONG OTHER THINGS, MUTUAL FUNDPROSPECTUS DELIVERY. DURING THESE MEETING, THE FIRM RECEIVEDSTATISTICAL DATA INDICATING THAT THE FIRM'S CUSTOMERS WERE NOTTIMELY RECEIVING PROSPECTUSES IN 4% TO 9% OF THE MUTUAL FUNDTRANSACTIONS CONDUCTED BY THE FIRM DURING THIS TIME. THE FIRMALSO ITSELF CREATED AND ANALYZED DATA INDICATING THAT ITSCUSTOMERS WERE NOT RECEIVING PROSPECTUSES ON A TIMELY BASIS.BOTH PRIOR TO AND THROUGHOUT THE RELEVANT PERIOD THE FIRM'SMANAGEMENT SUPERVISORY GROUP RESPONSIBLE FOR PROSPECTUSDELIVERY CONDUCTED A MONTHLY REVIEW IDENTIFYING STATISTICALINFORMATION REGARDING PROSPECTUS DELIVERY FOR, AMONG OTHERTHINGS, MUTUAL FUNDS. THIS DATA FURTHER SHOWED THAT THE FIRM'SCUSTOMERS WERE NOT TIMELY RECEIVING MUTUAL FUNDPROSPECTUSES. BECAUSE OF THE FIRM'S FAILURE TO TIMELY DELIVERPROSPECTUSES TO ITS CUSTOMERS WHO PURCHASED MUTUAL FUNDS,THESE CUSTOMERS WERE NOT PROVIDED WITH IMPORTANTDISCLOSURE INFORMATION AMOUNT THESE PRODUCTS. THE FIRM FILED147 LATE AMENDMENTS TO FORMS U4, RELATING TO CUSTOMERCOMPLAINTS, ARBITRATIONS, CIVIL LITIGATION, REGULATORY MATTERSAND BANKRUPTCIES. THIS REPRESENTED 8.1% OF THE 1,808 FORM U4AMENDMENTS THE FIRM WAS REQUIRED TO FILE. THE FIRM FILED 40 LATEAMENDMENTS TO FORMS U5, RELATING TO CUSTOMER COMPLAINTS,ARBITRATIONS, AND CIVIL LITIGATION. THIS REPRESENTED 7.6% OF THE522 FORM U5 AMENDMENTS THE FIRM WAS REQUIRED TO FILE DURINGTHIS PERIOD.
iReporting Source: Firm
Initiated By: FINANCIAL INDUSTRY REGULATORY AUTHORITY (FINRA)
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Date Initiated: 05/04/2011
Docket/Case Number: 2010022921801
Principal Product Type: Mutual Fund(s)
Other Product Type(s):
Allegations: FINRA ALLEGED THAT WFA FAILED TO DELIVER PROSPECTUSES TO ITSCUSTOMERS WITHIN THREE BUSINESS DAYS OF THEIR PURCHASESIN 934,047 MUTUAL FUND TRANSACTIONS BETWEEN JANUARY 1, 2009 ANDDECEMBER 31, 2009 (THE "RELEVANT PERIOD").
FINRA ALLEGED THAT WFA FAILED TO TIMELY FILE CERTAIN AMENDMENTSTO UNIFORM APPLICATIONS FOR SECURITIES INDUSTRY OR TRANSFER("FORMS U4") AND UNIFORM TERMINATION NOTICES FOR SECURITIESINDUSTRY REGISTRATION ("FORMS U5") FROMJULY 1, 2008 TO JUNE 30, 2009.
Current Status: Final
129©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
CENSUREUNDERTAKINGS
Resolution Date: 05/04/2011
Resolution:
Other Sanctions Ordered: WFA FURTHER UNDERTAKES WITHIN 120 DAYS TO:(1) ADOPT AND IMPLEMENT SYSTEMS AND PROCEDURES REASONABLYDESIGNED TO ACHEIVE TIMELY FILING OF FORMS U4 AND FORMS U5.(2) PROVIDE WRITTEN CERTIFICATION BY A DULY AUTHORIZED SENIOROFFICER OF WFA THAT THE FIRM HAS ADOPTED AND IMPLEMENTEDSUPERVISORY SYSTEMS AND PROCEDURES REASONABLY DESIGNED TOACHEIVE TIMELY FILING OF FORMS U4 AND FORMS U5.
Sanction Details: $1,000,000 FINE TO WFA
Firm Statement AWC ACCEPTED ON MAY 4, 2011
Sanctions Ordered: CensureMonetary/Fine $1,000,000.00
Acceptance, Waiver & Consent(AWC)
Disclosure 42 of 158
i
Reporting Source: Regulator
Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other
Other Sanction(s)/ReliefSought:
N/A
Date Initiated: 05/02/2011
Docket/Case Number: 2006005324201
Principal Product Type: Debt - Corporate
Other Product Type(s):
Allegations: NASD RULES 2110, 2320: IN EIGHT TRANSACTIONS FOR OR WITH ACUSTOMER, THE FIRM FAILED TO USE REASONABLE DILIGENCE TOASCERTAIN THE BEST INTER-DEALER MARKET AND FAILED TO BUY ORSELL IN SUCH MARKET SO THAT THE RESULTANT PRICE TO ITSCUSTOMER WAS AS FAVORABLE AS POSSIBLE UNDER PREVAILINGMARKET CONDITIONS.
Current Status: Final
130©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Other Sanction(s)/ReliefSought:
N/A
Resolution Date: 05/02/2011
Resolution:
Other Sanctions Ordered:
Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS;THEREFORE IT IS CENSURED, FINED $23,000 AND ORDERED TO PAYRESTITUTION TO CUSTOMERS IN THE TOTAL AMOUNT OF $15,708.25, PLUSINTEREST AT THE RATE SET FORTH IN SECTION 6621(A) OF THE INTERNALREVENUE CODE, FROM THE DATE OF THE VIOLATIVE CONDUCT UNTIL THEDATE THIS AWC IS ACCEPTED BY THE NATIONAL ADJUDICATORY COUNCIL(NAC). A REGISTERED PRINCIPAL OF THE FIRM SHALL SUBMITSATISFACTORY PROOF OF PAYMENT OF THE RESTITUTION, OR OFREASONABLE DOCUMENTED EFFORTS UNDERTAKEN TO EFFECTRESTITUTION TO FINRA NO LATER THAN 120 DAYS AFTER ACCEPTANCEOF THIS AWC. IF FOR ANY REASON THE FIRM CANNOT LOCATE ANYCUSTOMER AFTER REASONABLE AND DOCUMENTED EFFORTS WITHINSUCH PERIOD, OR SUCH ADDITIONAL PERIOD AGREED TO BY THE STAFF,THE FIRM SHALL FORWARD ANY UNDISTRIBUTED RESTITUTION ANDINTEREST TO THE APPROPRIATE ESCHEAT, UNCLAIMED PROPERTY, ORABANDONED PROPERTY FUND FOR THE STATE IN WHICH THE CUSTOMERIS LAST KNOWN TO HAVE RESIDED.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: CensureMonetary/Fine $23,000.00Disgorgement/Restitution
Acceptance, Waiver & Consent(AWC)
iReporting Source: Firm
Allegations: NASD RULES 2110, 2320: IN EIGHT TRANSACTIONS FOR OR WITH ACUSTOMER, THE FIRM FAILED TO USE REASONABLE DILIGENCE TOASCERTAIN THE BEST INTER-DEALER MARKET AND FAILED TO BUY ORSELL IN SUCH MARKET SO THAT THE RESULTANT PRICE TO ITSCUSTOMER WAS AS FAVORABLE AS POSSIBLE UNDER PREVAILINGMARKET CONDITIONS.
Current Status: Final
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Initiated By: FINANCIAL INDUSTRY REGULATORY AUTHORITY (FINRA)
Principal Sanction(s)/ReliefSought:
Other
Other Sanction(s)/ReliefSought:
N/A
Date Initiated: 05/02/2011
Docket/Case Number: 2006005324201
Principal Product Type: Debt - Corporate
Other Product Type(s): MUNICIPAL SECURITIES
NASD RULES 2110, 2320: IN EIGHT TRANSACTIONS FOR OR WITH ACUSTOMER, THE FIRM FAILED TO USE REASONABLE DILIGENCE TOASCERTAIN THE BEST INTER-DEALER MARKET AND FAILED TO BUY ORSELL IN SUCH MARKET SO THAT THE RESULTANT PRICE TO ITSCUSTOMER WAS AS FAVORABLE AS POSSIBLE UNDER PREVAILINGMARKET CONDITIONS.
Resolution Date: 05/02/2011
Resolution:
Other Sanctions Ordered:
Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS;THEREFORE IT IS CENSURED, FINED $23,000.00 AND ORDERED TO PAYRESTITUTION TO CUSTOMERS IN THE TOTAL AMOUNT OF $15,708.25, PLUSINTEREST AT THE RATE SET FORTH IN SECTION 6621(A) OF THE INTERNALREVENUE CODE, FROM THE DATE OF THE VIOLATIVE CONDUCT UNTIL THEDATE THIS AWC IS ACCEPTED BY THE NATIONAL ADJUDICATORY COUNCIL(NAC). A REGISTERED PRINCIPAL OF THE FIRM SHALL SUBMITSATISFACTORY PROOF OF PAYMENT OF THE RESTITUTION, OR OFREASONABLE DOCUMENTED EFFORTS UNDERTAKEN TO EFFECTRESTITUTION TO FINRA NO LATER THAN 120 DAYS AFTER ACCEPTANCEOF THIS AWC. IF FOR ANY REASON THE FIRM CANNOT LOCATE ANYCUSTOMER AFTER REASONABLE AND DOCUMENTED EFFORTS WITHINSUCH PERIOD, OR SUCH ADDITIONAL PERIOD AGREED TO BY THE STAFF,THE FIRM SHALL FORWARD ANY UNDISTRIBUTED RESTITUTION ANDINTEREST TO THE APPROPRIATE ESCHEAT, UNCLAIMED PROPERTY, ORABANDONED PROPERTY FUND FOR THE STATE IN WHICH THE CUSTOMERIS LAST KNOWN TO HAVE RESIDED.
Firm Statement THE FIRM SENT THE $23,000.00 FINE TO FINRA ON 05/13/2011.
Sanctions Ordered: CensureMonetary/Fine $23,000.00Disgorgement/Restitution
Acceptance, Waiver & Consent(AWC)
Disclosure 43 of 158
i
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Reporting Source: Regulator
Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other
Other Sanction(s)/ReliefSought:
N/A
Date Initiated: 04/28/2011
Docket/Case Number: 2007008011601
Principal Product Type: Debt - Corporate
Other Product Type(s): MUNICIPAL SECURITIES
Allegations: NASD RULES 2110, 2440, INTERPRETATIVE MATERIAL-2440, MSRB RULESG-17, G-30(A): IN NINE TRANSACTIONS, THE FIRM SOLD (OR BOUGHT)CORPORATE BONDS TO (OR FROM) CUSTOMERS AND FAILED TO SELL (ORBUY) SUCH BONDS AT A PRICE THAT WAS FAIR, TAKING INTOCONSIDERATION ALL RELEVANT CIRCUMSTANCES, INCLUDING MARKETCONDITIONS WITH RESPECT TO EACH BOND AT THE TIME OF THETRANSACTION, THE EXPENSE INVOLVED AND THAT THE FIRM WASENTITLED TO A PROFIT. IN TEN TRANSACTIONS, THE FIRM SOLDMUNICIPAL SECURITIES FOR ITS OWN ACCOUNT TO A CUSTOMER AT ANAGGREGATE PRICE (INCLUDING ANY MARK-UP) THAT WAS NOT FAIR ANDREASONABLE, TAKING INTO CONSIDERATION ALL RELEVANT FACTORS,INCLUDING THE BEST JUDGMENT OF THE BROKER, DEALER ORMUNICIPAL SECURITIES DEALER AS TO THE FAIR MARKET VALUE OF THESECURITIES AT THE TIME OF THE TRANSACTIONS AND OF ANYSECURITIES EXCHANGED OR TRADED IN CONNECTION WITH THETRANSACTION, THE EXPENSE INVOLVED IN EFFECTING THETRANSACTION, THE FACT THAT THE BROKER, DEALER, OR MUNICIPALSECURITIES DEALER IS ENTITLED TO A PROFIT, AND THE TOTAL DOLLARAMOUNT OF THE TRANSACTION.
Current Status: Final
Resolution Date: 04/28/2011
Resolution:
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: CensureMonetary/Fine $58,000.00Disgorgement/Restitution
Acceptance, Waiver & Consent(AWC)
133©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Other Sanctions Ordered:
Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS;THEREFORE IT IS CENSURED, FINED $58,000 AND ORDERED TO PAYRESTITUTION TO CUSTOMERS IN THE TOTAL AMOUNT OF $38,462.01, PLUSINTEREST, AT THE RATE SET FORTH IN SECTION 6221(A) OF THE INTERNALREVENUE CODE, FROM THE DATE OF THE VIOLATIVE CONDUCT UNTIL THEDATE THIS AWC IS ACCEPTED BY THE NATIONAL ADJUDICATORY COUNCIL(NAC). A REGISTERED PRINCIPAL OF THE FIRM SHALL SUBMITSATISFACTORY PROOF OF PAYMENT OF THE RESTITUTION, OR OFREASONABLE AND DOCUMENTED EFFORTS UNDERTAKEN TO EFFECTRESTITUTION, TO FINRA, NO LATER THAN 120 DAYS AFTER ACCEPTANCEOF THIS AWC. IF FOR ANY REASON, THE FIRM CANNOT LOCATE ANYCUSTOMER AFTER REASONABLE AND DOCUMENTED EFFORTS WITHINSUCH PERIOD, OR SUCH ADDITIONAL PERIOD AGREED TO BY FINRA, THEFIRM SHALL FORWARD ANY UNDISTRIBUTED RESTITUTION AND INTERESTTO THE APPROPRIATE ESCHEAT, UNCLAIMED-PROPERTY OR ABANDONED-PROPERTY FUND FOR THE STATE IN WHICH THE CUSTOMER IS KNOWN TOHAVE LAST RESIDED.
Sanctions Ordered: CensureMonetary/Fine $58,000.00Disgorgement/Restitution
iReporting Source: Firm
Allegations: NASD RULES 2110, 2440, INTERPRETATIVE MATERIAL-2440, MSRB RULESG-17, G-30(A): IN NINE TRANSACTIONS, THE FIRM SOLD (OR BOUGHT)CORPORATE BONDS TO (OR FROM)CUSTOMERS AND FAILED TO SELL (ORBUY) SUCH BONDS AT A PRICE THAT WAS FAIR,TAKING INTO CONSIDERATION ALL RELEVANT CIRCUMSTANCES,INCLUDING MARKET CONDITIONS WITH RESPECT TO EACH BOND AT THETIME OF THE TRANSACTION, THE EXPENSE INVOLVED AND THAT THE FIRMWAS ENTITLED TO A PROFIT. IN TEN TRANSACTIONS, THE FIRM SOLDMUNICIPAL SECURITIES FOR ITS OWN ACCOUNT TO ACUSTOMER AT AN AGGREGATE PRICE (INCLUDING ANY MARK-UP) THATWAS NOT FAIR AND REASONABLE, TAKING INTO CONSIDERATION ALLRELEVANT FACTORS, INCLUDING THE BEST JUDGMENT OF THE BROKER,DEALER OR MUNICIPAL SECURITIES DEALER AS TO THE FAIRMARKET VALUE OF THE SECURITIES AT THE TIME OF THE TRANSACTIONSAND OF ANY SECURITIES EXCHANGED OR TRADED IN CONNECTION WITHTHE TRANSACTION, THE EXPENSE INVOLVED IN EFFECTING THETRANSACTION, THE FACT THAT THE BROKER,DEALER, OR MUNICIPAL SECURITIES DEALER IS ENTITLED TO A PROFIT,AND THE TOTAL DOLLAR AMOUNT OF THE TRANSACTION.
Current Status: Final
134©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Initiated By: FINANCIAL INDUSTRY REGULATORY AUTHORITY (FINRA)
Principal Sanction(s)/ReliefSought:
Other
Other Sanction(s)/ReliefSought:
N/A
Date Initiated: 04/28/2011
Docket/Case Number: 2007008011601
Principal Product Type: Debt - Corporate
Other Product Type(s): MUNICIPAL SECURITIES
NASD RULES 2110, 2440, INTERPRETATIVE MATERIAL-2440, MSRB RULESG-17, G-30(A): IN NINE TRANSACTIONS, THE FIRM SOLD (OR BOUGHT)CORPORATE BONDS TO (OR FROM)CUSTOMERS AND FAILED TO SELL (ORBUY) SUCH BONDS AT A PRICE THAT WAS FAIR,TAKING INTO CONSIDERATION ALL RELEVANT CIRCUMSTANCES,INCLUDING MARKET CONDITIONS WITH RESPECT TO EACH BOND AT THETIME OF THE TRANSACTION, THE EXPENSE INVOLVED AND THAT THE FIRMWAS ENTITLED TO A PROFIT. IN TEN TRANSACTIONS, THE FIRM SOLDMUNICIPAL SECURITIES FOR ITS OWN ACCOUNT TO ACUSTOMER AT AN AGGREGATE PRICE (INCLUDING ANY MARK-UP) THATWAS NOT FAIR AND REASONABLE, TAKING INTO CONSIDERATION ALLRELEVANT FACTORS, INCLUDING THE BEST JUDGMENT OF THE BROKER,DEALER OR MUNICIPAL SECURITIES DEALER AS TO THE FAIRMARKET VALUE OF THE SECURITIES AT THE TIME OF THE TRANSACTIONSAND OF ANY SECURITIES EXCHANGED OR TRADED IN CONNECTION WITHTHE TRANSACTION, THE EXPENSE INVOLVED IN EFFECTING THETRANSACTION, THE FACT THAT THE BROKER,DEALER, OR MUNICIPAL SECURITIES DEALER IS ENTITLED TO A PROFIT,AND THE TOTAL DOLLAR AMOUNT OF THE TRANSACTION.
Resolution Date: 04/28/2011
Resolution:
Other Sanctions Ordered:
Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS;THEREFORE IT IS CENSURED, FINED $58,000 AND ORDERED TO PAYRESTITUTION TO CUSTOMERS IN THE TOTALAMOUNT OF $38,462.01, PLUS INTEREST, AT THE RATE SET FORTH INSECTION 6221(A) OF THE INTERNAL REVENUE CODE, FROM THE DATE OFTHE VIOLATIVE CONDUCT UNTIL THE DATE THIS AWC IS ACCEPTED BY THENATIONAL ADJUDICATORY COUNCIL (NAC). AREGISTERED PRINCIPAL OF THE FIRM SHALL SUBMIT SATISFACTORYPROOF OF PAYMENT OF THE RESTITUTION, OR OF REASONABLE ANDDOCUMENTED EFFORTS UNDERTAKEN TO EFFECT RESTITUTION, TOFINRA, NO LATER THAN 120 DAYS AFTER ACCEPTANCE OF THISAWC. IF FOR ANY REASON, THE FIRM CANNOT LOCATE ANY CUSTOMERAFTER REASONABLE AND DOCUMENTED EFFORTS WITHIN SUCH PERIOD,OR SUCH ADDITIONAL PERIOD AGREED TO BY FINRA, THE FIRM SHALLFORWARD ANY UNDISTRIBUTED RESTITUTION AND INTEREST TO THEAPPROPRIATE ESCHEAT, UNCLAIMED-PROPERTY OR ABANDONED-PROPERTY FUND FOR THE STATE IN WHICH THE CUSTOMER IS KNOWN TOHAVE LAST RESIDED.
Firm Statement THE FIRM SENT THE $58,000.00 FINE TO FINRA ON 05/11/2011.
Sanctions Ordered: CensureMonetary/Fine $58,000.00Disgorgement/Restitution
Acceptance, Waiver & Consent(AWC)
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Disclosure 44 of 158
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Reporting Source: Firm
Initiated By: STATE OF OHIO DIVISION OF SECURITIES
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 03/23/2011
Docket/Case Number: ADMINISTRATIVE CONSENT ORDER - DIVISION ORDER NO. 11-015
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES (ARS)
Allegations: THE STATE OF OHIO HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES TOCUSTOMERS.
Current Status: Final
Resolution Date: 03/23/2011
Resolution:
Other Sanctions Ordered: OFFER TO REPURCHASE ARS THAT ARE SUBJECT TO AUCTIONSTHAT ARE NOT SUCCESSFUL AND ARE NOT SUBJECT TOCURRENT CALLS OR REDEMPTION IN THE RELEVANT CLASS.
Sanction Details: THE FINE IS DUE TO THE STATE OF OHIO DIVISION OF SECURITIES -SECURITIES INVESTOR EDUCATION AND ENFORCEMENT EXPENSE FUNDON APRIL 2, 2011.
Sanctions Ordered: Monetary/Fine $814,454.59Disgorgement/RestitutionCease and Desist/Injunction
Consent
Disclosure 45 of 158
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Reporting Source: Firm
Allegations: THE DIVISION ALLEGED THAT A WFA EMPLOYEE HAD ACTED AS ANINVESTMENNT ADVISOR REPRESENTATIVE IN MISSSISSIPPI, WITHOUTBEING PROPERLY REGISTERED AS SUCH IN VIOLATION OFSECTION 75-71-303 (B)(2) MISSSISSIPPI SECURITIES ACT 2000 &SECTION 75-71-403 (2)(D) MISSSISSIPPI SECURITIES ACT 2009.
Current Status: Final
136©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Initiated By: STATE OF MISSISSIPPI, OFFICE OF THE SECRETARY OFSTATE, SECURITTIES AND CHARITIES DIVISION (DIVISION)
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 03/01/2011
Docket/Case Number: MOU 03/01/2011
Principal Product Type: Other
Other Product Type(s): FEE FOR SERVICE - INVESTMENT ADVISING
THE DIVISION ALLEGED THAT A WFA EMPLOYEE HAD ACTED AS ANINVESTMENNT ADVISOR REPRESENTATIVE IN MISSSISSIPPI, WITHOUTBEING PROPERLY REGISTERED AS SUCH IN VIOLATION OFSECTION 75-71-303 (B)(2) MISSSISSIPPI SECURITIES ACT 2000 &SECTION 75-71-403 (2)(D) MISSSISSIPPI SECURITIES ACT 2009.
Resolution Date: 03/01/2011
Resolution:
Other Sanctions Ordered: OTHER - MEMORANDUM OF AGREEMENT BETWEENWFA AND THE DIVISION.
Sanction Details: WFA PAID THE $25000 FINE TO THE DIVISION ON 02/25/2011.
Firm Statement THE DIVISION ALLEGED THAT A WFA EMPLOYEE ACTED AS ANINVESTMENNT ADVISOR REPRESENTATIVE IN MISSSISSIPPI, WITHOUTBEING PROPERLY REGISTERED AS SUCH, VIOLATINGSECTION 75-71-303 (B)(2) MISSSISSIPPI SECURITIES ACT 2000 & SECTION75-71-403 (2)(D) MISSSISSIPPI SECURITIES ACT 2009. WFA PAID THE $25000FINE TO THE DIVISION ON 02/25/2011.
Sanctions Ordered: Monetary/Fine $25,000.00
Other
Disclosure 46 of 158
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Reporting Source: Firm
Initiated By: STATE OF DELAWRE DEPARTMENT OF JUSTICE DIVISION OF SECURITIES
Date Initiated: 01/21/2011
Allegations: STATE OF DELAWRE DEPARTMENT OF JUSTICE DIVISION OF SECURITIESALLEGED THAT WACHOVIA SECURITIES, LLC VIOLATED 6 DEL.C. § 7316(A)(7) OF THE DELAWARE SECURIYTIES ACT BY EXECUTING ATRANSACTION ON BEHALF OF A CUSTOMER WITHOUT PRIORAUTHORIZATION
Current Status: Final
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Principal Sanction(s)/ReliefSought:
Undertaking
Other Sanction(s)/ReliefSought:
Date Initiated: 01/21/2011
Docket/Case Number: CASE NO. 09-03-03
Principal Product Type: Unit Investment Trust(s)
Other Product Type(s):
Resolution Date: 01/21/2011
Resolution:
Other Sanctions Ordered: WACHOVIA AGREES TO PROVIDE UIT TRAINING TO THE NAPLES, FLBRANCH OFFICE (SPECIFICALLY THE OPTIONS AVAILABLE TO A UITINVESTOR AT TIME OF MATURITY) AND TO REVIEW POLICIES REGARDINGRECORDKEEPING AND CLIENT CONTACT. WACHOVIA WILL PROVIDE TOTHE DIVISION A WRITTEN TRAINING AGENDA AND AN ATTENDANCE LISTSIGNED BY EACH ATTENDEE. WACHOVIA AGREES TO REIMBURSE$1746.00 TO THE DIVISION TO COVER COST OF THEIR INVESTIGATION.
Sanction Details: BOTH PARTIES WISH TO AMICABLY RESOLVE THIS MATTER WITHOUT THETIME AND EXPENSE ASSOCIATED WITH CONTINUED LITIGATION.WACHOVIA AGREES TO PERMANENTLY WAIVE ALL RIGHTS TO A HEARINGOR APPEAL. WACHOVIA NEITHER ADMITS NOR DENIES THE DIVISIONDETERMINATIONS. THE DIVISION AGREES TO CONCLUDE ITSINVESTIGATION AND TAKE NO FURTHER ACTION.
Sanctions Ordered: Monetary/Fine $1,746.00
Settled
Disclosure 47 of 158
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Reporting Source: Regulator
Allegations: ON DECEMBER 29, 2010, THE CONNECTICUT BANKING COMMISSIONERENTERED A CONSENT ORDER WITH RESPECT TO WACHOVIA SECURITIES,LLC, NOW KNOWN AS WELLS FARGO ADVISORS, LLC, A CONNECTICUT-REGISTERED BROKER-DEALER. THE CONSENT ORDER ALLEGED THATTHE FIRM FAILED TO ESTABLISH, ENFORCE AND MAINTAIN AN ADEQUATESUPERVISORY SYSTEM IN OVERSEEING THE ACTIVITIES OF DANIELCHARLES ALLEGRINI (CRD NO. 2962754), AN EX-BROKER-DEALER AGENTOF THE FIRM. ACCORDING TO THE CONSENT ORDER, ALLEGRINI ISSUED,AND RECOMMENDED TO A CERTAIN WACHOVIA SECURITIES, LLC CLIENT,UNREGISTERED PROMISSORY NOTES THAT WERE NOT SUITABLE FORTHE CLIENT BASED ON THE CLIENT'S FINANCIAL SITUATION AND NEEDS.THE CONSENT ORDER ADDED THAT ALLEGRINI ACTED OUTSIDE THEREGULAR COURSE OR SCOPE OF HIS EMPLOYMENT WITH THE FIRM INSELLING THE NOTES AND IN RECEIVING COMPENSATION FOR REFERRINGBROKERAGE AND BANK CLIENTS TO AN ASSOCIATE FOR THE PURPOSEOF INVESTING IN OTHER INTEREST-PAYING PROMISSORY NOTES.ALLEGRINI ALLEGEDLY DID NOT PROVIDE THE FIRM WITH PRIOR WRITTENNOTICE OF SUCH ACTIVITIES, NOR WERE THE TRANSACTIONS RECORDEDON THE FIRM'S BOOKS AND RECORDS.
Current Status: Final
138©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Initiated By: CONNECTICUT
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 12/29/2010
Docket/Case Number: CO-10-7710-S
URL for Regulatory Action:
Principal Product Type: Other
Other Product Type(s): PROMISSORY NOTES SOLD BY ONE DANIEL CHARLES ALLEGRINI (CRD NO.2962754)
ON DECEMBER 29, 2010, THE CONNECTICUT BANKING COMMISSIONERENTERED A CONSENT ORDER WITH RESPECT TO WACHOVIA SECURITIES,LLC, NOW KNOWN AS WELLS FARGO ADVISORS, LLC, A CONNECTICUT-REGISTERED BROKER-DEALER. THE CONSENT ORDER ALLEGED THATTHE FIRM FAILED TO ESTABLISH, ENFORCE AND MAINTAIN AN ADEQUATESUPERVISORY SYSTEM IN OVERSEEING THE ACTIVITIES OF DANIELCHARLES ALLEGRINI (CRD NO. 2962754), AN EX-BROKER-DEALER AGENTOF THE FIRM. ACCORDING TO THE CONSENT ORDER, ALLEGRINI ISSUED,AND RECOMMENDED TO A CERTAIN WACHOVIA SECURITIES, LLC CLIENT,UNREGISTERED PROMISSORY NOTES THAT WERE NOT SUITABLE FORTHE CLIENT BASED ON THE CLIENT'S FINANCIAL SITUATION AND NEEDS.THE CONSENT ORDER ADDED THAT ALLEGRINI ACTED OUTSIDE THEREGULAR COURSE OR SCOPE OF HIS EMPLOYMENT WITH THE FIRM INSELLING THE NOTES AND IN RECEIVING COMPENSATION FOR REFERRINGBROKERAGE AND BANK CLIENTS TO AN ASSOCIATE FOR THE PURPOSEOF INVESTING IN OTHER INTEREST-PAYING PROMISSORY NOTES.ALLEGRINI ALLEGEDLY DID NOT PROVIDE THE FIRM WITH PRIOR WRITTENNOTICE OF SUCH ACTIVITIES, NOR WERE THE TRANSACTIONS RECORDEDON THE FIRM'S BOOKS AND RECORDS.
Resolution Date: 12/29/2010
Resolution:
Other Sanctions Ordered:
Sanction Details: THE CONSENT ORDER FINED THE FIRM $75,000 AND DIRECTED IT TOCEASE AND DESIST FROM REGULATORY VIOLATIONS.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: Monetary/Fine $75,000.00Cease and Desist/Injunction
Consent
iReporting Source: Firm
Allegations: ON DECEMBER 29, 2010, THE CONNECTICUT BANKING COMMISSIONERENTERED A CONSENT ORDER WITH RESPECT TO WACHOVIA SECURITIES,LLC, NOW KNOWN AS WELLS FARGO ADVISORS, LLC, A CONNECTICUT-REGISTERED BROKER-DEALER. THE CONSENT ORDER ALLEGED THATTHE FIRM FAILED TO ESTABLISH, ENFORCE AND MAINTAIN AN ADEQUATESUPERVISORY SYSTEM IN OVERSEEING THE ACTIVITIES OF AN EX-BROKER-DEALER AGENT OF THE FIRM. ACCORDING TO THE CONSENTORDER, THE AGENT ISSUED, AND RECOMMENDED TO A CERTAINWACHOVIA SECURITIES, LLC CLIENT, UNREGISTERED PROMISSORYNOTES THAT WERE NOT SUITABLE FOR THE CLIENT BASED ON THECLIENT'S FINANCIAL SITUATION AND NEEDS. THE CONSENT ORDERADDED THAT THE AGENT ACTED OUTSIDE THE REGULAR COURSE ORSCOPE OF HIS EMPLOYMENT WITH THE FIRM IN SELLING THE NOTES ANDIN RECEIVING COMPENSATION FOR REFERRING BROKERAGE AND BANKCLIENTS TO AN ASSOCIATE FOR THE PURPOSE OF INVESTING IN OTHERINTEREST-PAYING PROMISSORY NOTES. THE AGENT ALLEGEDLY DID NOTPROVIDE THE FIRM WITH PRIOR WRITTEN NOTICE OF SUCH ACTIVITIES,NOR WERE THE TRANSACTIONS RECORDED ON THE FIRM'S BOOKS ANDRECORDS
Current Status: Final
139©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Initiated By: CONNECTICUT
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 12/29/2010
Docket/Case Number: CO-10-7710-S
Principal Product Type: Other
Other Product Type(s): PROMISSORY NOTES
Allegations: ON DECEMBER 29, 2010, THE CONNECTICUT BANKING COMMISSIONERENTERED A CONSENT ORDER WITH RESPECT TO WACHOVIA SECURITIES,LLC, NOW KNOWN AS WELLS FARGO ADVISORS, LLC, A CONNECTICUT-REGISTERED BROKER-DEALER. THE CONSENT ORDER ALLEGED THATTHE FIRM FAILED TO ESTABLISH, ENFORCE AND MAINTAIN AN ADEQUATESUPERVISORY SYSTEM IN OVERSEEING THE ACTIVITIES OF AN EX-BROKER-DEALER AGENT OF THE FIRM. ACCORDING TO THE CONSENTORDER, THE AGENT ISSUED, AND RECOMMENDED TO A CERTAINWACHOVIA SECURITIES, LLC CLIENT, UNREGISTERED PROMISSORYNOTES THAT WERE NOT SUITABLE FOR THE CLIENT BASED ON THECLIENT'S FINANCIAL SITUATION AND NEEDS. THE CONSENT ORDERADDED THAT THE AGENT ACTED OUTSIDE THE REGULAR COURSE ORSCOPE OF HIS EMPLOYMENT WITH THE FIRM IN SELLING THE NOTES ANDIN RECEIVING COMPENSATION FOR REFERRING BROKERAGE AND BANKCLIENTS TO AN ASSOCIATE FOR THE PURPOSE OF INVESTING IN OTHERINTEREST-PAYING PROMISSORY NOTES. THE AGENT ALLEGEDLY DID NOTPROVIDE THE FIRM WITH PRIOR WRITTEN NOTICE OF SUCH ACTIVITIES,NOR WERE THE TRANSACTIONS RECORDED ON THE FIRM'S BOOKS ANDRECORDS
Resolution Date: 12/29/2010
Resolution:
Other Sanctions Ordered: THE CONSENT ORDER FINED THE FIRM $75,000 AND DIRECTED IT TOCEASE AND DESIST FROM REGULATORY VIOLATIONS.
Sanction Details: WITHOUT ADMITTING OR DENYING ANY OF THE ALLEGATIONS ORFINDINGS, WACHOVIA SECURITIES, LLC CONSENTED TO THE TERMS OFTHIS CONSENT ORDER, PAID APPROXIMATELY $800,000.00 IN RESTITUTIONTO THE CLIENT, AND AGREED TO PAY THE $75,000.00 FINE TO THE STATEOF CONNECTICUT.
Sanctions Ordered: Monetary/Fine $75,000.00Cease and Desist/Injunction
Consent
140©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User GuidanceWITHOUT ADMITTING OR DENYING ANY OF THE ALLEGATIONS ORFINDINGS, WACHOVIA SECURITIES, LLC CONSENTED TO THE TERMS OFTHIS CONSENT ORDER, PAID APPROXIMATELY $800,000.00 IN RESTITUTIONTO THE CLIENT, AND AGREED TO PAY THE $75,000.00 FINE TO THE STATEOF CONNECTICUT.
Disclosure 48 of 158
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Reporting Source: Regulator
Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 12/20/2010
Docket/Case Number: 2008015589701
Principal Product Type: Mutual Fund(s)
Other Product Type(s):
Allegations: MSRB RULES G-14(B)(II), G-15(A)(I) - WELLS FARGO ADVISORS, LLC FAILEDTO REPORT THE CORRECT YIELD TO THE REAL-TIME TRANSACTIONREPORTING SYSTEM (RTRS) IN REPORTS OF TRANSACTIONS INMUNICIPAL SECURITIES AND FAILED TO PROVIDE WRITTEN NOTIFICATIONDISCLOSING TO ITS CUSTOMERS THE CORRECT LOWEST EFFECTEDYIELD IN THESE MUNICIPAL SECURITIES TRANSACTIONS.
Current Status: Final
Resolution Date: 12/20/2010
Resolution:
Other Sanctions Ordered:
Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS;THEREFORE, THE FIRM IS CENSURED AND FINED $12,500.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: CensureMonetary/Fine $12,500.00
Acceptance, Waiver & Consent(AWC)
iReporting Source: 141©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Reporting Source: Firm
Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other
Other Sanction(s)/ReliefSought:
Date Initiated: 12/20/2010
Docket/Case Number: 20080155897-01
Principal Product Type: Mutual Fund(s)
Other Product Type(s):
Allegations: MSRB RULES G-14(B)(II), G-15(A)(I) - WELLS FARGO ADVISORS, LLC FAILEDTO REPORT THE CORRECT YIELD TO THE REAL-TIME TRANSACTIONREPORTING SYSTEM (RTRS) IN REPORTS OF TRANSACTIONS INMUNICIPAL SECURITIES AND FAILED TO PROVIDE WRITTEN NOTIFICATIONDISCLOSING TO ITS CUSTOMERS THE CORRECT LOWEST EFFECTEDYIELD IN THESE MUNICIPAL SECURITIES TRANSACTIONS.
Current Status: Final
Resolution Date: 12/20/2010
Resolution:
Other Sanctions Ordered:
Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS;THEREFORE, THE FIRM IS CENSURED AND FINED $12,500.A COMPANY CHECK FOR THE FULL AMOUNT, $12,500.00 WAS SENT TOFINRA VIA OVERNIGHT CARRIER ON JANUARY 4, 2011.
Sanctions Ordered: CensureMonetary/Fine $12,500.00
Acceptance, Waiver & Consent(AWC)
Disclosure 49 of 158
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Reporting Source: Regulator
Allegations: THE DIVISION ALLEGES THAT ON OR ABOUT JUNE 9, 2009, WFA ENGAGEDIN DISHONEST AND UNETHICAL PRACTICES BY FAILING TO PROMPTLY ANDREASONABLY FOLLOW INSTRUCTIONS FROM A CLIENT TO TRANSFER THEASSETS IN HER ACCOUNTS TO ANOTHER FINANCIAL INSTITUTION IN-KIND,IN VIOLATION OF IND. CODE § 23-19-4-12(D)(13) AND 710 IAC 1-17-1(Y)(2001).
THE DIVISION ALLEGES THAT FROM APPROXIMATELY MAY 5, 2009, TOJUNE 11, 2009, WELLS FARGO ADVISORS, LLC ("WFA") ENGAGED INDISHONEST AND UNETHICAL PRACTICES BY FAILING TO SUPERVISE ITSAGENTS AND EMPLOYEES IN VIOLATION OF IND. CODE § 23-19-4-12(D)(13)AND 710 IAC 1-17-1(V) (2001).
Current Status: Final
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Initiated By: INDIANA
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
RESTITUTION TO NANCY MOORE IN THE AMOUNT OF $495.84.
Date Initiated: 11/18/2010
Docket/Case Number: 10-0271 CA
URL for Regulatory Action:
Principal Product Type: Other
Other Product Type(s):
THE DIVISION ALLEGES THAT ON OR ABOUT JUNE 9, 2009, WFA ENGAGEDIN DISHONEST AND UNETHICAL PRACTICES BY FAILING TO PROMPTLY ANDREASONABLY FOLLOW INSTRUCTIONS FROM A CLIENT TO TRANSFER THEASSETS IN HER ACCOUNTS TO ANOTHER FINANCIAL INSTITUTION IN-KIND,IN VIOLATION OF IND. CODE § 23-19-4-12(D)(13) AND 710 IAC 1-17-1(Y)(2001).
THE DIVISION ALLEGES THAT FROM APPROXIMATELY MAY 5, 2009, TOJUNE 11, 2009, WELLS FARGO ADVISORS, LLC ("WFA") ENGAGED INDISHONEST AND UNETHICAL PRACTICES BY FAILING TO SUPERVISE ITSAGENTS AND EMPLOYEES IN VIOLATION OF IND. CODE § 23-19-4-12(D)(13)AND 710 IAC 1-17-1(V) (2001).
Resolution Date: 11/18/2010
Resolution:
Other Sanctions Ordered:
Sanction Details: WFA PAID A CIVIL PENALTY TO THE INDIANA SECURITIES DIVISION IN THEAMOUNT OF EIGHT THOUSAND DOLLARS ($8,000) AND ALSO RESTITUTIONTO NANCY MOORE FOR FOUR HUNDRED NINETY-FIVE DOLLARS ANDEIGHTY-FOUR CENTS ($495.84).
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: Monetary/Fine $8,000.00Disgorgement/Restitution
Consent
iReporting Source: Firm
Allegations: THE DIVISION ALLEGED THAT O/A JUNE 9,2009, WELLS FARGO ADVISORS,LLC (WFA) ENGAGED IN DISHONEST AND UNETHICAL PRACTICES BYFAILING TO PROMPTLY AND REASONABLY FOLLOW INSTRUCTIONS FROMA CLIENT TO TRANSFER THE ASSETS IN HER ACCOUNTS TO ANOTHERFINANCIAL INSTITUTION IN-KIND, IN VIOLATION OF IND. CODE § 23-19-4-12(D)(13) AND 710 IAC 1-17-1(Y)(2001). THE DIVISION ALLEGED THATFROM APPROXIMATELY MAY 5. 2009, TO JUNE 11,2009, WFA ENGAGED INDISHONEST AND UNETHICAL PRACTICES BY FAILING TO SUPERVISE ITSAGENTS AND EMPLOYEES IN VIOLATION OF IND. CODE § 23-19-4-12(D)(13) & 710 IAC 1-17-1(V)(2001).
Current Status: Final
143©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Initiated By: INDIANA SECURITIES DIVISION
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
RESTITUTION TO NANCY MOORE IN THE AMOUNT OF $495.84
Date Initiated: 11/18/2010
Docket/Case Number: 10-0271 CA
Principal Product Type: Mutual Fund(s)
Other Product Type(s):
Allegations: THE DIVISION ALLEGED THAT O/A JUNE 9,2009, WELLS FARGO ADVISORS,LLC (WFA) ENGAGED IN DISHONEST AND UNETHICAL PRACTICES BYFAILING TO PROMPTLY AND REASONABLY FOLLOW INSTRUCTIONS FROMA CLIENT TO TRANSFER THE ASSETS IN HER ACCOUNTS TO ANOTHERFINANCIAL INSTITUTION IN-KIND, IN VIOLATION OF IND. CODE § 23-19-4-12(D)(13) AND 710 IAC 1-17-1(Y)(2001). THE DIVISION ALLEGED THATFROM APPROXIMATELY MAY 5. 2009, TO JUNE 11,2009, WFA ENGAGED INDISHONEST AND UNETHICAL PRACTICES BY FAILING TO SUPERVISE ITSAGENTS AND EMPLOYEES IN VIOLATION OF IND. CODE § 23-19-4-12(D)(13) & 710 IAC 1-17-1(V)(2001).
Resolution Date: 11/18/2010
Resolution:
Other Sanctions Ordered:
Sanction Details: WELLS FARGO ADVISORS, LLC PAID A CIVIL PENALTY TO THE INDIANASECURITIES DIVISION IN THE AMOUNT OF $8,000.00 AND ALSO PAIDRESTITUTION TO NANCY MOORE IN THE AMOUNT OF $495.84.
Firm Statement WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, THE FIRMCONSENTED TO THE DESCRIBED SANCTIONS. THE FIRM WAS FINED$8,000.00 AND PAID RESTITUTION TO THE CLIENT IN THE AMOUNT OF$495.84.
Sanctions Ordered: Monetary/Fine $8,000.00Disgorgement/Restitution
Consent
Disclosure 50 of 158
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Reporting Source: Firm
Allegations: THE STATE OF ALASKA HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES TOCUSTOMERS
Current Status: Final
144©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Initiated By: STATE OF ALASKA; DEPARTMENT COMMERCE, COMMUNITY, ANDECONOMIC DEVELOPMENT; DIVISION OF BANKING AND SECURITIES
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 10/19/2010
Docket/Case Number: ADMINISTRATIVE CONSENT ORDER NO. 10-07-S
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES (ARS)
Allegations: THE STATE OF ALASKA HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES TOCUSTOMERS
Resolution Date: 10/19/2010
Resolution:
Other Sanctions Ordered: OFFER TO REPURCHASE ARS THAT ARE SUBJECT TO AUCTIONS THAT ARENOT SUCCESSFUL AND ARE NOT SUBJECT TO CURRENT CALLS ORREDEMPTION IN THE RELEVANT CLASS.
Sanction Details: THE FINE IS DUE TO THE STATE OF ALASKA ON OCTOBER 29, 2009.
Sanctions Ordered: Monetary/Fine $129,131.10Disgorgement/RestitutionCease and Desist/Injunction
Consent
Disclosure 51 of 158
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Reporting Source: Regulator
Allegations: ON JULY 15, 2010, THE CONNECTICUT BANKING COMMISSIONER ENTEREDA CONSENT ORDER WITH RESPECT TO WACHOVIA SECURITIES, LLC (N/K/AWELLS FARGO ADVISORS, LLC), A CONNECTICUT-REGISTERED BROKER-DEALER LOCATED AT ONE NORTH JEFFERSON AVENUE, ST. LOUIS,MISSOURI, AND WACHOVIA CAPITAL MARKETS, LLC (N/K/A WELLS FARGOSECURITIES, LLC), A CONNECTICUT-REGISTERED BROKER-DEALERLOCATED AT 301 SOUTH COLLEGE STREET, CHARLOTTE, NORTHCAROLINA. THE CONSENT ORDER FOLLOWED AN INVESTIGATION BY AMULTISTATE TASK FORCE INTO THE MARKETING AND SALE OF AUCTIONRATE SECURITIES (ARS) BY THE FIRMS FROM JANUARY 1, 2006 THROUGHFEBRUARY 14, 2008. THE CONSENT ORDER ALLEGED THAT, INCONJUNCTION WITH THE MARKETING OF ARS, THE FIRMS FAILED TOSUPERVISE THEIR EMPLOYEES, AND THAT THE FIRM ENGAGED INDISHONEST OR UNETHICAL PRACTICES IN THE SECURITIES BUSINESS BYMISCHARACTERIZING OR FAILING TO ADEQUATELY EXPLAIN ARS TOCUSTOMERS.
Current Status: Final
145©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Initiated By: CONNECTICUT
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 07/15/2010
Docket/Case Number: CO-10-7568-S
URL for Regulatory Action:
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES
ON JULY 15, 2010, THE CONNECTICUT BANKING COMMISSIONER ENTEREDA CONSENT ORDER WITH RESPECT TO WACHOVIA SECURITIES, LLC (N/K/AWELLS FARGO ADVISORS, LLC), A CONNECTICUT-REGISTERED BROKER-DEALER LOCATED AT ONE NORTH JEFFERSON AVENUE, ST. LOUIS,MISSOURI, AND WACHOVIA CAPITAL MARKETS, LLC (N/K/A WELLS FARGOSECURITIES, LLC), A CONNECTICUT-REGISTERED BROKER-DEALERLOCATED AT 301 SOUTH COLLEGE STREET, CHARLOTTE, NORTHCAROLINA. THE CONSENT ORDER FOLLOWED AN INVESTIGATION BY AMULTISTATE TASK FORCE INTO THE MARKETING AND SALE OF AUCTIONRATE SECURITIES (ARS) BY THE FIRMS FROM JANUARY 1, 2006 THROUGHFEBRUARY 14, 2008. THE CONSENT ORDER ALLEGED THAT, INCONJUNCTION WITH THE MARKETING OF ARS, THE FIRMS FAILED TOSUPERVISE THEIR EMPLOYEES, AND THAT THE FIRM ENGAGED INDISHONEST OR UNETHICAL PRACTICES IN THE SECURITIES BUSINESS BYMISCHARACTERIZING OR FAILING TO ADEQUATELY EXPLAIN ARS TOCUSTOMERS.
Resolution Date: 07/15/2010
Resolution:
Other Sanctions Ordered: THE CONSENT ORDER FINED WACHOVIA SECURITIES, LLC (N/K/A WELLSFARGO ADVISORS, LLC) AND WACHOVIA CAPITAL MARKETS, LLC (N/K/AWELLS FARGO SECURITIES, LLC) $863,341.30, AND DIRECTED THEM TOCEASE AND DESIST FROM REGULATORY VIOLATIONS.
Sanction Details: SEE RESPONSE TO ITEM 13.B.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
Yes
Sanctions Ordered: Monetary/Fine $863,341.30Cease and Desist/Injunction
Consent
iReporting Source: Firm
Allegations: ON JULY 15, 2010, THE CONNECTICUT BANKING COMMISSIONER ENTEREDA CONSENT ORDER WITH RESPECT TO WACHOVIA SECURITIES, LLC (N/K/AWELLS FARGO ADVISORS, LLC), A CONNECTICUT-REGISTERED BROKERDEALER LOCATED AT ONE NORTH JEFFERSON AVENUE, ST. LOUIS,MISSOURI. THE CONSENT ORDER FOLLOWED AN INVESTIGATION BY AMULTISTATE TASK FORCE INTO THE MARKETING AND SALE OF AUCTIONRATE SECURITIES (ARS) BY THE FIRM FROM JANUARY 1, 2006 THROUGHFEBRUARY 14, 2008. THE CONSENT ORDER ALLEGED THAT, INCONJUNCTION WITH THE MARKETING OF ARS, THE FIRM FAILED TOSUPERVISE THEIR EMPLOYEES, AND THAT THE FIRM ENGAGED INDISHONEST OR UNETHICAL PRACTICES IN THE SECURITIES BUSINESS BYMISCHARACTERIZING OR FAILING TO ADEQUATELY EXPLAIN ARS TOCUSTOMERS.
Current Status: Final
146©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Initiated By: STATE OF CONECTICUT DEPARTMENT OF BANKING
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 07/15/2010
Docket/Case Number: CO-10-7568-S
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES (ARS)
ON JULY 15, 2010, THE CONNECTICUT BANKING COMMISSIONER ENTEREDA CONSENT ORDER WITH RESPECT TO WACHOVIA SECURITIES, LLC (N/K/AWELLS FARGO ADVISORS, LLC), A CONNECTICUT-REGISTERED BROKERDEALER LOCATED AT ONE NORTH JEFFERSON AVENUE, ST. LOUIS,MISSOURI. THE CONSENT ORDER FOLLOWED AN INVESTIGATION BY AMULTISTATE TASK FORCE INTO THE MARKETING AND SALE OF AUCTIONRATE SECURITIES (ARS) BY THE FIRM FROM JANUARY 1, 2006 THROUGHFEBRUARY 14, 2008. THE CONSENT ORDER ALLEGED THAT, INCONJUNCTION WITH THE MARKETING OF ARS, THE FIRM FAILED TOSUPERVISE THEIR EMPLOYEES, AND THAT THE FIRM ENGAGED INDISHONEST OR UNETHICAL PRACTICES IN THE SECURITIES BUSINESS BYMISCHARACTERIZING OR FAILING TO ADEQUATELY EXPLAIN ARS TOCUSTOMERS.
Resolution Date: 07/15/2010
Resolution:
Other Sanctions Ordered: THE CONSENT ORDER FINED WACHOVIA SECURITIES, LLC (N/K/A WELLSFARGO ADVISORS, LLC)4863,341.30 AND DIRECTED THEM TO CEASE ANDDESIST FROM REGULATORY VIOLATIONS.
Sanction Details: SEE RESPONSE TO ITEM 12.B. PAYMENT OF THE $863,341.30 FINE WASSENT TO THE STATE OF CONNECTICUT DEPARTMENT OF BANKING ON07/20/2010.
Sanctions Ordered: Monetary/Fine $863,341.30Cease and Desist/Injunction
Consent
Disclosure 52 of 158
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Reporting Source: Firm
Allegations: STATE OF HAWAII ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES TOCUSTOMERS.
Current Status: Final
147©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Initiated By: STATE OF HAWAII DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 07/14/2010
Docket/Case Number: SEU-2008-069
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES (ARS)
STATE OF HAWAII ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES TOCUSTOMERS.
Resolution Date: 07/14/2010
Resolution:
Other Sanctions Ordered: OFFER TO REPURCHASE AT PAR ARS THAT ARE SUBJECT TO AUCTIONSTHAT ARE NOT SUCCESSFUL AND ARE NOT SUBJECT TO CURRENT CALLSOR REDEMPTION ("ELIGIBLE ARS") FROM ALL INVESTORS IN THERELEVANT CLASS.
Sanction Details: PAYMENT OF THE FINE TO THE STATE OF HAWAII DEPARTMENT OFCOMMERCE AND CONSUMER AFFAIRS IS DUE BY 07/24/2010.
Sanctions Ordered: Monetary/Fine $211,619.92Disgorgement/Restitution
Consent
Disclosure 53 of 158
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Reporting Source: Regulator
Initiated By: SOUTH DAKOTA
Date Initiated: 08/08/2009
Docket/Case Number:
Allegations: THE DIVISION CONDUCTED AN INVESTIGATION INTO THE ACTIVITIES OF ATEAM OF AGENTS WHO WORKED TOGETHER FOR A.G. EDWARDS (WHICHWAS LATER ACQUIRED BY WACHOVIA SECURITIES, LLC AND LATER BYWELLS FARGO ADVISORS). A LARGE PERCENTAGE OF THE TEAM'SPRODUCTION WAS FROM ANNUITY AND INSURANCE SALES AND THEDIVISION WAS CONCERNED ABOUT THE SUPERVISION OF THE TEAM ANDTHE SUITABILITY OF THEIR SALES. THE FIRM PLACED THE TEAM ONHEIGHTENED SUPERVISION AND PAID A FINE AND COSTS OFINVESTIGATION TO THE DIVISION.
Current Status: Final
148©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Docket/Case Number:
URL for Regulatory Action:
Principal Product Type: No Product
Other Product Type(s):
Resolution Date: 08/08/2009
Resolution:
Other Sanctions Ordered:
Sanction Details: CONSENT ORDER
Sanctions Ordered: Monetary/Fine $21,000.00
Consent
iReporting Source: Firm
Initiated By: STATE OF SOUTH DAKOTA DEPARTMENT OF REVENUE & REGULATIONDIVISION OF SECURITIES
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
PAYMENT OF COST OF INVESTIGATION
Date Initiated: 08/08/2009
Docket/Case Number: CONSENT ORDER
Principal Product Type: No Product
Other Product Type(s): ANNUITY AND INSURANCE SALES
Allegations: THE STATE OF SOUTH DAKOTA DEPARTMENT OF REVENUE & REGULATIONDIVISION OF SECURITIES CONDUCTED AN INVESTIGATION INTO THEACTIVITIES OF A TEAM OF AGENTS WHO WORKED TOGETHER FOR A.G.EDWARDS (WHICH WAS LATER ACQUIRED BY WACHOVIA SECURITIES, LLCAND LATER BY WELLS FARGO ADVISORS, LLC.) A LARGE PERCENTAGE OFTHE TEAM'S PRODUCTION WAS FROM ANNUITY AND INSURANCE SALESAND THE DIVISION WAS CONCERNED ABOUT THE SUPERVISION OF THETEAM AND THE SUITABILITY OF THEIR SALES. THE FIRM PLACED THETEAM ON HEIGHTENED SUPERVISION AND PAID THE DIVISION A $21,000.00FINE AND $20,000.00 TO COVER THE COSTS OF INVESTIGATION.
Current Status: Final
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Other Sanction(s)/ReliefSought:
PAYMENT OF COST OF INVESTIGATION
Resolution Date: 08/08/2009
Resolution:
Other Sanctions Ordered: $20000.00 COST OF INVESTIGATION AND HEIGHTENED SUPERVISION OFTHE SALES TEAM FOR A PERIOD OF ONE YEAR FROM THE DATE OF THECONSENT ORDER OR AUGUST 8, 2010.
Sanction Details: CONSENT ORDER
Firm Statement THE STATE OF SOUTH DAKOTA DEPARTMENT OF REVENUE & REGULATIONDIVISION OF SECURITIES CONDUCTED AN INVESTIGATION INTO THESALES ACTIVITIES OF A TEAM OF AGENTS WHO WORKED TOGETHER FORA.G. EDWARDS (WHICH WAS LATER ACQUIRED BY WACHOVIA SECURITIES,LLC AND LATER BY WELLS FARGO ADVISORS, LLC). APPROXIMATELY 44%OF THE GROUP'S PRODUCTION (ABOVE THE FIRM'S AVERAGE FOR THEPERIOD OF JANUARY 1, 2008 TO SEPTEMBER 30, 2008) WAS FROMANNUITY AND INSURANCE SALES AND THE DIVISION WAS CONCERNEDABOUT THE SUPERVISION OF THE TEAM AND THE SUITABILITY OF THEIRSALES. WITHOUT ADMITTING OR DENYING THE FINDINGS OF FACT ANDCONCLUSIONS OF LAW CONTAINED IN THE CONSENT ORDER, THE FIRMVOLUNTARILY PLACED THE TEAM ON HEIGHTENED SUPERVISION FOR APERIOD OF ONE YEAR FROM THE DATE OF THE CONSENT ORDER (ORUNTIL AUGUST 8, 2010); PAID THE DIVISION A $21,000.00 FINE; AND PAID$20,000.00 TO COVER THE COSTS OF INVESTIGATION. ALSO THE FIRMNOW USES AN AUTOMATED TOOL (ANNUITYNET) WITH A BUILT IN SCORINGSYSTEM THAT ROUTES VARIABLE ANNUITY TRANSACTIONS TO THEAPPROPRIATE SUPERVISOR FOR REVIEW.
Sanctions Ordered: Monetary/Fine $21,000.00
Consent
Disclosure 54 of 158
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Reporting Source: Firm
Initiated By: STATE OF LOUISIANA - OFFICE OF FINANCIAL INSTITUTIONS -COMMISSIONER OF SECURITIES
Date Initiated: 06/18/2010
Docket/Case Number: OIF-2010-001
Allegations: STATEOF LOUISIANA HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATESECURITIES TO CUSTOMERS.
Current Status: Final
150©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES (ARS)
Resolution Date: 06/18/2010
Resolution:
Other Sanctions Ordered: OFFER TO REPURCHASE AT PAR ARS THAT ARE SUBJECT TO AUCTIONSTHAT ARE NOT SUCCESSFUL AND ARE NOTSUBJECT TO CURRENT CALLS OR REDEMPTION ("ELIGIBLE ARS") FROMALL INVESTORS IN THE RELEVANT CLASS.
Sanction Details: PAYMENT OF THE FINE TO THE STATE OF LOUISIANA - OFFICE OFFINANCIAL INSTITUTIONS - COMMISSIONER OF SECURITIES IS DUE WITHINTEN DAYS - ON JUNE 28, 2010.
Sanctions Ordered: Monetary/Fine $596,362.56Disgorgement/RestitutionCease and Desist/Injunction
Consent
Disclosure 55 of 158
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Reporting Source: Regulator
Initiated By: FINRA
Allegations: NASD RULES 2110, 2210(C)(1), 2210(C)(2)(A), 2210(D)(1)(A), 2210(D)(1)(B),2210(D)(2)(B), 2211(D): RESPONDENT WELLS FARGO ADVISORS LLC FAILEDTO FILE PIECES OF UNIT INVESTMENT TRUST ("UIT") MARKETINGMATERIAL WITH THE NASD DEPARTMENT OF ADVERTISING REGULATIONWITHIN 10 DAYS OF FIRST USE OR PUBLICATION. THE FIRM INTERNALLYUSED PIECES OF UIT MARKETING MATERIAL THAT FAILED TO COMPLYWITH NASD CONTENT STANDARDS IN THAT THEY FAILED TO PROVIDE ASOUND BASIS FOR EVALUATION AND A COMPLETE PRESENTATIONREGARDING THE UITS. THE FIRM ALSO USED A PIECE OF MARKETINGMATERIAL THAT COMPARED UITS TO OTHER INVESTMENTS WITHOUTINCLUDING ALL MATERIAL DIFFERENCES BETWEEN THE INVESTMENTOPTIONS. THE FIRM ALSO FAILED TO DISCLOSE RISKS ASSOCIATED WITHUITS AND USED MARKETING MATERIALS THAT INCLUDED PERFORMANCEOF PRIOR, UNAVAILABLE UIT PORTFOLIOS TO PROMOTE UIT PORTFOLIOSTHAT WERE CURRENTLY AVAILABLE AND UIT PERFORMANCE DATA THATWAS MISLEADING.
Current Status: Final
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Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 05/11/2010
Docket/Case Number: 2007009356502
Principal Product Type: Unit Investment Trust(s)
Other Product Type(s):
Resolution Date: 05/11/2010
Resolution:
Other Sanctions Ordered:
Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS;THEREFORE, THE FIRM IS CENSURED AND FINED $25,000.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: CensureMonetary/Fine $25,000.00
Acceptance, Waiver & Consent(AWC)
iReporting Source: Firm
Allegations: VIOLATION OF NASD RULES 2110, 2210(C)(1), 2210(C)(2)(A),2210(D)(1)(A), 2210(D)(1)(B), 2210(D)(2)(B), & 2211 (D): RESPONDENT WELLSFARGO ADVISORS, LLC FAILED TO FILE PIECES OF UNIT INVESTMENTTRUST "UIT" MARKETING MATERIAL WITH THE NASD DEPARTMENT OFADVERTISING REGULATION. THE FIRM INTERNALLY USED PIECES OF UITMARKETING MATERIAL THAT FAILED TO COMPLY WITH NASD CONTENTSTANDARDS IN THAT THEY FAILED TP PROVIDE A SOUND BASIS FOREVALUATION AND A COMPLETE PRESENTATION REGARDING THE UITS.THE FIRM ALSO USED A PIECE OF MARKETING MATERIAL THAT COMPAREDUITS TO OTHER INVESTMENTS WITHOUT INCLUDING ALL MATERIALDIFFERENCES BETWEEN THE INVESTMENT OPTIONS.
Current Status: Final
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Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Censure
Other Sanction(s)/ReliefSought:
MONETARY FINE
Date Initiated: 05/11/2010
Docket/Case Number: 2007009356502
Principal Product Type: Unit Investment Trust(s)
Other Product Type(s):
VIOLATION OF NASD RULES 2110, 2210(C)(1), 2210(C)(2)(A),2210(D)(1)(A), 2210(D)(1)(B), 2210(D)(2)(B), & 2211 (D): RESPONDENT WELLSFARGO ADVISORS, LLC FAILED TO FILE PIECES OF UNIT INVESTMENTTRUST "UIT" MARKETING MATERIAL WITH THE NASD DEPARTMENT OFADVERTISING REGULATION. THE FIRM INTERNALLY USED PIECES OF UITMARKETING MATERIAL THAT FAILED TO COMPLY WITH NASD CONTENTSTANDARDS IN THAT THEY FAILED TP PROVIDE A SOUND BASIS FOREVALUATION AND A COMPLETE PRESENTATION REGARDING THE UITS.THE FIRM ALSO USED A PIECE OF MARKETING MATERIAL THAT COMPAREDUITS TO OTHER INVESTMENTS WITHOUT INCLUDING ALL MATERIALDIFFERENCES BETWEEN THE INVESTMENT OPTIONS.
Resolution Date: 05/11/2010
Resolution:
Other Sanctions Ordered:
Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF THE FINDINGS;THEREFORE, THE FIRM IS CENSURED AND FINED $25,000.00.
Firm Statement FINRA ALLEGED VIOLATION OF NASD RULES 2110, 2210(C)(1),2210(C)(2)(A), 2210(D)(1)(A), 2210(D)(1)(B), 2210(D)(2)(B), & 2211(D)IN THATTHE RESPONDENT WELLS FARGO ADVISORS, LLC FAILED TO FILE PIECESOF UNIT INVESTMENT TRUST "UIT" MARKETING MATERIAL WITH THE NASDDEPARTMENT OF ADVERTISING REGULATION. THE FIRM INTERNALLYUSED PIECES OF UIT MARKETING MATERIAL THAT FAILED TO COMPLYWITH NASD CONTENT STANDARDS IN THAT THEY FAILED TP PROVIDE ASOUND BASIS FOR EVALUATION AND A COMPLETE PRESENTATIONREGARDING THE UITS. THE FIRM ALSO USED A PIECE OF MARKETINGMATERIAL THAT COMPARED UITS TO OTHER INVESTMENTS WITHOUTINCLUDING ALL MATERIAL DIFFERENCES BETWEEN THE INVESTMENTOPTIONS. WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRMCONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF THEFINDINGS; THEREFORE, THE FIRM WAS CENSURED AND FINED $25,000.00
Sanctions Ordered: CensureMonetary/Fine $25,000.00
Acceptance, Waiver & Consent(AWC)
Disclosure 56 of 158
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Reporting Source: Firm
Allegations: THE STATE OF ILLINOIS HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES (ARS)TO CUSTOMERS.
Current Status: Final
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Initiated By: OFFICE OF THE SECRETARY OF STATE ILLINOIS SECURITIES DEPARTMENT
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 03/29/2010
Docket/Case Number: 08-00202
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES (ARS)
Allegations: THE STATE OF ILLINOIS HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES (ARS)TO CUSTOMERS.
Resolution Date: 03/29/2010
Resolution:
Other Sanctions Ordered: OFFER TO REPURCHASE AT PAR ARS THAT ARE SUBJECT TO AUCTIONSTHAT ARE NOT SUCCESSFUL AND ARE NOT SUBJECT TO CURRENTCALLS OR REDEMPTION ("ELIGIBLE ARS") FROM ALL INVESTORS IN THERELEVANT CLASS.
Sanction Details: THE FINE WAS SENT TO THE STATE OF ILLINOIS ON 04/06/2010.
Sanctions Ordered: Monetary/Fine $1,691,207.30Disgorgement/RestitutionCease and Desist/Injunction
Consent
Disclosure 57 of 158
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Reporting Source: Firm
Initiated By: STATE OF ARKANSAS SECURITIES COMMISSIONER
Date Initiated: 03/11/2010
Docket/Case Number: S-09-024-09-CO01
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES (ARS)
Allegations: STATEOF ARKANSAS HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATESECURITIES TO CUSTOMERS.
Current Status: Final
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Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Other Product Type(s): AUCTION RATE SECURITIES (ARS)
Resolution Date: 03/11/2010
Resolution:
Other Sanctions Ordered: OFFER TO REPURCHASE AT PAR ARS THAT ARE SUBJECT TO AUCTIONSTHAT ARE NOT SUCCESSFUL AND ARE NOT SUBJECT TO CURRENT CALLSOR REDEMPTION ("ELIGIBLE ARS") FROM ALL INVESTORS IN THERELEVANT CLASS.
Sanction Details: PAYMENT OF THE FINE TO THE STATE OF ARKANSAS IS DUE BY 03/21/2010.
Sanctions Ordered: Monetary/Fine $238,385.75Disgorgement/RestitutionCease and Desist/Injunction
Consent
Disclosure 58 of 158
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Reporting Source: Firm
Initiated By: STATE OF MARYLAND - OFFICE OF THE ATTORNEY GENERAL - SECURITIESDIVISION
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 03/11/2010
Docket/Case Number: 2009-0164
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES (ARS)
Allegations: THE STATE OF MARYLAND HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES TOCUSTOMERS.
Current Status: Final
Resolution Date: 03/11/2009
Resolution: Consent
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Other Sanctions Ordered: OFFER TO REPURCHASE AT PAR ARS THAT ARE SUBJECT TO AUCTIONSTHAT ARE NOT SUCCESSFUL AND ARE NOT SUBJECT TO CURRENT CALLSOR REDEMPTION ("ELIGIBLE ARS") FROM ALL INVESTORS IN THERELEVANT CLASS.
Sanction Details: THE FINE IS DUE TO STATE OF MARYLAND - OFFICE OF THE ATTORNEYGENERAL - SECURITIES DIVISION UPON RECEIPT OF THE CONSENTORDER.
Sanctions Ordered: Monetary/Fine $810,624.05Disgorgement/RestitutionCease and Desist/Injunction
Disclosure 59 of 158
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Reporting Source: Firm
Initiated By: STATE OF WISCONSIN DEPARTMENT OF FINANCIAL INSTITUTIONSDIVISION OF SECURITIES
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 01/15/2010
Docket/Case Number: S-09137(EX)
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES (ARS)
Allegations: STATE OF WISCONSIN HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES (ARS) TOCUSTOMERS.
Current Status: Final
Resolution Date: 01/15/2010
Resolution:
Other Sanctions Ordered: OFFER TO REPURCHASE AT PAR ARS THAT ARE SUBJECT TO AUCTIONSTHAT ARE NOT SUCCESSFUL AND ARE NOT SUBJECT TO CURRENT CALLSOR REDEMPTION ("ELIGIBLE ARS") FROM ALL INVESTORS IN THERELEVANT CLASS.
Sanctions Ordered: Monetary/Fine $457,903.77Disgorgement/RestitutionCease and Desist/Injunction
Decision
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OFFER TO REPURCHASE AT PAR ARS THAT ARE SUBJECT TO AUCTIONSTHAT ARE NOT SUCCESSFUL AND ARE NOT SUBJECT TO CURRENT CALLSOR REDEMPTION ("ELIGIBLE ARS") FROM ALL INVESTORS IN THERELEVANT CLASS.
Sanction Details: THE PAYMENT WAS SENT TO THE STATE OF WISCONSIN ON 01/25/2010.
Disclosure 60 of 158
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Reporting Source: Firm
Initiated By: U.S. VIRGIN ISLANDS - OFFICE OF THE LIEUTENANT GOVERNOR - DIVISIONOF BANKING AND INSURANCE
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 01/04/2010
Docket/Case Number: 01-09
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES (ARS)
Allegations: U.S. VIRGIN ISLANDS HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES TOCUSTOMERS.
Current Status: Final
Resolution Date: 01/04/2010
Resolution:
Other Sanctions Ordered: OFFER TO REPURCHASE AT PAR ARS THAT ARE SUBJECT TO AUCTIONSTHAT ARE NOT SUCCESSFUL AND ARE NOT SUBJECT TO CURRENT CALLSOR REDEMPTION ("ELIGIBLE ARS") FROM ALL INVESTORS IN THERELEVANT CLASS.
Sanction Details: THE PAYMENT WAS SENT TO THE U.S. VIRGIN ISLANDS ON 01/13/2010.
Sanctions Ordered: Monetary/Fine $116,748.21Disgorgement/RestitutionCease and Desist/Injunction
Consent
Disclosure 61 of 158
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Reporting Source: Firm
Allegations: THE STATE OF INDIANA HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES TOCUSTOMERS.
Current Status: Final
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Initiated By: STATE OF INDIANA OFFICE OF THE SECRETARY OF STATE SECURITIESDIVISION
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 05/06/2009
Docket/Case Number: 09-0082 CO
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES (ARS)
Allegations: THE STATE OF INDIANA HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES TOCUSTOMERS.
Resolution Date: 05/06/2009
Resolution:
Other Sanctions Ordered: OFFER TO REPURCHASE AT PAR ARS THAT ARE SUBJECT TO AUCTIONSTHAT ARE NOT SUCCESSFUL AND ARE NOT SUBJECT TO CURRENT CALLSOR REDEMPTION ("ELIGIBLE ARS") FROM ALL INVESTORS IN THERELEVANT CLASS.
Sanction Details: THE PAYMENT WAS SENT TO THE STATE OF INDIANA ON 05/12/2009.
Sanctions Ordered: Monetary/Fine $509,628.73Disgorgement/RestitutionCease and Desist/Injunction
Consent
Disclosure 62 of 158
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Reporting Source: Firm
Initiated By: STATE OF WEST VIRGINIA SECURITIES COMMISSION
Date Initiated: 11/03/2009
Docket/Case Number: 98-44964
Principal Product Type: Other
Allegations: THE STATE OF WEST VIRGINIA HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES TOCUSTOMERS.
Current Status: Final
158©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES (ARS)
Resolution Date: 11/03/2009
Resolution:
Other Sanctions Ordered: OFFER TO REPURCHASE ARS THAT ARE SUBJECT TO AUCTIONS THAT ARENOT SUCCESSFUL AND ARE NOT SUBJECT TO CURRENT CALLS ORREDEMPTION IN THE RELEVANT CLASS.
Sanction Details: THE FINE IS DUE TO THE STATE OF WEST VIRGINIA - WITHIN TEN DAYS -ON NOVEMBER 13, 2009.
Sanctions Ordered: Monetary/Fine $170,766.82Disgorgement/RestitutionCease and Desist/Injunction
Consent
Disclosure 63 of 158
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Reporting Source: Firm
Initiated By: THE SECURITIES COMMISIONER OF THE STATE OF DELAWARE
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 03/31/2009
Docket/Case Number: 09-2-2
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES (ARS)
Allegations: THE STATE OF DELAWARE HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES TOCUSTOMERS.
Current Status: Final
Resolution Date: 03/31/2009
Resolution:
Sanctions Ordered: Monetary/Fine $309,117.79Disgorgement/RestitutionCease and Desist/Injunction
Consent
159©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Other Sanctions Ordered: OFFER TO REPURCHASE AT ARS THAT ARE SUBJECT TO AUCTIONS THATARE NOT SUCCESSFUL AND ARE NOT SUBJECT TO CURRENT CALLS ORREDEMPTION IN THE RELEVANT CLASS.
Sanction Details: THE PAYMENT WAS SENT TO THE STATE OF DELAWARE ON 04/09/2009.
Sanctions Ordered: Monetary/Fine $309,117.79Disgorgement/RestitutionCease and Desist/Injunction
Disclosure 64 of 158
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Reporting Source: Firm
Initiated By: STATE OF MAINE DEPARTMENT OF PROFESSIONAL AND FINANCIALREGULATION OFFICE OF SECURITIES
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 04/14/2009
Docket/Case Number: ADMINISTRATIVE CONSENT ORDER
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES (ARS)
Allegations: THE STATE OF MAINE HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES TOCUSTOMERS.
Current Status: Final
Resolution Date: 04/14/2009
Resolution:
Other Sanctions Ordered: OFFER TO REPURCHASE AT ARS THAT ARE SUBJECT TO AUCTIONS THATARE NOT SUCCESSFUL AND ARE NOT SUBJECT TO CURRENT CALLS ORREDEMPTION IN THE RELEVANT CLASS.
Sanction Details: THE PAYMENT WAS SENT TO THE STATE OF MAINE ON 04/22/2009.
Sanctions Ordered: Monetary/Fine $237,916.17Disgorgement/RestitutionCease and Desist/Injunction
Consent
Disclosure 65 of 158
i
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Disclosure 65 of 158
Reporting Source: Regulator
Initiated By: DISTRICT OF COLUMBIA
Principal Sanction(s)/ReliefSought:
Other
Other Sanction(s)/ReliefSought:
CONSENT ORDER
Date Initiated: 08/21/2009
Docket/Case Number: SB-09-02
URL for Regulatory Action:
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES
Allegations: THE COMMISSIONER OF THE DEPARTMENT OF INSURANCE, SECURITIESAND BANKING FINDS WACHOVIA SECURITIES FAILED TO SUPERVISE ITSEMPLOYEES AND ENGAGED IN DISHONEST OR UNETHICAL PRACTICES INTHE SECURITIES BUSINESS, AND IN THE SALE OF AUCTION RATESECURITIES IN THE DISTRICT OF COLUMBIA, IN VIOLATION OF D.C.OFFICIAL CODE §31-5602.07(A)(9)AND(12).
Current Status: Final
Resolution Date: 08/21/2009
Resolution:
Other Sanctions Ordered: WACHOVIA WILL CEASE AND DESIST FROM VIOLATING D.C. OFFICIALCODE §§ 31-5602.07(A)(9) AND 31-5602.07(A)(12) AND WILL COMPLY WITHALL OF THE LAWS OF THE SECURITIES ACT OF 2000, AND ALL OF THELAWS OF THE DISTRICT OF COLUMBIA. WITHIN TEN DAYS AFTER THEENTRY OF THIS ORDER, WACHOVIA SHALL PAY THE SUM OF THREEHUNDRED ELEVEN THOUSAND, SEVEN HUNDRED AND SISTY FIVEDOLLARS AND ELEVEN CENTS ($311,765.11) TO THE DEPARTMENT AS ACIVIL MONETARY PENALTY PURSUANT TO D.C. OFFICIAL CODE §1-204.50
Sanction Details: N/A
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
Yes
Sanctions Ordered: Monetary/Fine $311,765.11Cease and Desist/Injunction
Consent
161©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Sanction Details: N/A
iReporting Source: Firm
Initiated By: DISTRICT OF COLUMBIA DEPARTMENT OF INSURANCE AND BANKING
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 09/16/2009
Docket/Case Number: SB-09-02
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES (ARS)
Allegations: THE DISTRICT OF COLUMBIA HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES TOCUSTOMERS.
Current Status: Final
Resolution Date: 09/16/2009
Resolution:
Other Sanctions Ordered: OFFER TO REPURCHASE ARS THAT ARE SUBJECT TO AUCTIONS THAT ARENOT SUCCESSFUL AND ARE NOT SUBJECT TO CURRENT CALLS ORREDEMPTION IN THE RELEVANT CLASS.
Sanction Details: THE FINE IS DUE IN FULL BY SEPTEMBER 26, 2009.
Sanctions Ordered: Monetary/Fine $311,765.11Disgorgement/RestitutionCease and Desist/Injunction
Consent
Disclosure 66 of 158
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Reporting Source: Regulator
Allegations: THE UTAH DIVISION OF SECURITIES, AS PART OF A MULTI-STATE TASKFORCE CONSISTING OF MEMBER STATES OF THE NORTH AMERICANSECURITIES ADMINISTRATORS ASSOCIATION ("NASAA") INVESTIGATINGTHE MARKETING AND SALE OF AUCTION RATE SECURITIES ("ARS") TOINVESTORS, ALLEGED THAT WACHOVIA SECURITIES, LLC ("WACHOVIA"):(1) ENGAGED IN DISHONEST AND UNETHICAL PRACTICES IN THEMARKETING AND SALE OF ARS BY MISREPRESENTING TO INVESTORSTHAT ARS WERE CASH EQUIVALENTS, COMPLETELY SAFE, AND/OR LIQUIDAT ANY TIME; (2) ENGAGED IN DISHONEST AND UNETHICAL PRACTICES BYNOT ADEQUATELY EXPLAINING ISSUES INVOLVING TEMPORARY MAXIMUMWAIVERS ON CERTAIN ARS; AND (3) FAILED TO REASONABLY SUPERVISEITS EMPLOYEES WHO SOLD ARS.
Current Status: Final
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Initiated By: UTAH DIVISION OF SECURITIES
Principal Sanction(s)/ReliefSought:
Cease and Desist
Other Sanction(s)/ReliefSought:
ADMINISTRATIVE FINE AND BUY BACK OF AUCTION RATE SECURITIESTHAT IT SOLD TO ELIGIBLE UTAH INVESTORS.
Date Initiated: 09/17/2009
Docket/Case Number: SD-09-0043
URL for Regulatory Action:
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES
THE UTAH DIVISION OF SECURITIES, AS PART OF A MULTI-STATE TASKFORCE CONSISTING OF MEMBER STATES OF THE NORTH AMERICANSECURITIES ADMINISTRATORS ASSOCIATION ("NASAA") INVESTIGATINGTHE MARKETING AND SALE OF AUCTION RATE SECURITIES ("ARS") TOINVESTORS, ALLEGED THAT WACHOVIA SECURITIES, LLC ("WACHOVIA"):(1) ENGAGED IN DISHONEST AND UNETHICAL PRACTICES IN THEMARKETING AND SALE OF ARS BY MISREPRESENTING TO INVESTORSTHAT ARS WERE CASH EQUIVALENTS, COMPLETELY SAFE, AND/OR LIQUIDAT ANY TIME; (2) ENGAGED IN DISHONEST AND UNETHICAL PRACTICES BYNOT ADEQUATELY EXPLAINING ISSUES INVOLVING TEMPORARY MAXIMUMWAIVERS ON CERTAIN ARS; AND (3) FAILED TO REASONABLY SUPERVISEITS EMPLOYEES WHO SOLD ARS.
Resolution Date: 09/17/2009
Resolution:
Other Sanctions Ordered: OFFER TO PURCHASE, AT PAR PLUS ACCRUED AND UNPAIDDIVIDENDS/INTEREST, ELIGIBLE ARS FROM ALL INVESTORS IN THERELEVANT CLASS AS OUTLINED IN THE DIVISION'S STIPULATION ANDCONSENT ORDER.
Sanction Details: PURSUANT TO A STIPULATION AND CONSENT ORDER WITH THE UTAHDIVISION OF SECURITIES, WACHOVIA SECURITIES, LLC ("WACHOVIA")WILL: (1) CEASE AND DESIST FROM VIOLATING THE UTAH UNIFORMSECURITIES ACT ("ACT") AND WILL HEREAFTER COMPLY WITH THE ACTWITH REGARD TO THE MARKETING AND SALE OF ARS TO UTAHINVESTORS; (2) PAY THE SUM OF $247,272.91 AS AN ADMINISTRATIVE FINETO THE DIVISION; AND (3) OFFER TO PURCHASE, AT PAR PLUS ACCRUEDAND UNPAID DIVIDENDS/INTEREST, ARS THAT ARE SUBJECT TO AUCTIONSTHAT ARE NOT SUCCESSFUL AND ARE NOT SUBJECT TO CURRENT CALLSOR REDEMPTIONS FROM ALL INVESTORS WHO PURCHASED ARS FROMWACHOVIA ON OR BEFORE 13 FEBRUARY 2008 INTO ACCOUNTSMAINTAINED AT WACHOVIA.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
Yes
Sanctions Ordered: Monetary/Fine $449,851.41Cease and Desist/Injunction
Stipulation and Consent
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PURSUANT TO A STIPULATION AND CONSENT ORDER WITH THE UTAHDIVISION OF SECURITIES, WACHOVIA SECURITIES, LLC ("WACHOVIA")WILL: (1) CEASE AND DESIST FROM VIOLATING THE UTAH UNIFORMSECURITIES ACT ("ACT") AND WILL HEREAFTER COMPLY WITH THE ACTWITH REGARD TO THE MARKETING AND SALE OF ARS TO UTAHINVESTORS; (2) PAY THE SUM OF $247,272.91 AS AN ADMINISTRATIVE FINETO THE DIVISION; AND (3) OFFER TO PURCHASE, AT PAR PLUS ACCRUEDAND UNPAID DIVIDENDS/INTEREST, ARS THAT ARE SUBJECT TO AUCTIONSTHAT ARE NOT SUCCESSFUL AND ARE NOT SUBJECT TO CURRENT CALLSOR REDEMPTIONS FROM ALL INVESTORS WHO PURCHASED ARS FROMWACHOVIA ON OR BEFORE 13 FEBRUARY 2008 INTO ACCOUNTSMAINTAINED AT WACHOVIA.
Regulator Statement A PDF COPY OF THE DIVISION'S STIPULATION AND CONSENT ORDER CANBE VIEWED ONLINE ATHTTP://SECURITIES.UTAH.GOV/DOCKETS/09004301.PDF
iReporting Source: Firm
Initiated By: DIVISION OF SECURITIES UTAH DEPARTMENT OF COMMERCE
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 09/17/2009
Docket/Case Number: SD-09-0043
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES
Allegations: THE STATE HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES TOCUSTOMERS.
Current Status: Final
Resolution Date: 09/17/2009
Resolution:
Other Sanctions Ordered: OFFER TO REPURCHASE ARS THAT ARE SUBJECT TO AUCTIONS THAT ARENOT SUCCESSFUL AND ARE NOT SUBJECT TO CURRENT CALLS ORREDEMPTION IN THE RELEVANT CLASS
Sanction Details: THE FINE IS DUE IN FULL BY 09/27/2009
Sanctions Ordered: Monetary/Fine $247,272.91Disgorgement/RestitutionCease and Desist/Injunction
Consent
Disclosure 67 of 158
i
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Reporting Source: Firm
Initiated By: STATE OF NEW MEXICOREGULATION AND LICENSING DEPARTMENTSECURITIES DIVISION
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 08/18/2009
Docket/Case Number: 09-09-007040
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES
Allegations: THE STATE HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES TOCUSTOMER.
Current Status: Final
Resolution Date: 08/18/2009
Resolution:
Other Sanctions Ordered: OFFER TO REPURCHASE ARS THAT ARE SUBJECT TO AUCTIONS THAT ARENOT SUCCESSFUL AND ARE NOT SUBJECT TO CURRENT CALLS ORREDEMPTION IN THE RELEVANT CLASS.
Sanction Details: THE FINE WAS SENT ON AUGUST 18, 2009.
Sanctions Ordered: Monetary/Fine $221,609.71Disgorgement/RestitutionCease and Desist/Injunction
Consent
Disclosure 68 of 158
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Reporting Source: Firm
Initiated By: COMMONWEALTH OF VIRGINIASTATE CORPORATION COMMISSION
Date Initiated: 08/12/2009
Allegations: THE STATE HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES TOCUSTOMER.
Current Status: Final
165©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 08/12/2009
Docket/Case Number: SEC-20900044 ARS
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES
Resolution Date: 08/12/2009
Resolution:
Other Sanctions Ordered: OFFER TO REPURCHASE ARS THAT ARE SUBJECT TO AUCTIONS THAT ARENOT SUCCESSFUL AND ARE NOT SUBJECT TO CURRENT CALLS ORREDEMPTION IN THE RELEVANT CLASS.
Sanction Details: PAYMENT WAS MADE ON AUGUST 25, 2009.
Sanctions Ordered: Monetary/Fine $1,220,592.50Disgorgement/RestitutionCease and Desist/Injunction
Consent
Disclosure 69 of 158
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Reporting Source: Regulator
Initiated By: PENNSYLVANIA CONTACT: CAROLYN MENDELSON (412)-565-5083
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Date Initiated: 08/11/2009
Docket/Case Number: 2008-04-16
URL for Regulatory Action:
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES
Allegations: IF THE FACTS ARE AS FOUND IN THE FINDINGS OF FACT IN THE MISSOURIORDER, THEN THE ACTS AND CONDUCT SET FORTH IN THE MISSOURIORDER, IN PARTICULAR THE AUCTION RATE SECURITIES SALES IN PA,WOULD CONSTITUTE DISHONEST OR UNETHICAL PRACTICES IN THESECURITIES BUSINESS BY RESPONDENT, AND WOULD CONSTITUTEFAILURE TO REASONABLY SUPERVISE AGENTS OR EMPLOYEES.
Current Status: Final
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Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
WACHOVIA SECURITIES, LLC D/B/A WELLS FARGO ADVISORS, LLC(RESPONDENT) IS REQUIRED TO OFFER AND TO COMPLETE A BUYBACKOF AUCTION RATE SECURITIES THAT IT SOLD TO ELIGIBLE PA INVESTORS.
Resolution Date: 08/11/2009
Resolution:
Other Sanctions Ordered:
Sanction Details: RESPONDENT SHALL PAY WITHIN TEN DAYS AFTER ENTRY OF THIS ORDER$2,527,771.09 TO THE COMMONWEALTH OF PA, WHICH AMOUNTREPRESENTS AN ADMINISTRATIVE ASSESSMENT.
Regulator Statement FINDINGS OF FACT, CONCLUSIONS OF LAW AND ORDER ISSUED TOWACHOVIA SECURITIES, LLC D/B/A WELLS FARGO ADVISORS, LLC ANDANOTHER NAMED RESPONDENT.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
Yes
Sanctions Ordered: Monetary/Fine $2,527,771.09
Settled
iReporting Source: Firm
Initiated By: PENNSYLVANIA SECURITIES COMMISSION
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 08/11/2009
Docket/Case Number: 2008-04-16
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES
Allegations: THE STATE HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES TOCUSTOMER.
Current Status: Final
167©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Resolution Date: 08/11/2009
Resolution:
Other Sanctions Ordered: OFFER TO REPURCHASE ARS THAT ARE SUBJECT TO AUCTIONS THAT ARENOT SUCCESSFUL AND ARE NOT SUBJECT TO CURRENT CALLS ORREDEMPTION IN THE RELEVANT CLASS.
Sanction Details: PAYMENT WAS MADE AUGUST 19, 2009.
Sanctions Ordered: Monetary/Fine $2,527,771.09Disgorgement/RestitutionCease and Desist/Injunction
Consent
Disclosure 70 of 158
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Reporting Source: Firm
Initiated By: IOWA INSURANCE DIVISION
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 07/30/2009
Docket/Case Number: 64477
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES
Allegations: THE STATE HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES TOCUSTOMER.
Current Status: Final
Resolution Date: 07/30/2009
Resolution:
Other Sanctions Ordered: OFFER TO REPURCHASE ARS THAT ARE SUBJECT TO AUCTIONS THAT ARENOT SUCCESSFUL AND ARE NOT SUBJECT TO CURRENT CALLS ORREDEMPTION IN THE RELEVANT CLASS.
Sanction Details: PAYMENT WAS MADE ON AUGUST 5, 2009.
Sanctions Ordered: Monetary/Fine $191,289.03Disgorgement/RestitutionCease and Desist/Injunction
Consent
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Sanction Details: PAYMENT WAS MADE ON AUGUST 5, 2009.
Disclosure 71 of 158
i
Reporting Source: Regulator
Allegations: NASD RULES 2110, 3010(A), 3010(B): THE FIRM, FROM AUGUST 2001,THROUGH OCTOBER 2004, SUPERVISORY SYSTEM AND WRITTENSUPERVISORY PROCEDURES WERE INADEQUATE TO DETECT ABUSIVESALES PRACTICES REGARDING VARIABLE ANNUITIES THEREBY ALLOWINGTWO REPRESENTATIVES TO ENGAGE IN ABUSIVE SALES PRACTICESREGARDING VARIABLE ANNUITIES. THE FIRM'S WRITTEN SUPERVISORYPROCEDURES PLACED RESPONSIBILITY WITH THE BRANCH OFFICEMANAGER FOR THE REVIEW OF ANNUITY TRANSACTIONS, BOTH INITIALPURCHASES AND EXCHANGES, AND THE WRITTEN SUPERVISORYPROCEDURES DID NOT DESCRIBE ADEQUATELY THE REQUIREDDOCUMENTATION AND/OR INFORMATION THE BRANCH OFFICE MANAGER(OR HIS DESIGNEE) SHOULD REVIEW DURING A SUITABILITY ANALYSIS ORHOW TO EVIDENCE APPROVAL, AND AS A RESULT OF INADEQUATEPROCEDURES IN THIS AREA, THERE WERE INCONSISTENT ANDINADEQUATE SUITABILITY REVIEWS CONDUCTED AT THE FIRM OFTRANSACTIONS EXECUTED BY THE REPRESENTATIVES. THE WRITTENSUPERVISORY PROCEDURES RELIED SUBSTANTIALLY ON A DIALOGUEBETWEEN THE BRANCH OFFICE MANAGER AND THE FINANCIAL ADVISORREGARDING A SUITABILITY ANALYSIS AND THE PROCEDURES DID NOTREQUIRE THE BRANCH OFFICE MANAGER TO VERIFY REPRESENTATIONSMADE BY THE FINANCIAL ADVISOR, AS A RESULT NO STEPS WERE TAKENTO DETECT THE REPEATED FALSEHOODS BY THE REPRESENTATIVESTHAT THE ANNUITY TRANSACTIONS REPRESENTED AN INVESTMENT OFNEW FUNDS AND DID NOT REPRESENT EXCHANGES OR REPLACEMENTS,FURTHERMORE TO THE EXTENT THAT THE BRANCH OFFICE MANAGERREVIEWED INFORMATION ON THE FIRM'S COMPUTER REGARDING THESOURCE OF FUNDS, THE FIRM'S SYSTEM DID NOT REFLECT THATINSURANCE COMPANIES WERE THE SOURCE OF DEPOSITS THAT THEREPRESENTATIVES ASSERTED WERE NEW FUNDS. THE FIRM DID NOTHAVE ANY EXCEPTION REPORTS APPROPRIATE FOR MONITORINGVARIABLE ANNUITY SALES PRACTICES, THUS WHEN THEREPRESENTATIVES WERE ENGAGING IN UNAUTHORIZED ANNUITYSWITCHES, THE FIRM GENERATED MONTHLY ACTIVE ACCOUNT REPORTSBASED ON ESTABLISHED CRITERIA LARGELY RELATED TO EQUITIES,WHICH DID NOT SUCCESSFULLY IDENTIFY ANNUITY SALES PRACTICEVIOLATIONS. THE FIRM DID NOT HAVE EXCEPTION REPORTS TO IDENTIFYVARIABLE ANNUITY RELATED CONCERNS, FAILED TO VERIFY THAT THECUSTOMER'S INFORMATION ON THE ANNUITY APPLICATION MATCHEDTHAT ON THE BROKERAGE ACCOUNT, DID NOT HAVE ADEQUATECONTROLS TO MONITOR ANNUITY WITHDRAWALS, AND DID NOT HAVE ANADEQUATE PROCEDURE TO REMOVE ANNUITIES FROM CUSTOMERACCOUNTS WHEN THEY WERE SURRENDERED BUT INSTEAD RELIEDUPON A DISCLAIMER ON EACH CUSTOMER'S ACCOUNT STATEMENTS. THEFIRM'S PROCEDURE BY WHICH CUSTOMERS' ACCOUNT STATEMENTSWERE UPDATED RELIED UPON THE FINANCIAL ADVISOR ADVISING THEBRANCH'S OPERATIONS DEPARTMENT THAT AN ANNUITY HAD BEENCLOSED AND, AT THE TIME, THE OPERATIONS AREA WOULD THEN SENDTHE SURRENDER INFORMATION TO THE FIRM'S ANNUITY DEPARTMENT,WHICH WOULD REMOVE THE POSITION FROM THE CLIENT'S STATEMENT,THUS THE REPRESENTATIVES FAILED TO SO ADVISE THE BRANCH'SOPERATIONS DEPARTMENT, AND WERE ABLE TO USE THIS WEAKNESS INTHE FIRM'S PROCEDURE TO CONCEAL THEIR UNAUTHORIZED PARTIALWITHDRAWALS. THE FIRM DID NOT HAVE AN ADEQUATE PROCEDURE TOREJECT ANNUITY TRANSACTIONS IF THE ANNUITY BUY TICKET WAS NOTCOMPLETE AND THE ANNUITY BUY TICKETS FOR MANY OF THE SUBJECTTRANSACTIONS, HOWEVER, WERE PROCESSED WITHOUT FULL ANDCOMPLETE INFORMATION.
Current Status: Final
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Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other
Other Sanction(s)/ReliefSought:
N/A
Date Initiated: 08/28/2009
Docket/Case Number: 2005002169202
Principal Product Type: Annuity(ies) - Variable
Other Product Type(s):
NASD RULES 2110, 3010(A), 3010(B): THE FIRM, FROM AUGUST 2001,THROUGH OCTOBER 2004, SUPERVISORY SYSTEM AND WRITTENSUPERVISORY PROCEDURES WERE INADEQUATE TO DETECT ABUSIVESALES PRACTICES REGARDING VARIABLE ANNUITIES THEREBY ALLOWINGTWO REPRESENTATIVES TO ENGAGE IN ABUSIVE SALES PRACTICESREGARDING VARIABLE ANNUITIES. THE FIRM'S WRITTEN SUPERVISORYPROCEDURES PLACED RESPONSIBILITY WITH THE BRANCH OFFICEMANAGER FOR THE REVIEW OF ANNUITY TRANSACTIONS, BOTH INITIALPURCHASES AND EXCHANGES, AND THE WRITTEN SUPERVISORYPROCEDURES DID NOT DESCRIBE ADEQUATELY THE REQUIREDDOCUMENTATION AND/OR INFORMATION THE BRANCH OFFICE MANAGER(OR HIS DESIGNEE) SHOULD REVIEW DURING A SUITABILITY ANALYSIS ORHOW TO EVIDENCE APPROVAL, AND AS A RESULT OF INADEQUATEPROCEDURES IN THIS AREA, THERE WERE INCONSISTENT ANDINADEQUATE SUITABILITY REVIEWS CONDUCTED AT THE FIRM OFTRANSACTIONS EXECUTED BY THE REPRESENTATIVES. THE WRITTENSUPERVISORY PROCEDURES RELIED SUBSTANTIALLY ON A DIALOGUEBETWEEN THE BRANCH OFFICE MANAGER AND THE FINANCIAL ADVISORREGARDING A SUITABILITY ANALYSIS AND THE PROCEDURES DID NOTREQUIRE THE BRANCH OFFICE MANAGER TO VERIFY REPRESENTATIONSMADE BY THE FINANCIAL ADVISOR, AS A RESULT NO STEPS WERE TAKENTO DETECT THE REPEATED FALSEHOODS BY THE REPRESENTATIVESTHAT THE ANNUITY TRANSACTIONS REPRESENTED AN INVESTMENT OFNEW FUNDS AND DID NOT REPRESENT EXCHANGES OR REPLACEMENTS,FURTHERMORE TO THE EXTENT THAT THE BRANCH OFFICE MANAGERREVIEWED INFORMATION ON THE FIRM'S COMPUTER REGARDING THESOURCE OF FUNDS, THE FIRM'S SYSTEM DID NOT REFLECT THATINSURANCE COMPANIES WERE THE SOURCE OF DEPOSITS THAT THEREPRESENTATIVES ASSERTED WERE NEW FUNDS. THE FIRM DID NOTHAVE ANY EXCEPTION REPORTS APPROPRIATE FOR MONITORINGVARIABLE ANNUITY SALES PRACTICES, THUS WHEN THEREPRESENTATIVES WERE ENGAGING IN UNAUTHORIZED ANNUITYSWITCHES, THE FIRM GENERATED MONTHLY ACTIVE ACCOUNT REPORTSBASED ON ESTABLISHED CRITERIA LARGELY RELATED TO EQUITIES,WHICH DID NOT SUCCESSFULLY IDENTIFY ANNUITY SALES PRACTICEVIOLATIONS. THE FIRM DID NOT HAVE EXCEPTION REPORTS TO IDENTIFYVARIABLE ANNUITY RELATED CONCERNS, FAILED TO VERIFY THAT THECUSTOMER'S INFORMATION ON THE ANNUITY APPLICATION MATCHEDTHAT ON THE BROKERAGE ACCOUNT, DID NOT HAVE ADEQUATECONTROLS TO MONITOR ANNUITY WITHDRAWALS, AND DID NOT HAVE ANADEQUATE PROCEDURE TO REMOVE ANNUITIES FROM CUSTOMERACCOUNTS WHEN THEY WERE SURRENDERED BUT INSTEAD RELIEDUPON A DISCLAIMER ON EACH CUSTOMER'S ACCOUNT STATEMENTS. THEFIRM'S PROCEDURE BY WHICH CUSTOMERS' ACCOUNT STATEMENTSWERE UPDATED RELIED UPON THE FINANCIAL ADVISOR ADVISING THEBRANCH'S OPERATIONS DEPARTMENT THAT AN ANNUITY HAD BEENCLOSED AND, AT THE TIME, THE OPERATIONS AREA WOULD THEN SENDTHE SURRENDER INFORMATION TO THE FIRM'S ANNUITY DEPARTMENT,WHICH WOULD REMOVE THE POSITION FROM THE CLIENT'S STATEMENT,THUS THE REPRESENTATIVES FAILED TO SO ADVISE THE BRANCH'SOPERATIONS DEPARTMENT, AND WERE ABLE TO USE THIS WEAKNESS INTHE FIRM'S PROCEDURE TO CONCEAL THEIR UNAUTHORIZED PARTIALWITHDRAWALS. THE FIRM DID NOT HAVE AN ADEQUATE PROCEDURE TOREJECT ANNUITY TRANSACTIONS IF THE ANNUITY BUY TICKET WAS NOTCOMPLETE AND THE ANNUITY BUY TICKETS FOR MANY OF THE SUBJECTTRANSACTIONS, HOWEVER, WERE PROCESSED WITHOUT FULL ANDCOMPLETE INFORMATION.
Resolution Date: 08/28/2009
Resolution:
Other Sanctions Ordered: UNDERTAKING
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: CensureMonetary/Fine $350,000.00
Acceptance, Waiver & Consent(AWC)
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Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS,THEREFORE THE FIRM IS CENSURED AND FINED $350,000.
AN UNDERTAKING TO CERTIFY TO FINRA WITHIN 90 DAYS THAT FIRM HASREVIEWED ITS PROCEDURES REGARDING VARIABLE ANNUITIES AND HASSYSTEMS AND PROCEDURES IN PLACE THAT ARE REASONABLYDESIGNED TO DETECT ABUSIVE SALES PRACTICES.
iReporting Source: Firm
Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other
Other Sanction(s)/ReliefSought:
N/A
Date Initiated: 08/28/2009
Docket/Case Number: 2005002169202
Principal Product Type: Annuity(ies) - Variable
Other Product Type(s):
Allegations: NASD RULES 2110, 3010(A), 3010(B): THE FIRM, FROM AUGUST 2001,THROUGH OCTOBER 2004, SUPERVISORY SYSTEM AND WRITTENSUPERVISORY PROCEDURES WERE INADEQUATE TO DETECT ABUSIVESALES PRACTICES REGARDING VARIABLE ANNUITIES THEREBY ALLOWINGTWO REPRESENTATIVES TO ENGAGE IN ABUSIVE SALES PRACTICESREGARDING VARIABLE ANNUITIES.
Current Status: Final
Resolution Date: 08/28/2009
Resolution:
Other Sanctions Ordered: UNDERTAKING
Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS,THEREFORE THE FIRM IS CENSURED AND FINED $350,000. ANUNDERTAKING TO CERTIFY TO FINRA WITHIN 90 DAYS THAT FIRM HASREVIEWED ITS PROCEDURES REGARDING VARIABLE ANNUITIES AND HASSYSTEMS AND PROCEDURES IN PLACE THAT ARE REASONABLYDESIGNED TO DETECT ABUSIVE SALES PRACTICES.
Sanctions Ordered: CensureMonetary/Fine $350,000.00
Acceptance, Waiver & Consent(AWC)
171©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User GuidanceWITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS,THEREFORE THE FIRM IS CENSURED AND FINED $350,000. ANUNDERTAKING TO CERTIFY TO FINRA WITHIN 90 DAYS THAT FIRM HASREVIEWED ITS PROCEDURES REGARDING VARIABLE ANNUITIES AND HASSYSTEMS AND PROCEDURES IN PLACE THAT ARE REASONABLYDESIGNED TO DETECT ABUSIVE SALES PRACTICES.
Disclosure 72 of 158
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Reporting Source: Firm
Initiated By: STATE OF WYOMINGSECRETARY OF STATESECURITIES DIVISION
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 06/23/2009
Docket/Case Number: 09-05
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES
Allegations: THE STATE HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES TOCUSTOMERS.
Current Status: Final
Resolution Date: 06/23/2009
Resolution:
Other Sanctions Ordered: OFFER TO REPURCHASE ARS THAT ARE SUBJECT TO AUCTIONS THAT ARENOT SUCCESSFUL AND ARE NOT SUBJECT TO CURRENT CALLS ORREDEMPTION IN THE RELEVANT CLASS.
Sanction Details: THE FINE WAS PAID ON JUNE 29, 2009.
Sanctions Ordered: Monetary/Fine $176,314.77Disgorgement/RestitutionCease and Desist/Injunction
Consent
Disclosure 73 of 158
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Reporting Source: Firm
Allegations: THE STATE HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES TOCUSTOMERS.
Current Status: Final
172©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Initiated By: STATE OF OREGONDIVISION OF FINANCE AND CORPORATE SECURITIES
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 06/29/2009
Docket/Case Number: S-09-0022
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES
Allegations: THE STATE HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES TOCUSTOMERS.
Resolution Date: 06/29/2009
Resolution:
Other Sanctions Ordered: OFFER TO REPURCHASE ARS THAT ARE SUBJECT TO AUCTIONS THAT ARENOT SUCCESSFUL AND ARE NOT SUBJECT TO CURRENT CALLS ORREDEMPTION IN THE RELEVANT CLASS.
Sanction Details: THE FINE IS PAYABLE WITHIN 10 DAYS IF THE ORDER.
Sanctions Ordered: Monetary/Fine $397,234.57Disgorgement/RestitutionCease and Desist/Injunction
Consent
Disclosure 74 of 158
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Reporting Source: Firm
Initiated By: STATE OF IDAHO
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Date Initiated: 06/22/2009
Docket/Case Number: 2009-7-08
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES
Allegations: THE STATE HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES TOCUSTOMERS.
Current Status: Final
173©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Resolution Date: 06/22/2009
Resolution:
Other Sanctions Ordered: OFFER TO REPURCHASE ARS THAT ARE SUBJECT TO AUCTIONS THAT ARENOT SUCCESSFUL AND ARE NOT SUBJECT TO CURRENT CALLS ORREDEMPTION IN THE RELEVANT CLASS.
Sanction Details: THE FINE WAS PAID ON JUNE 29, 2009.
Sanctions Ordered: Monetary/Fine $191,049.02Disgorgement/RestitutionCease and Desist/Injunction
Consent
Disclosure 75 of 158
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Reporting Source: Firm
Initiated By: STATE OF KANSAS
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 06/09/2009
Docket/Case Number: 09 E 012
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES
Allegations: THE STATE HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES TOCUSTOMERS.
Current Status: Final
Resolution Date: 06/09/2009
Resolution:
Sanctions Ordered: Monetary/Fine $633,090.35Disgorgement/RestitutionCease and Desist/Injunction
Consent
174©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Other Sanctions Ordered: OFFER TO REPURCHASE ARS THAT ARE SUBJECT TO AUCTIONS THAT ARENOT SUCCESSFUL AND ARE NOT SUBJECT TO CURRENT CALLS ORREDEMPTION IN THE RELEVANT CLASS
Sanction Details: THE FINE WAS PAID ON JUNE 16, 2009.
Monetary/Fine $633,090.35Disgorgement/RestitutionCease and Desist/Injunction
Disclosure 76 of 158
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Reporting Source: Firm
Initiated By: STATE OF NEBRASKA
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 06/04/2009
Docket/Case Number: N/A
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES
Allegations: THE STATE HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES TOCUSTOMERS.
Current Status: Final
Resolution Date: 06/04/2009
Resolution:
Other Sanctions Ordered: OFFER TO PURCHASE AT PAR ARS THAT ARE SUBJECT TO AUCTIONS THATARE NOT SUCCESSFUL AND ARE NOT SUBJECT TO CURRENT CALLS ORREDEMPTION ("ELIGIBLE ARS") FROM ALL INVESTORS IN THE RELEVANTCLASS.
Sanction Details: THE FINE WAS PAID ON JUNE 12TH, 2009
Sanctions Ordered: Monetary/Fine $298,818.42Disgorgement/RestitutionCease and Desist/Injunction
Consent
Disclosure 77 of 158
i
Reporting Source: Regulator
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Initiated By: TENNESSEE DEPARTMENT OF COMMERCE AND INSURANCE, SECURITIESDIVISION
Principal Sanction(s)/ReliefSought:
Cease and Desist
Other Sanction(s)/ReliefSought:
RESTITUTION; CIVIL PENALTY
Date Initiated: 05/22/2009
Docket/Case Number: 09-003
URL for Regulatory Action:
Principal Product Type: Other
Other Product Type(s): AUTION RATE SECURITIES
Allegations: THE TN SECURITIES DIVISION, AS PART OF A MULTI-STATE TASK FORCECONSISTING OF MEMBER STATES OF THE NORTH AMERICAN SECURITIESADMINISTRATORS ASSOCIATION ("NASAA") INVESTIGATING THEMARKETING AND SALE OF AUCTION RATE SECURITIES ("ARS") TOINVESTORS, ALLEGED THAT DURING THE PERIOD OF JANUARY 2006THROUGH FEBRUARY 2008 WACHOVIA SECURITIES, LLC, ("WACHOVIA")MISREPRESENTED THE SALE OF ARS TO INVESTORS AS CONSERVATIVE,LIQUID, CASH-EQUIVALENT INVESTMENTS AND THAT WACHOVIA FAILEDTO REASONABLY SUPERVISE ITS EMPLOYEES WITH RESPECT TO THESALE OF ARS.
Current Status: Final
Resolution Date: 05/22/2009
Resolution:
Other Sanctions Ordered: UNDERTAKINGS
Sanction Details: PURSUANT TO A CONSENT ORDER IN WHICH WACHOVIA NEITHERADMITTED NOR DENIED THE FINDINGS OF FACT AND CONCLUSIONS OFLAW, THE COMMISSIONER OF THE TN DEPARTMENT OF COMMERCE ANDINSURANCE ORDERED WACHOVIA TO CEASE AND DESIST FROMVIOLATING THE TN SECURITIES ACT OF 1980; AND ORDERED WACHOVIATO MAKE CERTAIN UNDERTAKINGS, INCLUDING OFFERING TOREPURCHASE FROM CERTAIN INVESTORS ARS THAT ARE SUBJECT TOAUCTIONS THAT ARE NOT SUCCESSFUL AND THAT ARE NOT SUBJECT TOCURRENT CALLS OR REDEMPTIONS; AND ORDERED WACHOVIA TO MAKEA PAYMENT OF $449,851.41 TO THE TN DEPARTMENT OF COMMERCE ANDINSURANCE.
Sanctions Ordered: Monetary/Fine $449,851.41Disgorgement/RestitutionCease and Desist/Injunction
Settled
176©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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PURSUANT TO A CONSENT ORDER IN WHICH WACHOVIA NEITHERADMITTED NOR DENIED THE FINDINGS OF FACT AND CONCLUSIONS OFLAW, THE COMMISSIONER OF THE TN DEPARTMENT OF COMMERCE ANDINSURANCE ORDERED WACHOVIA TO CEASE AND DESIST FROMVIOLATING THE TN SECURITIES ACT OF 1980; AND ORDERED WACHOVIATO MAKE CERTAIN UNDERTAKINGS, INCLUDING OFFERING TOREPURCHASE FROM CERTAIN INVESTORS ARS THAT ARE SUBJECT TOAUCTIONS THAT ARE NOT SUCCESSFUL AND THAT ARE NOT SUBJECT TOCURRENT CALLS OR REDEMPTIONS; AND ORDERED WACHOVIA TO MAKEA PAYMENT OF $449,851.41 TO THE TN DEPARTMENT OF COMMERCE ANDINSURANCE.
iReporting Source: Firm
Initiated By: TENNESSEE SECURITIES DIVISION
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 05/22/2009
Docket/Case Number: 09-003 SI 2008-010
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES
Allegations: THE STATE HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES TOCUSTOMER
Current Status: Final
Resolution Date: 05/22/2009
Resolution:
Other Sanctions Ordered: OFFER TO REPURCHASE ARS THAT ARE SUBJECT TO AUCTIONS THAT ARENOT SUCCESSFUL AND ARE NOT SUBJECT TO CURRENT CALLS ORREDEMPTION IN THE RELEVANT CLASS
Sanction Details: THE FINE IS DUE BY 06/01/2009
Sanctions Ordered: Monetary/Fine $449,851.41Disgorgement/RestitutionCease and Desist/Injunction
Consent
Disclosure 78 of 158
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Reporting Source: Regulator
Allegations: THE COMMISSION ISSUED CONSENT ORDER NO. CO-2009-0011, CITEDWACHOVIA SECURITIES LLC AND WACHOVIA CAPITAL MARKETS LLC WITHENGAGING IN UNETHICAL AND DISHONEST PRACTICES AND FAILURE TOPROPERLY SUPERVISE ITS AGENTS. THIS ACTION STEMMED FROM THEFIRMS INAPPROPRIATE MARKETING OF AUCTION RATE SECURITIES (ARS)TO CUSTOMERS WITHOUT ADEQUATELY DISCLOSING RISKS OFILLIQUIDITY
Current Status: Final
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Initiated By: ALABAMA SECURITIES COMMISSION
Principal Sanction(s)/ReliefSought:
Other
Other Sanction(s)/ReliefSought:
CONSENT ORDER
Date Initiated: 05/26/2009
Docket/Case Number: CO-2009-0011
URL for Regulatory Action:
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES
THE COMMISSION ISSUED CONSENT ORDER NO. CO-2009-0011, CITEDWACHOVIA SECURITIES LLC AND WACHOVIA CAPITAL MARKETS LLC WITHENGAGING IN UNETHICAL AND DISHONEST PRACTICES AND FAILURE TOPROPERLY SUPERVISE ITS AGENTS. THIS ACTION STEMMED FROM THEFIRMS INAPPROPRIATE MARKETING OF AUCTION RATE SECURITIES (ARS)TO CUSTOMERS WITHOUT ADEQUATELY DISCLOSING RISKS OFILLIQUIDITY
Resolution Date: 05/26/2009
Resolution:
Other Sanctions Ordered: $350,000 TO STATE OF ALABAMA; $250,000 TO ALABAMA SECURITIESCOMMISSION; $73,141.24 TO INVESTOR PROTECTION TRUST; $10,000 TOALABAMA DISTRICT ATTORNEY'S ASSOCIATION.RECEIVED 06/10/2009
Sanction Details: $350,000 TO STATE OF ALABAMA; $250,000 TO ALABAMA SECURITIESCOMMISSION; $73,141.24 TO INVESTOR PROTECTION TRUST; $10,000 TOALABAMA DISTRICT ATTORNEY'S ASSOCIATION.RECEIVED 06/10/2009
Regulator Statement THE COMMISSION ISSUED CONSENT ORDER NO. CO-2009-0011, CITEDWACHOVIA SECURITIES LLC AND WACHOVIA CAPITAL MARKETS LLC WITHENGAGING IN UNETHICAL AND DISHONEST PRACTICES AND FAILURE TOPROPERLY SUPERVISE ITS AGENTS. THIS ACTION STEMMED FROM THEFIRMS INAPPROPRIATE MARKETING OF AUCTION RATE SECURITIES (ARS)TO CUSTOMERS WITHOUT ADEQUATELY DISCLOSING RISKS OFILLIQUIDITY
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: Monetary/Fine $683,141.24
Consent
i178©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Reporting Source: Firm
Initiated By: ALABAMA SECURITIES COMMISSION
Principal Sanction(s)/ReliefSought:
Other
Other Sanction(s)/ReliefSought:
CONSENT ORDER
Date Initiated: 05/26/2009
Docket/Case Number: CO-2009-0011
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES
Allegations: THE COMMISSION ISSUED CONSENT ORDER NO. CO-2009-0011, CITEDWACHOVIA SECURITIES, LLC WITH ENGAGING IN UNETHICAL ANDDISHONEST PRACTICES AND FAILURE TO PROPERLY SUPERVISE ITSAGENTS. THIS ACTION STEMMED FROM THE FIRMS INAPPROPIATEMARKETING OF AUCTION RATE SECURITIES (ARS) TO CUSTOMERSWITHOUT ADEQUATELY DISCLOSING RISKS OF ILLIQUIDITY
Current Status: Final
Resolution Date: 05/26/2009
Resolution:
Other Sanctions Ordered: $350.000 TO STATE OF ALABAMA; $250,000 TO ALABAMA SECURITIESCOMMISSION; $73,141.24 TO INVESTOR PROTECTION TRUST; $10,000 TOALABAMA DISTRICT ATTORNEY'S ASSOCIATION. RECEIVED 06/10/2009
Sanction Details: $350.000 TO STATE OF ALABAMA; $250,000 TO ALABAMA SECURITIESCOMMISSION; $73,141.24 TO INVESTOR PROTECTION TRUST; $10,000 TOALABAMA DISTRICT ATTORNEY'S ASSOCIATION. RECEIVED 06/10/2009THE FIRM SENT THE $683,141.24 TOTAL FINE, AS STIPULATED, TO THESTATE OF ALABAMA ON 06/04/2009.
Firm Statement THE COMMISSION ISSUED CONSENT ORDER NO. CO-2009-0011, CITEDWACHOVIA SECURITIES, LLC WITH ENGAGING IN UNETHICAL ANDDISHONEST PRACTICES AND FAILURE TO PROPERLY SUPERVISE ITSAGENTS. THIS ACTION STEMMED FROM THE FIRMS INAPPROPIATEMARKETING OF AUCTION RATE SECURITIES (ARS) TO CUSTOMERSWITHOUT ADEQUATELY DISCLOSING RISKS OF ILLIQUIDITY
Sanctions Ordered: Monetary/Fine $683,141.24
Consent
Disclosure 79 of 158
i
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Reporting Source: Firm
Initiated By: MINNESOTA DEPARTMENT OF COMMERCE
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 05/11/2009
Docket/Case Number: FILE 11200
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES
Allegations: THE STATE HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES TOCUSTOMER
Current Status: Final
Resolution Date: 05/11/2009
Resolution:
Other Sanctions Ordered: OFFER TO REPURCHASE ARS THAT ARE SUBJECT TO AUCTIONS THAT ARENOT SUCCESSFUL AND ARE NOT SUBJECT TO CURRENT CALLS ORREDEMPTION IN THE RELEVANT CLASS
Sanction Details: THE FINE WAS PAID ON 05/18/2009
Sanctions Ordered: Monetary/Fine $387,790.88Disgorgement/RestitutionCease and Desist/Injunction
Consent
Disclosure 80 of 158
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Reporting Source: Firm
Initiated By: COMMONWEALTH OF KENTUCKY
Date Initiated: 05/14/2009
Docket/Case Number: NO. 2009-AH-032
Allegations: THE STATE HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES TOCUSTOMER
Current Status: Final
180©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES
Resolution Date: 05/14/2009
Resolution:
Other Sanctions Ordered: OFFER TO REPURCHASE ARS THAT ARE SUBJECT TO AUCTIONS THAT ARENOT SUCCESSFUL AND ARE NOT SUBJECT TO CURRENT CALLS ORREDEMPTION IN THE RELEVANT CLASS
Sanction Details: THE FINE WAS PAID ON 05/19/2009
Sanctions Ordered: Monetary/Fine $315,300.14Disgorgement/RestitutionCease and Desist/Injunction
Consent
Disclosure 81 of 158
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Reporting Source: Firm
Initiated By: STATE OF RHODE ISLAND
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 04/22/2009
Docket/Case Number: 09-110
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES
Allegations: THE STATE HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES TOCUSTOMER
Current Status: Final
Resolution Date: 04/22/2009
Resolution:
Sanctions Ordered: Monetary/Fine $131,565.93Disgorgement/RestitutionCease and Desist/Injunction
Consent
181©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Other Sanctions Ordered: OFFER TO REPURCHASE ARS THAT ARE SUBJECT TO AUCTIONS THAT ARENOT SUCCESSFUL AND ARE NOT SUBJECT TO CURRENT CALLS ORREDEMPTION IN THE RELEVANT CLASS
Sanction Details: THE FINE WAS PAID ON 05/01/2009
Sanctions Ordered: Monetary/Fine $131,565.93Disgorgement/RestitutionCease and Desist/Injunction
Disclosure 82 of 158
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Reporting Source: Regulator
Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 05/01/2009
Docket/Case Number: 2007010181101
Principal Product Type: Debt - Corporate
Other Product Type(s): AFTERMARKET EQUITY NON-SYNDICATE IPOS, COLLATERAL MORTGAGEOBLIGATIONS (CMOS), AUCTION MARKET PREFERRED SECURITIES,PREFERRED STOCKS, MUTUAL FUNDS, ALTERNATIVE INVESTMENTSECURITIES, EQUITY IPO TRANSACTIONS AND EXCHANGE TRADED FUNDS(ETFS)
Allegations: NASD RULES 2110 AND 3010: RESPONDENT WACHOVIA SECURITIES, LLCFAILED TO DELIVER PROSPECTUSES AND PRODUCT DESCRIPTIONS TOCERTAIN CUSTOMERS WHO PURCHASED INVESTMENT PRODUCTS, ASREQUIRED UNDER FEDERAL SECURITIES LAWS AND NASD RULES.WACHOVIA SECURITIES FAILED TO HAVE ADEQUATE SUPERVISORYSYSTEMS AND APPROPRIATE WRITTEN SUPERVISORY PROCEDURES INPLACE TO ENSURE THAT OFFERING DOCUMENTS WERE BEING SENT TOCUSTOMERS IN CONNECTION WITH SECURITIES TRANSACTIONS.WACHOVIA SECURITIES ALSO FAILED TO ADEQUATELY SUPERVISE THESUBMISSION OF INFORMATION TO FINRA STAFF AND ENSURE THAT ITSSUBMISSIONS WERE ACCURATE, COMPLETE AND TIMELY SUBMITTED.
Current Status: Final
Resolution Date: 05/01/2009
Resolution: Acceptance, Waiver & Consent(AWC)
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Resolution Date: 05/01/2009
Other Sanctions Ordered: UNDERTAKING
Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, WACHOVIASECURITIES, LLC CONSENTED TO THE DESCRIBED SANCTIONS AND TOTHE ENTRY OF FINDINGS; THEREFORE, THE FIRM IS CENSURED ANDFINED $1,400,000. IN ADDITION, WACHOVIA SECURITIES UNDERTAKES TOCOMPLETE THE FOLLOWING WITHIN 120 DAYS OF NOTICE OFACCEPTANCE OF THE AWC: 1) ADOPT AND IMPLEMENT SYSTEMS ANDPROCEDURES REASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITHTHE FEDERAL SECURITIES LAWS AND NASD/FINRA RULES APPLICABLE TOTHE DELIVERY OF PROSPECTUSES AND PRODUCT DESCRIPTIONS,INCLUDING SYSTEMS AND PROCEDURES TO PROVIDE ADEQUATEOVERSIGHT IF THIRD PARTY VENDORS ARE UTILIZED; AND 2) PROVIDE AWRITTEN CERTIFICATE BY A DULY AUTHORIZED SENIOR OFFICER OFWACHOVIA SECURITIES LLC THAT THE FIRM HAS ADOPTED ANDIMPLEMENTED SUPERVISORY SYSTEMS AND PROCEDURES REASONABLYDESIGNED TO ACHIEVE COMPLIANCE WITH THE FEDERAL SECURITIESLAWS AND NASD/FINRA RULES APPLICABLE TO THE DELIVERY OFPROSPECTUSES AND PRODUCT DESCRIPTIONS.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: CensureMonetary/Fine $1,400,000.00
iReporting Source: Firm
Initiated By: FINRA
Allegations: NASD RULES 2110 AND 3010: RESPONDENT WACHOVIA SECURITIES, LLCFAILED TO DELIVER PROSPECTUSES AND PRODUCT DESCRIPTIONS TOCERTAIN CUSTOMERS WHO PURCHASED INVESTMENT PRODUCTS, ASREQUIRED UNDER FEDERAL SECURITIES LAWS AND NASD RULES.WACHOVIA SECURITIES FAILED TO HAVE ADEQUATE SUPERVISORYSYSTEMS AND APPROPRIATE WRITTEN SUPERVISORY PROCEDURES INPLACE TO ENSURE THAT OFFERING DOCUMENTS WERE BEING SENT TOCUSTOMERS IN CONNECTION WITH SECURITIES TRANSACTIONS.WACHOVIA SECURITIES ALSO FAILED TO ADEQUATELY SUPERVISE THESUBMISSION OF INFORMATION TO FINRA STAFF AND ENSURE THAT ITSSUBMISSIONS WERE ACCURATE, COMPLETE AND TIMELY SUBMITTED.
Current Status: Final
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Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 05/01/2009
Docket/Case Number: 2007010181101
Principal Product Type: Debt - Corporate
Other Product Type(s): AFTERMARKET EQUITY NON-SYNDICATE IPOS, COLLATERAL MORTGAGEOBLIGATIONS (CMOS), AUCTION MARKET PREFERRED SECURITIES,PREFERRED STOCKS, MUTUAL FUNDS, ALTERNATIVE INVESTMENTSECURITIES, EQUITY IPO TRANSACTIONS AND EXCHANGE TRADED FUNDS(ETFS)
Resolution Date: 05/01/2009
Resolution:
Other Sanctions Ordered: UNDERTAKING
Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, WACHOVIASECURITIES, LLC CONSENTED TO THE DESCRIBED SANCTIONS AND TOTHE ENTRY OF FINDINGS; THEREFORE, THE FIRM IS CENSURED ANDFINED $1,400,000. IN ADDITION, WACHOVIA SECURITIES UNDERTAKES TOCOMPLETE THE FOLLOWING WITHIN 120 DAYS OF NOTICE OFACCEPTANCE OF THE AWC: 1) ADOPT AND IMPLEMENT SYSTEMS ANDPROCEDURES REASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITHTHE FEDERAL SECURITIES LAWS AND NASD/FINRA RULES APPLICABLE TOTHE DELIVERY OF PROSPECTUSES AND PRODUCT DESCRIPTIONS,INCLUDING SYSTEMS AND PROCEDURES TO PROVIDE ADEQUATEOVERSIGHT IF THIRD PARTY VENDORS ARE UTILIZED; AND 2) PROVIDE AWRITTEN CERTIFICATE BY A DULY AUTHORIZED SENIOR OFFICER OFWACHOVIA SECURITIES LLC THAT THE FIRM HAS ADOPTED ANDIMPLEMENTED SUPERVISORY SYSTEMS AND PROCEDURES REASONABLYDESIGNED TO ACHIEVE COMPLIANCE WITH THE FEDERAL SECURITIESLAWS AND NASD/FINRA RULES APPLICABLE TO THE DELIVERY OFPROSPECTUSES AND PRODUCT DESCRIPTIONS.
Sanctions Ordered: CensureMonetary/Fine $1,400,000.00
Acceptance, Waiver & Consent(AWC)
Disclosure 83 of 158
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Reporting Source: Firm
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Initiated By: STATE OF COLORADO SECURITIES COMMISSIONER
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 04/20/2009
Docket/Case Number: 09-L-11
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES
Allegations: THE STATE HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES TOCUSTOMER
Current Status: Final
Resolution Date: 04/20/2009
Resolution:
Other Sanctions Ordered: OFFER TO REPURCHASE ARS THAT ARE SUBJECT TO AUCTIONS THAT ARENOT SUCCESSFUL AND ARE NOT SUBJECT TO CURRENT CALLS ORREDEMPTION IN THE RELEVANT CLASS
Sanction Details: THE FINE IS DUE BY 04/30/2009
Sanctions Ordered: Monetary/Fine $664,614.09Disgorgement/RestitutionCease and Desist/Injunction
Consent
Disclosure 84 of 158
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Reporting Source: Firm
Initiated By: STATE OF FLORIDA OFFICE OF FINANCIAL REGULATION
Date Initiated: 04/17/2009
Docket/Case Number: 0420-S-2/09
Principal Product Type: Other
Allegations: THE STATE HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES TOCUSTOMER
Current Status: Final
185©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES
Resolution Date: 04/17/2009
Resolution:
Other Sanctions Ordered: OFFER TO REPURCHASE ARS THAT ARE SUBJECT TO AUCTIONS THAT ARENOT SUCCESSFUL AND ARE NOT SUBJECT TO CURRENT CALLS ORREDEMPTION IN THE RELEVANT CLASS
Sanction Details: THE FINE IS DUE BY 04/27/2009
Sanctions Ordered: Monetary/Fine $5,673,320.82Disgorgement/RestitutionCease and Desist/Injunction
Consent
Disclosure 85 of 158
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Reporting Source: Firm
Initiated By: STATE COMMISSIONER OF SOUTH CAROLINA
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 04/13/2009
Docket/Case Number: 08018
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES
Allegations: THE STATE HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES TOCUSTOMER
Current Status: Final
Resolution Date: 04/13/2009
Resolution:
Sanctions Ordered: Monetary/Fine $772,958.03Disgorgement/RestitutionCease and Desist/Injunction
Consent
186©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Other Sanctions Ordered: OFFER TO REPURCHASE ARS THAT ARE SUBJECT TO AUCTIONS THAT ARENOT SUCCESSFUL AND ARE NOT SUBJECT TO CURRENT CALLS ORREDEMPTION IN THE RELEVANT CLASS
Sanction Details: THE IS DUE IN FULL BY 12/31/2009
Sanctions Ordered: Monetary/Fine $772,958.03Disgorgement/RestitutionCease and Desist/Injunction
Disclosure 86 of 158
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Reporting Source: Regulator
Initiated By: OKLAHOMA DEPARTMENT OF SECURITIES
Principal Sanction(s)/ReliefSought:
Cease and Desist
Other Sanction(s)/ReliefSought:
CIVIL PENALTY AND RESCISSION
Date Initiated: 04/03/2009
Docket/Case Number: 09-087
URL for Regulatory Action:
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES
Allegations: THE STATE ALLEGED THAT WACHOVIA SECURITIES MISREPRESENTED THESALE OF AUCTION RATE SECURITIES TO CUSTOMERS AND FAILED TOSUPERVISE AGENTS WHO SOLD THE SECURITIES
Current Status: Final
Resolution Date: 04/03/2009
Resolution:
Other Sanctions Ordered: OFFER TO REPURCHASE AUCTION RATE SECURITIES THAT ARE SUBJECTTO AUCTIONS THAT ARE NOT SUCCESSFUL AND ARE NOT SUBJECT TOCURRENT CALLS OR REDEMPTION IN THE RELEVANT CLASS
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: Monetary/Fine $478,286.84Cease and Desist/Injunction
Consent
187©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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OFFER TO REPURCHASE AUCTION RATE SECURITIES THAT ARE SUBJECTTO AUCTIONS THAT ARE NOT SUCCESSFUL AND ARE NOT SUBJECT TOCURRENT CALLS OR REDEMPTION IN THE RELEVANT CLASS
Sanction Details: WACHOVIA HAS PAID THE FINE
iReporting Source: Firm
Initiated By: STATE OF OKLAHOMA DEPARTMENT OF SECURITIES
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 04/03/2009
Docket/Case Number: 09-087
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES
Allegations: THE STATE HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES TOCUSTOMER
Current Status: Final
Resolution Date: 04/03/2009
Resolution:
Other Sanctions Ordered: OFFER TO REPURCHASE ARS THAT ARE SUBJECT TO AUCTIONS THAT ARENOT SUCCESSFUL AND ARE NOT SUBJECT TO CURRENT CALLS ORREDEMPTION IN THE RELEVANT CLASS
Sanction Details: THE FINE WAS PAID ON 04/10/2009
Sanctions Ordered: Monetary/Fine $478,286.84Disgorgement/RestitutionCease and Desist/Injunction
Consent
Disclosure 87 of 158
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Reporting Source: Firm
Initiated By: STATE OF NORTH DAKOTA SECURITIES DEPARTMENT
Allegations: THE STATE HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES TOCUSTOMER
Current Status: Final
188©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Initiated By: STATE OF NORTH DAKOTA SECURITIES DEPARTMENT
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 04/01/2009
Docket/Case Number:
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES
Resolution Date: 04/01/2009
Resolution:
Other Sanctions Ordered: OFFER TO REPURCHASE ARS THAT ARE SUBJECT TO AUCTIONS THAT ARENOT SUCCESSFUL AND ARE NOT SUBJECT TO CURRENT CALLS ORREDEMPTION IN THE RELEVANT CLASS
Sanction Details: THE FINE WAS PAID ON 04/03/2009
Sanctions Ordered: Monetary/Fine $121,409.18Disgorgement/RestitutionCease and Desist/Injunction
Consent
Disclosure 88 of 158
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Reporting Source: Firm
Initiated By: STATE OF MICHIGAN OFFICE OF FINANCIAL AND INSURANCE REGULATION
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 03/27/2009
Docket/Case Number:
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES
Allegations: THE STATE HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES TOCUSTOMER
Current Status: Final
189©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Other Sanction(s)/ReliefSought:
Resolution Date: 03/27/2009
Resolution:
Other Sanctions Ordered: OFFER TO REPURCHASE ARS THAT ARE SUBJECT TO AUCTIONS THAT ARENOT SUCCESSFUL AND ARE NOT SUBJECT TO CURRENT CALLS ORREDEMPTION IN THE RELEVANT CLASS
Sanction Details: THE FINE WAS PAID ON 04/07/2009
Sanctions Ordered: Monetary/Fine $653,981.26Disgorgement/RestitutionCease and Desist/Injunction
Consent
Disclosure 89 of 158
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Reporting Source: Firm
Initiated By: STATE OF ARIZONA - ARIZONA CORPORATION COMMISSION
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 03/24/2009
Docket/Case Number: S-20655A-09-0071
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES
Allegations: THE STATE HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES TOCUSTOMER
Current Status: Final
Resolution Date: 03/24/2009
Resolution:
Other Sanctions Ordered: OFFER TO REPURCHASE ARS THAT ARE SUBJECT TO AUCTIONS THAT ARENOT SUCCESSFUL AND ARE NOT SUBJECT TO CURRENT CALLS ORREDEMPTION IN THE RELEVANT CLASS
Sanctions Ordered: Monetary/Fine $642,280.13Disgorgement/RestitutionCease and Desist/Injunction
Consent
190©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Other Sanctions Ordered: OFFER TO REPURCHASE ARS THAT ARE SUBJECT TO AUCTIONS THAT ARENOT SUCCESSFUL AND ARE NOT SUBJECT TO CURRENT CALLS ORREDEMPTION IN THE RELEVANT CLASS
Sanction Details: THE FINE WAS PAID ON 04/01/2009
Disclosure 90 of 158
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Reporting Source: Firm
Initiated By: STATE OF VERMONT DEPARTMENT OF BANKING, INSURANCE, SECURITIESAND HEALTH CARE ADMINISTRATION
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 03/18/2009
Docket/Case Number: 09-039-S
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES
Allegations: THE STATE HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES TOCUSTOMER
Current Status: Final
Resolution Date: 03/18/2009
Resolution:
Other Sanctions Ordered: OFFER TO REPURCHASE ARS THAT ARE SUBJECT TO AUCTIONS THAT ARENOT SUCCESSFUL AND ARE NOT SUBJECT TO CURRENT CALLS ORREDEMPTION IN THE RELEVANT CLASS
Sanction Details: THE FINE WAS PAID ON 03/25/2009
Sanctions Ordered: Monetary/Fine $166,923.26Disgorgement/RestitutionCease and Desist/Injunction
Consent
Disclosure 91 of 158
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Reporting Source: Firm
Allegations: THE STATE HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES TOCUSTOMER
Current Status: Final
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Initiated By: TEXAS STATE SECURITIES BOARD
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 03/16/2009
Docket/Case Number: IC09-CDO-06
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES
Allegations: THE STATE HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES TOCUSTOMER
Resolution Date: 03/16/2009
Resolution:
Other Sanctions Ordered: OFFER TO REPURCHASE ARS THAT ARE SUBJECT TO AUCTIONS THAT ARENOT SUCCESSFUL AND ARE NOT SUBJECT TO CURRENT CALLS ORREDEMPTION IN THE RELEVANT CLASS
Sanction Details: THE FINE WAS PAID ON 03/18/2009
Sanctions Ordered: Monetary/Fine $3,982,274.57Disgorgement/RestitutionCease and Desist/Injunction
Consent
Disclosure 92 of 158
i
Reporting Source: Regulator
Allegations: ON MARCH 24, 2009, THE SECURITIES DIVISION ENTERED INTO ACONSENT ORDER WITH WACHOVIA SECURITIES, LLC AND WACHOVIACAPITAL MARKETS, LLC (COLLECTIVELY "RESPONDENTS"), IN ORDER TOSETTLE THE ALLEGATIONS THAT RESPONDENTS HAD ENGAGED INDISHONEST AND UNETHICAL CONDUCT IN THE MARKETING AND SALE OFAUCTION RATE SECURITIES ("ARS"), AND FAILED TO REASONABLYSUPERVISE THEIR SALESPERSONS IN THE SALE OF ARS. RESPONDENTSNEITHER ADMITTED NOR DENIED THE ALLEGATIONS, BUT AGREED TOCEASE AND DESIST FROM VIOLATING THE SECURITIES ACT OFWASHINGTON. RESPONDENTS AGREED TO OFFER TO PURCHASE AT PARARS THAT ARE SUBJECT TO UNSUCCESSFUL AUCTIONS AND THAT ARENOT SUBJECT TO CURRENT CALLS OR REDEMPTIONS, FROM INVESTORSWHO PURCHASED ARS FROM RESPONDENTS ON OR BEFORE FEBRUARY13, 2008, INTO ACCOUNTS MAINTAINED WITH RESPONDENTS.RESPONDENTS AGREED TO PAY $491,556.71 AS A CIVIL MONETARYPENALTY. RESPONDENTS EACH WAIVED THEIR RIGHT TO A HEARING ANDTO JUDICIAL REVIEW OF THIS MATTER.
Current Status: Final
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Initiated By: WASHINGTON
Principal Sanction(s)/ReliefSought:
Cease and Desist
Other Sanction(s)/ReliefSought:
Date Initiated: 03/24/2009
Docket/Case Number: S-08-229-09-CO01
URL for Regulatory Action:
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES
ON MARCH 24, 2009, THE SECURITIES DIVISION ENTERED INTO ACONSENT ORDER WITH WACHOVIA SECURITIES, LLC AND WACHOVIACAPITAL MARKETS, LLC (COLLECTIVELY "RESPONDENTS"), IN ORDER TOSETTLE THE ALLEGATIONS THAT RESPONDENTS HAD ENGAGED INDISHONEST AND UNETHICAL CONDUCT IN THE MARKETING AND SALE OFAUCTION RATE SECURITIES ("ARS"), AND FAILED TO REASONABLYSUPERVISE THEIR SALESPERSONS IN THE SALE OF ARS. RESPONDENTSNEITHER ADMITTED NOR DENIED THE ALLEGATIONS, BUT AGREED TOCEASE AND DESIST FROM VIOLATING THE SECURITIES ACT OFWASHINGTON. RESPONDENTS AGREED TO OFFER TO PURCHASE AT PARARS THAT ARE SUBJECT TO UNSUCCESSFUL AUCTIONS AND THAT ARENOT SUBJECT TO CURRENT CALLS OR REDEMPTIONS, FROM INVESTORSWHO PURCHASED ARS FROM RESPONDENTS ON OR BEFORE FEBRUARY13, 2008, INTO ACCOUNTS MAINTAINED WITH RESPONDENTS.RESPONDENTS AGREED TO PAY $491,556.71 AS A CIVIL MONETARYPENALTY. RESPONDENTS EACH WAIVED THEIR RIGHT TO A HEARING ANDTO JUDICIAL REVIEW OF THIS MATTER.
Resolution Date: 03/24/2009
Resolution:
Other Sanctions Ordered:
Sanction Details: IT IS HEREBY ORDERED: 1. THIS ORDER CONCLUDES THE INVESTIGATIONBY THE SECURITIES DIVISION OF THE WASHINGTON STATE DEPARTMENTOF FINANCIAL INSTITUTIONS AND ANY OTHER ACTION THAT THESECURITIES DIVISION OF THE WASHINGTON STATE DEPARTMENT OFFINANCIAL INSTITUTIONS COULD COMMENCE UNDER APPLICABLEWASHINGTON STATE LAW ON BEHALF OF THE STATE OF WASHINGTON ASIT RELATES TO WACHOVIA, AND ITS MARKETING AND SALE OF AUCTIONRATE SECURITIES TO INVESTORS.2.THIS ORDER IS ENTERED INTO SOLELY FOR THE PURPOSE OFRESOLVING THE REFERENCED MULTI-STATE INVESTIGATION, AND IS NOTINTENDED TO BE USED FOR ANY OTHER PURPOSE. 3. WACHOVIA SHALLCEASE AND DESIST FROM VIOLATING THE SECURITIES ACT OFWASHINGTON AND SHALL COMPLY WITH THE SECURITIES ACT OFWASHINGTON.4. WITHIN TEN DAYS AFTER THE ENTRY OF THIS ORDER, WACHOVIA SHALLPAY THE SUM OF $491,556.71 TO THE STATE OF WASHINGTON AS A CIVILMONETARY PENALTY PURSUANT TO RCW 21.20.110, TO BE DEPOSITED INTHE SECURITIES PROSECUTION FUND, PURSUANT TO RCW 21.20.395,WHICH AMOUNT CONSTITUTES THE STATE OF WASHINGTON'SPROPORTIONATE SHARE OF THE STATE SETTLEMENT AMOUNT OF 50MILLION DOLLARS ($50,000,000.00).5. IN THE EVENT ANOTHER STATE SECURITIES REGULATOR DETERMINESNOT TO ACCEPT WACHOVIA'S STATE SETTLEMENT OFFER, THE TOTALAMOUNT OF THE STATE OF WASHINGTON'S PAYMENT SHALL NOT BEAFFECTED, AND SHALL REMAIN AT $491,556.71.6. WACHOVIA SECURITIES AND WACHOVIA CAPITAL MARKETS,RESPECTIVELY, AS AGENTS FOR ONE OR MORE AFFILIATED COMPANIESAND NOT AS PRINCIPAL, SHALL OFFER TO PURCHASE AT PAR ARS THATARE SUBJECT TO AUCTIONS THAT ARE NOT SUCCESSFUL AND ARE NOTSUBJECT TO CURRENT CALLS OR REDEMPTIONS ("ELIGIBLE ARS") FROMALL INVESTORS IN THE RELEVANT CLASS. FOR PURPOSES OF THISORDER THE RELEVANT CLASS SHALL BE DEFINED AS ALL INVESTORSWHO PURCHASED ARS FROM EITHER WACHOVIA SECURITIES ORWACHOVIA CAPITAL MARKETS, RESPECTIVELY, ON OR BEFORE FEBRUARY13, 2008 INTO ACCOUNTS MAINTAINED AT WACHOVIA SECURITIES ORWACHOVIA CAPITAL MARKETS, RESPECTIVELY.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
Yes
Sanctions Ordered: Monetary/Fine $491,556.71Cease and Desist/Injunction
Consent
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IT IS HEREBY ORDERED: 1. THIS ORDER CONCLUDES THE INVESTIGATIONBY THE SECURITIES DIVISION OF THE WASHINGTON STATE DEPARTMENTOF FINANCIAL INSTITUTIONS AND ANY OTHER ACTION THAT THESECURITIES DIVISION OF THE WASHINGTON STATE DEPARTMENT OFFINANCIAL INSTITUTIONS COULD COMMENCE UNDER APPLICABLEWASHINGTON STATE LAW ON BEHALF OF THE STATE OF WASHINGTON ASIT RELATES TO WACHOVIA, AND ITS MARKETING AND SALE OF AUCTIONRATE SECURITIES TO INVESTORS.2.THIS ORDER IS ENTERED INTO SOLELY FOR THE PURPOSE OFRESOLVING THE REFERENCED MULTI-STATE INVESTIGATION, AND IS NOTINTENDED TO BE USED FOR ANY OTHER PURPOSE. 3. WACHOVIA SHALLCEASE AND DESIST FROM VIOLATING THE SECURITIES ACT OFWASHINGTON AND SHALL COMPLY WITH THE SECURITIES ACT OFWASHINGTON.4. WITHIN TEN DAYS AFTER THE ENTRY OF THIS ORDER, WACHOVIA SHALLPAY THE SUM OF $491,556.71 TO THE STATE OF WASHINGTON AS A CIVILMONETARY PENALTY PURSUANT TO RCW 21.20.110, TO BE DEPOSITED INTHE SECURITIES PROSECUTION FUND, PURSUANT TO RCW 21.20.395,WHICH AMOUNT CONSTITUTES THE STATE OF WASHINGTON'SPROPORTIONATE SHARE OF THE STATE SETTLEMENT AMOUNT OF 50MILLION DOLLARS ($50,000,000.00).5. IN THE EVENT ANOTHER STATE SECURITIES REGULATOR DETERMINESNOT TO ACCEPT WACHOVIA'S STATE SETTLEMENT OFFER, THE TOTALAMOUNT OF THE STATE OF WASHINGTON'S PAYMENT SHALL NOT BEAFFECTED, AND SHALL REMAIN AT $491,556.71.6. WACHOVIA SECURITIES AND WACHOVIA CAPITAL MARKETS,RESPECTIVELY, AS AGENTS FOR ONE OR MORE AFFILIATED COMPANIESAND NOT AS PRINCIPAL, SHALL OFFER TO PURCHASE AT PAR ARS THATARE SUBJECT TO AUCTIONS THAT ARE NOT SUCCESSFUL AND ARE NOTSUBJECT TO CURRENT CALLS OR REDEMPTIONS ("ELIGIBLE ARS") FROMALL INVESTORS IN THE RELEVANT CLASS. FOR PURPOSES OF THISORDER THE RELEVANT CLASS SHALL BE DEFINED AS ALL INVESTORSWHO PURCHASED ARS FROM EITHER WACHOVIA SECURITIES ORWACHOVIA CAPITAL MARKETS, RESPECTIVELY, ON OR BEFORE FEBRUARY13, 2008 INTO ACCOUNTS MAINTAINED AT WACHOVIA SECURITIES ORWACHOVIA CAPITAL MARKETS, RESPECTIVELY.
Regulator Statement BRIDGETT FISHER 360-902-8783
iReporting Source: Firm
Initiated By: STATE OF WASHINGTON FINANCIAL INSTITUTIONS SECURITIES DIVISION
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 03/24/2009
Docket/Case Number: S08-229-09-CO01
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES
Allegations: THE STATE HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES TOCUSTOMER
Current Status: Final
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Other Sanction(s)/ReliefSought:
Resolution Date: 03/24/2009
Resolution:
Other Sanctions Ordered: OFFER TO REPURCHASE ARS THAT ARE SUBJECT TO AUCTIONS THAT ARENOT SUCCESSFUL AND ARE NOT SUBJECT TO CURRENT CALLS ORREDEMPTION IN THE RELEVANT CLASS
Sanction Details: THE FINE WAS PAID ON 03/27/2009
Sanctions Ordered: Monetary/Fine $491,556.71Cease and Desist/Injunction
Consent
Disclosure 93 of 158
i
Reporting Source: Firm
Initiated By: STATE OF CALIFORNIA - DEPARTMENT OF CORPORATIONS
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 03/09/2009
Docket/Case Number:
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES
Allegations: THE STATE HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES TOCUSTOMERS
Current Status: Final
Resolution Date: 03/09/2009
Resolution:
Other Sanctions Ordered: OFFER TO REPURCHASE ARS THAT ARE SUBJECT TO ACUTIONS THAT ARENOT SUCCESSFUL AND ARE NOT SUBJECT TO CURRENT CALLS ORREDEMPTION IN THE RELEVANT CLASS
Sanctions Ordered: Monetary/Fine $5,507,824.50Disgorgement/RestitutionCease and Desist/Injunction
Consent
195©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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OFFER TO REPURCHASE ARS THAT ARE SUBJECT TO ACUTIONS THAT ARENOT SUCCESSFUL AND ARE NOT SUBJECT TO CURRENT CALLS ORREDEMPTION IN THE RELEVANT CLASS
Sanction Details: THE FINE WAS PAID ON 03/13/2009
Disclosure 94 of 158
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Reporting Source: Firm
Initiated By: OFFICE OF THE COMMISSIONER OF FINANCIAL INSTITUTIONSCOMMONWEALTH OF PUERTO RICO
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 03/05/2009
Docket/Case Number: C09-V-001
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES
Allegations: ALLEGED THAT WACHOVIA SECURITIES MISREPRESENTED THE SALE OFAUCTION RATE SECURITIES TO CUSTOMERS.
Current Status: Final
Resolution Date: 03/05/2009
Resolution:
Other Sanctions Ordered: OFFER TO PURCHASE AT PAR ARS THAT ARE SUBJECT TO AUCTIONS THATARE NOT SUCCESSFUL AND ARE NOT SUBJECT TO CURRENT CALLS ORREDEMPTION ("ELIGIBLE ARS") FROM ALL INVESTORS IN THE RELEVANTCLASS.
Sanction Details: FINE WAS PAID ON 3/11/2009.
Sanctions Ordered: Monetary/Fine $103,739.22Disgorgement/RestitutionCease and Desist/Injunction
Consent
Disclosure 95 of 158
i
Reporting Source: Firm
Allegations: THE STATE HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES TOCUSTOMERS.
Current Status: Final
196©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Initiated By: OFFICE OF THE MISSISSIPPI SECRETARY OF STATE
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 03/03/2009
Docket/Case Number: S-09-0086
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES
Allegations: THE STATE HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES TOCUSTOMERS.
Resolution Date: 03/03/2009
Resolution:
Other Sanctions Ordered: OFFER TO PURCHASE AT PAR ARS THAT ARE SUBJECT TO AUCTIONS THATARE NOT SUCCESSFUL AND ARE NOT SUBJECT TO CURRENT CALLS ORREDEMPTION ("ELIGIBLE ARS") FROM ALL INVESTORS IN THE RELEVANTCLASS.
Sanction Details: FINE WAS PAID ON 3/6/2009.
Sanctions Ordered: Monetary/Fine $317,667.55Disgorgement/RestitutionCease and Desist/Injunction
Consent
Disclosure 96 of 158
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Reporting Source: Regulator
Allegations: SECTION 17(A) OF THE SEC EXCHANGE ACT, RULES 17A-3 AND 17-4THEREUNDER, NASD RULES 2110, 3010(A), 3010(B)(1), 3012, 3012(B), 3110 -WACHOVIA SECURITIES, LLC FAILED TO SEND CUSTOMERSCONFIRMATION OF CHANGES IN INVESTMENT OBJECTIVES, AND THUSFAILED TO KEEP RECORDS OF SUCH MAILINGS. THE FIRM ERRONEOUSLYPROGRAMMED ITS COMPUTER SYSTEMS SO THE SYSTEM DID NOTGENERATE A MAILING TO THE CUSTOMER IF THE REQUIRED MAILINGDATE FELL ON A WEEKEND OR HOLIDAY WHILE NOTIFYING THE SYSTEMTHAT A LETTER HAD BEEN SENT. THE ERRORS WENT UNDETECTEDBECAUSE THE FIRM FAILED TO ASSIGN SUPERVISORY REVIEW ANDADEQUATE TESTING OVER ITS AUTOMATED MAILING SYSTEM AND FAILEDTO IMPLEMENT INTERNAL CONTROLS TO DETECT AND PREVENT ERRORS.THE FIRM FAILED TO SEND REQUIRED NOTIFICATIONS OF CHANGE ININVESTMENT OBJECTIVES TO CUSTOMERS AFFECTED BY A MERGER WITHANOTHER FIRM AND TO KEEP RECORDS REFLECTING THE MAILINGS. THEFIRM SENT DEFECTIVE INVESTMENT OBJECTIVE CHANGECONFIRMATIONS TO CUSTOMERS AS A RESULT OF PROGRAMMINGERRORS. THE FIRM FAILED TO CONFIRM WITH CUSTOMERS AND TO KEEPRECORDS OF CONFIRMATIONS AND CHANGES OF ADDRESS BY THECUSTOMERS AND FAILED TO SEND CHANGE OF ADDRESS NOTIFICATIONSTO CUSTOMERS. THIS ERROR WENT UNDETECTED BECAUSE IT FAILED TOIMPLEMENT ADEQUATE SUPERVISORY REVIEW AND TESTING, AS WELL ASIMPLEMENT INTERNAL CONTROLS OVER ITS AUTOMATED MAILINGSYSTEM. THE FIRM HAD AN ERROR IN ITS OPERATIONAL PROCEDURESUTILIZED BY EMPLOYEES WHO WERE CONDUCTING MANUAL REVIEWS OFCERTAIN TRANSACTIONS, RESULTING IN ITS FAILURE TO SEND REQUIREDNOTIFICATIONS TO CUSTOMERS WHEN ASSETS WERE TRANSFERRED TOA THIRD-PARTY OR AN OUTSIDE ENTITY. THE FIRM FAILED TO SEND ASSETNOTIFICATIONS TO CUSTOMERS RELATED TO THE PAYMENT OF FEES TOOUTSIDE MONEY MANAGERS. THE FIRM FAILED TO SEND COMPLETECUSTOMER PROFILE INFORMATION VERIFICATION FORMS TOCUSTOMERS. [CONTINUED IN COMMENTS]
Current Status: Final
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Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 02/23/2009
Docket/Case Number: 2007009470901
Principal Product Type: Other
Other Product Type(s): UNKNOWN TYPES OF SECURITIES
SECTION 17(A) OF THE SEC EXCHANGE ACT, RULES 17A-3 AND 17-4THEREUNDER, NASD RULES 2110, 3010(A), 3010(B)(1), 3012, 3012(B), 3110 -WACHOVIA SECURITIES, LLC FAILED TO SEND CUSTOMERSCONFIRMATION OF CHANGES IN INVESTMENT OBJECTIVES, AND THUSFAILED TO KEEP RECORDS OF SUCH MAILINGS. THE FIRM ERRONEOUSLYPROGRAMMED ITS COMPUTER SYSTEMS SO THE SYSTEM DID NOTGENERATE A MAILING TO THE CUSTOMER IF THE REQUIRED MAILINGDATE FELL ON A WEEKEND OR HOLIDAY WHILE NOTIFYING THE SYSTEMTHAT A LETTER HAD BEEN SENT. THE ERRORS WENT UNDETECTEDBECAUSE THE FIRM FAILED TO ASSIGN SUPERVISORY REVIEW ANDADEQUATE TESTING OVER ITS AUTOMATED MAILING SYSTEM AND FAILEDTO IMPLEMENT INTERNAL CONTROLS TO DETECT AND PREVENT ERRORS.THE FIRM FAILED TO SEND REQUIRED NOTIFICATIONS OF CHANGE ININVESTMENT OBJECTIVES TO CUSTOMERS AFFECTED BY A MERGER WITHANOTHER FIRM AND TO KEEP RECORDS REFLECTING THE MAILINGS. THEFIRM SENT DEFECTIVE INVESTMENT OBJECTIVE CHANGECONFIRMATIONS TO CUSTOMERS AS A RESULT OF PROGRAMMINGERRORS. THE FIRM FAILED TO CONFIRM WITH CUSTOMERS AND TO KEEPRECORDS OF CONFIRMATIONS AND CHANGES OF ADDRESS BY THECUSTOMERS AND FAILED TO SEND CHANGE OF ADDRESS NOTIFICATIONSTO CUSTOMERS. THIS ERROR WENT UNDETECTED BECAUSE IT FAILED TOIMPLEMENT ADEQUATE SUPERVISORY REVIEW AND TESTING, AS WELL ASIMPLEMENT INTERNAL CONTROLS OVER ITS AUTOMATED MAILINGSYSTEM. THE FIRM HAD AN ERROR IN ITS OPERATIONAL PROCEDURESUTILIZED BY EMPLOYEES WHO WERE CONDUCTING MANUAL REVIEWS OFCERTAIN TRANSACTIONS, RESULTING IN ITS FAILURE TO SEND REQUIREDNOTIFICATIONS TO CUSTOMERS WHEN ASSETS WERE TRANSFERRED TOA THIRD-PARTY OR AN OUTSIDE ENTITY. THE FIRM FAILED TO SEND ASSETNOTIFICATIONS TO CUSTOMERS RELATED TO THE PAYMENT OF FEES TOOUTSIDE MONEY MANAGERS. THE FIRM FAILED TO SEND COMPLETECUSTOMER PROFILE INFORMATION VERIFICATION FORMS TOCUSTOMERS. [CONTINUED IN COMMENTS]
Resolution Date: 02/23/2009
Resolution:
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: CensureMonetary/Fine $1,100,000.00
Acceptance, Waiver & Consent(AWC)
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Other Sanctions Ordered: UNDERTAKINGS: RETAIN, WITHIN 60 DAYS OF NOTICE OF ACCEPTANCE OFTHIS AWC, AN INDEPENDENT CONSULTANT TO CONDUCT ACOMPREHENSIVE REVIEW OF THE ADEQUACY OF THE FIRM'S POLICES,PROCEDURES, TESTING AND SYSTEMS ADOPTED IN RESPONSE TO THEACTIVITY DESCRIBED, TO ENSURE THAT ITS PROCEDURES AREREASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITH FINRA RULESAND FEDERAL SECURITIES LAWS. AFTER CONCLUSION OF THE REVIEW,THE CONSULTANT SHALL SUBMIT A WRITTEN REPORT TO THE FIRM ANDFINRA ADDRESSING THE FIRM'S POLICIES, SYSTEMS, PROCEDURES ANDTRAINING. WITHIN 90 DAYS AFTER RECEIPT OF THE WRITTEN REPORT,THE FIRM SHALL ADOPT AND IMPLEMENT THE CONSULTANT'SRECOMMENDATIONS OR PROPOSE ALTERNATIVE PROCEDURES INWRITING TO THE CONSULTANT AND FINRA. THE CONSULTANT WILLREVIEW AND EVALUATE THE PROPOSED ALTERNATIVES WITHIN 30 DAYSAND PROVIDE A DECISION. THE FIRM WILL ABIDE BY THE CONSULTANT'SDETERMINATIONS AND, WITHIN 30 DAYS, THE FIRM SHALL PROVIDE FINRAWITH A WRITTEN IMPLEMENTATION REPORT SETTING FORTH THE DETAILSOF ITS IMPLEMENTATION OF THE CONSULTANT'S RECOMMENDATIONS.
Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS;THEREFORE, THE FIRM IS CENSURED, FINED $1,100,000, JOINTLY ANDSEVERALLY, AND REQUIRED TO COMPLY WITH UNDERTAKINGS.
Regulator Statement THE FORM DISPLAYED "F" AS A NET WORTH CODE, BUT NOCORRESPONDING DOLLAR RANGE APPEARED IN THE FINANCIAL CODELEGEND AND CUSTOMERS WERE UNABLE TO VERIFY THEIR NET WORTHAMOUNT RECORDED BY THE FIRM. THE FIRM HAD AN INADEQUATESYSTEM OF SUPERVISION WITH RESPECT TO VARIOUS REQUIREDMAILINGS BECAUSE THE SUPERVISORY SYSTEMS ESTABLISHED WERENOT REASONABLY DESIGNED TO ACHIEVE COMPLIANCE WITH NASDRULES AND FEDERAL SECURITIES LAWS.
Sanctions Ordered: CensureMonetary/Fine $1,100,000.00
iReporting Source: Firm
Initiated By: FINRA
Date Initiated: 02/23/2009
Docket/Case Number: 2007009470901
Allegations: FINRA HAS ALLEGED THAT WACHOVIA SECURITIES, LLC AND FIRSTCLEARING, LLC FAILED TO ACCURATELY MAKE CERTAIN CUSTOMERMAILINGS.
Current Status: Final
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Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Principal Product Type: No Product
Other Product Type(s):
Resolution Date: 02/23/2009
Resolution:
Other Sanctions Ordered: AN OUTSIDE CONSULTANT SHALL CONDUCT A REVIEW OF THE FIRM'SPOLICIES, PROCEDURES, TESTING AND SYSTEMS ADOPTED IN RESPONSETO THE ACTIVITY DESCRIBED IN THE AWC.
Sanction Details: WACHOVIA SECURITIES, LLC AND FIRST CLEARING, LLC JOINTLYCONSENTED TO A FINE OF $1,100,000.00.
Sanctions Ordered: CensureMonetary/Fine $1,100,000.00
Acceptance, Waiver & Consent(AWC)
Disclosure 97 of 158
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Reporting Source: Firm
Initiated By: STATE OF GEORGIA COMMISSIONER OF SECURITIES
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 02/24/2009
Docket/Case Number: ENSC-1465
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES
Allegations: THE STATE HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES TOCUSTOMERS.
Current Status: Final
Resolution Date: 02/24/2009
Resolution: Consent
200©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Other Sanctions Ordered: OFFER TO PURCHASE AT PAR ARS THAT ARE SUBJECT TO AUCTIONS THATARE NOT SUCCESSFUL AND ARE NOT SUBJECT TO CURRENT CALLS ORREDEMPTION ("ELIGIBLE ARS") FROM ALL INVESTORS IN THE RELEVANTCLASS.
Sanction Details: FINE IS DUE BY 03/06/2009
Sanctions Ordered: Monetary/Fine $1,076,276.28Disgorgement/RestitutionCease and Desist/Injunction
Disclosure 98 of 158
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Reporting Source: Firm
Initiated By: STATE OF NORTH CAROLINA DEPARTMENT OF THE SECRETARY OF STATESECURITIES DIVISION
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 02/24/2009
Docket/Case Number: 09SEC029
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES
Allegations: THE STATE HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES TOCUSTOMERS.
Current Status: Final
Resolution Date: 02/24/2009
Resolution:
Other Sanctions Ordered: OFFER TO PURCHASE AT PAR ARS THAT ARE SUBJECT TO AUCTIONS THATARE NOT SUCCESSFUL AND ARE NOT SUBJECT TO CURRENT CALLS ORREDEMPTION ("ELIGIBLE ARS") FROM ALL INVESTORS IN THE RELEVANTCLASS.
Sanction Details: PAYMENT OF FINE IS DUE BY 03/06/2009
Sanctions Ordered: Monetary/Fine $1,700,203.25Disgorgement/RestitutionCease and Desist/Injunction
Consent
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Disclosure 99 of 158
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Reporting Source: Firm
Initiated By: MONTANA SECURITIES DEPARTMENT
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 02/17/2009
Docket/Case Number: CASE NO. SEC-2009-5
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES
Allegations: THE STATE HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES TOCUSTOMERS.
Current Status: Final
Resolution Date: 02/17/2009
Resolution:
Other Sanctions Ordered: OFFER TO REPURCHASE ARS THAT ARE SUBJECT TO AUCTIONS THAT ARENOT SUCCESSFUL AND ARE NOT SUBJECT TO CURRENT CALLS ORREDEMPTION IN THE RELEVANT CLASS
Sanction Details: THE WAS FINE PAID ON FEBRUARY 19, 2009
Sanctions Ordered: Monetary/Fine $148,811.54Disgorgement/RestitutionCease and Desist/Injunction
Consent
Disclosure 100 of 158
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Reporting Source: Firm
Initiated By: STATE OF NEVADA OFFICE OF THE SECRETARY OF STATE SECURITIESDIVISION
Allegations: THE STATE HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES TOCUSTOMERS.
Current Status: Final
202©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Initiated By: STATE OF NEVADA OFFICE OF THE SECRETARY OF STATE SECURITIESDIVISION
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 02/17/2009
Docket/Case Number: FILE NO. I09-038
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES
Resolution Date: 02/17/2009
Resolution:
Other Sanctions Ordered: OFFER TO REPURCHASE ARS THAT ARE SUBJECT TO AUCTIONS THAT ARENOT SUCCESSFUL AND ARE NOT SUBJECT TO CURRENT CALLS ORREDEMPTION IN THE RELEVANT CLASS
Sanction Details: THE FINE WAS PAID ON FEBRUARY 24, 2009
Sanctions Ordered: Monetary/Fine $839,326.74Disgorgement/RestitutionCease and Desist/Injunction
Consent
Disclosure 101 of 158
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Reporting Source: Firm
Initiated By: STATE OF SOUTH DAKOTA DEPARTMENT OF REVENUE AND REGULATIONDIVISION OF SECURITIES
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 02/19/2009
Docket/Case Number: ADMINISTRATIVE CONSENT ORDER
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES
Allegations: THE STATE HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES TOCUSTOMERS.
Current Status: Final
203©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Other Sanction(s)/ReliefSought:
Resolution Date: 02/19/2009
Resolution:
Other Sanctions Ordered: OFFER TO REPURCHASE ARS THAT ARE SUBJECT TO AUCTIONS THAT ARENOT SUCCESSFUL AND ARE NOT SUBJECT TO CURRENT CALLS ORREDEMPTION IN THE RELEVANT CLASS
Sanction Details: THE FINE WAS PAID ON FEBRUARY 25, 2009
Sanctions Ordered: Monetary/Fine $155,069.08Disgorgement/RestitutionCease and Desist/Injunction
Consent
Disclosure 102 of 158
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Reporting Source: Firm
Initiated By: ATTORNEY GENERAL OF THE STATE OF NEW YORK INVESTORPROTECTION BUREAU
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 02/04/2009
Docket/Case Number: ASSURANCE NO. 08-179
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES
Allegations: THE STATE HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES TOCUSTOMERS
Current Status: Final
Resolution Date: 02/04/2009
Resolution:
Other Sanctions Ordered: OFFER TO REPURCHASE ARS THAT ARE SUBJECT TO AUCTIONS THAT ARENOT SUCCESSFUL AND ARE NOT SUBJECT TO CURRENT CALLS ORREDEMPTION IN THE RELEVANT CLASS
Sanctions Ordered: Monetary/Fine $50,000,000.00Disgorgement/RestitutionCease and Desist/Injunction
Consent
204©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Other Sanctions Ordered: OFFER TO REPURCHASE ARS THAT ARE SUBJECT TO AUCTIONS THAT ARENOT SUCCESSFUL AND ARE NOT SUBJECT TO CURRENT CALLS ORREDEMPTION IN THE RELEVANT CLASS
Sanction Details: PAYMENT IS DUE TO STATE OF NEW YORK BY MARCH 31, 2009
Disclosure 103 of 158
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Reporting Source: Firm
Initiated By: COMMON WEALTH OF MASSACHUSETTS SECURITIES DIVISION
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 02/19/2009
Docket/Case Number: E-2008-0053
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES
Allegations: THE STATE HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES TOCUSTOMERS.
Current Status: Final
Resolution Date: 02/19/2009
Resolution:
Other Sanctions Ordered: OFFER TO PURCHASE AT PAR ARS THAT ARE SUBJECT TO AUCTIONS THATARE NOT SUCCESSFUL AND ARE NOT SUBJECT TO CURRENT CALLS ORREDEMPTION ("ELIGIBLE ARS") FROM ALL INVESTORS IN THE RELEVANTCLASS.
Sanction Details: THE FINE WAS PAID ON FEBRUARY 24, 2009
Sanctions Ordered: Monetary/Fine $782,321.56Disgorgement/RestitutionCease and Desist/Injunction
Consent
Disclosure 104 of 158
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Reporting Source: Firm
Allegations: THE STATE HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES TOCUSTOMERS.
Current Status: Final
205©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Initiated By: OFFICE OF THE SECRETARY OF STATESTATE OF MISSOURI
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 12/08/2008
Docket/Case Number: AP-08-28
Principal Product Type: Other
Other Product Type(s): AUCTION RATE SECURITIES
Allegations: THE STATE HAS ALLEGED THAT WACHOVIA SECURITIESMISREPRESENTED THE SALE OF AUCTION RATE SECURITIES TOCUSTOMERS.
Resolution Date: 12/08/2008
Resolution:
Other Sanctions Ordered: OFFER TO REPURCHASE ARS THAT ARE SUBJECT TO AUCTIONS THAT ARENOT SUCCESSFUL AND ARE NOT SUBJECT TO CURRENT CALLS ORREDEMPTION IN THE RELEVANT CLASS.
Sanction Details: IN ADDITION TO TO THE FINE PAID ON 12/16/2008 IN THE AMOUNT OF$2,841,550.88. WACHOVIA SHALL PAY $265,000 AS COST FOR THEINVESTIGATION. $15,000 SHALL BE PAID TO NASAA.
Sanctions Ordered: Monetary/Fine $2,841,550.88Disgorgement/RestitutionCease and Desist/Injunction
Consent
Disclosure 105 of 158
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Reporting Source: Regulator
Initiated By: MARYLAND
Date Initiated: 01/01/2006
Docket/Case Number: 2008-0268
Allegations: IN CONNECTION WITH RESPONDENT'S (AND RESPONDENT'SPREDECESSOR'S) EMPLOYMENT OF BROKER MILLIET K. LANHAM,RESPONDENT FAILED TO REASONABLY SUPERVISE WITHIN THE MEANINGOF SECTION 11-412(A)(10) OF THE SECURITIES ACT.
Current Status: Final
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Principal Sanction(s)/ReliefSought:
Cease and Desist
Other Sanction(s)/ReliefSought:
FINECOMPLIANCE UNDERTAKINGS
Docket/Case Number: 2008-0268
URL for Regulatory Action:
Principal Product Type: Equity Listed (Common & Preferred Stock)
Other Product Type(s):
Resolution Date: 12/08/2008
Resolution:
Other Sanctions Ordered: RESTITUTION TO ONE CUSTOMER IN AMOUNT OF $109,673.SUPERVISING BROKER MUST TAKE CERTAIN CONTINUING EDUCATIONCOURSES DEALING WITH SUPERVISION WITHIN SIX MONTHS OFEXECUTION OF ORDER.COMPLIANCE ENHANCEMENTS AND UNDERTAKINGS TO BE PERFORMED.
Sanction Details: FINE = $50,000 PAID UPON ISSUANCE OF ORDER. NO PORTION OFPENALTY WAS WAIVED.
Regulator Statement CONSENT ORDER REFERRED TO FORMER BROKER'S HANDLING OFCERTAIN CUSTOMER ACCOUNTS. SOME CUSTOMERS WERE INVOLVED INPRIVATE SETTLEMENT OF CLAIMS. ONE CUSTOMER, B.L., RECEIVEDRESTITUTION PURSUANT TO THE TERMS OF THE CONSENT ORDER INCONNECTION WITH BROKER'S HANDLING OF HER ACCOUNT.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: Monetary/Fine $50,000.00Disgorgement/RestitutionCease and Desist/Injunction
Stipulation and Consent
iReporting Source: Firm
Allegations: IN CONNECTION WITH RESPONDENT'S (AND RESPONDENT'SPREDECESSOR'S) EMPLOYMENT OF BROKER MILLIET K. LANHAM,RESPONDENT FAILED TO REASONABLY SUPERVISE WITHIN THE MEANINGOF SECTION 11-412(A)(10) OF THE SECURITIES ACT.
Current Status: Final
207©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Initiated By: STATE OF MARYLAND
Principal Sanction(s)/ReliefSought:
Undertaking
Other Sanction(s)/ReliefSought:
FINE
Date Initiated: 01/01/2006
Docket/Case Number: 2008-0268
Principal Product Type: Equity Listed (Common & Preferred Stock)
Other Product Type(s):
Resolution Date: 12/08/2008
Resolution:
Other Sanctions Ordered: RESTITUTION TO ONE CUSTOMER IN AMOUNT OF $109,673. SUPERVISINGBROKER MUST TAKE CERTAIN CONTINUING EDUCATION COURSESDEALING WITH SUPERVISION WITHIN SIX MONTHS OF EXECUTION OFORDER. COMPLIANCE ENHANCEMENTS AND UNDERTAKINGS TO BEPERFORMED.
Sanction Details: FINE = $50,000 PAID UPON ISSUANCE OF ORDER. NO PORTION OFPENALTY WAS WAIVED.
Firm Statement CONSENT ORDER REFERRED TO FORMER BROKER'S HANDLING OFCERTAIN CUSTOMER ACCOUNTS. SOME CUSTOMERS WERE INVOLVED INPRIVATE SETTLEMENT OF CLAIMS. ONE CUSTOMER, B.L., RECEIVEDRESTITUTION PURSUANT TO THE TERMS OF THE CONSENT ORDER INCONNECTION WITH BROKER'S HANDLING OF HER ACCOUNT.
Sanctions Ordered: Monetary/Fine $50,000.00Disgorgement/RestitutionCease and Desist/Injunction
Stipulation and Consent
Disclosure 106 of 158
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Reporting Source: Regulator
Allegations: NASD RULES 1021, 1022(A)(1), 1022(A)(5), 2110, 3010: RESPONDENTMEMBER FIRM PERMITTED INDIVIDUAL TO FUNCTION AS A PRINCIPALWITHOUT BEING PROPERLY LICENSED AS A GENERAL SECURITIESPRINCIPAL ("GP") AND PERMITTED AN INDIVIDUAL TO SUPERVISE ITSEQUITY RESEARCH ANALYSTS WITHOUT BEING PROPERLY LICENSED AS ARESEARCH PRINCIPAL ("RP"). THE FIRM ALSO FAILED TO ENSURE THAT AGP OR RP MANAGE AND SUPERVISE THE FIRM'S ADVISORY SERVICESGROUP BY FAILING TO ENSURE THAT INDIVIDUAL BE PROPERLYLICENSED.
Current Status: Final
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Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 10/30/2008
Docket/Case Number: 2007010115401
Principal Product Type: No Product
Other Product Type(s):
NASD RULES 1021, 1022(A)(1), 1022(A)(5), 2110, 3010: RESPONDENTMEMBER FIRM PERMITTED INDIVIDUAL TO FUNCTION AS A PRINCIPALWITHOUT BEING PROPERLY LICENSED AS A GENERAL SECURITIESPRINCIPAL ("GP") AND PERMITTED AN INDIVIDUAL TO SUPERVISE ITSEQUITY RESEARCH ANALYSTS WITHOUT BEING PROPERLY LICENSED AS ARESEARCH PRINCIPAL ("RP"). THE FIRM ALSO FAILED TO ENSURE THAT AGP OR RP MANAGE AND SUPERVISE THE FIRM'S ADVISORY SERVICESGROUP BY FAILING TO ENSURE THAT INDIVIDUAL BE PROPERLYLICENSED.
Resolution Date: 10/30/2008
Resolution:
Other Sanctions Ordered:
Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, RESPONDENT MEMBERFIRM CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OFFINDINGS; THEREFORE, FIRM IS CENSURED AND FINED $75,000.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: CensureMonetary/Fine $75,000.00
Acceptance, Waiver & Consent(AWC)
iReporting Source: Firm
Allegations: NASD RULES 1021, 1022(A)(1), 1022(A)(5), 2110, 3010: RESPONDENTMEMBER FIRM PERMITTED INDIVIDUAL TO FUNCTION AS A PRINCIPALWITHOUT BEING PROPERLY LICENSED AS A GENERAL SECURITIESPRINCIPAL ("GP") AND PERMITTED AN INDIVIDUAL TO SUPERVISE ITSEQUITY RESEARCH ANALYSTS WITHOUT BEING PROPERLY LICENSED AS ARESEARCH PRINCIPAL ("RP"). THE FIRM ALSO FAILED TO ENSURE THAT AGP OR RP MANAGE AND SUPERVISE THE FIRM'S ADVISORY SERVICESGROUP BY FAILING TO ENSURE THAT INDIVIDUAL BE PROPERLYLICENSED.
Current Status: Final
209©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 10/30/2008
Docket/Case Number: 2007010115401
Principal Product Type: No Product
Other Product Type(s):
NASD RULES 1021, 1022(A)(1), 1022(A)(5), 2110, 3010: RESPONDENTMEMBER FIRM PERMITTED INDIVIDUAL TO FUNCTION AS A PRINCIPALWITHOUT BEING PROPERLY LICENSED AS A GENERAL SECURITIESPRINCIPAL ("GP") AND PERMITTED AN INDIVIDUAL TO SUPERVISE ITSEQUITY RESEARCH ANALYSTS WITHOUT BEING PROPERLY LICENSED AS ARESEARCH PRINCIPAL ("RP"). THE FIRM ALSO FAILED TO ENSURE THAT AGP OR RP MANAGE AND SUPERVISE THE FIRM'S ADVISORY SERVICESGROUP BY FAILING TO ENSURE THAT INDIVIDUAL BE PROPERLYLICENSED.
Resolution Date: 10/30/2008
Resolution:
Other Sanctions Ordered:
Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, RESPONDENT MEMBERFIRM CONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OFFINDINGS; THEREFORE, FIRM IS CENSURED AND FINED $75,000.
Sanctions Ordered: CensureMonetary/Fine $75,000.00
Acceptance, Waiver & Consent(AWC)
Disclosure 107 of 158
i
Reporting Source: Regulator
Initiated By: NEW JERSEY BUREAU OF SECURITIES
Date Initiated: 03/28/2007
Docket/Case Number: 2007-010
URL for Regulatory Action:
Allegations: AG EDWARDS PERMITTED AN UNREGISTERED PERSON TO USE BRANCHOFFICE FACILITIES TO FACILITATE THE REFERAL AND TRANSFER OFCLIENT FROM PREVIOUS BROKER-DEALER TO AG EDWARDS THROUGHHIS FORMER PARTNER NOW AN AG EDWARDS AGENT. AG EDWARDS DIDNOT SUPERVISE NOR EMPLOY THE INDIVIDUAL IN ANY CAPACITY ANDPERMITTED THE UNREGISTERED PERSON TO TRANSACT SECURITIESTHROUGH HIS FORMER PARTNER.
Current Status: Final
210©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Principal Product Type: No Product
Other Product Type(s):
Resolution Date: 10/06/2008
Resolution:
Other Sanctions Ordered: WACHOVIA WILL OFFER NO LESS THAN $120,000, RESTITUTION TOCOMPENSATE FOR THE LOSSES OF CERTAIN CUSTOMERS.
Sanction Details: AG EDWARDS ALLOWED AN UNREGISTERED PERSON TO MAINTAIN APRESENCE IN A NEW JERSEY BRANCH OFFICE AND PROVIDE INVESTMENTADVISE TO CLIENTS. AG EDWARDS FAILED TO PREVENT UNSUITABLETRADING STRATEGIES FROM BEING RECOMMENDED TO AG EDWARDSCLIENTS A FAILED TO REASONABLY SUPERVISE AND ESTABLISH ANDENFORCE PROCEDURES NECESSARY TO DEFECT AND PREVENT SUCHCONDUCT.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: Monetary/Fine $400,000.00Disgorgement/Restitution
Consent
iReporting Source: Firm
Initiated By: NEW JERSEY BUREAU OF SECURITIES
Date Initiated: 03/28/2007
Docket/Case Number: 2007-010
Allegations: AG EDWARDS PERMITTED AN UNREGISTERED PERSON TO USE BRANCHOFFICE FACILITIES TO FACILITATE THE REFERAL AND TRANSFER OFCLIENT FROM PREVIOUS BROKER-DEALER TO AG EDWARDS THROUGHHIS FORMER PARTNER A FORMER AG EDWARDS AGENT. AG EDWARDS DIDNOT SUPERVISE NOR EMPLOY THE INDIVIDUAL IN ANY CAPACITY ANDPERMITTED THE UNREGISTERED PERSON TO TRANSACT SECURITIESTHROUGH HIS FORMER PARTNER
Current Status: Final
211©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Docket/Case Number: 2007-010
Principal Product Type: No Product
Other Product Type(s):
Resolution Date: 10/06/2008
Resolution:
Other Sanctions Ordered: WACHOVIA WILL OFFER NO LESS THAN $120,000, RESTITUTION TOCOMPENSATE FOR THE LOSSES OF CERTAIN CUSTOMERS.
Sanction Details: AG EDWARDS ALLOWED AN UNREGISTERED PERSON TO MAINTAIN APRESENCE IN A NEW JERSEY BRANCH OFFICE AND PROVIDE INVESTMENTADVISE TO CLIENTS. AG EDWARDS FAILED TO PREVENT UNSUITABLETRADING STRATEGIES FROM BEING RECOMMENDED TO AG EDWARDSCLIENTS, FAILED TO REASONABLY SUPERVISE AND ESTABLISH ANDENFORCE PROCEDURES NECESSARY TO DEFECT PREVENT SUCHCONDUCT.
Sanctions Ordered: Monetary/Fine $400,000.00Disgorgement/Restitution
Consent
Disclosure 108 of 158
i
Reporting Source: Firm
Initiated By: TEXAS STATE SECURITIES BOARD
Principal Sanction(s)/ReliefSought:
Undertaking
Date Initiated: 07/14/2008
Docket/Case Number: IC08-CAF-05
Principal Product Type: Other
Other Product Type(s):
Allegations: THE FIRM THROUGH A REGISTERED REPRESENTATIVE AND OTHERSALLOWED THE CLIENT'S WIFE TO EFFECT THE WITHDRAWALS FROM ACUSTOMER'S ACCOUNT WITHOUT THE REQUIRED DOCUMENTS ASREQUIRED BY A.G. EDWARDS WRITTEN PROCEDURES.
Current Status: Final
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Principal Sanction(s)/ReliefSought:
Undertaking
Other Sanction(s)/ReliefSought:
Resolution Date: 07/14/2008
Resolution:
Other Sanctions Ordered: WITHIN 30 DAYS EDWARDS WILL MAKE A GOOD FAITH AND BINDINGSETTLEMENT OFFER OF AT LEAST $10,000.00 AND PROVIDE THE DIVISIONWITH A COPY OF THE OFFER.
Sanction Details: REPRIMAND AND $5000 FINE.
Sanctions Ordered: Monetary/Fine $5,000.00
Order
Disclosure 109 of 158
i
Reporting Source: Regulator
Allegations: NASD RULES 2110, 2310, 3010: WACHOVIA SECURITIES DID NOTADEQUATELY CONSIDER, ON A CONSISTENT BASIS, PERTINENTELEMENTS, SUCH AS BREAKPOINTS, FEES AND EXPENSES, WHENMAKING RECOMMENDATIONS TO CUSTOMERS TO PURCHASE CLASS B ORCLASS C SHARES IN MUTUAL FUNDS INSTEAD OF CLASS A SHARES.WACHOVIA SECURITIES RECOMMENDED AND SOLD CLASS B AND/ORCLASS C SHARES TO CUSTOMERS WHO, DEPENDING UPON AMONGOTHER THINGS, THE AMOUNT OF THE INVESTMENT AND THE CUSTOMER'SCONTEMPLATED HOLDING PERIOD, WOULD HAVE BENEFITED HAD THEYPURCHASED CLASS A SHARES INSTEAD. AS A RESULT, WACHOVIARECEIVED GREATER COMMISSIONS TOTALING $3.86 MILLION MORE THATIT WOULD HAVE RECEIVED HAD IT SOLD CLASS A SHARES IN THE SAMEMUTUAL FUNDS. WACHOVIA FAILED TO ESTABLISH, MAINTAIN ANDENFORCE ADEQUATE SUPERVISORY AND COMPLIANCE POLICIES ANDPROCEDURES THAT WERE REASONABLY DESIGNED TO IDENTIFYPURCHASES OF CLASS B AND/OR CLASS C SHARES BY CUSTOMERS FORWHOM CLASS A SHARES WOULD HAVE BEEN MORE ECONOMICALLYBENEFICIAL, NOR WERE THE FIRM'S PROCEDURES SUFFICIENT ENOUGHTO ENSURE THAT REGISTERED REPRESENTATIVES MADE ADEQUATEDISCLOSURES TO CUSTOMERS ABOUT THE VARIOUS CLASSES OFMUTUAL FUNDS. WACHOVIA FAILED TO ENSURE THAT ELIGIBLEINVESTORS RECEIVED THE BENEFIT OF AVAILABLE NET ASSET VALUE(NAV) TRANSFER PROGRAMS, RESULTING IN CUSTOMERS INCURRINGFRONT-END SALES CHARGES THEY SHOULD NOT HAVE PAID, ORPURCHASED OTHER SHARE CLASSES THAT UNNECESSARILY SUBJECTEDTHEM TO HIGHER FEES AND THE POTENTIAL OF CONTINGENT DEFERREDSALES CHARGES. WACHOVIA FAILED TO EXERCISE REASONABLE DUEDILIGENCE TO IDENTIFY ESSENTIAL TERMS AND CONDITIONS OF THE NAVTRANSFER PROGRAMS OF CERTAIN MUTUAL FUNDS, AND FAILED TOESTABLISH, MAINTAIN AND ENFORCE SYSTEMS AND PROCEDURES TOENSURE THAT ITS CUSTOMERS RECEIVED THE BENEFIT OF NAV PRICINGWHEN THEY QUALIFIED. [CONTINUED IN COMMENTS]
Current Status: Final
213©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 02/12/2009
Docket/Case Number: E9A2005013001
Principal Product Type: Mutual Fund(s)
Other Product Type(s):
NASD RULES 2110, 2310, 3010: WACHOVIA SECURITIES DID NOTADEQUATELY CONSIDER, ON A CONSISTENT BASIS, PERTINENTELEMENTS, SUCH AS BREAKPOINTS, FEES AND EXPENSES, WHENMAKING RECOMMENDATIONS TO CUSTOMERS TO PURCHASE CLASS B ORCLASS C SHARES IN MUTUAL FUNDS INSTEAD OF CLASS A SHARES.WACHOVIA SECURITIES RECOMMENDED AND SOLD CLASS B AND/ORCLASS C SHARES TO CUSTOMERS WHO, DEPENDING UPON AMONGOTHER THINGS, THE AMOUNT OF THE INVESTMENT AND THE CUSTOMER'SCONTEMPLATED HOLDING PERIOD, WOULD HAVE BENEFITED HAD THEYPURCHASED CLASS A SHARES INSTEAD. AS A RESULT, WACHOVIARECEIVED GREATER COMMISSIONS TOTALING $3.86 MILLION MORE THATIT WOULD HAVE RECEIVED HAD IT SOLD CLASS A SHARES IN THE SAMEMUTUAL FUNDS. WACHOVIA FAILED TO ESTABLISH, MAINTAIN ANDENFORCE ADEQUATE SUPERVISORY AND COMPLIANCE POLICIES ANDPROCEDURES THAT WERE REASONABLY DESIGNED TO IDENTIFYPURCHASES OF CLASS B AND/OR CLASS C SHARES BY CUSTOMERS FORWHOM CLASS A SHARES WOULD HAVE BEEN MORE ECONOMICALLYBENEFICIAL, NOR WERE THE FIRM'S PROCEDURES SUFFICIENT ENOUGHTO ENSURE THAT REGISTERED REPRESENTATIVES MADE ADEQUATEDISCLOSURES TO CUSTOMERS ABOUT THE VARIOUS CLASSES OFMUTUAL FUNDS. WACHOVIA FAILED TO ENSURE THAT ELIGIBLEINVESTORS RECEIVED THE BENEFIT OF AVAILABLE NET ASSET VALUE(NAV) TRANSFER PROGRAMS, RESULTING IN CUSTOMERS INCURRINGFRONT-END SALES CHARGES THEY SHOULD NOT HAVE PAID, ORPURCHASED OTHER SHARE CLASSES THAT UNNECESSARILY SUBJECTEDTHEM TO HIGHER FEES AND THE POTENTIAL OF CONTINGENT DEFERREDSALES CHARGES. WACHOVIA FAILED TO EXERCISE REASONABLE DUEDILIGENCE TO IDENTIFY ESSENTIAL TERMS AND CONDITIONS OF THE NAVTRANSFER PROGRAMS OF CERTAIN MUTUAL FUNDS, AND FAILED TOESTABLISH, MAINTAIN AND ENFORCE SYSTEMS AND PROCEDURES TOENSURE THAT ITS CUSTOMERS RECEIVED THE BENEFIT OF NAV PRICINGWHEN THEY QUALIFIED. [CONTINUED IN COMMENTS]
Resolution Date: 02/12/2009
Resolution:
Other Sanctions Ordered: UNDERTAKINGS: WACHOVIA WILL UNDERTAKE TO PROVIDE REMEDIATIONTO CUSTOMERS WHO PURCHASED CLASS B AND/OR CLASS C SHARES OFMUTUAL FUNDS WHEN THE PURCHASE OF CLASS A SHARES WOULD HAVEBEEN MORE BENEFICIAL, EXCLUDING CUSTOMERS WHO SETTLED,CANCELLED THEIR PURCHASES, WERE NOT SUBJECT TO HIGHERCHARGES OR FEES THAN CLASS A SHARES, WERE NOT ELIGIBLE FORBREAKPOINTS, OR WHERE THERE WAS NO DISCERNABLE MATERIALBENEFIT IN PURCHASING CLASS A SHARES OVER CLASS B AND/OR CLASSC SHARES. WITHIN 120 DAYS, WACHOVIA WILL PROVIDE CURRENT CLASSB AND CLASS C SHARE OWNERS THE OPTION TO CONVERT TO CLASS ASHARE OWNERSHIP. WACHOVIA WILL ALSO PROVIDE REMEDIATION TOCUSTOMERS WHO PURCHASED SHARES OF MUTUAL FUNDS ANDQUALIFIED FOR, BUT DID NOT RECEIVE, THE BENEFIT OF A NAV TRANSFERPROGRAM, INCLUDING REFUND OF INITIAL SALES CHARGE PLUSINTEREST AND VARIOUS FEES AND EXPENSES. THE REMEDIATION PLANINCLUDES QUALIFYING CLASS B AND/OR CLASS C SHARES THAT ALSOQUALIFY FOR NAV PURCHASES. WITHIN 60 DAYS OF ACCEPTANCE OF THEAWC, WACHOVIA WILL PROVIDE FINRA WITH A SAMPLE LETTERS TOCUSTOMERS: 1) WISHING TO CONVERT CLASS B AND CLASS C SHARESINTO CLASS A SHARES THE OFFER, AN EXPLANATION OF THEADVANTAGES AND DISADVANTAGES, AND ADVICE TO CONSULT A TAXADVISOR; AND 2) WHO DID NOT RECEIVE THE BENEFITS OF THE NAVTRANSFER PROGRAM DETAILING REMEDIATION PAYMENTS. ALSO, WITHIN60 SAYS, WACHOVIA WILL TRAIN STAFF TO FIELD CUSTOMER INQUIRES,RETAIN A THIRD-PARTY EXAMINER TO EXAMINE THE FIRM'SPERFORMANCE OF ITS OBLIGATIONS UNDER THE TERMS OF THE AWC,BEAR THE EXAMINER'S COSTS AND COOPERATE WITH THE EXAMINER.WACHOVIA SHALL COMPLETE THE REMEDIATION PROCESS WITHIN 270DAYS OF THE AWC AND WITHIN 330 DAYS OF THE EFFECTIVE DATE OF THEAWC FILED A DETAILED REPORT WITH FINRA REGARDING THE RESULTSOF THE REMEDIATION PLAN. THE THIRD PARTY EXAMINER SHALL FILE AFINAL REPORT NO LATER THAN 420 DAYS AFTER THE EFFECTIVE DATE OFTHE AWC.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: CensureMonetary/Fine $4,410,000.00
Acceptance, Waiver & Consent(AWC)
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UNDERTAKINGS: WACHOVIA WILL UNDERTAKE TO PROVIDE REMEDIATIONTO CUSTOMERS WHO PURCHASED CLASS B AND/OR CLASS C SHARES OFMUTUAL FUNDS WHEN THE PURCHASE OF CLASS A SHARES WOULD HAVEBEEN MORE BENEFICIAL, EXCLUDING CUSTOMERS WHO SETTLED,CANCELLED THEIR PURCHASES, WERE NOT SUBJECT TO HIGHERCHARGES OR FEES THAN CLASS A SHARES, WERE NOT ELIGIBLE FORBREAKPOINTS, OR WHERE THERE WAS NO DISCERNABLE MATERIALBENEFIT IN PURCHASING CLASS A SHARES OVER CLASS B AND/OR CLASSC SHARES. WITHIN 120 DAYS, WACHOVIA WILL PROVIDE CURRENT CLASSB AND CLASS C SHARE OWNERS THE OPTION TO CONVERT TO CLASS ASHARE OWNERSHIP. WACHOVIA WILL ALSO PROVIDE REMEDIATION TOCUSTOMERS WHO PURCHASED SHARES OF MUTUAL FUNDS ANDQUALIFIED FOR, BUT DID NOT RECEIVE, THE BENEFIT OF A NAV TRANSFERPROGRAM, INCLUDING REFUND OF INITIAL SALES CHARGE PLUSINTEREST AND VARIOUS FEES AND EXPENSES. THE REMEDIATION PLANINCLUDES QUALIFYING CLASS B AND/OR CLASS C SHARES THAT ALSOQUALIFY FOR NAV PURCHASES. WITHIN 60 DAYS OF ACCEPTANCE OF THEAWC, WACHOVIA WILL PROVIDE FINRA WITH A SAMPLE LETTERS TOCUSTOMERS: 1) WISHING TO CONVERT CLASS B AND CLASS C SHARESINTO CLASS A SHARES THE OFFER, AN EXPLANATION OF THEADVANTAGES AND DISADVANTAGES, AND ADVICE TO CONSULT A TAXADVISOR; AND 2) WHO DID NOT RECEIVE THE BENEFITS OF THE NAVTRANSFER PROGRAM DETAILING REMEDIATION PAYMENTS. ALSO, WITHIN60 SAYS, WACHOVIA WILL TRAIN STAFF TO FIELD CUSTOMER INQUIRES,RETAIN A THIRD-PARTY EXAMINER TO EXAMINE THE FIRM'SPERFORMANCE OF ITS OBLIGATIONS UNDER THE TERMS OF THE AWC,BEAR THE EXAMINER'S COSTS AND COOPERATE WITH THE EXAMINER.WACHOVIA SHALL COMPLETE THE REMEDIATION PROCESS WITHIN 270DAYS OF THE AWC AND WITHIN 330 DAYS OF THE EFFECTIVE DATE OF THEAWC FILED A DETAILED REPORT WITH FINRA REGARDING THE RESULTSOF THE REMEDIATION PLAN. THE THIRD PARTY EXAMINER SHALL FILE AFINAL REPORT NO LATER THAN 420 DAYS AFTER THE EFFECTIVE DATE OFTHE AWC.
Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, WACHOVIA SECURITIESCONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OFFINDINGS; THEREFORE, THE FIRM IS CENSURED AND FINED $4,410,000AND REQUIRED TO UNDERTAKE A REMEDIATION PLAN.
Regulator Statement [CONTINUED] WACHOVIA FAILED TO APPLY CORRECTLY ROLLOVER ANDBREAKPOINT DISCOUNTS IN CONNECTION WITH UNIT INVESTMENTTRUSTS (UIT) PURCHASES BY CUSTOMERS, RESULTING IN ADDITIONALAND EXCESSIVE SALES CHARGES TOTALING $1.976 MILLION AND $735,000RESPECTIVELY. WACHOVIA HAD NOTICE THAT THE PROPER APPLICATIONOF ROLLOVER AND BREAKPOINT DISCOUNTS TO ELIGIBLE UITPURCHASES BY CUSTOMERS CONSTITUTED A COMPLIANCE MATTER THATNECESSITATED ITS PROMPT AND DILIGENT ATTENTION, BUT DID NOTPROMPTLY UNDERTAKE OR PERFORM ANY REVIEW, TESTING ORANALYSIS TO DETERMINE IF THE FIRM WAS PROPERLY IDENTIFYING ANDAPPLYING ROLLOVER AND BREAKPOINT DISCOUNTS IN CONNECTIONWITH THE SALES OF UITS, THEREBY FAILING TO PROVIDE ALLCUSTOMERS THE BENEFIT OF SALES CHARGE DISCOUNTS. WACHOVIAFAILED TO ESTABLISH, MAINTAIN AND IMPLEMENT A SUPERVISORYSYSTEM AND WRITTEN SUPERVISORY PROCEDURES THAT WEREREASONABLY DESIGNED TO ENSURE THAT SALES CHARGE DISCOUNTSWERE CORRECTLY APPLIED AND PROVIDE SUBSTANTIVE GUIDELINES,INSTRUCTIONS, POLICIES AND PROCEDURES OR STEPS THATREPRESENTATIVES AND/OR MANAGERS WERE OBLIGATED TO TAKE ORPERFORM IN EFFECTING UIT PURCHASES FOR CUSTOMERS TODETERMINE IF THE PURCHASE QUALIFIED FOR A DISCOUNT AND/OR TOENSURE CUSTOMERS RECEIVED THE BENEFIT OF ANY APPLICABLESALES CHARGE DISCOUNT.
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[CONTINUED] WACHOVIA FAILED TO APPLY CORRECTLY ROLLOVER ANDBREAKPOINT DISCOUNTS IN CONNECTION WITH UNIT INVESTMENTTRUSTS (UIT) PURCHASES BY CUSTOMERS, RESULTING IN ADDITIONALAND EXCESSIVE SALES CHARGES TOTALING $1.976 MILLION AND $735,000RESPECTIVELY. WACHOVIA HAD NOTICE THAT THE PROPER APPLICATIONOF ROLLOVER AND BREAKPOINT DISCOUNTS TO ELIGIBLE UITPURCHASES BY CUSTOMERS CONSTITUTED A COMPLIANCE MATTER THATNECESSITATED ITS PROMPT AND DILIGENT ATTENTION, BUT DID NOTPROMPTLY UNDERTAKE OR PERFORM ANY REVIEW, TESTING ORANALYSIS TO DETERMINE IF THE FIRM WAS PROPERLY IDENTIFYING ANDAPPLYING ROLLOVER AND BREAKPOINT DISCOUNTS IN CONNECTIONWITH THE SALES OF UITS, THEREBY FAILING TO PROVIDE ALLCUSTOMERS THE BENEFIT OF SALES CHARGE DISCOUNTS. WACHOVIAFAILED TO ESTABLISH, MAINTAIN AND IMPLEMENT A SUPERVISORYSYSTEM AND WRITTEN SUPERVISORY PROCEDURES THAT WEREREASONABLY DESIGNED TO ENSURE THAT SALES CHARGE DISCOUNTSWERE CORRECTLY APPLIED AND PROVIDE SUBSTANTIVE GUIDELINES,INSTRUCTIONS, POLICIES AND PROCEDURES OR STEPS THATREPRESENTATIVES AND/OR MANAGERS WERE OBLIGATED TO TAKE ORPERFORM IN EFFECTING UIT PURCHASES FOR CUSTOMERS TODETERMINE IF THE PURCHASE QUALIFIED FOR A DISCOUNT AND/OR TOENSURE CUSTOMERS RECEIVED THE BENEFIT OF ANY APPLICABLESALES CHARGE DISCOUNT.
iReporting Source: Firm
Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 02/12/2009
Docket/Case Number: E9A2005013001
Principal Product Type: Mutual Fund(s)
Other Product Type(s):
Allegations: ALLEGATIONS THAT THE FIRM (1) MADE RECOMMENDATIONS THROUGHITS REGISTERED REPRESENTATIVES TO CUSTOMERS TO PURCHASECLASS B AND CLASS C MUTUAL FUND SHARES WHERE AN EQUALINVESTMENT IN CLASS A SHARES WOULD HAVE BEEN MOREADVANTAGEOUS FOR CERTAIN CLIENTS IN VIOLATION OF NASD RULE2310, (2) DID NOT PROVIDE CERTAIN ELIGIBLE CUSTOMERS WITH THEBENEFIT OF NAV TRANSFER PROGRAMS IN CONNECTION WITH MUTUALFUND PURCHASES AND SALES DISCOUNTS IN CONNECTION WITHPURCHASES OF UNIT INVESTMENT TRUSTS ("UIT") AND (3) FAILED TOESTABLISH, MAINTAIN AND ENFORCE SUPERVISORY SYSTEMS ANDPROCEDURES REASONABLY DESIGNED (A) TO PROVIDE CONSIDERATION,ON A CONSISTENT BASIS, OF THE BENEFITS OF VARIOUS MUTUAL FUNDCLASSES AS THEY APPLIED TO INDIVIDUAL CUSTOMERS, (B) TO IDENTIFYOPPORTUNITIES FOR INVESTORS TO PURCHASE MUTUAL FUNDS AT NAVAND (C) TO ENSURE THAT SALES CHARGE DISCOUNTS WERE APPLIED TOELIGIBLE UIT PURCHASES BY CUSTOMERS IN VIOLATION OF NASD RULES2110 AND 3010.
Current Status: Final
Resolution Date: 02/12/2009
Resolution:
Other Sanctions Ordered: UNDERTAKINGS THAT INCLUDE REMEDIATION TO CERTAIN CUSTOMERSWHO DURING THE PERIOD (A) FROM JANUARY 1, 2002 THROUGHDECEMBER 31, 2004, PURCHASED SHARES OF MUTUAL FUNDS ANDQUALIFIED FOR, BUT DID NOT RECEIVE, THE BENEFIT OF AN NAVTRANSFER PROGRAM AND (B) FROM JANUARY 1, 2003 THROUGH THENOTICE OF ACCEPTANCE OF THIS AWC, PURCHASED CLASS B AND CLASSC MUTUAL FUND SHARES.
Sanctions Ordered: CensureMonetary/Fine $4,410,000.00
Acceptance, Waiver & Consent(AWC)
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Other Sanctions Ordered: UNDERTAKINGS THAT INCLUDE REMEDIATION TO CERTAIN CUSTOMERSWHO DURING THE PERIOD (A) FROM JANUARY 1, 2002 THROUGHDECEMBER 31, 2004, PURCHASED SHARES OF MUTUAL FUNDS ANDQUALIFIED FOR, BUT DID NOT RECEIVE, THE BENEFIT OF AN NAVTRANSFER PROGRAM AND (B) FROM JANUARY 1, 2003 THROUGH THENOTICE OF ACCEPTANCE OF THIS AWC, PURCHASED CLASS B AND CLASSC MUTUAL FUND SHARES.
Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE SANCTIONS AS OUTLINE ABOVE. IN DETERMINING APPROPRIATESANCTIONS, FINRA CONSIDERED THE FIRM'S PROACTIVE REMEDIALACTIONS TAKEN UPON DURING ITS DISCOVERY OF -AND BEFORE FINRA'SINQUIRY INTO - CERTAIN VIOLATIVE CONDUCT. AFTER IDENTIFYINGFAILURES TO PROVIDE CERTAIN CUSTOMERS WITH NAV PRICING AND UITSALES DISCOUNTS, THE FIRM ACTED PROMPTLY AND IN GOOD FAITH TOREPAY CUSTOMERS APPROXIMATELY $5.4 MILLION AND CORRECT ITSSYSTEMS AND PROCEDURES.
Disclosure 110 of 158
i
Reporting Source: Regulator
Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 02/26/2008
Docket/Case Number: 20050001452-03
Principal Product Type: Other
Other Product Type(s): TRACE-ELIGIBLE SECURITIES
Allegations: NASD RULE 6230 - WACHOVIA SECURITIES, LLC FAILED TO REPORT TOTRACE THE CORRECT REPORTING MARKET PARTICIPANT IDENTIFIER(MPID) FOR TRANSACTIONS IN TRACE-ELIGIBLE SECURITIES.
Current Status: Final
Resolution Date: 02/26/2008
Resolution:
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Acceptance, Waiver & Consent(AWC)
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Other Sanctions Ordered:
Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS;THEREFORE, THE FIRM IS CENSURED AND FINED $7,500.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: CensureMonetary/Fine $7,500.00
iReporting Source: Firm
Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 02/26/2008
Docket/Case Number: 20050001452-03
Principal Product Type: Other
Other Product Type(s): TRACE-ELIGIBLE SECURITIES
Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM HASENTERED INTO AN ACCEPTANCE, WAIVER AND CONSENT WITH FINRACONCERNING CERTAIN FINDINGS REGARDING COMPLIANCE WITH TRADEREPORTING AND COMPLIANCE ENGINE (TRACE) RULES DURING THEPERIOD JULY 1, 2004 THROUGH SEPTEMBER 30, 2004. THESE FINDINGSINVOLVED FAILING TO REPORT THE CORRECT MPID IN TRACE-ELIGIBLESECURITIES. THE FIRM HAS CONSENTED TO A FINE OF $7,500.
Current Status: Final
Resolution Date: 02/26/2008
Resolution:
Other Sanctions Ordered:
Sanctions Ordered: CensureMonetary/Fine $7,500.00
Acceptance, Waiver & Consent(AWC)
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Other Sanctions Ordered:
Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE DESCRIBED SANCTION AND TO THE ENTRY OF FINDINGS; THEFIRM WAS FINED $7,500.
Disclosure 111 of 158
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Reporting Source: Regulator
Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 01/25/2008
Docket/Case Number: 20050032155-01
Principal Product Type: Other
Other Product Type(s): TRACE-ELIGIBLE SECURITIES
Allegations: NASD RULES 6230, 6230(A) - WACHOVIA SECURITIES FAILED TO REPORTTO THE TRADE REPORTING AND COMPLIANCE ENGINE(TRACE)TRANSACTIONS IN TRACE-ELIGIBLE SECURITIES EXECUTED ON ABUSINESS DAY DURING TRACE SYSTEM HOURS WITHIN 15 MINUTES OFTHE TIME OF EXECUTION; AND REPORTED TO TRACE TRANSACTIONS INTRACE-ELIGIBLE SECURITIES THAT IT WAS NOT REQUIRED TO REPORT.
Current Status: Final
Resolution Date: 01/25/2008
Resolution:
Other Sanctions Ordered:
Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE DESCRIBED SANCTION AND TO THE ENTRY OF FINDINGS;THEREFORE, THE FIRM IS FINED $5,000.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: Monetary/Fine $5,000.00
Acceptance, Waiver & Consent(AWC)
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WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE DESCRIBED SANCTION AND TO THE ENTRY OF FINDINGS;THEREFORE, THE FIRM IS FINED $5,000.
iReporting Source: Firm
Initiated By: FINRA
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 01/25/2008
Docket/Case Number: 20050032155-01
Principal Product Type: Other
Other Product Type(s): TRACE-ELIGIBLE SECURITIES
Allegations: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM HASENTERED INTO AN ACCEPTANCE, WAIVER AND CONSENT WITH FINRACONCERNING CERTAIN FINDINGS REGARDING COMPLIANCE WITH TRADEREPORTING AND COMPLIANCE ENGINE (TRACE) RULES DURING THEPERIOD JULY 1, 2005 THROUGH SEPTEMBER 30, 2005. THESE FINDINGSINVOLVED FAILING TO REPORT 1,434 TRANSACTIONS IN TRACE-ELIGIBLESECURITIES WITHIN 15 MINUTES OF TIME OF EXECUTION, AND OVER-REPORTING 4,008 TRANSACTIONS THAT WAS NOT REQUIRED TO BEREPORTED. THE FIRM HAS CONSENTED TO A FINE OF $5,000.
Current Status: Final
Resolution Date: 01/25/2008
Resolution:
Other Sanctions Ordered:
Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE DESCRIBED SANCTION AND TO THE ENTRY OF FINDINGS; THEFIRM WAS FINED $5,000.
Sanctions Ordered: Monetary/Fine $5,000.00
Acceptance, Waiver & Consent(AWC)
Disclosure 112 of 158
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Reporting Source: Regulator
Allegations: ORDER OF DISMISSAL PURSUANT TO SETTLEMENT AGREEMENT.WACHOVIA SECURITIES, LLC PAID A $50,000 MONETARY AMOUNT ANDAGREED TO TAKE CERTAIN REMEDIAL MEASURES. THE MATTER WASSETTLED WITHOUT ANY SANCTIONS AGAINST MS. WIEGAND.
Current Status: Final
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Initiated By: ILLINOIS
Principal Sanction(s)/ReliefSought:
Other
Other Sanction(s)/ReliefSought:
NOTICE OF HEARING
1) REVOCATION OR SUSPENSION OF SALESPERSON AND/OR DEALERREGISTRATION
2) ORDER OF PROHIBITION AGAINST OFFER AND SALE OF SECURITIES
3) $10,000 FINE PER VIOLATION
Date Initiated: 01/04/2008
Docket/Case Number: 0600669
URL for Regulatory Action:
Principal Product Type: Equity Listed (Common & Preferred Stock)
Other Product Type(s):
Allegations: ORDER OF DISMISSAL PURSUANT TO SETTLEMENT AGREEMENT.WACHOVIA SECURITIES, LLC PAID A $50,000 MONETARY AMOUNT ANDAGREED TO TAKE CERTAIN REMEDIAL MEASURES. THE MATTER WASSETTLED WITHOUT ANY SANCTIONS AGAINST MS. WIEGAND.
Resolution Date: 06/18/2009
Resolution:
Other Sanctions Ordered: UNDER TOOK CHANGES TO TRAINING AND COMPLIANCE RELATED TOPROHIBITED TRANSACTIONS UNDER ERISA
Sanction Details: ORDER OF DISMISSAL
Regulator Statement SECOND NOTICE OF HEARING WAS ISSUED JANUARY 4, 2008. THEHEARING IS SCHEDULED FOR APRIL 15, 2008. ORDER OF DISMISSAL WASISSUED JUNE 18, 2009. CONTACT (217) 785-4947
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: Monetary/Fine $50,000.00
Order
iReporting Source: Firm
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Initiated By: STATE OF ILLINOIS
Principal Sanction(s)/ReliefSought:
Other
Other Sanction(s)/ReliefSought:
Date Initiated: 05/18/2007
Docket/Case Number: 0600669
Principal Product Type: Equity Listed (Common & Preferred Stock)
Other Product Type(s):
Allegations: FAILURE TO SUPERVISE DECEPTIVE OR FRAUDULENT SECURITIESTRANSACTIONS. **AMENDED NOTICE OF HEARING SECURITIES FRAUD.ALLEGATIONS ADDED 1/4/2008 - AMENDED NOTICE OF HEARINGSECURITIES FRAUD 1) SUZANNE WIEGAND ENGAGED IN FRAUDULENTAND/OR DECEPTIVE SECURITIES TRANSACTIONS BY ACTING AS THESALESPERSON OR INVESTMENT ADVISOR REP FOR SEVERAL PENSIONFUND ACCOUNTS FOR WHICH HER FATHER WAS THE TRUSTEE AND WHODIRECTED TRANSACTIONS TO HER ACCOUNT FOR PURPOSES OFGENERALING COMMISSION 2) A.G. EDWARDS (NOT KNOW AS WACHOVIASECURITIES, LLC) KNEW OR SHOULD HAVE KNOWN OF THE ABOVEACTIVITIES AND FAILED TO TAKE REASONABLE SUPERVISORY STEPS TOPREVENT OR STOP THE ILLEGAL ACTIVITIES
Current Status: Final
Resolution Date: 06/18/2009
Resolution:
Other Sanctions Ordered: UNDER TOOK CHANGES TO TRAINING AND COMPLIANCE RELATED TOPROHIBITED TRANSACTIONS UNDER ERISA.
Sanction Details: ORDER OF DISMISSAL.
Firm Statement NOTICE OF HEARING WAS ISSUED MAY 18, 2007. AMENDED NOTICE OFHEARING WAS ISSUED OCTOBER 10, 2007. SECOND AMENDED NOTICE OFHEARING WAS ISSUED JANUARY 4, 2008. THE HEARING IS SCHEDULEDFOR APRIL 15, 2008. CONTACT (217) 785-4947
Sanctions Ordered: Monetary/Fine $50,000.00
Order
Disclosure 113 of 158
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Reporting Source: Regulator
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Initiated By: UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Principal Sanction(s)/ReliefSought:
Cease and Desist
Other Sanction(s)/ReliefSought:
Date Initiated: 09/19/2007
Docket/Case Number: SEC FILE 3-12805
Principal Product Type: Mutual Fund(s)
Other Product Type(s):
Allegations: SEC ADMIN RELEASES 34-56462, IA RELEASE 40-2648, IC RELEASE 40-27973, SEPTEMBER 19, 2007: THE UNITED STATES SECURITIES ANDEXCHANGE COMMISSION (THE COMMISSION) DEEMS IT APPROPRIATEAND IN THE PUBLIC INTEREST THAT ADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS BE, AND HEREBY ARE, INSTITUTED PURSUANT TOSECTIONS 15(B)(4), 17A(C)(3) AND 21C OF THE SECURITIES EXCHANGEACT OF 1934 ("EXCHANGE ACT"), SECTIONS 203(E) AND 203(K) OF THEINVESTMENT ADVISERS ACT OF 1940 (ADVISERS ACT), AND SECTIONS 9(B)AND 9(F) OF THE INVESTMENT COMPANY ACT OF 1940 (INVESTMENTCOMPANY ACT) AGAINST WACHOVIA SECURITIES, LLC (WACHOVIA). INANTICIPATION OF THE INSTITUTION OF THESE PROCEEDINGS, THERESPONDENT SUBMITTED AN OFFER OF SETTLEMENT (THE OFFER) THATTHE COMMISSION HAS DETERMINED TO ACCEPT. THE ORDER ISINSTITUTED AS TO WACHOVIA SECURITIES PURSUANT TO SECTION15(B)(4) OF THE EXCHANGE ACT AND SECTIONS 9(B) AND 9(F) OF THEINVESTMENT COMPANY ACT. THIS PROCEEDING CONCERNS VARIOUSVIOLATIONS OF THE FEDERAL SECURITIES LAWS COMMITTED INCONNECTION WITH THE CREATING AND/OR IMPLEMENTING TWO MARKETTIMING AGREEMENTS (AND THE ROLE OF WACHOVIA SECURITIES INCREATING AND/OR IMPLEMENTING ONE OF THOSE TWO AGREEMENTS)THAT PERMITTED, IN EACH CASE, A REGISTERED REPRESENTATIVE TOMAKE, ON BEHALF OF CERTAIN OF HIS CUSTOMERS, FREQUENT TRADESIN CERTAIN FUNDS IN EXCESS OF THE EXCHANGE LIMITS SET FORTH INTHE FUNDS' PROSPECTUSES.
Current Status: Final
Resolution Date: 09/19/2007
Resolution:
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Order
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Other Sanctions Ordered:
Sanction Details: SOLELY FOR THE PURPOSE OF THESE PROCEEDINGS AND ANY OTHERPROCEEDINGS BROUGHT BY OR ON BEHALF OF THE COMMISSION OR INWHICH THE COMMISSION IS A PARTY, AND WITHOUT ADMITTING ORDENYING THE FINDINGS, EXCEPT THOSE FINDINGS PERTAINING TO THEJURISDICTION OF THE COMMISSION OVER RESPONDENT AND THESUBJECT MATTER OF THESE PROCEEDINGS, WHICH ARE ADMITTED, THERESPONDENT CONSENTS TO THE ENTRY OF THIS ORDER INSTITUTINGADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS PURSUANT TOSECTIONS 15(B)(4), 17A(C)(3) AND 21C OF THE EXCHANGE ACT, SECTIONS203(E) AND 203(K) OF THE ADVISERS ACT, AND SECTIONS 9(B) AND 9(F) OFTHE INVESTMENT COMPANY ACT, MAKING FINDINGS, AND IMPOSINGREMEDIAL SANCTIONS AND A CEASE-AND-DESIST ORDER. WACHOVIASECURITIES WAS AFFILIATED WITH THE SMALL COMPANY GROWTH FUND,WILLFULLY VIOLATED SECTION 17(D) OF THE INVESTMENT COMPANY ACTAND RULE 17D-1 THEREUNDER. WACHOVIA SECURITIES FORMED A JOINTARRANGEMENT WITH AN AFFILIATED FUND. AS A RESULT, WACHOVIASECURITIES WILLFULLY VIOLATED SECTION 17(D) AND RULE 17D-1THEREUNDER. IT IS HEREBY ORDERED PURSUANT TO SECTION 15(B)(4)OF THE EXCHANGE ACT, WACHOVIA SECURITIES IS HEREBY CENSURED.PURSUANT TO SECTION 9(F) OF THE INVESTMENT COMPANY ACT,WACHOVIA SECURITIES SHALL CEASE AND DESIST FROM COMMITTING ORCAUSING ANY VIOLATIONS AND ANY FUTURE VIOLATIONS OF SECTION17(D) OF THE INVESTMENT COMPANY ACT AND RULE 17D-1 THEREUNDER.WITHIN 10 DAYS OF THE ENTRY OF THIS ORDER, WACHOVIA SECURITIESSHALL PAY DISGORGEMENT IN THE AMOUNT OF $1 AND, PURSUANT TOSECTIONS 9(B) AND 9(D) OF THE INVESTMENT COMPANY ACT, A CIVILPENALTY IN THE AMOUNT OF $500,000.THERE SHALL BE, PURSUANT TOSECTION 308(A) OF THE SARBANES-OXLEY ACT OF 2002, A FAIR FUNDESTABLISHED FOR THE FUNDS.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: CensureMonetary/Fine $500,000.00Disgorgement/RestitutionCease and Desist/Injunction
iReporting Source: Firm
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Initiated By: U.S. SECURITIES AND EXCHANGE COMMISSION
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
CENSURE,CEASE AND DESIST
Date Initiated: 09/19/2007
Docket/Case Number: ADMIN PROCEEDING FILE NO. 3-12805
Principal Product Type: Mutual Fund(s)
Other Product Type(s):
Allegations: THE FIRM AND AFFILIATES WERE ALLEGED TO HAVE ENTERED INTO ANAGREEMENT TO ALLOW A REGISTERED REPRESENTATIVE TO MARKETTIME IN A SPECIFIC EVERGREEN FUND IN EXCESS OF TRADING LIMITSSET FORTH IN THE FUNDS' PROSPECTUS.
Current Status: Final
Resolution Date: 09/19/2007
Resolution:
Other Sanctions Ordered:
Sanction Details: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, THE FIRM ENTEREDINTO AN AGREEMENT TO PAY DISGORGEMENT OF $1 AND CIVIL PENALTYOF $500,000, CENSURED, AND CEASE AND DESIST ANY FURTHERVIOLATIONS OF SECTION 17(D) OF THE INVESTMENT COMPANY ACT ANDRULE 17D-1.
Sanctions Ordered: CensureMonetary/Fine $500,000.00Disgorgement/RestitutionCease and Desist/Injunction
Decision & Order of Offer of Settlement
Disclosure 114 of 158
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Reporting Source: Regulator
Initiated By: NORTH DAKOTA SECURITIES DEPARTMENT
Allegations: WACHOVIA THROUGH ITS AGENT ROSS O. HAUGEN CONDUCTEDCOVERED CALL WRITING WHILE EXPOSING CLIENTS TO HIGHCONCENTRATIONS OF CERTAIN SECURITIES THAT WERE NOT SUITABLETO CLIENTS INVESTMENT OBJECTIVES AND RISK TEMPERAMENTS.WACHOVIA DID PROPERLY SUPERVISE ITS AGENT, HAUGEN.
Current Status: Final
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Initiated By: NORTH DAKOTA SECURITIES DEPARTMENT
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
RESTITUTION
Date Initiated: 06/19/2007
Docket/Case Number: 06-556
URL for Regulatory Action:
Principal Product Type: Options
Other Product Type(s):
Resolution Date: 06/19/2007
Resolution:
Other Sanctions Ordered:
Sanction Details: IMMEDIATE PAYMENT OF THE $75,000 PENALTY. WACHOVIA SHALLCONTACT SEVERAL IDENTIFIED CLIENTS TO AND RESOLVE THE SALESPRACTICE ISSUES THROUGH NORMAL RESOLUTION PROCESS. WACHOVIASHALL PROPERLY SUPERVISE THE ACTIVITIES OF ITS AGENTS IN ND.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: Monetary/Fine $75,000.00Disgorgement/Restitution
Decision & Order of Offer of Settlement
iReporting Source: Firm
Initiated By: NORTH DAKOTA SECURITIES COMMISSIONER
Date Initiated: 06/19/2007
Allegations: THE NORTH DAKOTA SECURITIES COMMISSIONER ALLEGED THAT, FROMDECEMBER 2001 TO JULY 2002, TWO PREDECESSORS TO WACHOVIASECURITIES, LLC (WSLLC) HAD FAILED TO SUPERVISE A FORMERREGISTERED REPRESENTATIVE IN CONNECTION WITH ALLEGEDLYUNSUITABLE TRADING IN OTC STOCKS AND OPTIONS IN THE ACCOUNTSOF SEVERAL CUSTOMERS.
Current Status: Final
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Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
UNDERTAKING
Date Initiated: 06/19/2007
Docket/Case Number: 06-556
Principal Product Type: Equity - OTC
Other Product Type(s):
Resolution Date: 06/19/2007
Resolution:
Other Sanctions Ordered: UNDERTAKING
Sanction Details: $75,000 PAID BY WSLLC. UNDERTAKING IS DESCRIBED IN RESPONSE TOQUESTION 13.
Firm Statement WSLLC AGREED TO CORRESPOND WITH CERTAIN FORMER CLIENTS ANDTO ADDRESS ANY COMPLAINTS THROUGH ITS NORMAL DISPUTERESOLUTION PROCESS.
Sanctions Ordered: Monetary/Fine $75,000.00Disgorgement/Restitution
Consent
Disclosure 115 of 158
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Reporting Source: Regulator
Allegations: NASD RULES 2110, 2210(D) AND 3010(A) AND (B): WACHOVIA SECURITIES,LLC (THE FIRM) OFFERED ITS CUSTOMERS A FEE-BASED BROKERAGEACCOUNT PROGRAM (THE PROGRAM) SINCE 1999. BETWEEN JANUARY 1,2001 AND DECEMBER 31, 2004 (THE REVIEW PERIOD), THE FIRM FAILED TOESTABLISH AND MAINTAIN AN ADEQUATE SUPERVISORY SYSTEM,INCLUDING WRITTEN PROCEDURES, REASONABLY DESIGNED TO REVIEWAND MONITOR THE FEE-BASED PROGRAM. WHILE THE FIRM INFORMEDITS BROKERS THAT THIS PROGRAM WAS NOT APPROPRIATE FORCUSTOMERS WHO MADE A LIMITED NUMBER OF TRADES, BUY-AND-HOLDCUSTOMERS, AND CUSTOMERS WITH SMALLER ACCOUNTS (ASSETSBELOW $50,000), THE FIRM'S SYSTEM AND PROCEDURES NEVERTHELESSWERE NOT REASONABLY DESIGNED TO DETERMINE WHETHER THEPROGRAM WAS APPROPRIATE FOR ITS CUSTOMERS. AS A RESULT OF THEFIRM'S SUPERVISORY DEFICIENCIES DURING THE REVIEW PERIOD, THEFIRM ALLOWED APPROXIMATELY 1,200 CUSTOMERS TO CONTINUE IN FEE-BASED ACCOUNTS WITHOUT ADEQUATELY REASSESSING WHETHER FEE-BASED ACCOUNTS REMAINED APPROPRIATE FOR THOSE CUSTOMERS.THESE CUSTOMERS EITHER CONDUCTED NO TRADES IN THEIR PROGRAMACCOUNTS FOR AT LEAST TWO CONSECUTIVE YEARS OR HAD PROGRAMACCOUNTS WHERE THE TOTAL VALUE OF THE ASSETS IN THE ACCOUNTSAVERAGED BELOW $25,000 FOR AT LEAST ONE FULL YEAR. DURING THEREVIEW PERIOD, APPROXIMATELY 594 CUSTOMERS CONDUCTED NOTRADES IN THE PROGRAM ACCOUNTS FOR AT LEAST TWO CONSECUTIVEYEARS AND PAID THE FIRM APPROXIMATELY $1.9 MILLION IN FEES DURINGTHE TIME WHEN THEIR ACCOUNTS WERE INACTIVE. IN ADDITION,APPROXIMATELY 620 CUSTOMERS HELD ASSETS BELOW $50,000 ANDAVERAGED LESS THAN $25,000 FOR AT LEAST ONE FULL YEAR DURINGTHE REVIEW PERIOD. DURING THE TIME THAT THESE CUSTOMERS'ELIGIBLE ASSETS AVERAGED BELOW $25,000 FOR AT LEAST ONE FULLYEAR, THEY PAID A TOTAL OF APPROXIMATELY $1 MILLION IN PROGRAMFEES. (ALLEGATIONS CONTINUED IN COMMENTS SECTION)
Current Status: Final
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Initiated By: NASD
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 06/21/2007
Docket/Case Number: EAF0400840001
Principal Product Type: Mutual Fund(s)
Other Product Type(s):
NASD RULES 2110, 2210(D) AND 3010(A) AND (B): WACHOVIA SECURITIES,LLC (THE FIRM) OFFERED ITS CUSTOMERS A FEE-BASED BROKERAGEACCOUNT PROGRAM (THE PROGRAM) SINCE 1999. BETWEEN JANUARY 1,2001 AND DECEMBER 31, 2004 (THE REVIEW PERIOD), THE FIRM FAILED TOESTABLISH AND MAINTAIN AN ADEQUATE SUPERVISORY SYSTEM,INCLUDING WRITTEN PROCEDURES, REASONABLY DESIGNED TO REVIEWAND MONITOR THE FEE-BASED PROGRAM. WHILE THE FIRM INFORMEDITS BROKERS THAT THIS PROGRAM WAS NOT APPROPRIATE FORCUSTOMERS WHO MADE A LIMITED NUMBER OF TRADES, BUY-AND-HOLDCUSTOMERS, AND CUSTOMERS WITH SMALLER ACCOUNTS (ASSETSBELOW $50,000), THE FIRM'S SYSTEM AND PROCEDURES NEVERTHELESSWERE NOT REASONABLY DESIGNED TO DETERMINE WHETHER THEPROGRAM WAS APPROPRIATE FOR ITS CUSTOMERS. AS A RESULT OF THEFIRM'S SUPERVISORY DEFICIENCIES DURING THE REVIEW PERIOD, THEFIRM ALLOWED APPROXIMATELY 1,200 CUSTOMERS TO CONTINUE IN FEE-BASED ACCOUNTS WITHOUT ADEQUATELY REASSESSING WHETHER FEE-BASED ACCOUNTS REMAINED APPROPRIATE FOR THOSE CUSTOMERS.THESE CUSTOMERS EITHER CONDUCTED NO TRADES IN THEIR PROGRAMACCOUNTS FOR AT LEAST TWO CONSECUTIVE YEARS OR HAD PROGRAMACCOUNTS WHERE THE TOTAL VALUE OF THE ASSETS IN THE ACCOUNTSAVERAGED BELOW $25,000 FOR AT LEAST ONE FULL YEAR. DURING THEREVIEW PERIOD, APPROXIMATELY 594 CUSTOMERS CONDUCTED NOTRADES IN THE PROGRAM ACCOUNTS FOR AT LEAST TWO CONSECUTIVEYEARS AND PAID THE FIRM APPROXIMATELY $1.9 MILLION IN FEES DURINGTHE TIME WHEN THEIR ACCOUNTS WERE INACTIVE. IN ADDITION,APPROXIMATELY 620 CUSTOMERS HELD ASSETS BELOW $50,000 ANDAVERAGED LESS THAN $25,000 FOR AT LEAST ONE FULL YEAR DURINGTHE REVIEW PERIOD. DURING THE TIME THAT THESE CUSTOMERS'ELIGIBLE ASSETS AVERAGED BELOW $25,000 FOR AT LEAST ONE FULLYEAR, THEY PAID A TOTAL OF APPROXIMATELY $1 MILLION IN PROGRAMFEES. (ALLEGATIONS CONTINUED IN COMMENTS SECTION)
Resolution Date: 06/21/2007
Resolution:
Other Sanctions Ordered: UNDERTAKINGS
Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS;THEREFORE THE FIRM IS CENSURED, FINED $2 MILLION AND AGREES TOCOMPLETE UNDERTAKINGS IN ORDER TO IDENTIFY AND PAY RESTITUTIONTO CUSTOMERS WHO WERE INAPPROPRIATELY ALLOWED TO CONTINUEIN THE FEE-BASED PROGRAM WHEN THEIR ACCOUNTS WERE NOTAPPROPRIATE FOR THEM AND/OR INAPPROPRIATELY CHARGED FEES ONA-SHARES FOR WHICH THEY HAD ALREADY PAID A SALES LOAD. THE FIRMMUST ALSO RETAIN AN OUTSIDE CONSULTANT TO EXAMINE AND REPORTTO NASD THE FIRM'S PERFORMANCE OF ITS OBLIGATIONS UNDER THETERMS OF THIS AWC INCLUDING THE FIRM'S METHODOLOGY ANDPROCESS USED, THE IDENTIFICATION OF CUSTOMERS AND CALCULATIONOF RESTITUTION AMOUNTS AND INTEREST.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: CensureMonetary/Fine $2,000,000.00Disgorgement/Restitution
Acceptance, Waiver & Consent(AWC)
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Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS;THEREFORE THE FIRM IS CENSURED, FINED $2 MILLION AND AGREES TOCOMPLETE UNDERTAKINGS IN ORDER TO IDENTIFY AND PAY RESTITUTIONTO CUSTOMERS WHO WERE INAPPROPRIATELY ALLOWED TO CONTINUEIN THE FEE-BASED PROGRAM WHEN THEIR ACCOUNTS WERE NOTAPPROPRIATE FOR THEM AND/OR INAPPROPRIATELY CHARGED FEES ONA-SHARES FOR WHICH THEY HAD ALREADY PAID A SALES LOAD. THE FIRMMUST ALSO RETAIN AN OUTSIDE CONSULTANT TO EXAMINE AND REPORTTO NASD THE FIRM'S PERFORMANCE OF ITS OBLIGATIONS UNDER THETERMS OF THIS AWC INCLUDING THE FIRM'S METHODOLOGY ANDPROCESS USED, THE IDENTIFICATION OF CUSTOMERS AND CALCULATIONOF RESTITUTION AMOUNTS AND INTEREST.
Regulator Statement (ALLEGATIONS CONTINUED) IN ADDITION, THE FIRM EXEMPTED HIGHPRODUCING BROKERS FROM SOME OF THE FIRM'S REVIEW ANDAPPROVAL PROCESSES. CONSEQUENTLY, THESE BROKERS WERE ABLETO OPEN ACCOUNTS FOR CERTAIN CUSTOMERS FOR WHOM FEE-BASEDACCOUNTS MAY NOT HAVE BEEN APPROPRIATE, INCLUDING INACTIVEACCOUNTS AND CUSTOMERS WHOSE ASSETS WERE BELOW THE FIRM'SSTATED $50,000 MINIMUM. THE FIRM ALSO FAILED TO REASONABLYENFORCE ITS WRITTEN PROCEDURES DESIGNED TO PROTECT PROGRAMCUSTOMERS FROM BEING ASSESSED DOUBLE FEES ON THE PURCHASEOF CLASS A SHARES OF MUTUAL FUNDS THAT CARRIED AN UP-FRONTSALES CHARGE; THAT IS PAYING A SALES LOAD, THEN THE ASSET BASEDFEE ON TOP OF THE LOAD. THE FIRM MADE AN INACCURATE MATERIALSTATEMENT IN ITS COMMUNICATION WITH THE PUBLIC IN THAT ITPROVIDED ITS BROKERS WITH A PIECE OF SALES LITERATURE RELATINGTO THE PROGRAM THAT BROKERS COULD USE WITH THEIR CUSTOMERS.THE SALES LITERATURE REFERRED TO THE PROGRAM AS A MONITOREDBROKERAGE ACCOUNT," BUT INACCURATELY STATED IN FOOTNOTE THATTHE PROGRAM WAS A "FEE-BASED, INVESTMENT ADVISORY SERVICEPROVIDED BY THE FIRM.
iReporting Source: Firm
Initiated By: NASD
Allegations: FOR THE PERIOD JANUARY 1, 2001 THROUGH DECEMBER 31, 2004,WACHOVIA SECURITIES, LLC CONSENTED TO, WITHOUT ADMITTING ORDENYING THE FINDINGS, VIOLATIONS OF NASD RULES 3010, 2110 AND2210(D) FOR FAILURE TO SUPERVISOR IN CONNECTION WITH ITS FEE INLIEU OF COMMISSION ACCOUNTS (PILOT PLUS ACCOUNTS) BASED ONLOW ACTIVITY, OPENING ACCOUNTS BELOW STATED MINIMUMS ANDDISTRIBUTING A PIECE OF SALES LITERATURE THAT INACCURATELYSTATED THAT PILOT PLUS WAS A FEE BASED ADVISORY ACCOUNT.
Current Status: Final
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Initiated By: NASD
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
CENSURE AND REMEDIATION TO CLIENTS
Date Initiated: 12/13/2004
Docket/Case Number: AWC# EAF0400840001
Principal Product Type: Other
Other Product Type(s): FEE OF LIEW OF COMMISSION ACCOUNTS
Resolution Date: 06/21/2007
Resolution:
Other Sanctions Ordered: REMEDIATION ON THE FOLLOWING TERMS:
1. REMEDIATE TO CLIENTS WHOSE PILOT PLUS ACCOUNTS WEREINACTIVE FOR TWO CONSECUTIVE YEARS OR MORE, ALL PILOT PLUSFEES CHARGED AFTER THE FIRST YEAR OF INACTIVITY;2. REMEDIATE TO CLIENTS WITH PILOT PLUS ACCOUNTS WITHASSETS LESS THAN THE REQUIRED $50,000 MINIMUM, THE DIFFERENCEBETWEEN THE $1,000 MINIMUM ANNUAL FEE AND A FEE EQUAL TO 2% OFTHE ASSETS WITH AVERAGE BALANCES, FOR FOUR CONSECUTIVEQUARTERS, BELOW $25,0003. REMEDIATE TO CLIENTS WHO PURCHASED LOADED CLASS AMUTUAL FUNDS AND TRANSFERRED THOSE ASSETS INTO A PILOT PLUSACCOUNT WITHIN 13 MONTHS OF THE PURCHASE, THE FEES CHARGEDON THAT ASSET THROUGH THE END OF THE THIRTEENTH MONTH;4. PAY CLIENTS INTEREST AT THE PROSCRIBED IRS RATE FROM THEDATE OF THE REQUIRED REMEDIATION THROUGH THE DATE OFACCEPTANCE OF THE AWC;5. RETAIN AND OUTSIDE CONSULTANT TO VERIFY THAT ALL OF THEAPPROPRIATE CLIENTS WERE IDENIFIED AND THE REMEDIATION WASDONE ACCORDANCE WITH THE TERMS OF THE AWC.
Sanction Details: REMEDIATION ON THE FOLLOWING TERMS:
1. REMEDIATE TO CLIENTS WHOSE PILOT PLUS ACCOUNTS WEREINACTIVE FOR TWO CONSECUTIVE YEARS OR MORE, ALL PILOT PLUSFEES CHARGED AFTER THE FIRST YEAR OF INACTIVITY;2. REMEDIATE TO CLIENTS WITH PILOT PLUS ACCOUNTS WITHASSETS LESS THAN THE REQUIRED $50,000 MINIMUM, THE DIFFERENCEBETWEEN THE $1,000 MINIMUM ANNUAL FEE AND A FEE EQUAL TO 2% OFTHE ASSETS WITH AVERAGE BALANCES, FOR FOUR CONSECUTIVEQUARTERS, BELOW $25,0003. REMEDIATE TO CLIENTS WHO PURCHASED LOADED CLASS AMUTUAL FUNDS AND TRANSFERRED THOSE ASSETS INTO A PILOT PLUSACCOUNT WITHIN 13 MONTHS OF THE PURCHASE, THE FEES CHARGEDON THAT ASSET THROUGH THE END OF THE THIRTEENTH MONTH;4. PAY CLIENTS INTEREST AT THE PROSCRIBED IRS RATE FROM THEDATE OF THE REQUIRED REMEDIATION THROUGH THE DATE OFACCEPTANCE OF THE AWC;5. RETAIN AND OUTSIDE CONSULTANT TO VERIFY THAT ALL OF THEAPPROPRIATE CLIENTS WERE IDENIFIED AND THE REMEDIATION WASDONE ACCORDANCE WITH THE TERMS OF THE AWC.
Sanctions Ordered: CensureMonetary/Fine $2,000,000.00Disgorgement/Restitution
Acceptance, Waiver & Consent(AWC)
230©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User GuidanceREMEDIATION ON THE FOLLOWING TERMS:
1. REMEDIATE TO CLIENTS WHOSE PILOT PLUS ACCOUNTS WEREINACTIVE FOR TWO CONSECUTIVE YEARS OR MORE, ALL PILOT PLUSFEES CHARGED AFTER THE FIRST YEAR OF INACTIVITY;2. REMEDIATE TO CLIENTS WITH PILOT PLUS ACCOUNTS WITHASSETS LESS THAN THE REQUIRED $50,000 MINIMUM, THE DIFFERENCEBETWEEN THE $1,000 MINIMUM ANNUAL FEE AND A FEE EQUAL TO 2% OFTHE ASSETS WITH AVERAGE BALANCES, FOR FOUR CONSECUTIVEQUARTERS, BELOW $25,0003. REMEDIATE TO CLIENTS WHO PURCHASED LOADED CLASS AMUTUAL FUNDS AND TRANSFERRED THOSE ASSETS INTO A PILOT PLUSACCOUNT WITHIN 13 MONTHS OF THE PURCHASE, THE FEES CHARGEDON THAT ASSET THROUGH THE END OF THE THIRTEENTH MONTH;4. PAY CLIENTS INTEREST AT THE PROSCRIBED IRS RATE FROM THEDATE OF THE REQUIRED REMEDIATION THROUGH THE DATE OFACCEPTANCE OF THE AWC;5. RETAIN AND OUTSIDE CONSULTANT TO VERIFY THAT ALL OF THEAPPROPRIATE CLIENTS WERE IDENIFIED AND THE REMEDIATION WASDONE ACCORDANCE WITH THE TERMS OF THE AWC.
Firm Statement WITHIN 180 DAYS OF THE ACCEPTANCE OF THE AWC, IDENTIFY ALLCUSTOMERS ENTITLED TO REMEDIATION AND, WITHIN 195 DAYS OFACCEPTANCE, REPORT TO THE NASD. WITHIN 315 DAYS OF THEACCEPTANCE OF THE ORDER, REMEDIATE TO CLIENTS WITH INTEREST.
Disclosure 116 of 158
i
Reporting Source: Regulator
Initiated By: NEW YORK STOCK EXCHANGE DIVISION OF ENFORCEMENT
Date Initiated: 05/30/2007
Docket/Case Number: HBD# 07-90
Allegations: **5/30/07** STIPULATION AND CONSENT TO PENALTY FILED BY NYSEREGULATION, INC. DIVISION OF ENFORCEMENT AND PENDING.CONSENTED TO FINDINGS: A. FINDINGS BY A HEARING PANEL OR AHEARING OFFICER ACTING ALONE THAT, FROM MARCH 2001 THROUGHJUNE 2005, THE FIRM VIOLATED NYSE RULE 345A, IN THAT IT PERMITTEDREGISTERED REPRESENTATIVES WITH INACTIVE REGISTRATIONS TOPERFORM DUTIES AND FUNCTIONS WHICH REQUIRED REGISTRATION. B.FINDINGS BY THE HEARING PANEL OR A HEARING OFFICER ACTING ALONETHAT, FROM MARCH 2001 THROUGH JUNE 2005, THE FIRM VIOLATED NYSERULE 342, IN THAT IT FAILED TO PROVIDE FOR, ESTABLISH AND MAINTAINADEQUATE SUPERVISORY PROCEDURES AND CONTROLS, INCLUDING ASYSTEM OF FOLLOW-UP AND REVIEW OF ITS BUSINESS ACTIVITIESRELATING TO COMPLIANCE WITH CONTINUING EDUCATION TRAININGREQUIREMENTS BY FIRM REGISTERED REPRESENTATIVES. C. THEIMPOSITION OF A CENSURE AND A FINE OF $90,000.
Current Status: Final
231©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Principal Product Type: Other
Other Product Type(s):
Resolution Date: 07/17/2007
Resolution:
Other Sanctions Ordered:
Sanction Details: **6/18/07** 07-90 ISSUED BY THE HEARING BOARD DECISION:1. VIOLATED NYSE RULE 345A BY PERMITTING REGISTEREDREPRESENTATIVES WITH INACTIVE REGISTRATIONS TO PERFORM DUTIESAND FUNCTIONS WHICH REQUIRED REGISTRATION; AND2. VIOLATED NYSE RULE 342 BY FAILING TO PROVIDE FOR, ESTABLISH ANDMAINTAIN ADEQUATE SUPERVISORY PROCEDURES AND CONTROLS,INCLUDING A SYSTEM OF FOLLOW-UP AND REVIEW OF BUSINESSACTIVITIES RELATING TO COMPLIANCE WITH CONTINUING EDUCATIONTRAINING REQUIREMENTS BY REGISTERED REPRESENTATIVES. THEHEARING BOARD IMPOSED A PENALTY OF A CENSURE AND $90,000 FINE.
Regulator Statement **7/17/07** THE DECISION BECAME FINAL AS OF THE CLOSE OF BUSINESSON JULY 13, 2007. CONTACT: PEGGY GERMINO 212-656-8450.
Sanctions Ordered: CensureMonetary/Fine $90,000.00
Decision
iReporting Source: Firm
Allegations: ON JUNE 18 2007, AN NYSE HEARING OFFICER ACCEPTED "THESTIPULATION OF FACTS AND CONSENT TO PENALTY" ENTERED INTOBETWEEN NYSE REGULATION AND WACHOVIA SECURITIES LLC , WHEREINWACHOVIA SECURITIES, LLC, WITHOUT ADMITTING OR DENYING GUILT,CONSENTED TO: (I) A FINDING THAT IT VIOLATED NYSE RULE 345A BYPERMITTING REGISTERED REPRESENTATIVES WITH INACTIVEREGISTRATIONS DUE TO CONTINUING EDUCATION REQUIREMENTS TOPERFORM DUTIES AND FUNCTIONS WHICH REQUIRED REGISTRATION ANDVIOLATED NYSE RULE 342 BY FAILING TO PROVIDE FOR , ESTABLISH ANDMAINTAIN ADEQUATE SUPERVISORY PROCEDURES AND CONTROLS,INCLUDING A SYSTEM OF FOLLOW-UP AND REVIEW OF BUSINESSACTIVITIES RELATING TO COMPLIANCE WITH CONTINUING EDUCATIONTRAINING REQUIREMENTS BY REGISTERED REPRESENTATIVES; AND, (II)THE PENALTY OF A CENSURE AND A $90,000. FINE.
IF NO REVIEW IS REQUESTED BY A MEMBER OF THE NYSE ENTITIESIDENTIFIED IN NYSE RULE 476(G), THE DECISION WILL BECOME FINAL ATTHE CLOSE OF BUSINESS ON JULY 13, 2007.
Current Status: Final
232©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Initiated By: NEW YORK STOCK EXCHANGE DIVISION OF ENFORCEMENT
Principal Sanction(s)/ReliefSought:
Censure
Other Sanction(s)/ReliefSought:
FINE OF $90,000.
Date Initiated: 05/30/2007
Docket/Case Number: HBD# 07-90
Principal Product Type: No Product
Other Product Type(s):
ON JUNE 18 2007, AN NYSE HEARING OFFICER ACCEPTED "THESTIPULATION OF FACTS AND CONSENT TO PENALTY" ENTERED INTOBETWEEN NYSE REGULATION AND WACHOVIA SECURITIES LLC , WHEREINWACHOVIA SECURITIES, LLC, WITHOUT ADMITTING OR DENYING GUILT,CONSENTED TO: (I) A FINDING THAT IT VIOLATED NYSE RULE 345A BYPERMITTING REGISTERED REPRESENTATIVES WITH INACTIVEREGISTRATIONS DUE TO CONTINUING EDUCATION REQUIREMENTS TOPERFORM DUTIES AND FUNCTIONS WHICH REQUIRED REGISTRATION ANDVIOLATED NYSE RULE 342 BY FAILING TO PROVIDE FOR , ESTABLISH ANDMAINTAIN ADEQUATE SUPERVISORY PROCEDURES AND CONTROLS,INCLUDING A SYSTEM OF FOLLOW-UP AND REVIEW OF BUSINESSACTIVITIES RELATING TO COMPLIANCE WITH CONTINUING EDUCATIONTRAINING REQUIREMENTS BY REGISTERED REPRESENTATIVES; AND, (II)THE PENALTY OF A CENSURE AND A $90,000. FINE.
IF NO REVIEW IS REQUESTED BY A MEMBER OF THE NYSE ENTITIESIDENTIFIED IN NYSE RULE 476(G), THE DECISION WILL BECOME FINAL ATTHE CLOSE OF BUSINESS ON JULY 13, 2007.
Resolution Date: 06/18/2007
Resolution:
Other Sanctions Ordered:
Sanction Details: WITHOUT ADMITTING OR DENYING GUILT, CONSENTED TO THE PENALTYOF A CENSURE AND A $90,000. FINE.
Sanctions Ordered: CensureMonetary/Fine $90,000.00
Stipulation and Consent
Disclosure 117 of 158
i
Reporting Source: Regulator
Initiated By: NASD
Date Initiated: 02/26/2007
Docket/Case Number: E8A2003062017
Allegations: NASD RULES 2110, 2830(L)(4) - WACHOVIA SECURITIES, LLC RECEIVED$33,856.35 IN SPECIAL CASH COMPENSATION FOR THE SALE OF SHARESOF PARTICULAR MUTUAL FUNDS DURING AN IRA PROMOTION THAT WASNOT AVAILABLE TO ALL WHO DISTRIBUTED THE MUTUAL FUNDS AND THEDETAILS OF THE ARANGEMENT WERE NOT PROPERLY DISCLOSED IN THEPROSPECTUS OR STATEMENTS OF ADDITIONAL INFORMATION FOR THEMUTUAL FUNDS.
Current Status: Final
233©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Docket/Case Number: E8A2003062017
Principal Product Type: Mutual Fund(s)
Other Product Type(s):
Resolution Date: 02/26/2007
Resolution:
Other Sanctions Ordered:
Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS;THEREFORE, THE FIRM IS CENSURED AND FINED $25,000.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: CensureMonetary/Fine $25,000.00
Acceptance, Waiver & Consent(AWC)
iReporting Source: Firm
Initiated By: NASD
Date Initiated: 02/26/2007
Docket/Case Number: AWC #E8A2003062017
Principal Product Type: Mutual Fund(s)
Other Product Type(s):
Allegations: THE FIRM WAS ALLEGED TO HAVE VIOLATED NASD RULES 2110, 2830(L)(4)IN RECEIVING SPECIAL COMPENSATION FOR SHARES SOLD IN APARTICULAR MUTUAL FUND DURING AN IRA PROMOTION THAT WAS NOTAVAILABLE TO ALL WHO DISTRIBUTED THE MUTUAL FUND AND THEARRANGEMENT WAS NOT PROPERLY DISCLOSED IN THE PROSPECTUSOR STATEMENTS OF ADDITIONAL INFORMATION FOR THE MUTUAL FUNDS.
Current Status: Final
234©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
CENSURE
Other Product Type(s):
Resolution Date: 02/26/2007
Resolution:
Other Sanctions Ordered:
Sanction Details: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, THE FIRMCONSENTED TO THE CENSURE AND FINE OF $25,000.
Sanctions Ordered: CensureMonetary/Fine $25,000.00
Acceptance, Waiver & Consent(AWC)
Disclosure 118 of 158
i
Reporting Source: Regulator
Initiated By: NEW YORK STOCK EXCHANGE DIVISION OF ENFORCEMENT
Date Initiated: 02/12/2007
Allegations: **2/14/07**STIPULATION AND CONSENT TO PENALTY FILED BY NYSEREGULATION DIVISION OF ENFORCEMENT AND PENDING.CONSENTED TOFINDINGS (WITHOUT ADMITTING OR DENYING GUILT):1.VIOLATEDEXCHANGE ACT RULE 15C3-1(C)(2) IN THAT IT INCORRECTLY CALCULATEDITS REQUIRED NET CAPITAL COMPUTATION BY MISCLASSIFYINGASSETS;2.VIOLATED EXCHANGE ACT RULE 17A-5 IN THAT IT FILED ANINACCURATE FINANCIAL AND OPERATIONAL COMBINED UNIFORM SINGLEREPORT ("FOCUS REPORT") WITH THE NYSE;3.VIOLATED EXCHANGE ACTRULE 15C3-3 IN THAT IT IMPROPERLY COMPUTED ITS CUSTOMERRESERVE FORMULA REQUIREMENTS;4.VIOLATED EXCHANGE ACT RULE17A-3 AND NYSE RULE 440 IN THAT IT FAILED TO MAINTAIN BOOKS ANDRECORDS REGARDING ITS ACCOUNTS NECESSARY FOR COMPUTATIONOF ITS NET CAPITAL AND CUSTOMER RESERVE FORMULAREQUIREMENTS; 5.VIOLATED NYSE RULE 440.20 IN THAT IT DID NOTMAINTAIN PROPER RECORDS IDENTIFYING SUSPENSE ACCOUNTS ANDDID NOT HAVE PROCEDURES IN PLACE FOR SUPERVISORY REVIEW OFSUSPENSE ACCOUNTS; AND 6.VIOLATED NYSE RULES 342(A) AND (B) INTHAT IT FAILED TO PROVIDE FOR APPROPRIATE PROCEDURES OFSUPERVISION AND CONTROL AND TO ESTABLISH A SYSTEM OF FOLLOW-UP AND REVIEW TO PREVENT THE FOREGOING VIOLATIONS.STIPULATED SANCTION:CENSURE AND $100,000 FINE.
Current Status: Final
235©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 02/12/2007
Docket/Case Number: HBD# 07-34
Principal Product Type: Other
Other Product Type(s):
Resolution Date: 04/17/2007
Resolution:
Other Sanctions Ordered:
Sanction Details: **3/12/07** DECISION 07-34 ISSUED BY THE HEARING BOARDDECISION: VIOLATED EXCHANGE ACT RULE15C3-1(C)(2) IN THAT ITINCORRECTLY CALCULATED ITS REQUIRED NET CAPITAL COMPUTATIONBY MISCLASSIFYING ASSETS; VIOLATED EXCHANGE ACT RULE 17A-5 INTHAT IT FILED AN INACCURATE FOCUS REPORT WITH THE NYSE;VIOLATED EXCHANGE ACT RULE 15C3-3 IN THAT IT IMPROPERLYCOMPUTING CUSTOMER RESERVE FORMULA REQUIREMENTS; VIOLATEDEXCHANGE ACT RULE 17A-3 AND NYSE RULE 440 IN THAT IT FAILED TOMAINTAIN BOOKS AND RECORDS REGARDING ACCOUNTS NECESSARYFOR COMPUTATION OF ITS NET CAPITAL AND CUSTOMER RESERVEFORMULA REQUIREMENTS;VIOLATED NYSE RULE 440.20 IN THAT IT DIDNOT MAINTAIN PROPER RECORDS IDENTIFYING SUSPENSE ACCOUNTSAND DID NOT HAVE PROCEDURES IN PLACE FOR SUPERVISORY REVIEWOF SUSPENSE ACCOUNTS; VIOLATED NYSE RULES 342(A) AND (B)IN THATIT FAILED TO PROVIDE FOR APPROPRIATE PROCEDURES OFSUPERVISION AND CONTROL AND TO ESTABLISH A SYSTEM OF FOLLOW-UP AND REVIEW TO PREVENT THE FOREGOING VIOLATIONS - CONSENTEDTO A CENSURE AND $100,000 FINE.
Regulator Statement **4/17/07** THE DECISION BECAME FINAL AS OF THE CLOSE OF BUSINESSON APRIL 6, 2007. CONTACT: PEGGY GERMINO 212-656-8450.
Sanctions Ordered: CensureMonetary/Fine $100,000.00
Decision
iReporting Source: Firm
Allegations: WITHOUT ADMITTING OR DENYING GUILT, THE FIRM HAS ENTERED INTO ASTIPULATION OF FACT AND CONSENT TO PENALTY WITH THE NEW YORKSTOCK EXCHANGE DIVISION OF ENFORCEMENT CONCERNING CERTAINFINDINGS MADE DURING THE FIRM'S 2004 FINANCIAL AND OPERATIONALEXAM. THESE FINDINGS INVOLVED OVERSTATING EXCESS NET CAPITALAS OF SEPTEMBER 30, 2004 AND OVERSTATING EXCESS CUSTOMERDEBITS IN ITS CUSTOMER RESERVE FORMULA AS OF SEPTEMBER 30,2004. ADDITIONAL FINDINGS INCLUDED FAILING TO ADEQUATELYSUPERVISE IN CONNECTION WITH THE FOREGOING AND INADEQUATEINTERNAL CONTROLS IN CONNECTION WITH THE CALCULATION ANDDOCUMENTATION OF ITS NET CAPITAL AND CUSTOMER RESERVEREQUIREMENTS. THE FIRM HAS CONSENTED TO A CENSURE AND$100,000 FINE.
Current Status: Final
236©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Initiated By: NEW YORK STOCK EXCHANGE, INC., DIVISION OF ENFORCEMENT
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
CENSURE
Date Initiated: 02/12/2007
Docket/Case Number: HBD# 07-034
Principal Product Type: No Product
Other Product Type(s):
Allegations: WITHOUT ADMITTING OR DENYING GUILT, THE FIRM HAS ENTERED INTO ASTIPULATION OF FACT AND CONSENT TO PENALTY WITH THE NEW YORKSTOCK EXCHANGE DIVISION OF ENFORCEMENT CONCERNING CERTAINFINDINGS MADE DURING THE FIRM'S 2004 FINANCIAL AND OPERATIONALEXAM. THESE FINDINGS INVOLVED OVERSTATING EXCESS NET CAPITALAS OF SEPTEMBER 30, 2004 AND OVERSTATING EXCESS CUSTOMERDEBITS IN ITS CUSTOMER RESERVE FORMULA AS OF SEPTEMBER 30,2004. ADDITIONAL FINDINGS INCLUDED FAILING TO ADEQUATELYSUPERVISE IN CONNECTION WITH THE FOREGOING AND INADEQUATEINTERNAL CONTROLS IN CONNECTION WITH THE CALCULATION ANDDOCUMENTATION OF ITS NET CAPITAL AND CUSTOMER RESERVEREQUIREMENTS. THE FIRM HAS CONSENTED TO A CENSURE AND$100,000 FINE.
Resolution Date: 04/06/2007
Resolution:
Other Sanctions Ordered:
Sanction Details: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, THE FIRMCONSENTED TO A CENSURE AND FINE OF $100,000.
Sanctions Ordered: CensureMonetary/Fine $100,000.00
Stipulation and Consent
Disclosure 119 of 158
i
Reporting Source: Regulator
Allegations: NASD RULES 2110, 3010 - WACHOVIA SECURITIES, LLC FAILED TOESTABLISH AND MAINTAIN A SYSTEM TO SUPERVISE THE ACTIVITIES OF AREGISTERED REPRESENTATIVE REASONABLY DESIGNED TO ACHIEVECOMPLIANCE WITH APPLICABLE SECURITIES LAWS, REGULATIONS ANDNASD RULES; ALTHOUGH THE FIRM HAD PROCEDURES REQUIRINGSUPERVISORY REVIEW OF INCOMING/OUTGOING MAIL AND PROHIBITEDTHE RECEIPT OF PERSONAL MAIL AT THE BRANCH OFFICE, THE FIRMFAILED TO REVIEW CORRESPONDENCE; FAILED TO FOLLOW UP ON "REDFLAGS" INDICATING POSSIBLE MISCONDUCT BY THE REPRESENTATIVEREGARDING A FICTITIOUS ENTITY OPERATING AS A PONZI SCHEME;FAILED TO VERIFY THE REPRESENTATIVE'S EXPLANATION OF AN OUTSIDEBUSINESS ACTIVITY; FAILED TO CONTACT CUSTOMERS REGARDING FUNDRECEIVED FROM THE REPRESENTATIVE, DID NOT REVIEW BANKSTATEMENTS THAT WOULD HAVE REVEALED ADDITIONAL PERIODICPAYMENTS TO CUSTOMERS, DID NOT ASK THE REPRESENTATIVE FOR THENAME OF A CONTACT WITHIN THE OUTSIDE BUSINESS ENTITY TO VERIFYFINANCIAL ARRANGEMENTS AND DID NOT REVIEW THEREPRESENTATIVE'S CUSTOMER ACCOUNTS TO SEE IF THE CUSTOMERSHAD WRITTEN CHECKS TO THE ENTITY.
Current Status: Final
237©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Initiated By: NASD
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 12/20/2006
Docket/Case Number: 2005001720503
Principal Product Type: No Product
Other Product Type(s):
NASD RULES 2110, 3010 - WACHOVIA SECURITIES, LLC FAILED TOESTABLISH AND MAINTAIN A SYSTEM TO SUPERVISE THE ACTIVITIES OF AREGISTERED REPRESENTATIVE REASONABLY DESIGNED TO ACHIEVECOMPLIANCE WITH APPLICABLE SECURITIES LAWS, REGULATIONS ANDNASD RULES; ALTHOUGH THE FIRM HAD PROCEDURES REQUIRINGSUPERVISORY REVIEW OF INCOMING/OUTGOING MAIL AND PROHIBITEDTHE RECEIPT OF PERSONAL MAIL AT THE BRANCH OFFICE, THE FIRMFAILED TO REVIEW CORRESPONDENCE; FAILED TO FOLLOW UP ON "REDFLAGS" INDICATING POSSIBLE MISCONDUCT BY THE REPRESENTATIVEREGARDING A FICTITIOUS ENTITY OPERATING AS A PONZI SCHEME;FAILED TO VERIFY THE REPRESENTATIVE'S EXPLANATION OF AN OUTSIDEBUSINESS ACTIVITY; FAILED TO CONTACT CUSTOMERS REGARDING FUNDRECEIVED FROM THE REPRESENTATIVE, DID NOT REVIEW BANKSTATEMENTS THAT WOULD HAVE REVEALED ADDITIONAL PERIODICPAYMENTS TO CUSTOMERS, DID NOT ASK THE REPRESENTATIVE FOR THENAME OF A CONTACT WITHIN THE OUTSIDE BUSINESS ENTITY TO VERIFYFINANCIAL ARRANGEMENTS AND DID NOT REVIEW THEREPRESENTATIVE'S CUSTOMER ACCOUNTS TO SEE IF THE CUSTOMERSHAD WRITTEN CHECKS TO THE ENTITY.
Resolution Date: 12/20/2006
Resolution:
Other Sanctions Ordered:
Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, THE FIRM CONSENTEDTO THE DESCRIBED SANCTIONS AND TO THE ENTRY OF FINDINGS;THEREFORE, THE FIRM IS CENSURED AND FINED $50,000.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: CensureMonetary/Fine $50,000.00
Acceptance, Waiver & Consent(AWC)
238©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
iReporting Source: Firm
Initiated By: NASD, DEPARTMENT OF ENFORCEMENT
Principal Sanction(s)/ReliefSought:
Censure
Other Sanction(s)/ReliefSought:
MONETARY FINE
Date Initiated: 12/18/2006
Docket/Case Number: AWC NO. 2005001720503
Principal Product Type: No Product
Other Product Type(s):
Allegations: DUE TO THE MISCONDUCT OF A REGISTERED REPRESENTATIVE, THEFIRM WAS ALLEGED TO HAVE VIOLATED NASD CONDUCT RULES 2110 AND3010 IN REGARDS TO THE SUPERVISION OF CERTAIN ACTIVITIES OF THISREGISTERED REPRESENTATIVE.
Current Status: Final
Resolution Date: 12/18/2006
Resolution:
Other Sanctions Ordered:
Sanction Details: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, THE FIRM AGREEDTO A CENSURE AND FINE OF $50,000.
Sanctions Ordered: CensureMonetary/Fine $50,000.00
Acceptance, Waiver & Consent(AWC)
Disclosure 120 of 158
i
Reporting Source: Regulator
Allegations: **8/25/06** STIPULATION AND CONSENT TO PENALTY FILED BY NYSEREGULATION, INC. DIVISION OF ENFORCEMENT AND PENDING.CONSENTED TO FINDING: A FINDING BY THE HEARING PANEL THATWACHOVIA VIOLATED NYSE RULE 342(A) AND (B) BY FAILING TO PROVIDEFOR, ESTABLISH AND MAINTAIN ADEQUATE PROCEDURES AND CONTROLSFOR CERTAIN ACTIVITIES AT ITS BANK-AFFILIATE WHICH AFFECTCOMMAND ASSET PROGRAM ACCOUNTS, INCLUDING A SYSTEM OFFOLLOW-UP AND REVIEW OF ITS BUSINESS ACTIVITIES RELATING TOCHANGES OF CUSTOMER ADDRESS. THE IMPOSITION BY THE EXCHANGEOF THE PENALTY OF A CENSURE AND A FINE OF $300,000.
Current Status: Final
239©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Initiated By: NEW YORK STOCK EXCHANGE DIVISION OF ENFORCEMENT
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 08/25/2006
Docket/Case Number: HDB# 06-172
Principal Product Type: Other
Other Product Type(s):
**8/25/06** STIPULATION AND CONSENT TO PENALTY FILED BY NYSEREGULATION, INC. DIVISION OF ENFORCEMENT AND PENDING.CONSENTED TO FINDING: A FINDING BY THE HEARING PANEL THATWACHOVIA VIOLATED NYSE RULE 342(A) AND (B) BY FAILING TO PROVIDEFOR, ESTABLISH AND MAINTAIN ADEQUATE PROCEDURES AND CONTROLSFOR CERTAIN ACTIVITIES AT ITS BANK-AFFILIATE WHICH AFFECTCOMMAND ASSET PROGRAM ACCOUNTS, INCLUDING A SYSTEM OFFOLLOW-UP AND REVIEW OF ITS BUSINESS ACTIVITIES RELATING TOCHANGES OF CUSTOMER ADDRESS. THE IMPOSITION BY THE EXCHANGEOF THE PENALTY OF A CENSURE AND A FINE OF $300,000.
Resolution Date: 10/09/2006
Resolution:
Other Sanctions Ordered:
Sanction Details: **9/13/06** DECISION 06-172 ISSUED BY NYSE HEARING BOARD.DECISION: VIOLATED NYSE RULES 342(A) AND (B) BY FAILING TO PROVIDEFOR, ESTABLISH AND MAINTAIN ADEQUATE PROCEDURES AND CONTROLSFOR CERTAIN ACTIVITIES AT ITS BANK-AFFILIATE WHICHAFFECT COMMAND ASSET PROGRAM ACCOUNTS, INCLUDING A SYSTEMOF FOLLOW-UP AND REVIEW OF ITS BUSINESS ACTIVITIES RELATING TOCHANGES OF CUSTOMER ADDRESS. CONSENT TO CENSURE AND $300,000FINE.
Regulator Statement **10/9/06** THE DECISION BECAME FINAL CLOSE OF BUSINESS ONOCTOBER 9, 2006. CONTACT: PEGGY GERMINO 212-656-8450.
Sanctions Ordered: CensureMonetary/Fine $300,000.00
Decision
iReporting Source: Firm
Allegations: IN NYSE HEARING BOARD DECISION 06-172 THE HEARING OFFICERAPPROVED THE STIPULATION AND CONSENT TO PENALTY WHEREINWACHOVIA SECURITIES, WITHOUT ADMITTING OR DENYING GUILTCONSENTED TO FINDING: A FINDING BY THE HEARING PANEL THATWACHOVIA VIOLATED NYSE RULE 342(A) AND (B) BY FAILING TO PROVIDEFOR, ESTABLISH AND MAINTAIN ADEQUATE PROCEDURES AND CONTROLSFOR CERTAIN ACTIVITIES AT ITS BANK AFFILIATE WHICH AFFECTCOMMAND ASSET PROGRAM ACCOUNTS, INCLUDING A SYSTEM OFFOLLOW-UP AND REVIEW OF ITS BUSINESS ACTIVITIES RELATING TOCHANGES OF CUSTOMER ADDRESS.
Current Status: Final
240©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Initiated By: NEW YORK STOCK EXCHANGE, DIVISION OF ENFORCEMENT
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 08/25/2006
Docket/Case Number: HDB# 06-172
Principal Product Type: Other
Other Product Type(s):
IN NYSE HEARING BOARD DECISION 06-172 THE HEARING OFFICERAPPROVED THE STIPULATION AND CONSENT TO PENALTY WHEREINWACHOVIA SECURITIES, WITHOUT ADMITTING OR DENYING GUILTCONSENTED TO FINDING: A FINDING BY THE HEARING PANEL THATWACHOVIA VIOLATED NYSE RULE 342(A) AND (B) BY FAILING TO PROVIDEFOR, ESTABLISH AND MAINTAIN ADEQUATE PROCEDURES AND CONTROLSFOR CERTAIN ACTIVITIES AT ITS BANK AFFILIATE WHICH AFFECTCOMMAND ASSET PROGRAM ACCOUNTS, INCLUDING A SYSTEM OFFOLLOW-UP AND REVIEW OF ITS BUSINESS ACTIVITIES RELATING TOCHANGES OF CUSTOMER ADDRESS.
Resolution Date: 10/09/2006
Resolution:
Other Sanctions Ordered:
Sanction Details: WITHOUT ADMITTING OR DENYING GUILT, THE FIRM CONSENTED TO ACENSURE AND FINE OF $300,000.
Sanctions Ordered: CensureMonetary/Fine $300,000.00
Stipulation and Consent
Disclosure 121 of 158
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Reporting Source: Firm
Initiated By: STATE OF CONNECTICUT
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Date Initiated: 01/23/2004
Docket/Case Number: ST-03-6927-S
Principal Product Type: Other
Other Product Type(s): ADVISORY
Allegations: ALLEGED TO HAVE VIOLATED SECTION 36B-6(B) AND SECTION 36B-6(C) OFTHE CONNECTICUT UNIFORM SECURITIES ACT WHERE CERTAIN FINACIALADVISORS AND A SALES ASSISTANT WERE NOT REGISTERED ASINVESTMENT ADVISORY AGENTS.
Current Status: Final
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Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Resolution Date: 01/23/2004
Resolution:
Other Sanctions Ordered:
Sanction Details: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, THE FIRMCONSENTED TO A FINE OF $2500.
Sanctions Ordered: Monetary/Fine $2,500.00
Stipulation and Consent
Disclosure 122 of 158
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Reporting Source: Regulator
Allegations: **7/6/06** STIPULATION AND CONSENT TO PENALTY FILED BY NYSEREGULATION DIVISION OF ENFORCEMENT AND PENDING AGAINSTWACHOVIA CAPITAL MARKETS, LLC; WACHOVIA SECURITIES, LLC; ANDFIRST CLEARING, LLC ("WACHOVIA RESPONDENTS") CONSENTED TOFINDINGS: WITHOUT ADMITTING OR DENYING GUILT, CONSENTED TOFINDINGS: THAT THE WACHOVIA RESPONDENTS VIOLATED SECTION 17(A)OF THE SECURITIES EXCHANGE ACT OF 1934 AND RULE 17A-4THEREUNDER AND NYSE RULE 440 IN THAT THE WACHOVIARESPONDENTS FAILED TO PRESERVE ELECTRONIC RECORDS RELATINGTO THE BUSINESS OF THE WACHOVIA RESPONDENTS FOR AT LEASTTHREE YEARS, THE FIRST TWO YEARS IN AN EASILY ACCESSIBLELOCATION. THAT THE WACHOVIA RESPONDENTS VIOLATED NYSE RULES342 AND 342.17 IN THAT THE WACHOVIA RESPONDENTS FAILED TOREASONABLY SUPERVISE AND CONTROL THE ACTIVITIES OF THEIREMPLOYEES, INCLUDING A SEPARATE SYSTEM OF FOLLOW-UP ANDREVIEW TO ASSURE COMPLIANCE WITH NYSE RULES AND FEDERALSECURITIES LAWS RELATING TO RETENTION AND/OR REVIEW OFELECTRONIC COMMUNICATIONS. CONSENTED TO SANCTION: THEIMPOSITION BY THE EXCHANGE OF THE PENALTY OF A CENSURE, AREGULATORY UNDERTAKING, AND A FINE OF $2,250,000 (TWO MILLIONAND TWO HUNDRED AND FIFTY THOUSAND DOLLARS, TO BE PAYABLE ASFOLLOWS: BY ONE PAYMENT TO NYSE REGULATION, INC. IN THE AMOUNTOF $600,000 (SIX HUNDRED THOUSAND DOLLARS), DUE AND PAYABLEWHEN THE DECISION IN THIS MATTER BECOMES FINAL; AND BY ANOTHERPAYMENT IN THE AMOUNT OF $1,650,000 (ONE MILLION AND SIX HUNDREDAND FIFTY THOUSAND DOLLARS), COLLECTION OF WHICH THE NYSE WILLWAIVE IN RECOGNITION OF AND CONDITIONAL UPON THE PAYMENT BYWACHOVIA CAPITAL MARKETS OF $1,650,000 (ONE MILLION AND SIXHUNDRED AND FIFTY THOUSAND DOLLARS) PURSUANT TO THE TERMS OFTHE SETTLEMENT OF A REGULATORY ACTION, CONCLUDED UNDER THEAUSPICES OF THE NORTH AMERICAN SECURITIES ADMINISTRATORSASSOCIATION, RELATING TO WACHOVIA CAPITAL MARKETS' VIOLATION OFTHE DUTY TO RETAIN E-MAIL COMMUNICATIONS.
Current Status: Final
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Initiated By: NEW YORK STOCK EXCHANGE DIVISION OF ENFORCEMENT
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 07/06/2006
Docket/Case Number: HBD# 06-151
Principal Product Type: Other
Other Product Type(s):
**7/6/06** STIPULATION AND CONSENT TO PENALTY FILED BY NYSEREGULATION DIVISION OF ENFORCEMENT AND PENDING AGAINSTWACHOVIA CAPITAL MARKETS, LLC; WACHOVIA SECURITIES, LLC; ANDFIRST CLEARING, LLC ("WACHOVIA RESPONDENTS") CONSENTED TOFINDINGS: WITHOUT ADMITTING OR DENYING GUILT, CONSENTED TOFINDINGS: THAT THE WACHOVIA RESPONDENTS VIOLATED SECTION 17(A)OF THE SECURITIES EXCHANGE ACT OF 1934 AND RULE 17A-4THEREUNDER AND NYSE RULE 440 IN THAT THE WACHOVIARESPONDENTS FAILED TO PRESERVE ELECTRONIC RECORDS RELATINGTO THE BUSINESS OF THE WACHOVIA RESPONDENTS FOR AT LEASTTHREE YEARS, THE FIRST TWO YEARS IN AN EASILY ACCESSIBLELOCATION. THAT THE WACHOVIA RESPONDENTS VIOLATED NYSE RULES342 AND 342.17 IN THAT THE WACHOVIA RESPONDENTS FAILED TOREASONABLY SUPERVISE AND CONTROL THE ACTIVITIES OF THEIREMPLOYEES, INCLUDING A SEPARATE SYSTEM OF FOLLOW-UP ANDREVIEW TO ASSURE COMPLIANCE WITH NYSE RULES AND FEDERALSECURITIES LAWS RELATING TO RETENTION AND/OR REVIEW OFELECTRONIC COMMUNICATIONS. CONSENTED TO SANCTION: THEIMPOSITION BY THE EXCHANGE OF THE PENALTY OF A CENSURE, AREGULATORY UNDERTAKING, AND A FINE OF $2,250,000 (TWO MILLIONAND TWO HUNDRED AND FIFTY THOUSAND DOLLARS, TO BE PAYABLE ASFOLLOWS: BY ONE PAYMENT TO NYSE REGULATION, INC. IN THE AMOUNTOF $600,000 (SIX HUNDRED THOUSAND DOLLARS), DUE AND PAYABLEWHEN THE DECISION IN THIS MATTER BECOMES FINAL; AND BY ANOTHERPAYMENT IN THE AMOUNT OF $1,650,000 (ONE MILLION AND SIX HUNDREDAND FIFTY THOUSAND DOLLARS), COLLECTION OF WHICH THE NYSE WILLWAIVE IN RECOGNITION OF AND CONDITIONAL UPON THE PAYMENT BYWACHOVIA CAPITAL MARKETS OF $1,650,000 (ONE MILLION AND SIXHUNDRED AND FIFTY THOUSAND DOLLARS) PURSUANT TO THE TERMS OFTHE SETTLEMENT OF A REGULATORY ACTION, CONCLUDED UNDER THEAUSPICES OF THE NORTH AMERICAN SECURITIES ADMINISTRATORSASSOCIATION, RELATING TO WACHOVIA CAPITAL MARKETS' VIOLATION OFTHE DUTY TO RETAIN E-MAIL COMMUNICATIONS.
Resolution Date: 09/01/2006
Resolution:
Other Sanctions Ordered:
Sanction Details: **8/1/06** DECISION 06-151 ISSUED BY NYSE HEARING BOARDVIOLATIONS FOUND: VIOLATED SECTION 17(A) OF THE SECURITIESEXCHANGE ACT OF 1934 AND RULE 17A-4 THEREUNDER AND NYSE RULE440 BY FAILING TO PRESERVE ELECTRONIC RECORDS RELATING TO ITSBUSINESS FOR AT LEAST THREE YEARS, THE FIRST TWO YEARS IN ANEASILY ACCESSIBLE LOCATION; VIOLATED EXCHANGE RULES 342 AND342.17 BY FAILING TO REASONABLY SUPERVISE AND CONTROL ACTIVITIESOF ITS EMPLOYEES, INCLUDING A SEPARATE SYSTEM OF FOLLOW-UP ANDREVIEW TO ASSURE COMPLIANCE WITH NYSE RULES AND FEDERALSECURITIES LAWS RELATING TO RETENTION AND/OR REVIEW OFELECTRONIC COMMUNICATIONS.SANCTION: THE HEARING PANEL IMPOSED THE SANCTION, CONSENTEDTO BY THE RESPONDENT, OF A CENSURE, A FINE OF $2,250,000, SUBJECTTO CERTAIN CONDITIONS SET FORTH IN THE DECISION, AND AREGULATORY UNDERTAKING.
Regulator Statement **9/1/06** THE DECISION IS NOW FINAL AND IS EFFECTIVE IMMEDIATELY.CONTACT: PEGGY GERMINO 212-656-8450.
Sanctions Ordered: CensureMonetary/Fine $2,250,000.00
Decision
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Regulator Statement **9/1/06** THE DECISION IS NOW FINAL AND IS EFFECTIVE IMMEDIATELY.CONTACT: PEGGY GERMINO 212-656-8450.
iReporting Source: Firm
Initiated By: NEW YORK STOCK EXCHANGE, INC., DIVISION OF ENFORCEMENT
Principal Sanction(s)/ReliefSought:
Censure
Other Sanction(s)/ReliefSought:
Date Initiated: 07/06/2006
Docket/Case Number: HBD#06-151
Principal Product Type: No Product
Other Product Type(s):
Allegations: THE FIRM, ALONG WITH FIRST CLEARING, LLC ("FC) AND WACHOVIACAPITAL MARKETS, LLC ("WCM"), IS ALLEGED TO HAVE VIOLATED SECTION17(A) OF THE SECURITIES EXCHANGE ACT AND RULE 17A-4 THEREUNDER,ALONG WITH NYSE RULES 440, 342 AND 342.17, BY FAILING TO PRESERVEELECTRONIC RECORDS RELATING TO THE BUSINESS OF THE FIRM FOR ATLEAST THREE YEARS AND BY FAILING TO REASONABLY SUPERVISE THERETENTION AND/OR REVIEW OF ELECTRONIC COMMUNICATIONS.
Current Status: Final
Resolution Date: 08/26/2006
Resolution:
Other Sanctions Ordered: UNDERTAKING
Sanction Details: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS IN THE STIPULATIONOF FACTS AND CONSENT TO PENALTY, THE FIRM, ALONG WITH FC ANDWCM, CONSENTED TO THE CENSURE, THE FINE, AND AN UNDERTAKINGTO ENSURE COMPLIANCE WITH THE RULES AND REGULATIONS ON THERETENTION AND REVIEW OF ELECTRONIC COMMUNICATIONS THROUGHENGAGEMENT OF AN INDEPENDENT CONSULTANT. WITH REGARD TO THEFINE, $1,650,000 OF THE $2,250,000 IS WAIVED, CONDITIONAL UPON WCMPAYING THAT AMOUNT PURSUANT TO WCM'S SETTLEMENT OF AREGULATORY ACTION BY STATE SECURITIES REGULATORS RELATING, INPART, TO EMAIL RETENTION. THE BALANCE OF THE FINE WILL BE PAID BYTHE THREE FIRMS ON OR BEFORE 10/16/06.
Sanctions Ordered: CensureMonetary/Fine $2,250,000.00
Stipulation and Consent
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Disclosure 123 of 158
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Reporting Source: Firm
Initiated By: NEW YORK STOCK EXCHANGE, INC.
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 01/18/2006
Docket/Case Number:
Principal Product Type: Equity Listed (Common & Preferred Stock)
Other Product Type(s):
Allegations: THE FIRM WAS ALLEGED TO HAVE VIOLATED EXCHANGE RULE 123C, INFAILING TO ADHERE TO THE ORDER ENTRY AND CANCELLATIONPROCEDURES FOR MARKET-ON-CLOSE (MOC) AND LIMIT-ON-CLOSE (LOC)ORDERS.
Current Status: Final
Resolution Date: 01/18/2006
Resolution:
Other Sanctions Ordered:
Sanction Details: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, THE FIRMCONSENTED TO PAYMENT OF THE TOTAL FINE OF $7500, PAID ON 2/8/2006.
Sanctions Ordered: Monetary/Fine $7,500.00
Other
Disclosure 124 of 158
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Reporting Source: Firm
Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
Date Initiated: 11/02/1990
Docket/Case Number: NEW-779-AWC
Principal Product Type: No Product
Allegations: FAILURE TO DEVELOP WRITTEN SUPERVISORY PROCEDURES.
Current Status: Final
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Principal Sanction(s)/ReliefSought:
Other
Other Sanction(s)/ReliefSought:
RELIEF SOUGHT
Principal Product Type: No Product
Other Product Type(s):
Resolution Date: 11/02/1990
Resolution:
Other Sanctions Ordered:
Sanction Details: CENSURED AND FINED $2500, JOINTLY AND SEVERALLY.
Firm Statement ON NOVEMBER 2, 1990 THE LETTER OF ACCEPTANCE, WAIVER ANDCONSENT NO. NEW-779-AWC (DISTRICT NO. 5) SUBMITTED BYRESPONDENTS SOUTHTRUST SECURITIES, INC. (CRD#17922 - MERGEDINTO WACHOVIA SECURITIES, LLC),JOSEPH C. MARFOGLIO, CHARLES J.SMITH AND JAMES D HOOKS WAS ACCEPTED; THEREFORE THEY ARECENSURED AND FINED $2500 JOINTLY AND SEVERALLY - (ARTICLE III,SECTIONS 1, 21, 27 AND 33, APPENDIX 3 OF THE RULES OF FAIR PRACTICEAND MSRB RULE G-3 IN THAT RESPONDENT MEMBER, ACTING THROUGHRESPONDENTS MARFOGLIO AND SMITH, FAILED TO MAKE THE REQUIREDDEPOSIT IN ITS SPECIAL RESERVE BANK ACCOUNT; FAILED TO PROPERLYCONDUCT A QUARTERLY SECURITY EXAMINATION, COUNT ANDVERIFICATION; FAILED TO PREPARE AND KEEP CURRENT AN ACCURATESECURITIES POSITION RECORD; FAILED TO PREPARE AN ACCURATECOMPUTATION OF NET CAPITAL; RESPONDENT MEMBER, ACTINGTHROUGH RESPONDENT MARFOGLIO, FILED TO DEVELOP ANDIMPLEMENT WRITTEN SUPERVISORY PROCEDURES; AND RESPONDENTMEMBER, ACTING THROUGH RESPONDENTS MARFOGLIO AND HOOKS,FAILED TO PROPERLY REGISTERE AN INDIVIDUAL AS A MUNICIPALSECURITIES PRINCIPAL. ***$2,500 J&S PAID ON 11/20/90, INVOICE #90-05-1262***
Sanctions Ordered: CensureMonetary/Fine $2,500.00
Acceptance, Waiver & Consent(AWC)
Disclosure 125 of 158
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Reporting Source: Firm
Allegations: THE FIRM WAS ALLEGED TO HAVE VIOLATED SECURITIES LAWS BYFAILING TO ADEQUATELY SUPERVISE ITS AGENTS IN THE STATE OFMISSOURI.
Current Status: Final
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Initiated By: MISSOURI SECURITIES DIVISION
Principal Sanction(s)/ReliefSought:
Cease and Desist
Other Sanction(s)/ReliefSought:
PAYMENT OF $300,000 TO THE MISSOURI INVESTOR EDUCATION ANDPROTECTION FUND.
Date Initiated: 06/13/2005
Docket/Case Number: CASE NO. AP-05-20
Principal Product Type: Other
Other Product Type(s):
THE FIRM WAS ALLEGED TO HAVE VIOLATED SECURITIES LAWS BYFAILING TO ADEQUATELY SUPERVISE ITS AGENTS IN THE STATE OFMISSOURI.
Resolution Date: 06/13/2005
Resolution:
Other Sanctions Ordered:
Sanction Details: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, THE FIRMCONSENTED TO THE ORDER TO CEASE AND DESIST AND PAYMENT OF$300,000 TO THE MISSOURI INVESTOR EDUCATION AND PROTECTIONFUND. IN ADDITION FOR A PERIOD OF TWO YEARS: (1) UPON REQUESTPROVIDE THE STATE OF MISSOURI BRANCH OFFICE REVIEWS BYREGULATORS, INCLUDING THE SEC, NYSE AND THE NASD, (2) PROMPTLYREPORT TO THE STATE OF MISSOURI THE NAME AND CRD NUMBER OFEACH MISSOURI-BASED AGENT IDENTIFIED BY THE SYSTEM WARRANTINGHEIGHTENED SUPERVISION, (3) PROMPTLY REPORT ALL MATERIALCHANGES IN COMPLIANCE SUPERVISORS WITH DIRECT OVERSIGHT OFMISSOURI-BASED AGENTS AND BRANCH OFFICES.
Sanctions Ordered: Monetary/Fine $300,000.00Cease and Desist/Injunction
Consent
Disclosure 126 of 158
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Reporting Source: Firm
Allegations: DURING AUGUST 5, 1999 THROUGH JULY 31, 2000, A REGISTEREDREPRESENTATIVE OF THE FIRM HAD TRANSACTED BUSINESS WITH MAINECLIENTS AND WAS NOT LICENSED OR EXEMPT. THE FIRM WAS ALLEGEDTO HAVE VIOLATED THE REVISED MAINE SECURITIES ACT BY EMPLOYINGTHIS REGISTERED REPRESENTATIVE WHO WAS NOT LICENSED OREXEMPT IN THE STATE AND FAILING TO REASONABLY SUPERVISE ONE OFITS REGISTERED REPRESENTATIVES.
Current Status: Final
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Initiated By: STATE OF MAINE, OFFICE OF SECURITIES
Principal Sanction(s)/ReliefSought:
Censure
Other Sanction(s)/ReliefSought:
ADMINISTRATIVE FINE OF $27,000
Date Initiated: 04/25/2005
Docket/Case Number: 05-026-CAG
Principal Product Type: No Product
Other Product Type(s):
DURING AUGUST 5, 1999 THROUGH JULY 31, 2000, A REGISTEREDREPRESENTATIVE OF THE FIRM HAD TRANSACTED BUSINESS WITH MAINECLIENTS AND WAS NOT LICENSED OR EXEMPT. THE FIRM WAS ALLEGEDTO HAVE VIOLATED THE REVISED MAINE SECURITIES ACT BY EMPLOYINGTHIS REGISTERED REPRESENTATIVE WHO WAS NOT LICENSED OREXEMPT IN THE STATE AND FAILING TO REASONABLY SUPERVISE ONE OFITS REGISTERED REPRESENTATIVES.
Resolution Date: 04/25/2005
Resolution:
Other Sanctions Ordered:
Sanction Details: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, THE FIRM AGREEDTO THE CENSURE AND PAYMENT OF $27,000.
Sanctions Ordered: CensureMonetary/Fine $27,000.00
Consent
Disclosure 127 of 158
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Reporting Source: Regulator
Allegations: NASD CONDUCT RULES 2110, 2210(D)(1)(A), 2210(D)(1)(B), 2210(C)(1),3010(A)(1), 3010(B)(1), IM-2210-2 - WACHOVIA SECURITIES, LLC ACTINGTHROUGH A REGISTERED REPRESENTATIVE, CREATED AND DISTRIBUTEDWRITTEN COMMUNICATIONS THAT FAILED TO DISCLOSE ADEQUATELYMATERIAL FACTS REGARDING INVESTMENT PRODUCTS AND STRATEGIES,OR MADE EXAGGERATED, UNWARRANTED OR MISLEADING STATEMENTSOR CLAIMS REGARDING THOSE PRODUCTS, OR BOTH. THE FIRM ACTINGPRIMARILY THROUGH A BRANCH MANAGER, FAILED TO SUPERVISEREASONABLY A REGISTERED REPRESENTATIVES WRITTENCOMMUNICATIONS ACTIVITIES IN CONNECTION WITHCORRESPONDENCES AND SALES LITERATURE. IN ADDITION, WACHOVIAFAILED TO FILE THE REGISTERED REPRESENTATIVE'S SALES LITERATUREWITH NASD. THE FIRM ALSO FAILED TO ESTABLISH AND MAINTAINPROCEDURES THAT WERE REASONABLY DESIGNED TO ACHIEVECOMPLIANCE WITH NASD'S REQUIREMENT FOR FILING SALESLITERATURE WITHIN 10 DAYS OF FIRST USE. THE FIRM ACTING PRIMARILYTHROUGH AN INDIVIDUAL, REVIEWED AND APPROVED A REGISTEREDREPRESENTATIVE'S WRITTEN COMMUNICATIONS THAT WERE DEFICIENTBECAUSE THEY FAILED TO DISCLOSE ADEQUATELY MATERIAL FACTSREGARDING PRODUCTS OR INVESTMENT STRATEGIES RECOMMENDED.BY APPROVING THESE WRITTEN COMMUNICATIONS, WACHOVIA FAILEDTO REASONABLY SUPERVISE THE REGISTERED REPRESENTATIVE. THEFIRM'S WRITTEN SUPERVISORY PROCEDURES INCORRECTLY DEFINED "SALES LITERATURE" WHICH IS REQUIRED TO BE FILED WITH NASDWITHIN 10 DAYS OF FIRST USE. THE FIRM'S MANAGERIAL PERSONNELUSED THE WRITTEN SUPERVISORY PROCEDURES TO DETERMINEWHETHER A WRITTEN COMMUNICATION SHOULD BE FORWARDED TONASD. BY INCORRECTLY DEFINING "SALES LITERATURE," WACHOVIA'SWRITTEN SUPERVISORY PROCEDURES IMPROPERLY INSTRUCTED THEFIRM'S MANAGERIAL PERSONNEL ON WHEN WRITTEN COMMUNICATIONQUALIFIED AS SALES LITERATURE THAT NEEDED TO BE FILED WITH NASD.
Current Status: Final
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Initiated By: NASD
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 04/13/2005
Docket/Case Number: CE2050007
Principal Product Type: Annuity(ies) - Variable
Other Product Type(s): FUNDS
NASD CONDUCT RULES 2110, 2210(D)(1)(A), 2210(D)(1)(B), 2210(C)(1),3010(A)(1), 3010(B)(1), IM-2210-2 - WACHOVIA SECURITIES, LLC ACTINGTHROUGH A REGISTERED REPRESENTATIVE, CREATED AND DISTRIBUTEDWRITTEN COMMUNICATIONS THAT FAILED TO DISCLOSE ADEQUATELYMATERIAL FACTS REGARDING INVESTMENT PRODUCTS AND STRATEGIES,OR MADE EXAGGERATED, UNWARRANTED OR MISLEADING STATEMENTSOR CLAIMS REGARDING THOSE PRODUCTS, OR BOTH. THE FIRM ACTINGPRIMARILY THROUGH A BRANCH MANAGER, FAILED TO SUPERVISEREASONABLY A REGISTERED REPRESENTATIVES WRITTENCOMMUNICATIONS ACTIVITIES IN CONNECTION WITHCORRESPONDENCES AND SALES LITERATURE. IN ADDITION, WACHOVIAFAILED TO FILE THE REGISTERED REPRESENTATIVE'S SALES LITERATUREWITH NASD. THE FIRM ALSO FAILED TO ESTABLISH AND MAINTAINPROCEDURES THAT WERE REASONABLY DESIGNED TO ACHIEVECOMPLIANCE WITH NASD'S REQUIREMENT FOR FILING SALESLITERATURE WITHIN 10 DAYS OF FIRST USE. THE FIRM ACTING PRIMARILYTHROUGH AN INDIVIDUAL, REVIEWED AND APPROVED A REGISTEREDREPRESENTATIVE'S WRITTEN COMMUNICATIONS THAT WERE DEFICIENTBECAUSE THEY FAILED TO DISCLOSE ADEQUATELY MATERIAL FACTSREGARDING PRODUCTS OR INVESTMENT STRATEGIES RECOMMENDED.BY APPROVING THESE WRITTEN COMMUNICATIONS, WACHOVIA FAILEDTO REASONABLY SUPERVISE THE REGISTERED REPRESENTATIVE. THEFIRM'S WRITTEN SUPERVISORY PROCEDURES INCORRECTLY DEFINED "SALES LITERATURE" WHICH IS REQUIRED TO BE FILED WITH NASDWITHIN 10 DAYS OF FIRST USE. THE FIRM'S MANAGERIAL PERSONNELUSED THE WRITTEN SUPERVISORY PROCEDURES TO DETERMINEWHETHER A WRITTEN COMMUNICATION SHOULD BE FORWARDED TONASD. BY INCORRECTLY DEFINING "SALES LITERATURE," WACHOVIA'SWRITTEN SUPERVISORY PROCEDURES IMPROPERLY INSTRUCTED THEFIRM'S MANAGERIAL PERSONNEL ON WHEN WRITTEN COMMUNICATIONQUALIFIED AS SALES LITERATURE THAT NEEDED TO BE FILED WITH NASD.
Resolution Date: 04/13/2005
Resolution:
Other Sanctions Ordered:
Sanction Details: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, WACHOVIASECURITIES, LLC CONSENTED TO THE DESCRIBED SANCTIONS AND TOTHE ENTRY OF FINDINGS THEREFORE, THE FIRM IS CENSURED ANDFINED $25,000.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: CensureMonetary/Fine $25,000.00
Acceptance, Waiver & Consent(AWC)
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WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, WACHOVIASECURITIES, LLC CONSENTED TO THE DESCRIBED SANCTIONS AND TOTHE ENTRY OF FINDINGS THEREFORE, THE FIRM IS CENSURED ANDFINED $25,000.
iReporting Source: Firm
Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
Principal Sanction(s)/ReliefSought:
Censure
Other Sanction(s)/ReliefSought:
FINE OF $25,000
Date Initiated: 04/13/2005
Docket/Case Number: AWC CE2050007
Principal Product Type: No Product
Other Product Type(s):
Allegations: DURING THE PERIOD OF MAY 25, 2001 THROUGH APRIL 12, 2002,WACHOVIA WAS ALLEGED TO HAVE VIOLATED CONDUCT RULES 2110 AND2210(C)(1)IN FAILING TO FILE SALES LITERATURE WITH THE NASD,ALLEGED TO HAVE VIOLATED RULE 2110 AND 3010(A)(1) IN FAILING TORESONABLY SUPERVISE THE WRITTEN COMMUNICATION OF AREGISTERED REPRESENTATIVE, AND ALLEGED TO HAVE VIOLATED RULE2110 AND 3010(B)(1)IN FAILING TO ESTABLISH, MAINTAIN AND ENFORCEWRITTEN PROCEDURES ON COMMUNICATIONS TO THE PUBLIC.
Current Status: Final
Resolution Date: 04/13/2005
Resolution:
Other Sanctions Ordered:
Sanction Details: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, WACHOVIACONSENTED TO A CENSURE AND FINE OF $25,000. THE FINE WAS PAID ONAPRIL 29, 2005.
Sanctions Ordered: CensureMonetary/Fine $25,000.00
Acceptance, Waiver & Consent(AWC)
Disclosure 128 of 158
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Reporting Source: Regulator
Allegations: AGENT MISAPPROPRIATES CLIENT FUNDS AND WACHOVIA'S FAILURE TOSUPERVISE ITS AGENTS AND TO ENFORCE WRITTEN PROCEDURES
Current Status: Final
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Initiated By: CALIFORNIA DEPARTMENT OF CORPORATIONS.
Principal Sanction(s)/ReliefSought:
Other
Other Sanction(s)/ReliefSought:
ADMINISTRATIVE ACTION INIATED ON 11/10/04.
Date Initiated: 11/10/2004
Docket/Case Number:
URL for Regulatory Action:
Principal Product Type: Other
Other Product Type(s):
Allegations: AGENT MISAPPROPRIATES CLIENT FUNDS AND WACHOVIA'S FAILURE TOSUPERVISE ITS AGENTS AND TO ENFORCE WRITTEN PROCEDURES
Resolution Date: 11/10/2004
Resolution:
Other Sanctions Ordered:
Sanction Details: NO PART OF PENALTIES WAIVED.
Regulator Statement WACHOVIA STIPULATED TO THE ISSUANCE OF AN ADMINISTRATIVECONSENT ORDER BY THE CALIFORNIA CORPORATIONS COMMISSIONERPER WHICH WACHOVIA WAS ORDERED TO DISCONTINUE THE FOLLOWINGVIOLATIONS: CALIFORNIA CORPORATIONS CODE SECTIONS 25210(B) & (A),AND 25218, AND CALIFORNIA CODE OF REGULATIONS, TITLE 10, SECTIONS260.218 AND 260.218(A) & (C)(2) AND (3). WACHOVIA ALSO AGREED TOMAKE CERTAIN REVISIONS OF ITS AGENT HIRING POLICIES ANDPROCEDURES, AND ITS CLIENT TRANSACTION CONFIRMATIONPROCEDURES, AND TO PAY THE COMMISSIONER A CIVIL PENALTY IN THEAMOUNT OF $250,000, WHICH AMOUNT WAS TIMELY PAID IN FULL. THEADMINISTRATIVE ACTION WAS THE RESULT OF A STIPULATION WHEREBYTHE COMMISSIONER AGREED TO DISMISS A CIVIL COMPLAINT IT HADFILED AGAINST WACHOVIA, JAMES A. MEHALL AND TODD MICHAEL LONGON 9/30/03, REGARDING LONG'S UNAUTHORIZED DISBURSEMENT OFCLIENT FUNDS AND WACHOVIA'S ALLEGED FAILURE TO SUPERVISELONG'S ACTIVITIES.
Sanctions Ordered: Monetary/Fine $250,000.00
Stipulation and Consent
iReporting Source: Firm
Current Status: Final
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Initiated By: STATE OF CALIFORNIA, DEPARTMENT OF CORPORATIONS
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 09/30/2003
Docket/Case Number:
Principal Product Type: No Product
Other Product Type(s):
Allegations: THE FIRM WAS ALLEGED TO HAVE VIOLATED CORPORATIONS CODESECTION 25210(B), 25218, CODE OF REGULATIONS SECTION 260.210(A),260.218, 260.218.4(A), 260.218.4(C)IN THE EMPLOYING OF AN AGENTWITHOUT INVESTIGATING THE EXPERIENCE AND BACKGROUND OF THEINDIVIDUAL, FAILING TO ENFORCE WRITTEN PROCEDURES AND FAILINGTO SUPERVISE THE AGENT.
Resolution Date: 11/12/2004
Resolution:
Other Sanctions Ordered:
Sanction Details: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, THE FIRM AGREEDTO A PENALTY OF $250,000 PAID ON DECEMBER 20, 2004. THE FIRM ALSOREVISED AND ADOPTED ENHANCED HIRING POLICIES AND REVISED ANDADOPTED ENHANCED POLICIES AND PROCEDURES SURROUNDING WIRETRANSFERS AND JOURNALING OF MONIES OR SECURITIES.
Sanctions Ordered: Monetary/Fine $250,000.00
Order
Disclosure 129 of 158
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Reporting Source: Regulator
Allegations: ARTICLE V, SECTIONS 2(C) AND 3(B) OF NASD'S BY-LAWS, NASD RULES2110, 3010 - WACHOVIA SECURITIES, LLC FILED AT LEAST 610 LATEAMENDMENTS TO FORMS U4 AND U5, REPRESENTING APPROXIMATELY32% OF THE REQUIRED AMENDMENTS RELATING TO REPORTABLECUSTOMER COMPLAINTS, TERMINATIONS, REGULATORY ACTIONS, ANDCRIMINAL DISCLOSURES. THE FIRM'S SUPERVISORY SYSTEM ANDPROCEDURES WERE NOT REASONABLY DESIGNED TO ACHIEVECOMPLIANCE WITH ITS ARTICLE V REPORTING OBLIGATIONS.
Current Status: Final
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Initiated By: NASD
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 11/30/2004
Docket/Case Number: CAF040089
Principal Product Type: No Product
Other Product Type(s):
Resolution Date: 11/30/2004
Resolution:
Other Sanctions Ordered: PROHIBITION; UNDERTAKINGS
Sanction Details: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, WACHOVIASECURITIES, LLC CONSENTED TO THE DESCRIBED SANCTIONS AND TOTHE ENTRY OF FINDINGS, THEREFORE, THE FIRM IS CENSURED, FINED$650,000 WHICH SHALL BE PAID WITHIN 10 DAYS OF NOTICE OFACCEPTANCE OF THIS AWC. THE FIRM IS ALSO PROHIBITED FROMREGISTERING ANY ASSOCIATED PERSONS, IN A NON-SUPERVISORYSALES CAPACITY FOR FIVE CONSECUTIVE BUSINESS DAYS. PROMPTLYFOLLOWING NOTICE OF ACCEPTANCE OF THIS AWC, THE FIRM'SINTERNAL AUDIT DEPT. OR PERSONNEL NOT DIRECTLY RESPONSIBLE FORTHE FIRM'S ARTICLE V REPORTING OBLIGATIONS AND THEIR IMMEDIATESUPERVISORS SHALL CONDUCT AN AUDIT FOR THE PERIOD JANUARY 1,2004 THROUGH SEPTEMBER 30, 2004 TO ASSESS THE EFFECTIVENESS OFITS SYSTEM AND PROCEDURES FOR ENSURING TIMELY FILING OF FORMU4 AND U5 AMENDMENTS AND SHALL PREPARE A WRITTEN REPORTSUMMARIZING FINDINGS AND RECOMMENDATIONS AND SHALL FOR THENEXT FOUR CALENDAR QUARTERS BEGINNING FOURTH QUARTER 2004,CONDUCT A SIMILAR AUDIT AND PREPARE A SIMILAR WRITTEN AUDITREPORT. NO LATER THAN 90 DAYS AFTER NOTICE OF ACCEPTANCE OFTHIS AWC, AN OFFICER OF THE FIRM SHALL CERTIFY IN WRITING TO NASDTHAT AN AUDIT WAS CONDUCTED AND THE OFFICER HAS REVIEWED THECURRENT AUDIT REPORT. NO LATER THAN 60 DAYS AFTER THE DATE OFTHE REPORT, AN OFFICER SHALL CERTIFY IN WRITING TO NASD THAT THEFIRM HAS IMPLEMENTED, OR HAS BEGUN TO IMPLEMENT, ANYRECOMMENDATIONS WITHIN A SPECIFIED TIME PERIOD. NO LATER THAN60 DAYS AFTER THE LAST DAY OF THE NEXT FOUR QUARTERS, ANOFFICER SHALL CERTIFY IN WRITING TO NASD THAT AN AUDIT WASCONDUCTED, THE CURRENT AUDIT REPORT WAS REVIEWED, ANDRECOMMENDATIONS IMPLEMENTED, OR BEGUN TO BE IMPLEMENTED. NOLATER THAN SIX MONTHS AFTER NOTICE OF ACCEPTANCE OF THIS AWC,AN OFFICER SHALL CERTIFY IN WRITING TO NASD THAT THE FIRM HASREVIEWED ITS SYSTEM AND PROCEDURES FOR COMPLYING WITH ITSARTICLE V REPORTING OBLIGATIONS AND HAS ESTABLISHED A SYSTEMAND PROCEDURES REASONABLY DESIGNED TO ACHIEVE COMPLIANCEWITH REPORTING REQUIREMENTS.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: CensureMonetary/Fine $650,000.00
Acceptance, Waiver & Consent(AWC)
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WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, WACHOVIASECURITIES, LLC CONSENTED TO THE DESCRIBED SANCTIONS AND TOTHE ENTRY OF FINDINGS, THEREFORE, THE FIRM IS CENSURED, FINED$650,000 WHICH SHALL BE PAID WITHIN 10 DAYS OF NOTICE OFACCEPTANCE OF THIS AWC. THE FIRM IS ALSO PROHIBITED FROMREGISTERING ANY ASSOCIATED PERSONS, IN A NON-SUPERVISORYSALES CAPACITY FOR FIVE CONSECUTIVE BUSINESS DAYS. PROMPTLYFOLLOWING NOTICE OF ACCEPTANCE OF THIS AWC, THE FIRM'SINTERNAL AUDIT DEPT. OR PERSONNEL NOT DIRECTLY RESPONSIBLE FORTHE FIRM'S ARTICLE V REPORTING OBLIGATIONS AND THEIR IMMEDIATESUPERVISORS SHALL CONDUCT AN AUDIT FOR THE PERIOD JANUARY 1,2004 THROUGH SEPTEMBER 30, 2004 TO ASSESS THE EFFECTIVENESS OFITS SYSTEM AND PROCEDURES FOR ENSURING TIMELY FILING OF FORMU4 AND U5 AMENDMENTS AND SHALL PREPARE A WRITTEN REPORTSUMMARIZING FINDINGS AND RECOMMENDATIONS AND SHALL FOR THENEXT FOUR CALENDAR QUARTERS BEGINNING FOURTH QUARTER 2004,CONDUCT A SIMILAR AUDIT AND PREPARE A SIMILAR WRITTEN AUDITREPORT. NO LATER THAN 90 DAYS AFTER NOTICE OF ACCEPTANCE OFTHIS AWC, AN OFFICER OF THE FIRM SHALL CERTIFY IN WRITING TO NASDTHAT AN AUDIT WAS CONDUCTED AND THE OFFICER HAS REVIEWED THECURRENT AUDIT REPORT. NO LATER THAN 60 DAYS AFTER THE DATE OFTHE REPORT, AN OFFICER SHALL CERTIFY IN WRITING TO NASD THAT THEFIRM HAS IMPLEMENTED, OR HAS BEGUN TO IMPLEMENT, ANYRECOMMENDATIONS WITHIN A SPECIFIED TIME PERIOD. NO LATER THAN60 DAYS AFTER THE LAST DAY OF THE NEXT FOUR QUARTERS, ANOFFICER SHALL CERTIFY IN WRITING TO NASD THAT AN AUDIT WASCONDUCTED, THE CURRENT AUDIT REPORT WAS REVIEWED, ANDRECOMMENDATIONS IMPLEMENTED, OR BEGUN TO BE IMPLEMENTED. NOLATER THAN SIX MONTHS AFTER NOTICE OF ACCEPTANCE OF THIS AWC,AN OFFICER SHALL CERTIFY IN WRITING TO NASD THAT THE FIRM HASREVIEWED ITS SYSTEM AND PROCEDURES FOR COMPLYING WITH ITSARTICLE V REPORTING OBLIGATIONS AND HAS ESTABLISHED A SYSTEMAND PROCEDURES REASONABLY DESIGNED TO ACHIEVE COMPLIANCEWITH REPORTING REQUIREMENTS.
Regulator Statement THE FIRM CANNOT REGISTER ANY ASSOCIATED PERSONS, IN A NON-SUPERVISORY SALES CAPACITY EFFECTIVE JANUARY 24, 2005 TO CLOSEOF BUSINESS JANUARY 28, 2005.
iReporting Source: Firm
Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
Principal Sanction(s)/ReliefSought:
Censure
Other Sanction(s)/ReliefSought:
Date Initiated: 11/30/2004
Docket/Case Number: AWC NO. CAF040089
Principal Product Type: No Product
Other Product Type(s):
Allegations: THE FIRM WAS ALLEGED TO HAVE FAILED TO FILE FORM U4 AND U5AMENDMENTS IN A TIMELY MANNER FROM JANUARY, 2002 TO MARCH,2004.
Current Status: Final
Resolution Date: 11/30/2004
Resolution:
Sanctions Ordered: CensureMonetary/Fine $650,000.00
Acceptance, Waiver & Consent(AWC)
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Other Sanctions Ordered: THE FIRM IS PROHIBITED IN REGISTERING ANY ASSOCIATED PERSON, IN ANONSUPERVISORY SALES CAPACITY, FOR 5 CONSECUTIVE BUSINESSDAYS.
Sanction Details: THE FIRM WAS FINED IN THE TOTAL AMOUNT OF $650,000 WHICH WASPAID ON NOVEMBER 16, 2004. THE FIRM IS PROHIBITED IN REGISTERINGANY ASSOCIATED PERSON, IN A NONSUPERVISORY SALES CAPACITY, FOR5 CONSECUTIVE BUSINESS DAYS BEGINNING ON JANUARY 24, 2005 ANDENDING ON JANUARY 28, 2005. THE FIRM'S INTERNAL AUDIT DEPARTMENTIS REQUIRED TO AUDIT U4 AND U5 AMENDMENTS FILED BETWEENJANUARY 1, 2004 AND SEPTEMBER 30, 2004 SUMMARIZING THEIRFINDINGS AND RECOMMENDATIONS WITH AN OFFICER. FURTHER, ANOFFICER SHALL CERTIFY THE FIRM HAS REVIEWED ITS SYSTEM ANDPROCEDURES AND HAVE ESTABLISHED A SYSTEM AND PROCEDURES TOCOMPLY WITH ARTICLE V REPORTING OBLIGATIONS.
Sanctions Ordered: CensureMonetary/Fine $650,000.00
Disclosure 130 of 158
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Reporting Source: Firm
Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
Principal Sanction(s)/ReliefSought:
Other
Other Sanction(s)/ReliefSought:
RELIEF SOUGHT
Date Initiated: 01/13/1998
Docket/Case Number: C0970033
Principal Product Type: Other
Other Product Type(s):
Allegations: N/A
Current Status: Final
Resolution Date: 01/13/1998
Resolution:
Other Sanctions Ordered:
Sanction Details: RESULTED IN A MONETARY FINE OF $250.00.
Firm Statement ON JANUARY 13, 1998 DISTRICT NO. 5 NOTIFIED RESPONDENT,SOUTHTRUST SECURITIES,INC. (CRD 17322-MERGED INTO WACHOVIASECURITIES, LLC), THAT THE LETTER OF ACCEPTANCE, WAIVER ANDCONSENT NO. C05970033 WAS ACCEPTED; THEREFORE THE FIRM WASFINED $250 - MSRB RULE G-36 RESPONDENT MEMBER FAILED TO FILE TOTHE MSRB A FORM G-36 IN A TIMELY MANNER AND FILED INACCURATEFORMS G-36 TO THE MSRB ***$250.00 PAID ON 2/9/98, INVOICE NO. 98-05-129***
Sanctions Ordered: Monetary/Fine $250.00
Acceptance, Waiver & Consent(AWC)
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Firm Statement ON JANUARY 13, 1998 DISTRICT NO. 5 NOTIFIED RESPONDENT,SOUTHTRUST SECURITIES,INC. (CRD 17322-MERGED INTO WACHOVIASECURITIES, LLC), THAT THE LETTER OF ACCEPTANCE, WAIVER ANDCONSENT NO. C05970033 WAS ACCEPTED; THEREFORE THE FIRM WASFINED $250 - MSRB RULE G-36 RESPONDENT MEMBER FAILED TO FILE TOTHE MSRB A FORM G-36 IN A TIMELY MANNER AND FILED INACCURATEFORMS G-36 TO THE MSRB ***$250.00 PAID ON 2/9/98, INVOICE NO. 98-05-129***
Disclosure 131 of 158
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Reporting Source: Firm
Initiated By: STATE OF FLORIDA, DEPARTMENT OF BANKING AND FINANCE
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
CEASE AND DESIST
Date Initiated: 05/11/2000
Docket/Case Number: 2970-S-6/00
Principal Product Type: No Product
Other Product Type(s):
Allegations: SOUTHTRUST SECURITIES, INC. (CRD# 17922 - MERGED INTO WACHOVIASECURITIES, LLC) FAILED TO EFFECT RENEWAL OF 7 EXISTINGREGISTERED OFFICES WITH THE STATE OF FLORIDA.
Current Status: Final
Resolution Date: 07/20/2000
Resolution:
Other Sanctions Ordered:
Sanction Details: PAID FINE ON 7/10/2000.
Firm Statement FINAL ORDER WAS ACCEPTED ON 7/20/2000 BY THE STATE OF FLORIDA;ALL SUBJECT OFFICES WERE PROMPTLY APPROVED BY THE STATE.
Sanctions Ordered: Monetary/Fine $5,000.00Cease and Desist/Injunction
Stipulation and Consent
Disclosure 132 of 158
i
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Reporting Source: Firm
Initiated By: U.S. SECURITIES AND EXCHANGE COMMISSION
Principal Sanction(s)/ReliefSought:
Other
Other Sanction(s)/ReliefSought:
CIVIL AND ADMINISTRATIVE PENALTY/FINE
Date Initiated: 01/16/1992
Docket/Case Number: NONE
Principal Product Type: Debt - Government
Other Product Type(s):
Allegations: VIOLATED APPLICABLE BOOKS AND RECORDS REQUIREMENTS INCONNECTION WITH CERTAIN PRIMARY DISTRIBUTIONS OF DEBTSECURITIES OF ONE OR MORE OF THE FOLLOWING GOVERNMENTSPONSORED ENTITIES: FHLB, FFCBFC FNMA, FHLMC, AND STUDENTLOAN MARKETING ASSOCIATION. SPEDIFICALLY VIOLATED RULES 17(A),17(A)(3), AND 17(A)(4) OF THE SECURITIES EXCHANGE ACT OF 1934.
Current Status: Final
Resolution Date: 01/16/1992
Resolution:
Other Sanctions Ordered: SOUTHTRUST SECURITIES, INC. (CRD# 17922 - MERGED INTO WACHOVIASECURITIES, LLC) WAS ORDERED TO CEASE AND DESIST FROMCOMMITTING OR CAUSING ANY VIOLATION OR FUTURE VIOLATION OFSAID RULES, AND SSI WAS REQUIRED TO DEVELOP,IMPLEMENT, ANDMAINTAIN POLICIES AND PROCEDURES TO ENSURE FUTURECOMPLIANCE.
Sanction Details: SOUTHTRUST SECURITIES, INC. (CRD# 17922 - MERGED INTO WACHOVIASECURITIES, LLC) WAS ORDERED TO PAY A $10,000 CIVIL MONETARYPENALTY, PAID IN FULL ON 01/16/1992.
Firm Statement SEC INSTITUTED PROCEEDINGS AGAINST SOUTHTRUST SECURITIES, INC.(CRD# 17922 - MERGED INTO WACHOVIA SECURITIES, LLC) AND AT LEAST97 OTHER FIRMS, EACH OF WHICH WAS A BROKER AND/OR DEALER.
Sanctions Ordered: Monetary/Fine $10,000.00
Settled
Disclosure 133 of 158
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Reporting Source: Firm
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Initiated By: STATE OF MAINE, OFFICE OF SECURITIES
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Date Initiated: 09/16/2004
Docket/Case Number: 04-063-CAG
Principal Product Type: No Product
Other Product Type(s):
Allegations: THE FIRM INADVERTENTLY FAILED TO RENEW SALES REPRESENTATIVE,LARRY M MALLES, LICENSE BY DECEMBER 31, 2003 WHICH RESULTED INMR MALLES TRANSACTING BUSINESS UNLICENSED FROM JANUARY 6,2004 THROUGH JANUARY 8, 2004.
Current Status: Final
Resolution Date: 09/16/2004
Resolution:
Other Sanctions Ordered:
Sanction Details: WITHOUT ADMITTING OR DENYING VIOLATION OF THE REVISED MAINESECURITIES ACT, THE FIRM AGREED TO A PENALTY OF $1500 AND WOULDCOMPLY WITH ALL LICENSING AND OTHER LEGAL REQUIREMENTS FORPERSONS ACTING IN A SECURITIES SALES REPRESENTATIVE CAPACITY.
Sanctions Ordered: Monetary/Fine $1,500.00
Consent
Disclosure 134 of 158
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Reporting Source: Regulator
Allegations: MSRB RULES G-17, G-30(A) - WACHOVIA SECURITIES, LLC RECEIVEDREQUESTS FROM PUBLIC CUSTOMERS TO LIQUIDATE EIGHT DIFFERENTMUNICIPAL SECURITY POSITIONS AND CONTACTED A BROKER'S BROKERAND OBTAINED BIDS FOR THE CUSTOMERS' SECURITIES. BASED ON THEBIDS PROVIDED BY THE BROKER'S BROKER, WACHOVIA PURCHASED THESECURITIES FROM THE CUSTOMERS FOR ITS OWN ACCOUNT AND SOLDTHE SECURITIES TO THE BROKER'S BROKER AT A NOMINAL GAIN. IN ALLEIGHT INSTANCES, THE PRICES PAID TO THE CUSTOMERS AND RECEIVEDBY THE FIRM WERE BELOW THE FAIR MARKET VALUE FOR THE SECURITYIN AMOUNTS RANGING FROM 10.94% TO 63.45%. BY RELYING SOLELY ONTHE BIDS PROVIDED BY THE BROKER'S BROKER TO DETERMINE THE FAIRMARKET VALUE OF THE SECURITY, WACHOVIA FAILED TO ENSURE THATTHE TRANSACTIONS WERE EXECUTED AT AGGREGATE PRICES THATWERE FAIR AND REASONABLE.
Current Status: Final
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Initiated By: NASD
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 06/28/2004
Docket/Case Number: C05040043
Principal Product Type: Debt - Municipal
Other Product Type(s):
MSRB RULES G-17, G-30(A) - WACHOVIA SECURITIES, LLC RECEIVEDREQUESTS FROM PUBLIC CUSTOMERS TO LIQUIDATE EIGHT DIFFERENTMUNICIPAL SECURITY POSITIONS AND CONTACTED A BROKER'S BROKERAND OBTAINED BIDS FOR THE CUSTOMERS' SECURITIES. BASED ON THEBIDS PROVIDED BY THE BROKER'S BROKER, WACHOVIA PURCHASED THESECURITIES FROM THE CUSTOMERS FOR ITS OWN ACCOUNT AND SOLDTHE SECURITIES TO THE BROKER'S BROKER AT A NOMINAL GAIN. IN ALLEIGHT INSTANCES, THE PRICES PAID TO THE CUSTOMERS AND RECEIVEDBY THE FIRM WERE BELOW THE FAIR MARKET VALUE FOR THE SECURITYIN AMOUNTS RANGING FROM 10.94% TO 63.45%. BY RELYING SOLELY ONTHE BIDS PROVIDED BY THE BROKER'S BROKER TO DETERMINE THE FAIRMARKET VALUE OF THE SECURITY, WACHOVIA FAILED TO ENSURE THATTHE TRANSACTIONS WERE EXECUTED AT AGGREGATE PRICES THATWERE FAIR AND REASONABLE.
Resolution Date: 06/28/2004
Resolution:
Other Sanctions Ordered: UNDERTAKING
Sanction Details: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, WACHOVIASECURITIES, LLC CONSENTED TO THE DESCRIBED SANCTIONS AND TOTHE ENTRY OF FINDINGS; THEREFORE, THE FIRM WAS CENSURED, FINED$20,000, AND REQUIRED TO PAY $19,486.25, PLUS INTEREST, INRESTITUTION TO THE CUSTOMER. SATISFACTORY PROOF OF PAYMENT OFTHE RESTITUTION SHALL BE PROVIDED TO NASD NO LATER THAN 90 DAYSAFTER ACCEPTANCE OF THE AWC. THE FIRM SHALL ALSO PROVIDE NASD,WITHIN 90 DAYS OF ACCEPTANCE OF THIS AWC, A COPY OF ITS UPDATEDWRITTEN SUPERVISORY PROCEDURES AS THEY RELATE TO THEDETERMINATION OF THE FAIR MARKET VALUE OF MUNICIPAL SECURITIESBEING BOUGHT OR SOLD FROM A PUBLIC CUSTOMER.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: CensureMonetary/Fine $20,000.00Disgorgement/Restitution
Acceptance, Waiver & Consent(AWC)
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iReporting Source: Firm
Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
RESTITUTION OF $19,486.25
Date Initiated: 06/28/2004
Docket/Case Number: C05040043
Principal Product Type: Debt - Municipal
Other Product Type(s):
Allegations: THE FIRM WAS ALLEGED TO HAVE FAILED TO EXECUTE EIGHT MUNICIPALSECURITY POSITIONS AT PRICES THAT WERE FAIR AND REASONABLE,DURING THE PERIOD FROM ON OR ABOUT AUGUST 22, 2002 THROUGHDECEMBER 10, 2002 IN VIOLATION OF MSRB RULES G-17 AND G-30(A).
Current Status: Final
Resolution Date: 06/28/2004
Resolution:
Other Sanctions Ordered: CUSTOMER RESTITUTION OF $19,486.25 AND WITHIN 90 DAYS OFACCEPTANCE OF AWC THE FIRM SHALL PROVIDE THE NASD WITH A COPYOF ITS UPDATED WRITTEN SUPERVISORY PROCEDURES AS IT RELATESTO DETERMINING FAIR MARKET VALUE OF MUNICIPAL SECURITIES.
Sanction Details: THE FIRM WAS CENSURED, FINED $20,000 AND PAYMENT OF RESTITUTIONTO CLIENTS OF $19,486.25. WITHIN 90 DAYS OF ACCEPTANCE OF AWC THEFIRM SHALL PROVIDE THE NASD WITH A COPY OF ITS UPDATED WRITTENSUPERVISORY PROCEDURES AS IT RELATES TO DETERMINING FAIRMARKET VALUE OF MUNICIPAL SECURITIES.
Sanctions Ordered: CensureMonetary/Fine $20,000.00Disgorgement/Restitution
Acceptance, Waiver & Consent(AWC)
Disclosure 135 of 158
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Reporting Source: Regulator
Allegations: **05/26/2004** STIPULATION AND CONSENT TO PENALTY FILED BY THEDIVISION OF ENFORCEMENT AND PENDING. A. CONSENTED TO FINDINGSTHAT THE FIRM: 1. VIOLATED EXCHANGE RULE 345A AND 345(A) BY: A)PERMITTING EMPLOYEES TO ACT IN A REGISTERED CAPACITY ANDGENERATE COMMISSIONS WHILE THEIR REGISTRATION STATUS WASINACTIVE; AND B) PERMITTING A RETAIL COMPLIANCE MANAGER TOSUPERVISE TEN OR MORE INDIVIDUALS WHO ACTED IN A COMPLIANCECAPACITY EVEN THOUGH THE MANAGER DID NOT POSSESS THEREQUIRED QUALIFICATION. 2. VIOLATED EXCHANGE RULE 345 AND 351 BY:A) FAILING TO REPORT AND/OR PROMPTLY AND ACCURATELY REPORT,CUSTOMER COMPLAINTS AS REQUIRED; AND B) FAILING TO FILE AND/ORPROMPTLY FILE, FORMS U-5 AND A FORM RE-3 WITH THE EXCHANGE. 3.VIOLATED EXCHANGE RULE 440 AND SEC RULES 240.17A-3 AND 17A-4 BYFAILING TO MAINTAIN ACCURATE BOOKS AND RECORDS INCONNECTION WITH THE REPORTING OF CUSTOMERS’COMPLAINTS AND FILING OF FORMS U-5 AND A FORM RE-3. 4. VIOLATEDEXCHANGE RULE 405 BY FAILING TO ENSURE THAT CUSTOMERSRECEIVED MUTUAL FUND SWITCH LETTERS DISCLOSING SPECIFIC FEESINCURRED BY CUSTOMERS. 5. VIOLATED EXCHANGE RULES 342 AND 472IN THAT THE FIRM FAILED TO REASONABLY SUPERVISE AND CONTROLAND PROVIDE APPROPRIATE PROCEDURES OF SUPERVISION ANDCONTROL AND ESTABLISH A SYSTEM OF FOLLOW–UP AND REVIEWWITH RESPECT TO: A) ASSURING COMPLIANCE WITH EXCHANGE RULESREGARDING CONTINUING EDUCATION AND REGISTRATIONREQUIREMENTS; **CONTINUED IN #14**
Current Status: Final
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Initiated By: NEW YORK STOCK EXCHANGE DIVISION OF ENFORCEMENT
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 05/26/2004
Docket/Case Number: HPD# 04-115
Principal Product Type: Other
Other Product Type(s):
Allegations: **05/26/2004** STIPULATION AND CONSENT TO PENALTY FILED BY THEDIVISION OF ENFORCEMENT AND PENDING. A. CONSENTED TO FINDINGSTHAT THE FIRM: 1. VIOLATED EXCHANGE RULE 345A AND 345(A) BY: A)PERMITTING EMPLOYEES TO ACT IN A REGISTERED CAPACITY ANDGENERATE COMMISSIONS WHILE THEIR REGISTRATION STATUS WASINACTIVE; AND B) PERMITTING A RETAIL COMPLIANCE MANAGER TOSUPERVISE TEN OR MORE INDIVIDUALS WHO ACTED IN A COMPLIANCECAPACITY EVEN THOUGH THE MANAGER DID NOT POSSESS THEREQUIRED QUALIFICATION. 2. VIOLATED EXCHANGE RULE 345 AND 351 BY:A) FAILING TO REPORT AND/OR PROMPTLY AND ACCURATELY REPORT,CUSTOMER COMPLAINTS AS REQUIRED; AND B) FAILING TO FILE AND/ORPROMPTLY FILE, FORMS U-5 AND A FORM RE-3 WITH THE EXCHANGE. 3.VIOLATED EXCHANGE RULE 440 AND SEC RULES 240.17A-3 AND 17A-4 BYFAILING TO MAINTAIN ACCURATE BOOKS AND RECORDS INCONNECTION WITH THE REPORTING OF CUSTOMERS’COMPLAINTS AND FILING OF FORMS U-5 AND A FORM RE-3. 4. VIOLATEDEXCHANGE RULE 405 BY FAILING TO ENSURE THAT CUSTOMERSRECEIVED MUTUAL FUND SWITCH LETTERS DISCLOSING SPECIFIC FEESINCURRED BY CUSTOMERS. 5. VIOLATED EXCHANGE RULES 342 AND 472IN THAT THE FIRM FAILED TO REASONABLY SUPERVISE AND CONTROLAND PROVIDE APPROPRIATE PROCEDURES OF SUPERVISION ANDCONTROL AND ESTABLISH A SYSTEM OF FOLLOW–UP AND REVIEWWITH RESPECT TO: A) ASSURING COMPLIANCE WITH EXCHANGE RULESREGARDING CONTINUING EDUCATION AND REGISTRATIONREQUIREMENTS; **CONTINUED IN #14**
Resolution Date: 08/13/2004
Resolution:
Other Sanctions Ordered:
Sanctions Ordered: CensureMonetary/Fine $250,000.00
Decision
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Sanction Details: **07/08/2004** #04-115 ISSUED BY THE NYSE HEARING PANELDECISION: VIOLATED EXCHANGE RULE 345A AND 345(A) BY PERMITTINGEMPLOYEES TO ACT IN A REGISTERED CAPACITY WHILE REGISTRATIONSTATUS WAS INACTIVE AND BY PERMITTING A MANAGER TO SUPERVISEINDIVIDUALS IN A COMPLIANCE CAPACITY WITHOUT THE REQUIREDQUALIFICATION; VIOLATED EXCHANGE RULES 345 AND 351 AND 440 ANDSEC RULES 240.17A-3 AND 17A-4 BY FAILING TO PROMPTLY ANDACCURATELY REPORT CUSTOMER COMPLAINTS AND FAILING TOPROMPTLY FILE FORMS U-5 AND A FORM RE-3; VIOLATED EXCHANGERULE 405 BY FAILING TO ENSURE THAT CUSTOMERS RECEIVED MUTUALFUND SWITCH LETTERS DISCLOSING SPECIFIC FEES; VIOLATEDEXCHANGE RULES 342 AND 472 BY FAILING TO REASONABLY SUPERVISEWITH RESPECT TO CONTINUING EDUCATION AND REGISTRATIONREQUIREMENTS, PROMPT REPORTING OF CUSTOMER COMPLAINTS ANDFILING OF FORMS U-5 AND A FORM RE-3, ASSURING APPROPRIATEREVIEW OF CERTAIN DISCRETIONARY ACCOUNTS, MONITORINGCUSTOMER ACCOUNTS TO ENSURE THAT CUSTOMERS RECEIVED BETTEREXECUTION PRICES THAN REGISTERED REPRESENTATIVES; ANDENSURING THAT RESEARCH REPORTS CONTAINED CLEAR, POSITIVELANGUAGE IN SECURITIES IN WHICH THE FIRM WAS MAKING A MARKET– CONSENT TO CENSURE AND $250,000 FINE
Regulator Statement B) ASSURING COMPLIANCE WITH EXCHANGE RULES TO PROMPTLY ANDACCURATELY REPORT CUSTOMER COMPLAINTS AND FILE FORMS U-5 ANDA FORM RE-3; ASSURING THAT CERTAIN DISCRETIONARY ACCOUNTSWERE RECEIVING THE APPROPRIATE SUPERVISORY REVIEW;D) MONITORING CUSTOMER ACCOUNTS TO ENSURE THAT CUSTOMERSRECEIVED BETTER EXECUTION PRICES THAN REGISTEREDREPRESENTATIVES; AND E) ENSURING THAT RESEARCH REPORTSCONTAINED CLEAR, POSITIVE LANGUAGE IN SECURITIES IN WHICH THEFIRM WAS MAKING A MARKET. B. THE IMPOSITION BY THE EXCHANGE OFTHE PENALTY OF: 1. A CENSURE; AND 2. A FINE OF $250,000. **8/13/04**THEDECISION IS NOW FINAL AND EFFECTIVE IMMEDIATELY.CONTACT: MICHELEVAN TASSEL (212) 656-5340.
iReporting Source: Firm
Initiated By: NEW YORK STOCK EXCHANGE, INC.
Allegations: AS A RESULT OF ITS EXAM OF FIRST UNION IN 2000 AND 2001, THE NYSEFOUND REGISTRATION ISSUES, CUSTOMER COMPLAINT REPORTINGDEFICIENCIES, REVIEW OF DISCRETIONARY ACCOUNTS SHORTCOMINGS,INSUFFICENT DISCLOSURE IN MUTUAL FUND SWITCH LETTERS AND LACKOF CLEAR LANGUAGE IN RESEARCH REPORTS.
Current Status: Final
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Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
FINE OF $250,000
Date Initiated: 07/08/2004
Docket/Case Number: HPD# 04-115
Principal Product Type: No Product
Other Product Type(s):
Resolution Date: 08/13/2004
Resolution:
Other Sanctions Ordered:
Sanction Details: WITHOUT ADMITTING THE ALLEGATIONS, THE FIRM AGREED TO THEENTRY OF A CONSENT ORDER, THE TERMS OF WHICH WERE A CENSUREAND A FINE OF $250,000. PAYMENT OF THE FINE WAS MADE ON AUGUST25, 2004.
Sanctions Ordered: CensureMonetary/Fine $250,000.00
Consent
Disclosure 136 of 158
i
Reporting Source: Regulator
Initiated By: UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Date Initiated: 02/12/2004
Docket/Case Number: 3-11410
Principal Product Type: Mutual Fund(s)
Other Product Type(s):
Allegations: SEC ADMINISTRATIVE PROCEEDING RELEASE NOS. 33-8380 AND 34-49229,DATED FEBRUARY 12, 2004: THE SECURITIES AND EXCHANGECOMMISSION ("COMMISSION" OR "SEC") DEEMS IT APPROPRIATE AND INTHE PUBLIC INTEREST THAT PUBLIC ADMINISTRATIVE AND CEASE-AND-DESIST PROCEEDINGS BE, AND HEREBY ARE, INSTITUTED PURSUANT TOSECTION 8A OF THE SECURITIES ACT OF 1933 ("SECURITIES ACT") ANDSECTIONS 15(B)(4) AND 21C OF THE SECURITIES EXCHANGE ACT OF 1934("EXCHANGE ACT") AGAINST WACHOVIA SECURITIES, LLC, F/K/AWACHOVIA SECURITIES, INC. ("RESPONDENT").
Current Status: Final
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Principal Sanction(s)/ReliefSought:
Cease and Desist
Other Sanction(s)/ReliefSought:
CENSURE; FINE; AND DISGORGEMENT, PLUS PREJUDGMENT INTEREST.
Other Product Type(s):
Resolution Date: 02/12/2004
Resolution:
Other Sanctions Ordered:
Sanction Details: IT IS ORDERED: A. PURSUANT TO SECTION 15(B)(4) OF THE EXCHANGEACT, THAT RESPONDENT IS CENSURED; B. PURSUANT TO SECTION 8A OFTHE SECURITIES ACT AND SECTION 21C OF THE EXCHANGE ACT, THATRESPONDENT SHALL CEASE AND DESIST FROM COMMITTING ORCAUSING ANY VIOLATIONS AND ANY FUTURE VIOLATIONS OF SECTION17(A)(2) OF THE SECURITIES ACT, AND RULE 10B-10 UNDER THEEXCHANGE ACT; C. WITHIN 10 DAYS OF THE ENTRY OF THIS ORDER,RESPONDENT SHALL PAY A CIVIL MONEY PENALTY IN THE AMOUNT OF$2,422,232 TO THE UNITED STATES TREASURY; D. RESPONDENT SHALLPAY DISGORGEMENT AND PREJUDGMENT INTEREST; AND E. NOT LATERTHAN 6 MONTHS AFTER THE DATE OF THIS ORDER, UNLESS OTHERWISEEXTENDED BY THE COMMISSION FOR GOOD CAUSE SHOWN,RESPONDENT'S CHIEF EXECUTIVE OFFICER SHALL CERTIFY IN WRITINGTO THE COMMISSION THAT RESPONDENT HAS IMPLEMENTEDPROCEDURES, AND A SYSTEM FOR APPLYING SUCH PROCEDURES, THATCAN REASONABLY BE EXPECTED TO PREVENT AND DETECT FAILURES BYRESPONDENT TO PROVIDE APPROPRIATE BREAKPOINT DISCOUNTS FORWHICH CUSTOMERS ARE ELIGIBLE ON PURCHASES OF FRONT-END LOADMUTUAL FUNDS, BASED ON INFORMATION REASONABLY ASCERTAINABLEBY RESPONDENT.
Regulator Statement RESPONDENT HAS SUBMITTED AN OFFER OF SETTLEMENT WITHOUTADMITTING OR DENYING THE FINDINGS HEREIN, EXCEPT AS TO THECOMMISSION'S JURISDICTION, AND CONSENTED TO THE ENTRY OF THISORDER. THE SEC FINDS THAT: DURING 2001 AND 2002 (THE "RELEVANTPERIOD"), RESPONDENT SOLD SHARES ISSUED BY MUTUAL FUNDSWITHOUT PROVIDING CERTAIN CUSTOMERS WITH THE REDUCTIONS INFRONT-END LOADS, OR SALES CHARGES, ALSO KNOWN AS "BREAKPOINT"DISCOUNTS, DESCRIBED IN THE PROSPECTUSES OF THE FUNDS.ACCORDING TO DATA SUBMITTED TO NASD BY RESPONDENT,RESPONDENT IS ESTIMATED TO HAVE FAILED TO GIVE CERTAINCUSTOMERS BREAKPOINT DISCOUNTS TOTALING APPROXIMATELY$4,844,465 DURING THE RELEVANT PERIOD. BY FAILING TO DISCLOSE TOCERTAIN CUSTOMERS THAT THEY WERE NOT RECEIVING THE BENEFIT OFAPPLICABLE BREAKPOINT DISCOUNTS, RESPONDENT WILLFULLYVIOLATED SECTION 17(A)(2) OF THE SECURITIES ACT. FURTHER, BECAUSERESPONDENT DID NOT CHARGE THESE CUSTOMERS THE CORRECTSALES LOADS AS SET FORTH IN THE MUTUAL FUNDS' PROSPECTUSES,AND ALSO DID NOT DISCLOSE IN CONFIRMATIONS THE REMUNERATIONRESPONDENT RECEIVED FROM THE SALES LOADS CHARGED TO THESECUSTOMERS, RESPONDENT WILLFULLY VIOLATED RULE 10B-10 UNDERTHE EXCHANGE ACT.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: CensureMonetary/Fine $2,422,232.00Disgorgement/RestitutionCease and Desist/Injunction
Order
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RESPONDENT HAS SUBMITTED AN OFFER OF SETTLEMENT WITHOUTADMITTING OR DENYING THE FINDINGS HEREIN, EXCEPT AS TO THECOMMISSION'S JURISDICTION, AND CONSENTED TO THE ENTRY OF THISORDER. THE SEC FINDS THAT: DURING 2001 AND 2002 (THE "RELEVANTPERIOD"), RESPONDENT SOLD SHARES ISSUED BY MUTUAL FUNDSWITHOUT PROVIDING CERTAIN CUSTOMERS WITH THE REDUCTIONS INFRONT-END LOADS, OR SALES CHARGES, ALSO KNOWN AS "BREAKPOINT"DISCOUNTS, DESCRIBED IN THE PROSPECTUSES OF THE FUNDS.ACCORDING TO DATA SUBMITTED TO NASD BY RESPONDENT,RESPONDENT IS ESTIMATED TO HAVE FAILED TO GIVE CERTAINCUSTOMERS BREAKPOINT DISCOUNTS TOTALING APPROXIMATELY$4,844,465 DURING THE RELEVANT PERIOD. BY FAILING TO DISCLOSE TOCERTAIN CUSTOMERS THAT THEY WERE NOT RECEIVING THE BENEFIT OFAPPLICABLE BREAKPOINT DISCOUNTS, RESPONDENT WILLFULLYVIOLATED SECTION 17(A)(2) OF THE SECURITIES ACT. FURTHER, BECAUSERESPONDENT DID NOT CHARGE THESE CUSTOMERS THE CORRECTSALES LOADS AS SET FORTH IN THE MUTUAL FUNDS' PROSPECTUSES,AND ALSO DID NOT DISCLOSE IN CONFIRMATIONS THE REMUNERATIONRESPONDENT RECEIVED FROM THE SALES LOADS CHARGED TO THESECUSTOMERS, RESPONDENT WILLFULLY VIOLATED RULE 10B-10 UNDERTHE EXCHANGE ACT.
iReporting Source: Firm
Initiated By: SECURITIES AND EXCHANGE COMMISSION
Principal Sanction(s)/ReliefSought:
Cease and Desist
Other Sanction(s)/ReliefSought:
CENSURE, MONETARY FINE AND DISGORGEMENT, PLUS PREJUDGMENTINTEREST
Date Initiated: 02/12/2004
Docket/Case Number: 3-11410
Principal Product Type: Mutual Fund(s)
Other Product Type(s):
Allegations: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, THE FIRM WASALLEGED TO HAVE VIOLATED SECTION 17(A)(2) OF THE SECURITIES ACT INFAILING TO NOTIFY CUSTOMERS OF APPROPRIATE BREAKPOINTDISCOUNTS AND VIOLATED RULE 10B-10 UNDER THE EXCHANGE ACT INFAILING TO DISCLOSE THE REMUNERATION THE FIRM RECEIVED FROMFRONT END SALES LOADS.
Current Status: Final
Resolution Date: 02/12/2004
Resolution: Decision & Order of Offer of Settlement
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Resolution Date: 02/12/2004
Other Sanctions Ordered:
Sanction Details: THE TOTAL AMOUNT OF THE FINE WAS $4,844,465. $2,422,232 PAID TO THENASD ON 2/19/04 AND $2,422,232 PAID TO THE SEC ON 2/19/04.
Firm Statement THE FIRM AGREED TO AN OFFER OF SETTLEMENT WITHOUT ADMITTINGOR DENYING THE ALLEGATIONS. IN ADDITION TO THE CENSURE, CEASEAND DESIST ORDER, MONETARY FINE, THE FIRM HAS AGREED TOCERTAIN UNDERTAKINGS SET FORTH UNDER NASD AWC#CAF040008: (1) ATRADE BY TRADE REVIEW OF ALL FRONT END LOADED FUND SALESABOVE $2500 FROM JANUARY 1, 1999 THROUGH NOVEMBER 3, 2003 TOENSURE THAT CUSTOMERS RECEIVE THE APPROPRIATE SALESDISCOUNTS AND PROVIDE REFUNDS WHERE APPLICABLE, AND (2) WITHIN6 MONTHS OF THE DATE OF THE AWC, THE FIRM WILL CERTIFY TO THEREGULATORS THAT A SYSTEM IS IN PLACE REASONABLY DESIGNED TOMAKE CERTAIN CUSTOMERS GET APPROPRIATE BREAKPOINTDISCOUNTS.
Sanctions Ordered: CensureMonetary/Fine $2,422,232.00Disgorgement/RestitutionCease and Desist/Injunction
Disclosure 137 of 158
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Reporting Source: Regulator
Initiated By: NASD
Principal Sanction(s)/ReliefSought:
Date Initiated: 02/12/2004
Docket/Case Number: CAF040008
Principal Product Type: Mutual Fund(s)
Other Product Type(s):
Allegations: NASD RULE 2110 - RESPONDENT MEMBER SOLD SHARES ISSUED BYMUTUAL FUNDS WITHOUT PROVIDING CERTAIN CUSTOMERS WITHBREAKPOINT DISCOUNTS DESCRIBED IN THE PROSPECTUSES OF THEFUNDS; FAILED TO GIVE ITS CUSTOMERS BREAKPOINT DISCOUNTS IN28.77% OF ELIGIBLE MUTUAL FUND TRANSACTIONS IN 2001 AND 2002 THATRESULTED IN MISSED BREAKPOINTS THAT WOULD HAVE REDUCEDCUSTOMERS' CHARGES BY AT LEAST $4.8 MILLION ON THEIR PURCHASESOF MUTUAL FUND SHARES WITH FRONT-END LOADS DURING THERELEVANT PERIOD.
Current Status: Final
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Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Resolution Date: 02/12/2004
Resolution:
Other Sanctions Ordered: UNDERTAKINGS.
Sanction Details: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, RESPONDENT FIRMCONSENTED TO THE DESCRIBED SANCTIONS AND TO THE ENTRY OFFINDINGS; THEREFORE, THE FIRM IS CENSURED, FINED $4,844,465, OFWHICH ONE HALF SHALL BE PAID TO NASD AND ONE HALF SHALL BE PAIDTO THE U.S. TREASURY PURSUANT TO RELATED SEC PROCEEDINGSBEING INSTITUTED AGAINST RESPONDENT ON THIS DATE, AND REQUIREDTO PROVIDE WRITTEN NOTIFICATION TO EACH CUSTOMER WHOPURCHASED FRONT-END LOAD MUTUAL FUNDS THROUGH THE FIRMFROM JANUARY 1, 1999 THROUGH NOVEMBER 3, 2003 THAT THE FIRMEXPERIENCED A PROBLEM DELIVERING BREAKPOINT DISCOUNTS ANDTHAT AS A RESULT, THE CUSTOMER MAY BE ENTITLED TO A REFUND;PERFORM A TRADE-BY-TRADE ANALYSIS OF ALL FRONT-END LOADMUTUAL FUND PURCHASES OF $2,500 OR MORE AND ALL OVERCHARGESIDENTIFIED REFUNDED BY MARCH 31, 2004; PROVIDE REFUNDS TO ALLCUSTOMERS WHO DID NOT RECEIVE ALL APPLICABLE BREAKPOINTDISCOUNTS AS DESCRIBED IN NTM 03-47; PROVIDE NASD A REPORT ONRESPONDENT'S REFUND PROGRAM BY 4/16/04; AND NOT LATER THAN SIXMONTHS AFTER THE DATE OF THIS ORDER, RESPONDENT'S CHIEFEXECUTIVE OFFICER SHALL CERTIFY IN WRITING TO NASD THATRESPONDENT HAS IMPLEMENTED PROCEDURES AND A SYSTEM FORAPPLYING SUCH PROCEDURES THAT CAN REASONABLY BE EXPECTED TOPREVENT AND DETECT FAILURES TO PROVIDE BREAKPOINT DISCOUNTSFOR WHICH CUSTOMERS ARE ELIGIBLE ON PURCHASES OF FRONT-ENDLOAD MUTUAL FUNDS.
Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?
No
Sanctions Ordered: CensureMonetary/Fine $2,422,232.50
Acceptance, Waiver & Consent(AWC)
iReporting Source: Firm
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Initiated By: NASD
Principal Sanction(s)/ReliefSought:
Censure
Other Sanction(s)/ReliefSought:
MONETARY FINE AND UNDERTAKINGS
Date Initiated: 02/12/2004
Docket/Case Number: CAF040008
Principal Product Type: Mutual Fund(s)
Other Product Type(s):
Allegations: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, THE FIRM WASALLEGED TO HAVE VIOLATED NASD CONDUCT RULE 2110, STANDARDS OFCOMMERCIAL HONOR AND PRINCIPLES OF TRADE, AS IT RELATES TODISLOSING TO CLIENTS THEIR ELIGIBILITY OF RECEIVING MUTUAL FUNDBREAKPOINT DISCOUNTS.
Current Status: Final
Resolution Date: 02/12/2004
Resolution:
Other Sanctions Ordered: UNDERTAKINGS
Sanction Details: THE TOTAL AMOUNT OF THE FINE WAS $4,844,465. $2,422,232 PAID TO THENASD ON 2/19/04 AND $2,422,232 PAID TO THE SEC ON 2/19/04.
Firm Statement THE FIRM AGREED TO THE LETTER OF ACCEPTANCE, WAIVER ANDCONSENT WITHOUT ADMITTING OR DENYING THE ALLEGATIONS. INADDITION TO THE CENSURE AND MONETARY FINE, THE FIRM HAS AGREEDTO CERTAIN UNDERTAKINGS: (1) A TRADE BY TRADE REVIEW OF ALLFRONT END LOADED FUND SALES ABOVE $2500 FROM JANUARY 1, 1999THROUGH NOVEMBER 3, 2003 TO ENSURE THAT CUSTOMERS RECEIVETHE APPROPRIATE SALES DISCOUNTS AND PROVIDE REFUNDS WHEREAPPLICABLE AND (2) WITHIN 6 MONTHS OF THE DATE OF THE AWC, THEFIRM WILL CERTIFY TO THE REGULATORS THAT A SYSTEM IS IN PLACEREASONABLY DESIGNED TO MAKE CERTAIN CUSTOMERS GETAPPROPRIATE BREAKPOINT DISCOUNTS.
Sanctions Ordered: CensureMonetary/Fine $2,422,232.00
Acceptance, Waiver & Consent(AWC)
Disclosure 138 of 158
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Reporting Source: Regulator
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Initiated By: NEW HAMPSHIREBUREAU OF SECURITIES REGULATION
Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
N/A
Date Initiated: 02/10/2003
Docket/Case Number: INV03-010
URL for Regulatory Action:
Principal Product Type: Other
Other Product Type(s): N/A
Allegations: LATE FILED AUDITED FINANCIALS FOR YEAR ENDING 2000.
Current Status: Final
Resolution Date: 06/16/2003
Resolution:
Other Sanctions Ordered: N/A
Sanction Details: RESPONDENT FINED $500.
Regulator Statement WACHOVIA SECURITIES INC, CRD#431 FILED ITS YEAR END AUDITEDFINANCIALS LATE. WACHOVIA MERGED INTO FIRST UNION SECURITIESINC ON 6/15/2002 AND THEN CHANGED ITS NAME TO WACHOVIASECURITIES INC. CRD#19616. THIS ACTION WAS COMMENCED AGAINSTTHE NEW WACHOVIA ALTHOUGH THE VIOLATION WAS COMMITTED BY THELEGACY WACHOVIA.
Sanctions Ordered: Monetary/Fine $500.00
Consent
iReporting Source: Firm
Initiated By: STATE OF NEW HAMPSHIRE
Date Initiated: 03/19/2003
Docket/Case Number: INV03-010
Allegations: FAILURE OF PREDECESSOR FIRM WACHOVIA SECURITIES, INC. (BD 431)TO FILE ANNUAL AUDITED STATEMENTS WITHIN TIMELY MANNER AND TOPAY PENALTY OF $500 FOR LATE FILING.
Current Status: Final
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Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Principal Product Type: No Product
Other Product Type(s):
Resolution Date: 06/09/2003
Resolution:
Other Sanctions Ordered:
Sanction Details: ADMINISTRATIVE FINE OF $500.00 AND PENALTY FEE OF $500.00 PAID TOSTATE 04/07/2003.
Firm Statement THE RESPONDENT WACHOVIA SECURITIES, INC. (BD 19616)VOLUNTARILYCONSENTED TO THE ENTRY OF THE ORDER AND TO PAY THE PENALTYINCURRED BY THE FORMER WACHOVIA SECURITIES, INC. (BD431), WHICHMERGED WITH FIRST UNION SECURITIES, INC. ON 6/15/2002 TO BECOMEWACHOVIA SECURITIES, INC. (BD19616).
Sanctions Ordered: Monetary/Fine $1,000.00
Order
Disclosure 139 of 158
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Reporting Source: Regulator
Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
Date Initiated: 10/30/2002
Docket/Case Number: CMS020202
Principal Product Type: Other
Other Product Type(s): UNKNOWN TYPE OF SECURITIES
Allegations: SEC RULE 11AC1-4 - WITHOUT ADMITTING OR DENYING THE ALLEGATIONS,THE RESPONDENT MEMBER CONSENTED TO THE ENTRY OF FINDINGSTHAT IT FAILED TO DISPLAY IMMEDIATELY THE CUSTOMER LIMIT ORDERSIN NASDAQ SECURITIES IN ITS PUBLIC QUOTATION, WHEN EACH SUCHORDER WAS AT A PRICE THAT WOULD HAVE IMPROVED THE FIRM'S BID OROFFER IN EACH SUCH SECURITY; OR WHEN THE ORDER WAS PRICEDEQUAL TO THE FIRM'S BID OR OFFER AND THE NATIONAL BEST BID OROFFER IN SUCH SECURITY, AND THE SIZE OF THE ORDER REPRESENTEDMORE THAN A DE MINIMIS CHANGE IN RELATION TO THE SIZE ASSOCIATEDWITH ITS BID OR OFFER IN EACH SUCH SECURITY.
Current Status: Final
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Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Other Product Type(s): UNKNOWN TYPE OF SECURITIES
Resolution Date: 10/30/2002
Resolution:
Other Sanctions Ordered:
Sanction Details: A CENSURE AND A FINE OF $10,000.
Sanctions Ordered: CensureMonetary/Fine $10,000.00
Acceptance, Waiver & Consent(AWC)
iReporting Source: Firm
Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 10/30/2002
Docket/Case Number: CMS020202
Principal Product Type: Other
Other Product Type(s): UNKNOWN TYPE OF SECURITIES
Allegations: SEC RULE 11AC1-4 - WITHOUT ADMITTING OR DENYING THE ALLEGATIONS,THE RESPONDENT MEMBER CONSENTED TO THE ENTRY OF FINDINGSTHAT IT FAILED TO DISPLAY IMMEDIATELY THE CUSTOMER LIMIT ORDERSIN NASDAQ SECURITIES IN ITS PUBLIC QUOTATION, WHEN EACH SUCHORDER WAS AT A PRICE THAT WOULD HAVE IMPROVED THE FIRM'S BID OROFFER IN EACH SUCH SECURITY; OR WHEN THE ORDER WAS PRICEDEQUAL TO THE FIRM'S BID OR OFFER AND THE NATIONAL BEST BID OROFFER IN SUCH SECURITY, AND THE SIZE OF THE ORDER REPRESENTEDMORE THAN A DE MINIMIS CHANGE IN RELATION TO THE SIZE ASSOCIATEDWITH ITS BID OR OFFER IN EACH SUCH SECURITY.
Current Status: Final
Resolution Date: 10/30/2002
Resolution: Acceptance, Waiver & Consent(AWC)
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Resolution Date: 10/30/2002
Other Sanctions Ordered:
Sanction Details: A CENSURE AND A FINE OF $10,000.
Sanctions Ordered: CensureMonetary/Fine $10,000.00
Disclosure 140 of 158
i
Reporting Source: Regulator
Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 10/24/2002
Docket/Case Number: CMS020193
Principal Product Type: Other
Other Product Type(s): UNKNOWN TYPE OF SECURITIES
Allegations: NASD RULE 2110 - WITHOUT ADMITTING OR DENYING THE ALLEGATIONS,THE RESPONDENT MEMBER CONSENTED TO THE ENTRY OF FINDINGSTHAT IT FAILED TO REPORT TO FIXED INCOME PRICING SYSTEM ("FIPS")TRANSACTIONS IN FIPS SECURITIES WITHIN FIVE MINUTES AFTEREXECUTION. SUCH CONDUCT CONSTITUTES A PATTERN OR PRACTICE OFTHE LATE REPORTING AND IS CONSIDERED CONDUCT INCONSISTENTWITH HIGH STANDARDS OF COMMERCIAL HONOR AND JUST ANDEQUITABLE PRINCIPALS OF TRADE.
Current Status: Final
Resolution Date: 10/24/2002
Resolution:
Other Sanctions Ordered:
Sanction Details: A FINE OF $5,000.
Sanctions Ordered: Monetary/Fine $5,000.00
Acceptance, Waiver & Consent(AWC)
iReporting Source: Firm
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Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 10/24/2002
Docket/Case Number: CMS020193
Principal Product Type: Other
Other Product Type(s): UNKNOWN TYPE OF SECURITIES
Allegations: NASD RULE 2110 - WITHOUT ADMITTING OR DENYING THE ALLEGATIONS,WACHOVIA SECURITIES, INC. CONSENTED TO THE ENTRY OF FINDINGSTHAT IT FAILED TO REPORT TO THE FIXED INCOME PRICING SYSTEM("FIPS")46 TRANSACTIONS IN FIPS SECURITIES WITHIN FIVE MINUTESAFTER EXECUTION DURING THE PERIOD FROM JANUARY 1, 2001THROUGH JUNE 28,2001, WHICH CONSTITUTES A PATTERN OR PRACTICEOF REPORTING IN VIOLATION OF RULE 2110. THE FIRM PAID A FINE OF$5,000.
Current Status: Final
Resolution Date: 10/24/2002
Resolution:
Other Sanctions Ordered:
Sanction Details: A FINE OF $5000.00
Sanctions Ordered: Monetary/Fine $5,000.00
Acceptance, Waiver & Consent(AWC)
Disclosure 141 of 158
i
Reporting Source: Regulator
Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
Date Initiated: 02/07/2002
Docket/Case Number: C07020006
Allegations: NASD RULES 2110, 8210 - WITHOUT ADMITTING OR DENYING THEALLEGATIONS, THE RESPONDENT MEMBER CONSENTED TO THE ENTRYOF FINDINGS THAT IT FAILED TO TIMELY COMPLETE AND RETURN TO THENASD A BRANCH OFFICE INFORMATION QUESTIONNAIRE.
Current Status: Final
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Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Docket/Case Number: C07020006
Principal Product Type: No Product
Other Product Type(s):
Resolution Date: 02/07/2002
Resolution:
Other Sanctions Ordered:
Sanction Details: CENSURED AND FINED $5,000
Sanctions Ordered: CensureMonetary/Fine $5,000.00
Acceptance, Waiver & Consent(AWC)
iReporting Source: Firm
Initiated By: NASD REGULATION, INC.
Principal Sanction(s)/ReliefSought:
Censure
Other Sanction(s)/ReliefSought:
FINE OF $5,000
Date Initiated: 04/03/2000
Docket/Case Number: C07020006-AWC
Principal Product Type: No Product
Other Product Type(s):
Allegations: THE NASD ALLEGES THAT ON OR ABOUT APRIL 3, 2000 NASD REGULATIONSTAFF REQUESTED PURSUANT TO NASD PROCEDURAL RULE 8210 THATFIRST UNION COMPLETE AND RETURN A BRANCH OFFICE INFORMATIONQUESTIONNAIRE BY APRIL 18, 2000. FIRST UNION REQUESTED ANDRECIEVED AN EXTENSION OF THE RESPONSE DEADLINE UNTIL MAY 12,2000. AFTER FURTHER COMMUNICATION WITH FIRST UNION, NASDREGULATION STAFF DID NOT RECEIVE THE REQUESTED INFORMATIONUNTIL MARCH 2001. THE NASD ALLEGES THAT SUCH CONDUCT VIOLATESNASD PROCEDURAL RULE 8210 AND NASD CONDUCT RULE 2110.
Current Status: Final
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Resolution Date: 02/07/2002
Resolution:
Other Sanctions Ordered: N/A
Sanction Details: N/A
Firm Statement WITHOUT ADMITTING OR DENYING GUILT, FIRST UNION SECURITIESCOSENTED TO THE NASD'S FINDINGS THAT ON OR ABOUT APRIL 3, 2000NASD REGULATION STAFF REQUESTED PURSUANT TO NASDPROCEDURAL RULE 8210 THAT FIRST UNION COMPLETE AND RETURN ABRANCH OFFICE INFORMATION QUESTIONNAIRE BY APRIL 18, 2000. THATFIRST UNION REQUESTED AND RECIEVED AN EXTENSION OF THERESPONSE DEADLINE UNTIL MAY 12, 2000. THAT AFTER FURTHERCOMMUNICATION WITH FIRST UNION, NASD REGULATION STAFF DID NOTRECEIVE THE REQUESTED INFORMATION UNTIL MARCH 2001. THAT THENASD ALLEGES THAT SUCH CONDUCT VIOLATES NASD PROCEDURALRULE 8210 AND NASD CONDUCT RULE 2110.
Sanctions Ordered: Monetary/Fine $5,000.00
Acceptance, Waiver & Consent(AWC)
Disclosure 142 of 158
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Reporting Source: Regulator
Allegations: **11/05/2001** STIPULATION AND CONSENT TO PENALTY FILED BY NYSEDIVISION OF ENFORCEMENT AND PENDING CONSENTED TO FINDINGS:WITHOUT ADMITTING OR DENYING GUILT, FIRST UNION SECURITIES, INC.CONSENTED TO A FINDING BY THE HEARING PANEL THAT THE FIRM:EXCHANGE RULE 440 AND SEC REGULATIONS ?240.17A-3 AND 17A-4 BYFAILING TO MAKE AND PRESERVE REQUIRED RECORDS RELATING TOACCOUNT DESIGNATION AND EXECUTION OF CUSTOMER ORDERS.EXCHANGE RULE 410 BY FAILING TO MAKE AND PRESERVE REQUIREDRECORDS REGARDING THE TIMELY ALLOCATION OF ORDERS TOCUSTOMER ACCOUNTS. EXCHANGE RULE 351 BY FAILING TO PROMPTLYREPORT CERTAIN CUSTOMER COMPLAINTS AND/OR SETTLEMENTS TOTHE EXCHANGE AS REQUIRED.EXCHANGE RULE 342 IN THAT IT FAILED TO REASONABLY SUPERVISE ANDCONTROL AND PROVIDE APPROPRIATE PROCEDURES OF SUPERVISIONAND CONTROL AND ESTABLISH A SYSTEM OF FOLLOW-UP AND REVIEWWITH RESPECT TO: ASSURING COMPLIANCE WITH EXCHANGE RULES ANDFEDERAL SECURITIES LAWS REQUIRING THE MAKING AND PRESERVATIONOF TIMELY RECORDS RELATING TO THE ACCOUNT DESIGNATION ANDEXECUTION OF CUSTOMER ORDERS;ASSURING THAT TRADE CORRECTIONS EFFECTED BY BRANCH OFFICEMANAGERS ARE PROPERLY REVIEWED; AND ASSURING COMPLIANCEWITH EXCHANGE RULES TO PROMPTLY AND ACCURATELY REPORTCUSTOMER COMPLAINTS AND/OR SETTLEMENTS TO THE EXCHANGE.STIPULATED SANCTION: THE IMPOSITION BY THE EXCHANGE OF THEPENALTY OF: A CENSURE; AND, A FINE OF $145,000.
Current Status: Final
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Initiated By: NYSE DIVISION OF ENFORCEMENT
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 11/05/2001
Docket/Case Number: HPD#01-232
Principal Product Type: Other
Other Product Type(s):
**11/05/2001** STIPULATION AND CONSENT TO PENALTY FILED BY NYSEDIVISION OF ENFORCEMENT AND PENDING CONSENTED TO FINDINGS:WITHOUT ADMITTING OR DENYING GUILT, FIRST UNION SECURITIES, INC.CONSENTED TO A FINDING BY THE HEARING PANEL THAT THE FIRM:EXCHANGE RULE 440 AND SEC REGULATIONS ?240.17A-3 AND 17A-4 BYFAILING TO MAKE AND PRESERVE REQUIRED RECORDS RELATING TOACCOUNT DESIGNATION AND EXECUTION OF CUSTOMER ORDERS.EXCHANGE RULE 410 BY FAILING TO MAKE AND PRESERVE REQUIREDRECORDS REGARDING THE TIMELY ALLOCATION OF ORDERS TOCUSTOMER ACCOUNTS. EXCHANGE RULE 351 BY FAILING TO PROMPTLYREPORT CERTAIN CUSTOMER COMPLAINTS AND/OR SETTLEMENTS TOTHE EXCHANGE AS REQUIRED.EXCHANGE RULE 342 IN THAT IT FAILED TO REASONABLY SUPERVISE ANDCONTROL AND PROVIDE APPROPRIATE PROCEDURES OF SUPERVISIONAND CONTROL AND ESTABLISH A SYSTEM OF FOLLOW-UP AND REVIEWWITH RESPECT TO: ASSURING COMPLIANCE WITH EXCHANGE RULES ANDFEDERAL SECURITIES LAWS REQUIRING THE MAKING AND PRESERVATIONOF TIMELY RECORDS RELATING TO THE ACCOUNT DESIGNATION ANDEXECUTION OF CUSTOMER ORDERS;ASSURING THAT TRADE CORRECTIONS EFFECTED BY BRANCH OFFICEMANAGERS ARE PROPERLY REVIEWED; AND ASSURING COMPLIANCEWITH EXCHANGE RULES TO PROMPTLY AND ACCURATELY REPORTCUSTOMER COMPLAINTS AND/OR SETTLEMENTS TO THE EXCHANGE.STIPULATED SANCTION: THE IMPOSITION BY THE EXCHANGE OF THEPENALTY OF: A CENSURE; AND, A FINE OF $145,000.
Resolution Date: 01/28/2002
Resolution:
Other Sanctions Ordered:
Sanction Details: **12/26/2001** DECISION 01-232 ISSUED BY NYSE HEARING PANELDECISION: VIOLATED RULE 440 AND SEC REGULATIONS 240.17A-3 ANDA-4 BY FAILING TO MAKE AND PRESERVE REQUIRED RECORDS, VIOLATEDRULE 410 BY FAILING TO MAKE AND PRESERVE REQUIRED RECORDS;VIOLATED RULE 351 BY FAILING TO PROMPTLY REPORT CERTAINCUSTOMER COMPLAINTS; AND VIOLATED RULE 342 BY FAILING TOREASONABLY SUPERVISE AND PROVIDE APPROPRIATE PROCEDURES OFSUPERVISION AND CONTROL -- CONSENT TO CENSURE AND $145,000FINE.
Regulator Statement **01/28/2002** THE DECISION IS FINAL AND IS EFFECTIVE IMMEDIATELY.CONTACT: PEGGY GERMINO (212) 656-8450.
Sanctions Ordered: CensureMonetary/Fine $145,000.00
Decision
iReporting Source: Firm
Allegations: 1. ALLEGATIONS OF FAILURE TO SUPERVISE TO ENSURE THAT CUSTOMERORDERS WERE PROPERLY ALLOCATED TO CUSTOMER ACCOUNTS PRIORTO OR SIMULTANEOUSLY WITH ORDER EXECUTION BY EVERENSECURITIES (NOW KNOWN AS FIRST UNION SECURITIES) DURING 1997. 2.DURING 1999 & 2000, EVEREN SECURITIES ALLEGEDLY FAILED TO REPORTALL CUSTOMER COMPLAINTS, CUSTOMER SETTLEMENTS AND VIOLATIVECONDUCT IN A TIMELY MANNER.
Current Status: Final
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Initiated By: NEW YORK STOCK EXCHANGE, INC.
Principal Sanction(s)/ReliefSought:
Censure
Other Sanction(s)/ReliefSought:
FINE OF $145,000
Date Initiated: 04/01/2000
Docket/Case Number: 01-232
Principal Product Type: No Product
Other Product Type(s):
1. ALLEGATIONS OF FAILURE TO SUPERVISE TO ENSURE THAT CUSTOMERORDERS WERE PROPERLY ALLOCATED TO CUSTOMER ACCOUNTS PRIORTO OR SIMULTANEOUSLY WITH ORDER EXECUTION BY EVERENSECURITIES (NOW KNOWN AS FIRST UNION SECURITIES) DURING 1997. 2.DURING 1999 & 2000, EVEREN SECURITIES ALLEGEDLY FAILED TO REPORTALL CUSTOMER COMPLAINTS, CUSTOMER SETTLEMENTS AND VIOLATIVECONDUCT IN A TIMELY MANNER.
Resolution Date: 01/28/2002
Resolution:
Other Sanctions Ordered: N/A
Sanction Details: N/A
Firm Statement WITHOUT ADMITTING OR DENYING ANY GUILT, EVEREN SECURITIES (NOWKNOWN AS FIRST UNION SECURITIES) CONSENTED TO THE NYSE'SFINDINGS THAT 1. VIOLATED EXCHANGE RULE 440 AND SEC REGULATIONS240.71A-3 AND 17A-4 BY FAILING IT TO MAKE AND PERSERVE REQUIREDRECORDS RELATING TO ACCOUNT DESIGNATION AND EXECUTION OFCUSTOMER ORDERS, 2. EXCHANGE RULE 410 BY FAILING TO MAKE ANDPERSERVE REQUIRED RECORDS REGARDING THE TIMELY ALLOCATIONOF ORDERS TO CUSTOMER ACCOUNTS, 3. EXCHANGE RULE 351 BYFAILING TO PROMPTLY REPORT CERTAIN CUSTOMER COMPLAINTSAND/OR SETTLEMENTS TO THE EXCHANGE AS REQUIRED, 4. EXCHANGERULE 342 IN THAT IT FAILED TO REASONABLY SUPERVISE AND CONTROLAND PROVIDE APPROPRIATE PROCEDURES OF SUPERVISION ANDCONTROL AND ESTABLISH A SYSTEM OF FOLLOW-UP AND REVIEW WITHRESPECT TO (A)ASSURING COMPLIANCE WITH EXCHANGE RULES ANDFEDERAL SECURITIES LAWS REQUIRING THE MAKING AND PRESERVATIONOF TIMELY RECORDS RELATING TO THE ACCOUNT DESIGNATION ANDEXECUTION OF CUSTOMER ORDERS, (B) ASSURING THAT TRADECORRECTIONS EFFECTED BY BRANCH OFFICE MANAGERS AREPROPERLY REVIEWED, AND (C) ASSURING COMPLIANCE WITH EXCHANGERULES TO PROMPTLY AND ACCURATLEY REPORT CUSTOMERCOMPLAINTS AND/OR SETTLEMENTS TO THE EXCHANGE.
Sanctions Ordered: Monetary/Fine $145,000.00
Consent
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WITHOUT ADMITTING OR DENYING ANY GUILT, EVEREN SECURITIES (NOWKNOWN AS FIRST UNION SECURITIES) CONSENTED TO THE NYSE'SFINDINGS THAT 1. VIOLATED EXCHANGE RULE 440 AND SEC REGULATIONS240.71A-3 AND 17A-4 BY FAILING IT TO MAKE AND PERSERVE REQUIREDRECORDS RELATING TO ACCOUNT DESIGNATION AND EXECUTION OFCUSTOMER ORDERS, 2. EXCHANGE RULE 410 BY FAILING TO MAKE ANDPERSERVE REQUIRED RECORDS REGARDING THE TIMELY ALLOCATIONOF ORDERS TO CUSTOMER ACCOUNTS, 3. EXCHANGE RULE 351 BYFAILING TO PROMPTLY REPORT CERTAIN CUSTOMER COMPLAINTSAND/OR SETTLEMENTS TO THE EXCHANGE AS REQUIRED, 4. EXCHANGERULE 342 IN THAT IT FAILED TO REASONABLY SUPERVISE AND CONTROLAND PROVIDE APPROPRIATE PROCEDURES OF SUPERVISION ANDCONTROL AND ESTABLISH A SYSTEM OF FOLLOW-UP AND REVIEW WITHRESPECT TO (A)ASSURING COMPLIANCE WITH EXCHANGE RULES ANDFEDERAL SECURITIES LAWS REQUIRING THE MAKING AND PRESERVATIONOF TIMELY RECORDS RELATING TO THE ACCOUNT DESIGNATION ANDEXECUTION OF CUSTOMER ORDERS, (B) ASSURING THAT TRADECORRECTIONS EFFECTED BY BRANCH OFFICE MANAGERS AREPROPERLY REVIEWED, AND (C) ASSURING COMPLIANCE WITH EXCHANGERULES TO PROMPTLY AND ACCURATLEY REPORT CUSTOMERCOMPLAINTS AND/OR SETTLEMENTS TO THE EXCHANGE.
Disclosure 143 of 158
i
Reporting Source: Firm
Initiated By: NASD REGULATION, INC.
Principal Sanction(s)/ReliefSought:
Censure
Other Sanction(s)/ReliefSought:
Date Initiated: 04/05/2000
Docket/Case Number: C05000014
Principal Product Type: Other
Other Product Type(s): US TREASURY SECURITIES
Allegations: THE NASD ALLEGED THAT FUSI'S PREDECESSORS, BUTCHER & SINGERAND WHEAT FIRST SECURITIES, INC. VIOLATED SECTIONS 17(A)(2) AND17(A)(3) OF THE SECURITIES ACT AND NASD RULE 2001 CONCERNINGSALES OF PORTFOLIOS OF US TREASURY SECURITIES FOR DEFEASANCEESCROW AT EXCESSIVE, UNDISCLOSED MARKUPS TO MUNICIPALITIES INCONNECTION WITH ADVANCE REFUNDINGS. FURTHER, THE NASDALLEGED THAT THE FIRM KNEW OR SHOULD HAVE KNOWN THAT THEMARKUPS WERE NOT REASONABLY RELATED TO THE PREVAILINGWHOLESALE MARKET PRICES AND THEREBY JEOPARDIZED THE TAX-EXEMPT STATUS OF THE BONDS AND DIVERTED THE FUNDS FROM THEUS TREASURY.
Current Status: Final
Resolution Date: 04/05/2000
Resolution:
Other Sanctions Ordered: UNDERTAKING
Sanction Details: FUSI, WITHOUT ADMITTING OR DENYING ANY OF THE ALLEGATIONS,CONSENTED TO THE FINDINGS OF THE NASD AND UNDERTAKES TO MAKEPAYMENTS TOTALING $1,460,110.32 RELATED TO THE SALE OF SECURITIESTO CERTAIN MUNICIPAL ISSUERS IN CONNECTION WITH ADVANCEREFUNDINGS, PAY $6,752,152.49 TO THE US TREASURY AND $478,500 TOTHE NASDR UNDER AN AGREEMENT SIMULTANEOUSLY ENTERED INTOAMONG FUSI, THE INTERNAL REVENUE SERVICE AND THE US ATTORNEYFOR THE SOUTHERN DISTRICT OF NEW YORK.
Sanctions Ordered: Censure
Acceptance, Waiver & Consent(AWC)
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FUSI, WITHOUT ADMITTING OR DENYING ANY OF THE ALLEGATIONS,CONSENTED TO THE FINDINGS OF THE NASD AND UNDERTAKES TO MAKEPAYMENTS TOTALING $1,460,110.32 RELATED TO THE SALE OF SECURITIESTO CERTAIN MUNICIPAL ISSUERS IN CONNECTION WITH ADVANCEREFUNDINGS, PAY $6,752,152.49 TO THE US TREASURY AND $478,500 TOTHE NASDR UNDER AN AGREEMENT SIMULTANEOUSLY ENTERED INTOAMONG FUSI, THE INTERNAL REVENUE SERVICE AND THE US ATTORNEYFOR THE SOUTHERN DISTRICT OF NEW YORK.
Disclosure 144 of 158
i
Reporting Source: Regulator
Initiated By: UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Principal Sanction(s)/ReliefSought:
Cease and Desist
Date Initiated: 10/24/2000
Docket/Case Number: REL. 34-43478; FILE #3-10352
Principal Product Type: Other
Other Product Type(s): U.S. TREASURY NOTES AND BONDS
Allegations: THE SEC ALLEGED THAT FIRST UNION SECURITIES, INC. ("FIRST UNIONSECURITIES" OR "DEFENDANT"), A REGISTERED BROKER-DEALER,VIOLATED THE RECORDKEEPING PROVISIONS OF THE FEDERALSECURITIES LAWS IN CONNECTION WITH THE PURCHASE AND SALE OFUNITED STATES TREASURY NOTES AND BONDS ISSUED THROUGH THENONCOMPETITIVE AUCTION PROCESS ("NONCOMPETITIVE SECURITIES")FROM 1995 THROUGH 1998. FIRST UNION SECURITIES' BOOKS ANDRECORDS FAILED TO REFLECT CERTAIN TERMS OF CUSTOMER ORDERS,WHICH WERE PRE-AUCTION AGREEMENTS BETWEEN FIRST UNIONSECURITIES AND ITS NONCOMPETITIVE BIDDING CUSTOMERS, TO SELLTHE SECURITIES THOSE CUSTOMERS WOULD BE AWARDED THROUGHTHE AUCTION. THOSE PRE-AUCTION AGREEMENTS VIOLATED ATREASURY DEPARTMENT PROHIBITION OF SUCH AGREEMENTS. FIRSTUNION SECURITIES RECEIVED APPROXIMATELY $225,000 IN MARKDOWNSFROM ITS CUSTOMERS ON THE NONCOMPETITIVE SECURITIESTRANSACTIONS. FIRST UNION SECURITIES' FAILURE TO RECORD ON ITSBOOKS AND RECORDS THESE PRE-AUCTION AGREEMENTS WITH ITSCUSTOMERS CONSTITUTED A VIOLATION OF SECTION 17(A) OF THEEXCHANGE ACT AND RULE 17A-3 PROMULGATED THEREUNDER. THEORDER TICKETS RELATING TO THE CUSTOMERS' PURCHASE OF THETREASURY SECURITIES SHOULD HAVE RECORDED THE PRE-AUCTIONAGREEMENTS BETWEEN FIRST UNION SECURITIES AND ITS CUSTOMERSTO SELL THE CUSTOMERS' NONCOMPETITIVE TREASURY SECURITIES ASSOON AS POSSIBLE AFTER THE AUCTIONS. THE PRE-AUCTIONAGREEMENTS CONSTITUTED A TERM OR CONDITION OF THECUSTOMERS' ORDERS TO PURCHASE THE TREASURY SECURITIES ATAUCTION, SINCE THOSE ORDERS WOULD NOT HAVE BEEN PLACEDWITHOUT THE ACCOMPANYING AGREEMENTS TO SELL BEING IN PLACE.
Current Status: Final
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Principal Sanction(s)/ReliefSought:
Cease and Desist
Other Sanction(s)/ReliefSought:
DISGORGEMENT, PLUS INTEREST; AND A CIVIL MONEY PENALTY.
Resolution Date: 10/24/2000
Resolution:
Other Sanctions Ordered:
Sanction Details: IT IS HEREBY ORDERED: (1) THAT FIRST UNION SECURITIES CEASE ANDDESIST FROM COMMITTING OR CAUSING ANY VIOLATION, AND FROMCOMMITTING OR CAUSING ANY FUTURE VIOLATION, OF SECTION 17(A) OFTHE EXCHANGE ACT AND RULE 17A-3 THEREUNDER; AND (2) THAT FIRSTUNION SECURITIES, WITHIN 30 DAYS OF THE DATE OF THIS ORDER, SHALLPAY THE AMOUNT OF $308,931.00 REPRESENTING DISGORGEMENT ANDINTEREST THEREON TO THE UNITED STATES TREASURY; AND (3) THATFIRST UNION SECURITIES, WITHIN 30 DAYS OF THE DATE OF THIS ORDER,SHALL PAY THE AMOUNT OF $100,000, REPRESENTING A CIVIL MONEYPENALTY, TO THE UNITED STATES TREASURY.
Regulator Statement +11/10/2000+ SEC NEWS DIGEST, ISSUE NO. 2000-204, DATED 10/24/2000,ENFORCEMENT PROCEEDINGS, AND ADMINISTRATIVE PROCEEDINGRELEASE NO. 34-43478, DATED 10/24/2000, DISCLOSES: THE SECINSTITUTED PUBLIC ADMINISTRATIVE PROCEEDINGS PURSUANT TOSECTIONS 15(B)(4) AND 21C OF THE SECURITIES EXCHANGE ACT OF 1934("EXCHANGE ACT") AGAINST DEFENDANT FIRST UNION SECURITIES. INANTICIPATION OF THE INSTITUTION OF THESE PROCEEDINGS,DEFENDANT HAS SUBMITTED AN OFFER OF SETTLEMENT WHICH THECOMMISSION HAS DETERMINED TO ACCEPT. WITHOUT ADMITTING ORDENYING THE ALLEGATIONS DEFENDANT CONSENTED TO THE ISSUANCEOF THIS CEASE AND DESIST ORDER. THE SEC ALLEGED THAT DEFENDANTVIOLATED THE RECORDKEEPING PROVISIONS OF THE FEDERALSECURITIES LAWS IN CONNECTION WITH THE PURCHASE AND SALE OFUNITED STATES TREASURY NOTES AND BONDS ISSUED THROUGH THENONCOMPETITIVE AUCTION PROCESS FROM 1995 THROUGH 1998. THESEC FOUND THAT DEFENDANT WILLFULLY VIOLATED SECTION 17(A) OFTHE EXCHANGE ACT AND RULE 17A-3 THEREUNDER. IT IS HEREBYORDERED THAT DEFENDANT CEASE AND DESIST FROM COMMITTING ORCAUSING ANY VIOLATION, AND FROM COMMITTING OR CAUSING ANYFUTURE VIOLATION OF THE SECURITIES LAWS. THE SEC ALSO ORDEREDTHAT DEFENDANT SHALL PAY THE DISGORGEMENT, PLUS INTEREST AND ACIVIL MONEY PENALTY. (REL. 34-43478; FILE #3-10352)
Sanctions Ordered: Monetary/Fine $100,000.00Disgorgement/RestitutionCease and Desist/Injunction
Order
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+11/10/2000+ SEC NEWS DIGEST, ISSUE NO. 2000-204, DATED 10/24/2000,ENFORCEMENT PROCEEDINGS, AND ADMINISTRATIVE PROCEEDINGRELEASE NO. 34-43478, DATED 10/24/2000, DISCLOSES: THE SECINSTITUTED PUBLIC ADMINISTRATIVE PROCEEDINGS PURSUANT TOSECTIONS 15(B)(4) AND 21C OF THE SECURITIES EXCHANGE ACT OF 1934("EXCHANGE ACT") AGAINST DEFENDANT FIRST UNION SECURITIES. INANTICIPATION OF THE INSTITUTION OF THESE PROCEEDINGS,DEFENDANT HAS SUBMITTED AN OFFER OF SETTLEMENT WHICH THECOMMISSION HAS DETERMINED TO ACCEPT. WITHOUT ADMITTING ORDENYING THE ALLEGATIONS DEFENDANT CONSENTED TO THE ISSUANCEOF THIS CEASE AND DESIST ORDER. THE SEC ALLEGED THAT DEFENDANTVIOLATED THE RECORDKEEPING PROVISIONS OF THE FEDERALSECURITIES LAWS IN CONNECTION WITH THE PURCHASE AND SALE OFUNITED STATES TREASURY NOTES AND BONDS ISSUED THROUGH THENONCOMPETITIVE AUCTION PROCESS FROM 1995 THROUGH 1998. THESEC FOUND THAT DEFENDANT WILLFULLY VIOLATED SECTION 17(A) OFTHE EXCHANGE ACT AND RULE 17A-3 THEREUNDER. IT IS HEREBYORDERED THAT DEFENDANT CEASE AND DESIST FROM COMMITTING ORCAUSING ANY VIOLATION, AND FROM COMMITTING OR CAUSING ANYFUTURE VIOLATION OF THE SECURITIES LAWS. THE SEC ALSO ORDEREDTHAT DEFENDANT SHALL PAY THE DISGORGEMENT, PLUS INTEREST AND ACIVIL MONEY PENALTY. (REL. 34-43478; FILE #3-10352)
iReporting Source: Firm
Initiated By: UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Principal Sanction(s)/ReliefSought:
Cease and Desist
Other Sanction(s)/ReliefSought:
FIRST UNION SECURITIES, WITHOUT ADMITTING OR DENYING ANYWRONGDOING, WAS ORDERED TO CEASE AND DESIST FROMCOMMITTING OR CAUSING FUTURE VIOLATIONS OF THE BROKER-DEALERRECORDKEEPING PROVISIONS OF THE FEDERAL SECUIRITIES LAWS.FIRST UNION WAS ORDERED TO A CIVIL PENALTY, DISGORGEMENT ANDPREJUDGEMENT INTEREST.
Date Initiated: 10/24/2000
Docket/Case Number: REL. 34-43478, FILE NO. 3-10352
Principal Product Type: Other
Other Product Type(s): TREASURY SECURITIES
Allegations: FIRST UNION SECURITIES, WITHOUT ADMITTING OR DENYING THECOMMISSION'S FINDINGS, CONSENTED TO A COMMISSION ORDERFINDING THAT THE FIRM VIOLATED THE BROKER-DEALERRECORDKEEPING PROVISIONS OF SECTION 17A AND RULE 17A-3THEREUNDER.
Current Status: Final
Resolution Date: 10/24/2000
Resolution:
Other Sanctions Ordered:
Sanction Details: ORDERED TO PAY CIVIL PENALTIES OF $100,000, DISGORGEMENT ANDPREJUDGEMENT INTEREST OF $308,931.
Firm Statement FIRST UNION SECURITIES, WITHOUT ADMITTING OR DENYING ANYWRONGDOING, WAS ORDERED TO CEASE AND DESIST FROMCOMMITTING OR CAUSING FUTURE VIOLATIONS OF THE BROKER-DEALERRECORDKEEPING PROVISIONS OF THE FEDERAL SECUIRITIES LAWS. THECOMMISSION ORDER FINDS THAT FUSI FAILED TO PROPERLY RECORDCERTAIN TERMS OF CUSTOMER ORDERS MADE IN CONNECTION WITHTHE PURCHASE AND SALE OF U.S. TREASURY SECURITIES ISSUEDTHROUGH THE NONCOMPETATIVE AUCTION PROCESS FROM 1995THROUGH 1998.
Sanctions Ordered: Monetary/Fine $100,000.00Disgorgement/Restitution
Consent
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FIRST UNION SECURITIES, WITHOUT ADMITTING OR DENYING ANYWRONGDOING, WAS ORDERED TO CEASE AND DESIST FROMCOMMITTING OR CAUSING FUTURE VIOLATIONS OF THE BROKER-DEALERRECORDKEEPING PROVISIONS OF THE FEDERAL SECUIRITIES LAWS. THECOMMISSION ORDER FINDS THAT FUSI FAILED TO PROPERLY RECORDCERTAIN TERMS OF CUSTOMER ORDERS MADE IN CONNECTION WITHTHE PURCHASE AND SALE OF U.S. TREASURY SECURITIES ISSUEDTHROUGH THE NONCOMPETATIVE AUCTION PROCESS FROM 1995THROUGH 1998.
Disclosure 145 of 158
i
Reporting Source: Regulator
Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 10/30/2000
Docket/Case Number: C05000058
Principal Product Type: Other
Other Product Type(s): U.S. TREASURY SECURITIES
Allegations: 11-02-00, SECTIONS 17(A)(2), 17(A)(3) OF THE SECURITIES ACT, NASD RULE2110 - RESPONDENT MEMBER SOLD PORTFOLIOS OF U.S. TREASURYSECURITIES FOR DEFEASANCE ESCROW AT EXCESSIVE, UNDISCLOSEDMARKUPS TO MUNICIPALITIES IN CONNECTION WITH ADVANCEREFUNDINGS. THE FIRM SOLD A PORTFOLIO OF $20,608,015.60 IN U.S.TREASURY SECURITIES TO A MUNICIPALITY. THE FIRM'S MARKUP ANDCARRY ON THAT PORTFOLIO WAS .55 PERCENT OF THE PREVAILINGINTERDEALER MARKET PRICES OF THE TREASURY SECURITIES SOLD TOTHE MUNICIPALITY. AT THE TIME, DEALERS GENERALLY CHARGEDMATERIALLY LOWER MARKUPS ON ESCROW SECURITIES WHEN THEPRICES WERE DETERMINED THROUGH COMPETITION OR BONA FIDEARM'S LENGTH NEGOTIATION. THE FIRM EFFECTED DEFEASANCEESCROW TRANSACTIONS WITH MUNICIPALITIES AT PRICES NOTREASONABLY RELATED TO THE CURRENT WHOLESALE MARKET PRICESFOR THE SECURITIES UNDER THE PARTICULAR FACTS ANDCIRCUMSTANCES, INCLUDING THE PERTINENT TX REGULATIONS;THEFIRM KNEW OR SHOULD HAVE KNOWN THAT THE PRICES IT CHARGEDWERE NOT REASONABLY RELATED TO THE PREVAILING WHOLESALEMARKET PRICES. THE EXCESSIVE MARKUPS ALSO JEOPARDIZED THE TAX-EXEMPT STATUS OF THOSE MUNICIPALITIES' REFUNDING BONDS ANDDIVERTED MONEY FROM THE U.S. TREASURY TO THE FIRM WHEN THETRANSACTION WAS IN POSITIVE ARBITRAGE OR REDUCED THE SAVINGSAVAILABLE TO THE MUNICIPALITIES FROM THE REFUNDINGS WHEN THETRANSACTION WAS IN NEGATIVE ARBITRAGE.
Current Status: Final
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Resolution Date: 10/30/2000
Resolution:
Other Sanctions Ordered: UNDERTAKING
Sanction Details: CENSURED,UNDERTAKE TO MAKE PAYMENTS TOTALING $309,775.92RELATED TO THE SALE OF DEFEASANCE ESCROW SECURITIES TOCERTAIN MUNICIPAL ISSUERS IN CONNECTION WITH ADVANCEREFUNDINGS IN NEGATIVE ARBITRAGE SITUATIONS, PAY $11,802,522.08 TOTHE U.S. TREASURY AND $625,000 TO THE NASDR UNDER AN AGREEMENTSIMULTANEOUSLY ENTERED WITH FIRST UNION SECURITIES, INC., THEINTERNAL REVENUE SERVICE AND THE U.S. ATTORNEY FOR THESOUTHERN DISTRICT OF NEW YORK. AT THE TIME PAYMENTS ARE MADETO THE MUNICIPALITIES AND THE U.S. TREASURY, COPIES OF THEPAYMENTS AND ANY ACCOMPANYING COVER LETTERS SHALL BE SENT TOTHE DISTRICT NO. 5 DIRECTOR.
Sanctions Ordered: Censure
Acceptance, Waiver & Consent(AWC)
iReporting Source: Firm
Initiated By: NASD
Principal Sanction(s)/ReliefSought:
Censure
Other Sanction(s)/ReliefSought:
Date Initiated: 10/30/2000
Docket/Case Number: C05000058
Principal Product Type: Other
Other Product Type(s): US TREASURY SECURITIES
Allegations: THE NASD ALLEGED VIOLATIONS OF SECTIONS 17(A)(2) AND 17(A)(3) OFTHE SECURITIES ACT AND NASD RULE 2110 CONCERNING SALES OFPORTFOLIOS OF US TREASURY SECURITIES FOR DEFEASANCE ESCROWAT EXCESSIVE, UNDISCLOSED MARKUPS TO MUNICIPALITIES INCONNECTION WITH ADVANCE REFUNDINGS. FURTHER, THE NASDALLEGED THAT THE FIRM KNEW, OR SHOULD HAVE KNOWN, THAT THEMARKUPS WERE NOT REASONABLY RELATED TO THE PREVAILINGWHOLESALE MARKET PRICES AND THEREBY JEOPARDIZED THE TAX-EXEMPT STATUS OF THE BONDS AND DIVERTED FUNDS FROM THE USTREASURY.
Current Status: Final
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Other Sanction(s)/ReliefSought:
Resolution Date: 10/30/2000
Resolution:
Other Sanctions Ordered: UNDERTAKING
Sanction Details: FIRST UNION SECURITIES, WITHOUT ADMITTING OR DENYING ANY OF THEALLEGATIONS, CONSENTED TO THE FINDINGS OF THE NASD ANDUNDERTAKES TO MAKE PAYMENTS TOTALING $309,775.92 RELATED TOTHE SALE OF SECURITIES TO CERTAIN MUNICIPAL ISSUERS INCONNECTION WITH ADVANCE REFUNDINGS, PAY $11,802,522.08 TO THE USTREASURY AND $625,000 TO THE NASD UNDER AN AGREEMENTSIMULTANEOUSLY ENTERED INTO AMONG FIRST UNION SECURIRITIES,THE INTERNAL REVENUE SERVICE AND THE US ATTORNEY FOR THESOUTHERN DISTRICT OF NEW YORK.
Sanctions Ordered: Censure
Acceptance, Waiver & Consent(AWC)
Disclosure 146 of 158
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Reporting Source: Regulator
Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 07/10/2000
Docket/Case Number: C8A000039
Principal Product Type: Other
Other Product Type(s):
Allegations: 07/20/00GS: NASD RULES 2110 AND 3010 - RESPONDENT EFFECTED ORCAUSED TO BE EFFECTED FOR THE ACCOUNT OF PUBLIC CUSTOMERSTHE PURCHASE OF SECURITIES IN INITIAL PUBLIC OFFERINGS AT THEINITIAL PUBLIC OFFERING PRICES WHEN TRADING IN THE SECURITIESTRADED AT A PREMIUM OVER THE PUBLIC OFFERING PRICES, INVIOLATION OF THE NASD'S FREE-RIDING AND WITHHOLDINGINTERPRETATION; AND, FAILED TO ESTABLISH, MAINTAIN AND ENFORCEWRITTEN SUPERVISORY PROCEDURES REASONABLY DESIGNED TOACHIEVE COMPLIANCE WITH THE NASD'S FREE-RIDING ANDWITHHOLDING INTERPRETATION.
Current Status: Final
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Other Sanction(s)/ReliefSought:
Resolution Date: 07/10/2000
Resolution:
Other Sanctions Ordered:
Sanction Details: 11-07-00, $7,500 PAID 8/09/00, INVOICE 00-8A-455
Sanctions Ordered: CensureMonetary/Fine $7,500.00
Acceptance, Waiver & Consent(AWC)
iReporting Source: Firm
Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
Principal Sanction(s)/ReliefSought:
Censure
Other Sanction(s)/ReliefSought:
FINE OF $7,500.
Date Initiated: 07/10/2000
Docket/Case Number: C8A000039
Principal Product Type: Other
Other Product Type(s): IPO
Allegations: ALLEGED VIOLATION OF NASD CONDUCT RULE 2110 AND 3010(B).
Current Status: Final
Resolution Date: 07/10/2000
Resolution:
Other Sanctions Ordered:
Sanction Details: THE FIRM CONSENTED TO A LETTER OF ACCEPTANCE, WAIVER ANDCONSENT WITHOUT ADMITTING OR DENYING THE ALLEGATIONS ANDCONSENTED TO CENSURE AND A FINE OF $7500.
Sanctions Ordered: CensureMonetary/Fine $7,500.00
Acceptance, Waiver & Consent(AWC)
Disclosure 147 of 158
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Reporting Source: Regulator
Initiated By: NATIONAL ASSOCIATION OFSECURITIES DEALERS, INC.
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 06/13/2000
Docket/Case Number: CAF000022
Principal Product Type: Other
Other Product Type(s):
Allegations: 06-16-00, SEC RULES 17A-3,17A-4, MSRB RULES G-8, G-9, AND G-27 -RESPONDENT MEMBER FAILED TO RECORD FINDER'S FEES PAID TO ANOW DEFUNCTED FIRM AND ITS BOOKS AND RECORDS FAILED TOREFLECT PAYMENTS ON NUMEROUS MUNICIPAL SECURITIESTRANSACTIONS AND OVERSTATED THE AMOUNT OWED; AND ITS BOOKSAND RECORDS FAILED TO RECORD PAYMENTS MADE THROUGH A THIRDPARTY
Current Status: Final
Resolution Date: 06/13/2000
Resolution:
Other Sanctions Ordered:
Sanction Details: CENSURED AND FINED $350,000
Sanctions Ordered: CensureMonetary/Fine $350,000.00
Acceptance, Waiver & Consent(AWC)
iReporting Source: Firm
Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
Allegations: NASD ALLEGED THAT FIRST UNION SECURITIES, INC. (F/K/A WHEAT FIRSTSECURITIES, INC.) VIOLATED SECTION 17(A) OF THE EXCHANGE ACT ANDRULES 17A-3 AND 17A-4 THEREUNDER AND MSRB RULES G-8, G-9 AND G-27. FIRST UNION'S BOOKS AND RECORDS FAILED TO ACCURATELYREFLECT FINDERS FEES PAID FOR MUNICIPAL SECURITIESTRANSACTIONS OVER AN EIGHTEEN MONTH PERIOD FROM LATE 1991THROUGH APRIL, 1993.
Current Status: Final
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Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
Principal Sanction(s)/ReliefSought:
Censure
Other Sanction(s)/ReliefSought:
FINE OF $350,000
Date Initiated: 06/13/2000
Docket/Case Number: CAF000022
Principal Product Type: No Product
Other Product Type(s):
Resolution Date: 06/13/2000
Resolution:
Other Sanctions Ordered:
Sanction Details: WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, FIRST UNIONSECURITIES, INC. CONSENTED TO A LETTER OF ACCEPTANCE, WAIVERAND CONSENT WHICH INCLUDED A CONSENT TO CENSURE AND A FINE OF$350,000.
Sanctions Ordered: CensureMonetary/Fine $350,000.00
Acceptance, Waiver & Consent(AWC)
Disclosure 148 of 158
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Reporting Source: Firm
Initiated By: U S SECURITIES & EXCHANGE COMMISSION
Principal Sanction(s)/ReliefSought:
Cease and Desist
Other Sanction(s)/ReliefSought:
Date Initiated: 01/01/1992
Docket/Case Number: N/A
Principal Product Type: Other
Other Product Type(s): UNSECURED DEBT SECURITIES
Allegations: VIOLATIONS OF CFR PART 404 PROMULGATED PURSUANT TO SECTION15C WITH THE PRIMARY DISTRIBUTION OF CERTAIN UNSECURED DEBTSECURITIES ISSUED BY GOVERNMENTAL SPONSORED ENTERPRISES.
Current Status: Final
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Other Sanction(s)/ReliefSought:
Resolution Date: 01/01/1992
Resolution:
Other Sanctions Ordered:
Sanction Details: CEASE AND DESIST, $100,000 FINE.
Sanctions Ordered: Monetary/Fine $100,000.00Cease and Desist/Injunction
Settled
Disclosure 149 of 158
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Reporting Source: Firm
Initiated By: STATE OF RHODE ISLAND, DIVISION OF SECURITIES
Principal Sanction(s)/ReliefSought:
Other
Other Sanction(s)/ReliefSought:
CIVIL PENALTY
Date Initiated: 03/16/1995
Docket/Case Number: 95-015
Principal Product Type: No Product
Other Product Type(s):
Allegations: EVEREN SECURITIES, INC. (NAME CHANGED TO FIRST UNION SECURITIES,INC.)VIOLATIONS OF SECTION 201 OF THE RHODE ISLAND UNIFORMSECURITIES ACT OF 1990, SECTION 7-11-101 ET SEQ.
Current Status: Final
Resolution Date: 03/16/1995
Resolution:
Other Sanctions Ordered:
Sanction Details: FINED $2000.00
Sanctions Ordered: Monetary/Fine $2,000.00
Other
Disclosure 150 of 158
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Reporting Source: Firm
Initiated By: STATE OF HAWAII, DEPT OF COMMERCE AND CONSUMER AFFAIRS
Principal Sanction(s)/ReliefSought:
Undertaking
Other Sanction(s)/ReliefSought:
Date Initiated: 08/26/1998
Docket/Case Number: SEU-96-071
Principal Product Type: No Product
Other Product Type(s):
Allegations: EVEREN SECURITIES, INC. (NAME CHANGED TO FIRST UNION SECURITIES,INC.)ALLEGED THAT THE FIRM VIOLATED HAWAII UNIFORM SECURITIESACT PURSUANT TO SECTION 485-15(10) IN THAT IT FAILED TO PREVENTAND DETECT WHETHER OR NOT ITS REPS WERE PROPERLY REGISTEREDAND/OR WERE TRANSACTING SECURITIES BUSINESS IN HAWAII WITHOUTTHE APPROPRIATE REGISTRATION.
Current Status: Final
Resolution Date: 09/29/1998
Resolution:
Other Sanctions Ordered:
Sanction Details: UNDERTAKING TO MODIFY ITS SECURITIES COMPLIANCE PROCEDURESFOR REGISTRATION OF ITS REPS
Sanctions Ordered: Monetary/Fine $6,000.00
Settled
Disclosure 151 of 158
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Reporting Source: Regulator
Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
Date Initiated: 03/30/1999
Docket/Case Number: CMS990023
Allegations: 09/24/1999JJM -- RESPONDENT MEMBER FAILED TO REPORTTRANSACTIONS IN AN FIPS ELIGIBLE SECURITY TO FIPS WITHIN FIVEMINUTES OF EXECUTION. [NASD RULE 6420(A)]
Current Status: Final
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Principal Sanction(s)/ReliefSought:
Other
Other Sanction(s)/ReliefSought:
$2,500.00 FINE
Principal Product Type: Other
Other Product Type(s):
Resolution Date: 03/30/1999
Resolution:
Other Sanctions Ordered:
Sanction Details: $2,500.00 FINE
Regulator Statement NONE
Sanctions Ordered: Monetary/Fine $2,500.00
Acceptance, Waiver & Consent(AWC)
iReporting Source: Firm
Initiated By: NASD REGULATION, INC
Principal Sanction(s)/ReliefSought:
Censure
Other Sanction(s)/ReliefSought:
Date Initiated: 03/30/1999
Docket/Case Number: CMS9090023AWC
Principal Product Type: No Product
Other Product Type(s):
Allegations: EVEREN SECURITIES, INC. (NAME CHANGED TO FIRST UNION SECURITIES,INC.)VIOLATIONS OF THE ASSOCIATIONS FIXED INCOME PRICING SYSTEM(FIPS) ALLEGING LATE REPORTING OF TRANSACTIONS IN HIGH YIELDCORPORATE DEBT SECURITIES DURING THE PERIOD NOVEMBER 1996THROUGH FEBRUARY 1997.
Current Status: Final
Resolution Date: 03/30/1999
Resolution:
Sanctions Ordered: Monetary/Fine $2,500.00
Settled
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Other Sanctions Ordered:
Sanction Details: FINE OF $2500
Sanctions Ordered: Monetary/Fine $2,500.00
Disclosure 152 of 158
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Reporting Source: Regulator
Initiated By: NYSE DIVISION OF ENFORCEMENT
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 06/01/1999
Docket/Case Number: HPD# 99-91
Principal Product Type: Other
Other Product Type(s):
Allegations: **06/01/1999** STIPULATION AND CONSENT TO PENALTY FILED BY NYSEDIVISION OF ENFORCEMENT AND PENDING. CONSENTED TO FINDINGS: A.A FINDING BY THE HEARING PANEL THAT IT: 1. VIOLATED EXCHANGE RULE440 AND SECTION 17(A) OF THE SEA OF 1934 AND SEC REGULATIONS240.17A-3 AND 17A-4 BY FAILING TO MAKE AND PRESERVE REQUIREDRECORDS RELATING TO RECEIPT AND EXECUTION OF CUSTOMERSORDERS. 2. VIOLATED EXCHANGE RULE 342 IN THAT IT FAILED TOREASONABLY SUPERVISE AND CONTROL THE ACTIVITIES OF TISEMPLOYEES, INCLUDING A SEPARATE SYSTEM OF FOLLOW-UP ANDREVIEW, TO ASSURE COMPLIANCE WITH SEC AND EXCHANGE RULES FORMAKING AND PRESERVING TIMELY ORDER RECORDS SHOWINGALLOCATION OF TRADES TO CUSTOMER ACCOUNTS. B. THE IMPOSITIONBY THE EXCHANGE OF A PENALTY OF A CENSURE AND A FINE OF 120,000.
Current Status: Final
Resolution Date: 08/27/1999
Resolution:
Other Sanctions Ordered:
Sanction Details: **07/14/1999** DECISION #99-91 ISSUED BY NYSEHEARING PANEL. DECISION: 1. VIOLATED EXCHANGE RULE 440 ANDSECTION 17(A) OF THE SECURITIES AND EXCHANGE ACT OF 1934 ANDSEC REGULATIONS 240.17A-3 AND 17A-4 BY FAILING TO MAKE ANDPRESERVE REQUIRED RECORDS RELATING TO RECEIPT AND EXECUTIONOFCUSTOMER ORDERS. 2 VIOLATED EXCHANGE RULE 342 IN THAT IF FAILEDTO REASONABLY SUPERVISE AND CONTROL THE ACTIVITIES OF ITSEMPLOYEES, INCLUDING A SEPARATE SYSTEM OF FOLLOW-UP ANDREVIEW,TO ASSURE COMPLIANCE WITH SEC AND EXCHANGE RULES FOR MAKINGANDPRESERVING TIMELY ORDER RECORDS SHOWING ALLOCATION OFTRADES TOCUSTOMER ACCOUNTS. CONSENT TO CENSURE AND $120,000.
Sanctions Ordered: CensureMonetary/Fine
Decision
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Sanction Details: **07/14/1999** DECISION #99-91 ISSUED BY NYSEHEARING PANEL. DECISION: 1. VIOLATED EXCHANGE RULE 440 ANDSECTION 17(A) OF THE SECURITIES AND EXCHANGE ACT OF 1934 ANDSEC REGULATIONS 240.17A-3 AND 17A-4 BY FAILING TO MAKE ANDPRESERVE REQUIRED RECORDS RELATING TO RECEIPT AND EXECUTIONOFCUSTOMER ORDERS. 2 VIOLATED EXCHANGE RULE 342 IN THAT IF FAILEDTO REASONABLY SUPERVISE AND CONTROL THE ACTIVITIES OF ITSEMPLOYEES, INCLUDING A SEPARATE SYSTEM OF FOLLOW-UP ANDREVIEW,TO ASSURE COMPLIANCE WITH SEC AND EXCHANGE RULES FOR MAKINGANDPRESERVING TIMELY ORDER RECORDS SHOWING ALLOCATION OFTRADES TOCUSTOMER ACCOUNTS. CONSENT TO CENSURE AND $120,000.
Regulator Statement **08/27/1999** THE DECISION IS NOW FINAL AND IS EFFECTIVEIMMEDIATELY. CONTACT: PEGGY GERMINO (212) 656-8450
iReporting Source: Firm
Initiated By: NEW YORK STOCK EXCHANGE, INC
Principal Sanction(s)/ReliefSought:
Censure
Other Sanction(s)/ReliefSought:
Date Initiated: 06/01/1999
Docket/Case Number: HPD#99-91
Principal Product Type: No Product
Other Product Type(s):
Allegations: EVEREN SECURITIES, INC. (CHANGED ITS NAME TO FIRST UNIONSECURITIES, INC.) 1. VIOLATED EXCHANGE RULE 440 AND SEC REGS240.17A-3 AND A-4; 2. VIOLATED RULE 342.
Current Status: Final
Resolution Date: 07/14/1999
Resolution:
Other Sanctions Ordered:
Sanction Details: CENSURE AND FINE OF $120,000.00
Sanctions Ordered: CensureMonetary/Fine $120,000.00
Stipulation and Consent
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Sanction Details: CENSURE AND FINE OF $120,000.00
Disclosure 153 of 158
i
Reporting Source: Regulator
Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 02/25/1999
Docket/Case Number: CMS990024
Principal Product Type:
Other Product Type(s):
Allegations:
Current Status: Final
Resolution Date: 02/25/1999
Resolution:
Other Sanctions Ordered:
Sanction Details:
Regulator Statement LETTER OF ACCEPTANCE, WAIVER AND CONSENT NO. CMS990024 AWC.
ON FEBRUARY 25, 1999, EVEREN SECURITIES, INC. (EVRN) WASNOTIFIED THAT THE LETTER OF ACCEPTANCE, WAIVER AND CONSENT(AWC) IT SUBMITTED WAS ACCEPTED BY NASD REGULATION, INC.'SDISCIPLINARY AFFAIRS AND THE NATIONAL ADJUDICATORY COUNCIL.THE AWC ALLEGES THAT THE FOLLOWING ACTIVITY OCCURRED:
EVRN FAILED TO USE REASONABLE DILIGENCE TO ASCERTAIN THE BESTINTER-DEALER MARKET FOR TEN SECURITIES TRANSACTIONS ANDFAILEDTO BUY OR SELL IN SUCH MARKET SO THAT THE RESULTANT PRICE TOTHE CUSTOMER WAS AS FAVORABLE AS POSSIBLE UNDER PREVAILINGMARKET CONDITIONS. THIS CONDUCT CONSTITUTES SEPARATE ANDDISTINCT VIOLATIONS OF NASD CONDUCT RULES 2110 AND 2320.
EVRN FAILED TO PRESERVE FOR A PERIOD OF NOT LESS THAN THREEYEARS MEMORANDA OF 25 BROKERAGE ORDERS THAT SHOWED THETIMERECEIPT OF THE ORDER. THIS CONDUCT CONSTITUTES A VIOLATION OFSEC RULE 17a-4 AND NASD CONDUCT RULE 3110.
EVRN FAILED TO CONTEMPORANEOUSLY EXECUTE NINE CUSTOMERLIMITORDERS AFTER IT TRADED EACH SUCH SUBJECT SECURITY FOR ITS OWNMARKET-MAKING ACCOUNT AT A PRICE THAT WOULD SATISFY EACH SUCHCUSTOMER LIMIT ORDER. THIS CONDUCT CONSTITUTES SEPARATE ANDDISTINCT VIOLATIONS OF NASD CONDUCT RULES 2110 AND IM-2110-2.
EVRN FAILED TO DISPLAY IMMEDIATELY 25 CUSTOMER LIMIT ORDERSWHEN THE ORDERS WERE AT A PRICE THAT WOULD HAVE IMPROVED THEFIRM'S BID OR OFFER IN EACH SECURITY RELATED TO THOSE ORDERS,OR WHEN THE ORDERS WERE PRICED EQUAL TO THE FIRM'S BID OROFFERAND THE NATIONAL BEST BID OR OFFER AND THE ORDERSREPRESENTEDMORE THAN A DE MINIMIS CHANGE IN RELATION TO THE SIZEASSOCIATED WITH THE FIRM'S BID OR OFFER IN EACH SECURITY. THISCONDUCT CONSTITUTES SEPARATE AND DISTINCT VIOLATIONS OF SECRULE 11Ac1-4.
EVRN WAS CENSURED AND FINED $13,000. EVRN ALSO AGREED TOPROVIDE RESTITUTION AND INTEREST TO EACH CUSTOMER WHOSEORDERSWERE TREATED IN A MANNER INCONSISTENT WITH THE DUTY OF BESTEXECUTION. SUCH RE*See FAQ #1*
Sanctions Ordered: CensureMonetary/Fine $13,000.00Disgorgement/Restitution
Acceptance, Waiver & Consent(AWC)
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LETTER OF ACCEPTANCE, WAIVER AND CONSENT NO. CMS990024 AWC.
ON FEBRUARY 25, 1999, EVEREN SECURITIES, INC. (EVRN) WASNOTIFIED THAT THE LETTER OF ACCEPTANCE, WAIVER AND CONSENT(AWC) IT SUBMITTED WAS ACCEPTED BY NASD REGULATION, INC.'SDISCIPLINARY AFFAIRS AND THE NATIONAL ADJUDICATORY COUNCIL.THE AWC ALLEGES THAT THE FOLLOWING ACTIVITY OCCURRED:
EVRN FAILED TO USE REASONABLE DILIGENCE TO ASCERTAIN THE BESTINTER-DEALER MARKET FOR TEN SECURITIES TRANSACTIONS ANDFAILEDTO BUY OR SELL IN SUCH MARKET SO THAT THE RESULTANT PRICE TOTHE CUSTOMER WAS AS FAVORABLE AS POSSIBLE UNDER PREVAILINGMARKET CONDITIONS. THIS CONDUCT CONSTITUTES SEPARATE ANDDISTINCT VIOLATIONS OF NASD CONDUCT RULES 2110 AND 2320.
EVRN FAILED TO PRESERVE FOR A PERIOD OF NOT LESS THAN THREEYEARS MEMORANDA OF 25 BROKERAGE ORDERS THAT SHOWED THETIMERECEIPT OF THE ORDER. THIS CONDUCT CONSTITUTES A VIOLATION OFSEC RULE 17a-4 AND NASD CONDUCT RULE 3110.
EVRN FAILED TO CONTEMPORANEOUSLY EXECUTE NINE CUSTOMERLIMITORDERS AFTER IT TRADED EACH SUCH SUBJECT SECURITY FOR ITS OWNMARKET-MAKING ACCOUNT AT A PRICE THAT WOULD SATISFY EACH SUCHCUSTOMER LIMIT ORDER. THIS CONDUCT CONSTITUTES SEPARATE ANDDISTINCT VIOLATIONS OF NASD CONDUCT RULES 2110 AND IM-2110-2.
EVRN FAILED TO DISPLAY IMMEDIATELY 25 CUSTOMER LIMIT ORDERSWHEN THE ORDERS WERE AT A PRICE THAT WOULD HAVE IMPROVED THEFIRM'S BID OR OFFER IN EACH SECURITY RELATED TO THOSE ORDERS,OR WHEN THE ORDERS WERE PRICED EQUAL TO THE FIRM'S BID OROFFERAND THE NATIONAL BEST BID OR OFFER AND THE ORDERSREPRESENTEDMORE THAN A DE MINIMIS CHANGE IN RELATION TO THE SIZEASSOCIATED WITH THE FIRM'S BID OR OFFER IN EACH SECURITY. THISCONDUCT CONSTITUTES SEPARATE AND DISTINCT VIOLATIONS OF SECRULE 11Ac1-4.
EVRN WAS CENSURED AND FINED $13,000. EVRN ALSO AGREED TOPROVIDE RESTITUTION AND INTEREST TO EACH CUSTOMER WHOSEORDERSWERE TREATED IN A MANNER INCONSISTENT WITH THE DUTY OF BESTEXECUTION. SUCH RE*See FAQ #1*
iReporting Source: Firm
Allegations: ALLEGED TO HAVE VIOLATED NASD CONDUCT RULES 2110 AND 2320 WITHRESPECT TO THE FIRM'S FAILURE TO ASCERTAIN THE BEST INTERDEALERMARKET IN EXECUTING CUSTOMER TRANSACTIONS. SEC RULE 17A-4AND NASD CONDUCT RULE 3110 WITH RESPECT TO RECORDKEEPINGREGULATIONS. NASD CONDUCT RULES 2110 AND IM-2110-2 WITHRESPECT TO EXECUTION OF CUSTOMER LIMIT ORDERS AND SEC RULE11AC1-4 WITH RESPECT TO THE FIRM'S FAILURE TO DISPLAY IMMEDIATELYCUSTOMER LIMIT ORDERS.
Current Status: Final
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Initiated By: NASD REGULATION, INC.
Principal Sanction(s)/ReliefSought:
Censure
Other Sanction(s)/ReliefSought:
FINE
Date Initiated: 02/25/1999
Docket/Case Number: CMS990024AWC
Principal Product Type: No Product
Other Product Type(s):
ALLEGED TO HAVE VIOLATED NASD CONDUCT RULES 2110 AND 2320 WITHRESPECT TO THE FIRM'S FAILURE TO ASCERTAIN THE BEST INTERDEALERMARKET IN EXECUTING CUSTOMER TRANSACTIONS. SEC RULE 17A-4AND NASD CONDUCT RULE 3110 WITH RESPECT TO RECORDKEEPINGREGULATIONS. NASD CONDUCT RULES 2110 AND IM-2110-2 WITHRESPECT TO EXECUTION OF CUSTOMER LIMIT ORDERS AND SEC RULE11AC1-4 WITH RESPECT TO THE FIRM'S FAILURE TO DISPLAY IMMEDIATELYCUSTOMER LIMIT ORDERS.
Resolution Date: 03/02/1999
Resolution:
Other Sanctions Ordered:
Sanction Details: THE FIRM AGREED TO A CENSURE AND A $13,000 FINE (COMPOSED OF A$1,000 FINE FOR RECORDKEEPING VIOLATIONS AND FINE OF $7,500 FORBEST EXECUTION VIOLATIONS, A FINE OF $2,500 FOR THE LIMIT ORDERPROTECTION INTERPRETATION VIOLATIONS, AND A FINE OF $2,000 FORTHE LIMIT ORDER DISPLAY RULE VIOLATIONS.)
Sanctions Ordered: CensureMonetary/Fine $13,000.00
Settled
Disclosure 154 of 158
i
Reporting Source: Regulator
Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 03/30/1998
Docket/Case Number: CMS980025 AWC
Principal Product Type:
Other Product Type(s):
Allegations:
Current Status: Final
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Other Sanction(s)/ReliefSought:
Resolution Date: 03/30/1998
Resolution:
Other Sanctions Ordered:
Sanction Details:
Regulator Statement LETTER OF ACCEPTANCE, WAIVER AND CONSENT NO. CMS980025 AWC.
ON MARCH 30, 1998, EVEREN SECURITIES, INC. (EVRN) WAS NOTIFIEDTHAT THE LETTER OF ACCEPTANCE, WAIVER AND CONSENT (AWC) ITSUBMITTED WAS ACCEPTED BY NASD REGULATION, INC.'S DEPARTMENTOFENFORCEMENT AND THE NATIONAL ADJUDICATORY COUNCIL. THE AWCALLEGES THAT THE FOLLOWING ACTIVITY OCCURRED:
EVRN FAILED TO DESIGNATE AS LATE TO ACT TWO TRANSACTIONS INNASDAQ NATIONAL MARKET SECURITIES; AND FAILED TO REPORT ONETRANSACTION IN A NASDAQ NATIONAL MARKET SECURITY THAT IT WASREQUIRED TO REPORT. THIS CONDUCT CONSTITUTES SEPARATE ANDDISTINCT VIOLATIONS OF NASD MARKETPLACE RULE 4632.
EVRN FAILED TO REPORT TO ACT THE CONTRA SIDE EXECUTING BROKERIN 35 TRANSACTIONS IN ELIGIBLE SECURITIES IN SEPARATE AND
DISTINCT VIOLATIONS OF NASD MARKETPLACE RULE 6130(d). EVRNFAILED TO REPORT ONE TRANSACTION IN AN OTC EQUITY SECURITYTHATIT WAS REQUIRED TO REPORT, IN VIOLATION OF NASD CONDUCT RULE6620; AND FAILED TO REPORT ONE TRANSACTION IN A LISTED SECURITYTHAT IT WAS REQUIRED TO REPORT, IN VIOLATION OF NASD CONDUCTRULE 6420.
EVRN FAILED TO CONTEMPORANEOOUSLY EXECUTE SEVEN CUSTOMERLIMITORDERS AFTER IT TRADED FOR ITS MARKET MAKING ACCOUNT AT APRICETHAT WOULD SATISFY EACH CUSTOMER LIMIT ORDER. THISCONSTITUTESVIOLATIONS OF NASD CONDUCT RULE 2110 AND IM-2110-2.
EVRN FAILED TO ESTABLISH, MAINTAIN, AND ENFORCE WRITTENSUPERVISORY PROCEDURES REASONABLY DESIGNED TO ACHIEVECOMPLIANCE WITH THE APPLICABLE SECURITIES LAWS, REGULATIONSANDRULES REGARDING TRADE REPORTING, RECORD KEEPING,REGISTRATIONAND LIMIT ORDERS. THIS CONSTITUTES A VIOLATION OF NASD CONDUCTRULES 2110 AND 3010.
EVRN WAS CENSURED AND FINED $18,500.
**$18,500.00 PAID ON 5/11/98, INVOICE # 98-MS-378**
Sanctions Ordered: CensureMonetary/Fine $18,500.00
Acceptance, Waiver & Consent(AWC)
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LETTER OF ACCEPTANCE, WAIVER AND CONSENT NO. CMS980025 AWC.
ON MARCH 30, 1998, EVEREN SECURITIES, INC. (EVRN) WAS NOTIFIEDTHAT THE LETTER OF ACCEPTANCE, WAIVER AND CONSENT (AWC) ITSUBMITTED WAS ACCEPTED BY NASD REGULATION, INC.'S DEPARTMENTOFENFORCEMENT AND THE NATIONAL ADJUDICATORY COUNCIL. THE AWCALLEGES THAT THE FOLLOWING ACTIVITY OCCURRED:
EVRN FAILED TO DESIGNATE AS LATE TO ACT TWO TRANSACTIONS INNASDAQ NATIONAL MARKET SECURITIES; AND FAILED TO REPORT ONETRANSACTION IN A NASDAQ NATIONAL MARKET SECURITY THAT IT WASREQUIRED TO REPORT. THIS CONDUCT CONSTITUTES SEPARATE ANDDISTINCT VIOLATIONS OF NASD MARKETPLACE RULE 4632.
EVRN FAILED TO REPORT TO ACT THE CONTRA SIDE EXECUTING BROKERIN 35 TRANSACTIONS IN ELIGIBLE SECURITIES IN SEPARATE AND
DISTINCT VIOLATIONS OF NASD MARKETPLACE RULE 6130(d). EVRNFAILED TO REPORT ONE TRANSACTION IN AN OTC EQUITY SECURITYTHATIT WAS REQUIRED TO REPORT, IN VIOLATION OF NASD CONDUCT RULE6620; AND FAILED TO REPORT ONE TRANSACTION IN A LISTED SECURITYTHAT IT WAS REQUIRED TO REPORT, IN VIOLATION OF NASD CONDUCTRULE 6420.
EVRN FAILED TO CONTEMPORANEOOUSLY EXECUTE SEVEN CUSTOMERLIMITORDERS AFTER IT TRADED FOR ITS MARKET MAKING ACCOUNT AT APRICETHAT WOULD SATISFY EACH CUSTOMER LIMIT ORDER. THISCONSTITUTESVIOLATIONS OF NASD CONDUCT RULE 2110 AND IM-2110-2.
EVRN FAILED TO ESTABLISH, MAINTAIN, AND ENFORCE WRITTENSUPERVISORY PROCEDURES REASONABLY DESIGNED TO ACHIEVECOMPLIANCE WITH THE APPLICABLE SECURITIES LAWS, REGULATIONSANDRULES REGARDING TRADE REPORTING, RECORD KEEPING,REGISTRATIONAND LIMIT ORDERS. THIS CONSTITUTES A VIOLATION OF NASD CONDUCTRULES 2110 AND 3010.
EVRN WAS CENSURED AND FINED $18,500.
**$18,500.00 PAID ON 5/11/98, INVOICE # 98-MS-378**
iReporting Source: Firm
Initiated By: NASD REGULATION, INC.
Principal Sanction(s)/ReliefSought:
Censure
Other Sanction(s)/ReliefSought:
Date Initiated: 04/07/1998
Docket/Case Number: CMS980025
Principal Product Type: No Product
Other Product Type(s):
Allegations: ALLEGED VIOLATIONS OF RULES SET FORTH UNDER NASD CONDUCTRULES 2110 AND 3010 AND VIOLATIONS OF NASD MARKETPLACE RULE4632(A).
Current Status: Final
Resolution Date: 04/23/1998
Resolution:
Other Sanctions Ordered:
Sanction Details: CENSURE AND FINE OF $18,500 (COMPOSED OF $5000 FINE FOR THETRADE REPORTING VIOLATION, $3500 FOR THE LIMIT ORDER VIOLATIONSAND $10,000 FINE FOR THE SUPERVISION VIOLATION).
Sanctions Ordered: CensureMonetary/Fine $18,500.00
Settled
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Disclosure 155 of 158
i
Reporting Source: Regulator
Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 05/29/1998
Docket/Case Number: C8A980037
Principal Product Type:
Other Product Type(s):
Allegations:
Current Status: Final
Resolution Date: 05/29/1998
Resolution:
Other Sanctions Ordered:
Sanction Details:
Regulator Statement ON MAY 29, 1998, DISTRICT NO. 8 NOTIFIED RESPONDENT EVERENSECURITIES, INC. THAT THE LETTER OF ACCEPTANCE, WAIVER ANDCONSENT NO. C8A980037 WAS ACCEPTED; THEREFORE, THE FIRM ISCENSURED AND FINED $3,000 - MSRB RULE G-8 AND G-36 - RESPONDENTMEMBER FAILED TO FILE COPIES OF THE FINAL OFFICIAL STATEMENTAND COPIES OF A COMPLETED FORM G-36(OS) WITH THE MSRB ON ATIMELY BASIS; FAILED TO ACCURATELY RECORD THE DATE OF FINALAGREEMENTS TO PURCHASE, OFFER OR SELL MUNICIPAL SECURITIES ASAPRIMARY OFFERING OF SECURITIES; AND, FAILED TO MAINTAIN ARECORD OF THE DATE THAT THE COPIES OF THE FINAL OFFICIALSTATEMENT AND COMPLETED FORM G-36(0S) WERE SENT TO THE MSRBFORFINAL AGREEMENTS TO PURCHASE, OFFER OR SELL MUNICIPALSECURITIES AS AN UNDERWRITER IN A PRIMARY OFFERING OF MUNICIPALSECURITIES).
**$3,000.00 PAID ON 6/22/98, INVOICE # 98-8A-517**
Sanctions Ordered: CensureMonetary/Fine $3,000.00
Acceptance, Waiver & Consent(AWC)
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ON MAY 29, 1998, DISTRICT NO. 8 NOTIFIED RESPONDENT EVERENSECURITIES, INC. THAT THE LETTER OF ACCEPTANCE, WAIVER ANDCONSENT NO. C8A980037 WAS ACCEPTED; THEREFORE, THE FIRM ISCENSURED AND FINED $3,000 - MSRB RULE G-8 AND G-36 - RESPONDENTMEMBER FAILED TO FILE COPIES OF THE FINAL OFFICIAL STATEMENTAND COPIES OF A COMPLETED FORM G-36(OS) WITH THE MSRB ON ATIMELY BASIS; FAILED TO ACCURATELY RECORD THE DATE OF FINALAGREEMENTS TO PURCHASE, OFFER OR SELL MUNICIPAL SECURITIES ASAPRIMARY OFFERING OF SECURITIES; AND, FAILED TO MAINTAIN ARECORD OF THE DATE THAT THE COPIES OF THE FINAL OFFICIALSTATEMENT AND COMPLETED FORM G-36(0S) WERE SENT TO THE MSRBFORFINAL AGREEMENTS TO PURCHASE, OFFER OR SELL MUNICIPALSECURITIES AS AN UNDERWRITER IN A PRIMARY OFFERING OF MUNICIPALSECURITIES).
**$3,000.00 PAID ON 6/22/98, INVOICE # 98-8A-517**
iReporting Source: Firm
Initiated By: NASD REGULATION, INC.
Principal Sanction(s)/ReliefSought:
Censure
Other Sanction(s)/ReliefSought:
Date Initiated: 03/30/1998
Docket/Case Number: C8A980037
Principal Product Type: No Product
Other Product Type(s):
Allegations: ALLEGED VIOLATIONS OF MSRB RULE G36.
Current Status: Final
Resolution Date: 05/29/1998
Resolution:
Other Sanctions Ordered:
Sanction Details: CENSURE AND FINE OF $3,000.
Firm Statement 3/23/2000 - CORRECTED DOCKET NO. AND DATE SETTLED DUE TO DATAENTRY ERROR.
Sanctions Ordered: CensureMonetary/Fine $3,000.00
Settled
Disclosure 156 of 158
i
Reporting Source: Regulator
Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
Date Initiated: 04/23/1997
Docket/Case Number: CMS960098
Allegations:
Current Status: Final
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Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Principal Product Type:
Other Product Type(s):
Resolution Date: 04/23/1997
Resolution:
Other Sanctions Ordered:
Sanction Details:
Regulator Statement LETTER OF ACCEPTANCE, WAIVER & CONSENT NO. CMS960098 AWC. ONAPRIL 23, 1997, EVEREN SECURITIES, INC. (EVRN) WAS NOTIFIEDTHAT THE LETTER OF ACCEPTANCE, WAIVER AND CONSENT (AWC) ITSUBMITTED WAS ACCEPTED BY THE MARKET REGULATION AND THENATIONAL BUSINESS CONDUCT COMMITTEES. THE AWC ALLEGES THATEVRNVIOLATED MARKETPLACE RULES 6240(a)(4), 6240(a)(2)(A),6240(a)(1) AND 6240(b)(1) AND CONDUCT RULE 2110 IN THAT: EVRNINACCURATELY REPORTED UNIT PRICES, EXECUTION TIMES AND ISSUESYMBOLS FOR SIX TRANSACTIONS IN MANDATORY FIPS BONDS; FAILEDTODEMONSTRATE THAT 35 TRANSACTIONS IN FIPS BONDS WERE REPORTEDINA TIMELY MANNER; AND, FAILED TO REPORT 23 TRANSACTIONS IN FIPSBONDS. EVRN WAS FINED $2,500.
***$2,500.00 PAID ON 5/22/97, INVOICE #97-MS-398***
Sanctions Ordered: Monetary/Fine $2,500.00
Acceptance, Waiver & Consent(AWC)
iReporting Source: Firm
Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
Date Initiated: 12/22/1995
Docket/Case Number: CMS960098AWC
Allegations: ALLEGED VIOLATION OF RULES SET FORTH UNDER PART IV(A)4, (A)2(A),AND PART IV(A) AND PART IV(B) OF FIPS RULES AND ARTICLE III, SECTION1 OF THE ASSOCIATION'S RULES OF FAIR PRACTICE.
Current Status: Final
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Principal Sanction(s)/ReliefSought:
Civil and Administrative Penalt(ies) /Fine(s)
Other Sanction(s)/ReliefSought:
Docket/Case Number: CMS960098AWC
Principal Product Type: No Product
Other Product Type(s):
Resolution Date: 05/13/1997
Resolution:
Other Sanctions Ordered:
Sanction Details: FINE OF $2,500 AND AN UNDERTAKING TO SUBMIT REVISED WRITTENSUPERVISORY PROCEDURES CONCERNING FIPS IN A FORM NOTUNACCEPTABLE TO THE STAFF.
Sanctions Ordered: Monetary/Fine $2,500.00
Settled
Disclosure 157 of 158
i
Reporting Source: Regulator
Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 12/01/1995
Docket/Case Number: CMS950180
Principal Product Type:
Other Product Type(s):
Allegations:
Current Status: Final
Resolution Date: 04/10/1996
Resolution:
Other Sanctions Ordered:
Sanctions Ordered: Monetary/Fine $1,500.00
Acceptance, Waiver & Consent(AWC)
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Other Sanctions Ordered:
Sanction Details:
Regulator Statement MARKET SURVEILLANCE COMMITTEE COMPLAINT NO. CMS950180 AWC
LETTER OF ACCEPTANCE, WAIVER AND CONSENT (AWC) FILED ONDECEMBER 1, 1995 AGAINST EVEREN SECURITIES INC. f/k/a KEMPERSECURITIES INC. (KEMP) ALLEGING VIOLATIONS OF SECTION c)2(E) OFTHE RULES OF PRACTICE AND PROCEDURE FOR SOES AND ARTICLE III,SECTION 1 OF THE ASSOCIATION'S RULES OF FAIR PRACTICE IN THATON 8 OCCASIONS, KEMP ENTERED ORDERS ON AN AGENCY BASIS INTOSOES FOR SECURITIES FOR WHICH KEMP WAS A REGISTERED MARKETMAKER.
ON APRIL 10, 1996 EVEREN SECURITIES WAS NOTIFIED THAT THE AWCWAS ACCEPTED BY THE MARKET SURVEILLANCE AND THE NATIONALBUSINESS CONDUCT COMMITTEES. KEMP WAS FINED $1,500. THE AWCBECAME FINAL ON APRIL 10, 1996.
***$1,500.00 PAID ON 5/02/96, INVOICE #96-MS-311***
iReporting Source: Firm
Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
Principal Sanction(s)/ReliefSought:
Censure
Other Sanction(s)/ReliefSought:
Date Initiated: 11/05/1995
Docket/Case Number: CMS950180
Principal Product Type: No Product
Other Product Type(s):
Allegations: ALLEGED VIOLATION OF RULES SET FORTH UNDER PART V, SECTION 2(D)OF SCHEDULE TO THE ASSOCIATION'S BY-LAWS CONCERNINGQUOTATIONS ENTERED IN THE NASDAQ SYSTEM THAT EXCEEDED THEPARAMETERS FOR THE MAXIMUM ALLOWABLE SPREAD.
Current Status: Final
Resolution Date: 04/25/1996
Resolution: Settled
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Resolution Date: 04/25/1996
Other Sanctions Ordered:
Sanction Details: CENSURE AND FINE OF $8,000.
Sanctions Ordered: CensureMonetary/Fine $8,000.00
Disclosure 158 of 158
i
Reporting Source: Regulator
Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
Principal Sanction(s)/ReliefSought:
Other Sanction(s)/ReliefSought:
Date Initiated: 11/15/1995
Docket/Case Number: CMS950122 AWC
Principal Product Type:
Other Product Type(s):
Allegations:
Current Status: Final
Resolution Date: 04/10/1996
Resolution:
Other Sanctions Ordered:
Sanction Details:
Regulator Statement MARKET SURVEILLANCE COMMITTEE COMPLAINT NO. CMS950122 AWC
LETTER OF ACCEPTANCE, WAIVER AND CONSENT (AWC) FILED ONNOVEMBER 15, 1995 AGAINST EVEREN SECURITIES INC. f/k/a KEMPERSECURITIES INC. (KEMP) ALLEGING VIOLATIONS OF PART V, SECTION2(d) OF SCHEDULE D TO THE ASSOCIATION'S BY-LAWS IN THAT KEMPENTERED QUOTATIONS INTO THE NASDAQ SYSTEM THAT EXCEEDED THEPARAMETERS FOR THE MAXIMUM ALLOWABLE SPREAD.
ON APRIL 10, 1996 EVEREN SECURITIES INC. WAS NOTIFIED THAT THEAWC WAS ACCEPTED BY THE MARKET SURVEILLANCE AND THE NATIONALBUSINESS CONDUCT COMMITTEES. AS SANCTIONS, KEMP WASCENSUREDAND FINED $8,000.
THE AWC BECAME FINAL ON APRIL 10, 1996.
***$8,000.00 PAID ON 5/02/96, INVOICE #96-MS-308***
Sanctions Ordered: CensureMonetary/Fine $8,000.00
Acceptance, Waiver & Consent(AWC)
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MARKET SURVEILLANCE COMMITTEE COMPLAINT NO. CMS950122 AWC
LETTER OF ACCEPTANCE, WAIVER AND CONSENT (AWC) FILED ONNOVEMBER 15, 1995 AGAINST EVEREN SECURITIES INC. f/k/a KEMPERSECURITIES INC. (KEMP) ALLEGING VIOLATIONS OF PART V, SECTION2(d) OF SCHEDULE D TO THE ASSOCIATION'S BY-LAWS IN THAT KEMPENTERED QUOTATIONS INTO THE NASDAQ SYSTEM THAT EXCEEDED THEPARAMETERS FOR THE MAXIMUM ALLOWABLE SPREAD.
ON APRIL 10, 1996 EVEREN SECURITIES INC. WAS NOTIFIED THAT THEAWC WAS ACCEPTED BY THE MARKET SURVEILLANCE AND THE NATIONALBUSINESS CONDUCT COMMITTEES. AS SANCTIONS, KEMP WASCENSUREDAND FINED $8,000.
THE AWC BECAME FINAL ON APRIL 10, 1996.
***$8,000.00 PAID ON 5/02/96, INVOICE #96-MS-308***
iReporting Source: Firm
Initiated By: NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.
Principal Sanction(s)/ReliefSought:
Censure
Other Sanction(s)/ReliefSought:
Date Initiated: 11/15/1995
Docket/Case Number: CMS950122
Principal Product Type: No Product
Other Product Type(s):
Allegations: ALLEGED VIOLATION OF RULES SET FORTH UNDER PART V, SECTION 2(D)OF SCHEDULE TO THE ASSOCIATION'S BY-LAWS CONCERNINGQUOTATIONS ENTERED IN THE NASDAQ SYSTEM THAT EXCEEDED THEPARAMETERS FOR THE MAXIMUM ALLOWABLE SPREAD.
Current Status: Final
Resolution Date: 04/25/1996
Resolution:
Other Sanctions Ordered:
Sanction Details: CENSURE AND FINE OF $1500.
Sanctions Ordered: CensureMonetary/Fine $1,500.00
Settled
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Regulatory - Pending
This type of disclosure event may include a pending formal proceeding initiated by a regulatory authority (e.g., a statesecurities agency, self-regulatory organization, federal regulatory agency such as the Securities and ExchangeCommission, foreign financial regulatory body) for alleged violations of investment-related rules or regulations.
Disclosure 1 of 1
Reporting Source: Firm
Initiated By: STATE OF SOUTH DAKOTADEPARTMENT OF REVENUE & REGULATIONDIVISION OF SECURITIES
Principal Sanction(s)/ReliefSought:
Other
Other Sanction(s)/ReliefSought:
ORDER TO SHOW CAUSE
Date Initiated: 08/07/2008
Docket/Case Number: N/A
Principal Product Type: No Product
Other Product Type(s):
Allegations: ON AUGUST 11, 2008, WACHOVIA SECURITIES RECEIVED AN ORDER TOSHOW CAUSE FROM THE STATE OF SOUTH DAKOTA DATED AUGUST 7,2008, COMMENCING DISCIPLINARY PROCEEDINGS AGAINST THE FIRMBASED ON THE STATE'S INVESTIGATION OF TWO SEPARATE CUSTOMERSALES PRACTICE COMPLAINTS.
Current Status: Pending
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Civil - Final
This type of disclosure event involves (1) an injunction issued by a foreign or domestic court within the last 10 years inconnection with investment-related activity, (2) a finding by a court of a violation of any investment-related statute orregulation, or (3) an action dismissed by a court pursuant to a settlement agreement.
Disclosure 1 of 2
Reporting Source: Regulator
Initiated By: UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Date Court Action Filed: 02/05/2009
Principal Product Type: Other
Court Details: UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OFILLINOIS, SECURITIES AND EXCHANGE COMMISSION V. WACHOVIASECURITIES, LLC, CIVIL CASE NO. 09 CV 743 (N.D. ILL.)
SEC LITIGATION RELEASE 20885, FEBRUARY 5, 2009: SECTION 15(C) OFTHE SECURITIES EXCHANGE ACT OF 1934 - THE SECURITIES ANDEXCHANGE COMMISSION ANNOUNCED A SETTLEMENT WITH WACHOVIASECURITIES, LLC THAT WILL PROVIDE MORE THAN $7 BILLION INLIQUIDITY TO THOUSANDS OF CUSTOMERS WHO INVESTED IN AUCTIONRATE SECURITIES (ARS) BEFORE THE MARKET FOR THOSE SECURITIESCOLLAPSED. THE SETTLEMENT RESOLVES THE SEC'S CHARGES THATWACHOVIA MISLED INVESTORS REGARDING THE LIQUIDITY RISKSASSOCIATED WITH ARS THAT IT UNDERWROTE, MARKETED AND SOLD.THE SEC'S COMPLAINT ALLEGES THAT WACHOVIA AND ANOTHER FIRM,WHOSE BROKER-DEALER OPERATIONS WERE CONSOLIDATED INTOWACHOVIA MISREPRESENTED TO CUSTOMERS THAT ARS WERE SAFE,HIGHLY LIQUID INVESTMENTS THAT WERE COMPARABLE TO CASH ORMONEY MARKET INSTRUMENTS. ACCORDING TO THE SEC'S COMPLAINT,WACHOVIA REINFORCED THE PERCEPTION OF LIQUIDITY BY ROUTINELYPURCHASING ARS FROM THE OTHER FIRM'S CUSTOMERS BETWEENAUCTIONS, WITHOUT TELLING CUSTOMERS THAT WACHOVIA'SWILLINGNESS TO DO SO DEPENDED UPON THE CONTINUED SUCCESS OFTHE AUCTIONS. THE SEC'S COMPLAINT ALLEGES THAT WACHOVIABECAME AWARE OF MOUNTING EVIDENCE THAT PUT THE FIRM ON NOTICETHAT THE RISK OF AUCTION FAILURES HAD MATERIALLY INCREASED.WACHOVIA, NEVERTHELESS, CONTINUED TO MARKET ARS TO ITSCUSTOMERS AS HIGHLY LIQUID INVESTMENTS. WACHOVIA FOLLOWEDTHE LEAD OF OTHER BROKER-DEALERS AND DECIDED TO STOPSUPPORTING AUCTIONS. WITHOUT BROKER-DEALER SUPPORT, ARSAUCTIONS FAILED AND THOUSANDS OF WACHOVIA'S CUSTOMERS WERELEFT HOLDING BILLIONS OF DOLLARS IN ILLIQUID ARS, WITHOUT ANYPRACTICAL MEANS OF REDEEMING, SELLING OR DERIVING VALUE FROMTHEM.
Allegations:
Current Status: Final
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Relief Sought: Injunction
Other Relief Sought: PERMANENT INJUNCTION, FINANCIAL PENALTIES
Principal Product Type: Other
Other Product Types: AUCTION RATE SECURITIES
Resolution: Judgment Rendered
Resolution Date: 02/17/2009
Other Sanctions: UNDERTAKINGS: THE SETTLEMENT, WHICH IS SUBJECT TO COURTAPPROVAL, PROVIDES, AMONG OTHER THINGS, THAT: WACHOVIA WILLOFFER TO BUY BACK ARS FROM ALL INVESTORS WHO PURCHASED ARSFROM WACHOVIA INTO ACCOUNTS MAINTAINED AT WACHOVIA ON ORBEFORE FEB. 13, 2008. WACHOVIA'S BUYBACK HAS TWO PHASES. IN THEFIRST PHASE, WHICH ENDED ON NOV. 28, 2008, WACHOVIA OFFERED TOPURCHASE ARS HELD BY NATURAL PERSONS, NOT-FOR-PROFIT ANDRELIGIOUS ORGANIZATIONS AND FOR OTHER ACCOUNTS WITH ACCOUNTVALUES OR HOUSEHOLD VALUES UP TO $10 MILLION. AS OF NOV. 28, ITPURCHASED OVER $6.2 BILLION OF ELIGIBLE ARS FROM CUSTOMERS.SECOND, BEGINNING NO LATER THAT JUNE 10 AND ENDING NO LATERTHAN JUNE 30, 2009, WACHOVIA WILL OFFER TO PURCHASE ARS HELD BYALL OTHER INVESTORS. WACHOVIA WILL PAY CUSTOMERS WHO SOLDTHEIR ARS BELOW PAR BETWEEN FEB. 13, 2008, AND NOV. 10, 2008, THEDIFFERENCE BETWEEN PAR AND THE SALE PRICE OF THE ARS, PLUSREASONABLE INTEREST. WACHOVIA WILL COMPENSATE CUSTOMERSWHO TOOK OUT LOANS FROM WACHOVIA AFTER FEB. 13, 2008, BECAUSEOF LIQUIDITY CONCERNS BY REIMBURSING CUSTOMERS FOR NO LESSTHAN THE NEGATIVE CARRY ASSOCIATED WITH ANY SUCH LOANS.WACHOVIA WILL OFFER TO LEND ITS CUSTOMERS THE FULL PAR VALUEOF THEIR ARS, PENDING THE CONTEMPLATED BUYBACK, WITH INTERESTRATES SET SO THAT CUSTOMERS WILL HAVE NO NEGATIVE CARRY ONTHEIR LOANS. FURTHER, IF ELIGIBLE CUSTOMERS INCURREDCONSEQUENTIAL DAMAGES BECAUSE OF THE ILLIQUIDITY OF THEIR ARS,THEY MAY PARTICIPATE IN SPECIAL FINANCIAL INDUSTRY REGULATORYAUTHORITY (FINRA) ARBITRATIONS.
Sanction Details: SEC JUDGMENT CIVIL CASE 09-CV-743, FEBRUARY 17, 2009: THESECURITIES AND EXCHANGE COMMISSION HAVING FILED A COMPLAINTAND DEFENDANT WACHOVIA SECURITIES, LLC HAVING ENTERED AGENERAL APPEARANCE; CONSENTED TO THE COURT'S JURISDICTIONOVER DEFENDANT AND THE SUBJECT MATTER OF THIS ACTION;CONSENTED TO ENTRY OF THIS JUDGMENT WITHOUT ADMITTING ORDENYING THE ALLEGATIONS OF THE COMPLAINT (EXCEPT AS TOJURISDICTION); WAIVED FINDINGS OF FACT AND CONCLUSIONS OF LAW;AND WAIVED ANY RIGHT TO APPEAL FROM THIS JUDGMENT:IT IS HEREBY ORDERED, ADJUDGED, AND DECREED THAT DEFENDANTAND DEFENDANT'S AGENTS, SERVANTS, EMPLOYEES, ATTORNEYS, ANDALL PERSONS IN ACTIVE CONCERT OR PARTICIPATION WITH THEM WHORECEIVE ACTUAL NOTICE OF THIS JUDGMENT BY PERSONAL SERVICE OROTHERWISE ARE PERMANENTLY RESTRAINED AND ENJOINED FROMVIOLATING, DIRECTLY OR INDIRECTLY, SECTION 15(C)(1) OF THESECURITIES EXCHANGE ACT OF 1934; THE COURT SHALL DETERMINEWHETHER IT IS APPROPRIATE TO ORDER A CIVIL PENALTY AND, IF SO, THEAMOUNT OF THE CIVIL PENALTY; THE CONSENT IS INCORPORATEDHEREIN WITH THE SAME FORCE AND EFFECT AS IF FULLY SET FORTHHEREIN, AND THAT DEFENDANT SHALL COMPLY WITH ALL OF THEUNDERTAKINGS AND AGREEMENTS SET FORTH THEREIN; THIS COURTSHALL RETAIN JURISDICTION OF THIS MATTER FOR THE PURPOSES OFENFORCING THE TERMS OF THIS JUDGMENT.WITHOUT ADMITTING ORDENYING THE SEC'S ALLEGATIONS, WACHOVIA AGREED TO BEPERMANENTLY ENJOINED FROM VIOLATIONS OF SECTION 15(C) OF THESECURITIES EXCHANGE ACT OF 1934, THE BROKER-DEALER FRAUDPROVISION, AND TO COMPLY WITH A NUMBER OF UNDERTAKINGS. AFTERWACHOVIA HAS COMPLETED ITS OBLIGATIONS UNDER THE SETTLEMENTAGREEMENT, THE SEC WILL DECIDE WHETHER TO SEEK A FINANCIALPENALTY.
Cease and Desist/InjunctionSanctions Ordered or ReliefGranted:
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SEC JUDGMENT CIVIL CASE 09-CV-743, FEBRUARY 17, 2009: THESECURITIES AND EXCHANGE COMMISSION HAVING FILED A COMPLAINTAND DEFENDANT WACHOVIA SECURITIES, LLC HAVING ENTERED AGENERAL APPEARANCE; CONSENTED TO THE COURT'S JURISDICTIONOVER DEFENDANT AND THE SUBJECT MATTER OF THIS ACTION;CONSENTED TO ENTRY OF THIS JUDGMENT WITHOUT ADMITTING ORDENYING THE ALLEGATIONS OF THE COMPLAINT (EXCEPT AS TOJURISDICTION); WAIVED FINDINGS OF FACT AND CONCLUSIONS OF LAW;AND WAIVED ANY RIGHT TO APPEAL FROM THIS JUDGMENT:IT IS HEREBY ORDERED, ADJUDGED, AND DECREED THAT DEFENDANTAND DEFENDANT'S AGENTS, SERVANTS, EMPLOYEES, ATTORNEYS, ANDALL PERSONS IN ACTIVE CONCERT OR PARTICIPATION WITH THEM WHORECEIVE ACTUAL NOTICE OF THIS JUDGMENT BY PERSONAL SERVICE OROTHERWISE ARE PERMANENTLY RESTRAINED AND ENJOINED FROMVIOLATING, DIRECTLY OR INDIRECTLY, SECTION 15(C)(1) OF THESECURITIES EXCHANGE ACT OF 1934; THE COURT SHALL DETERMINEWHETHER IT IS APPROPRIATE TO ORDER A CIVIL PENALTY AND, IF SO, THEAMOUNT OF THE CIVIL PENALTY; THE CONSENT IS INCORPORATEDHEREIN WITH THE SAME FORCE AND EFFECT AS IF FULLY SET FORTHHEREIN, AND THAT DEFENDANT SHALL COMPLY WITH ALL OF THEUNDERTAKINGS AND AGREEMENTS SET FORTH THEREIN; THIS COURTSHALL RETAIN JURISDICTION OF THIS MATTER FOR THE PURPOSES OFENFORCING THE TERMS OF THIS JUDGMENT.WITHOUT ADMITTING ORDENYING THE SEC'S ALLEGATIONS, WACHOVIA AGREED TO BEPERMANENTLY ENJOINED FROM VIOLATIONS OF SECTION 15(C) OF THESECURITIES EXCHANGE ACT OF 1934, THE BROKER-DEALER FRAUDPROVISION, AND TO COMPLY WITH A NUMBER OF UNDERTAKINGS. AFTERWACHOVIA HAS COMPLETED ITS OBLIGATIONS UNDER THE SETTLEMENTAGREEMENT, THE SEC WILL DECIDE WHETHER TO SEEK A FINANCIALPENALTY.
Regulator Statement SEC LITIGATION RELEASE 21585, JUNE 30, 2010: THE SECURITIES ANDEXCHANGE COMMISSION ANNOUNCED THAT WACHOVIA SECURITIES LLCTHAT SETTLED THE COMMISSION'S AUCTION RATE SECURITIES (ARS)CHARGES AGAINST IT HAS SATISFIED ITS OBLIGATIONS UNDER THESETTLEMENT. WACHOVIA WAS REQUIRED TO OFFER TO PURCHASE ARSAT PAR FROM INDIVIDUAL, CHARITABLE, AND SMALL BUSINESSCUSTOMERS. WACHOVIA ALSO AGREED TO OFFER TO PURCHASE ARSFROM ALL OF ITS INSTITUTIONAL CUSTOMERS AS WELL. NEARLY 100% OFTHESE CUSTOMERS HAVE ACCEPTED THE OFFER. WACHOVIAPURCHASED ARS FROM ITS ELIGIBLE CUSTOMERS IN THE AMOUNT OF$7.45 BILLION. WACHOVIA ALSO MET ITS OTHER SETTLEMENTOBLIGATIONS, INCLUDING COMPENSATING INVESTORS WHO SOLD ARSBELOW PAR, REIMBURSING INVESTORS FOR EXCESS INTEREST COSTSASSOCIATED WITH LOANS TAKEN OUT DUE TO ARS ILLIQUIDITY, ANDPARTICIPATING IN SPECIAL ARBITRATION PROCEEDINGS BEFORE THEFINANCIAL INDUSTRY REGULATORY AUTHORITY. THE FIRM ALSOSUBMITTED PERIODIC REPORTS TO, AND MET QUARTERLY WITH, SECSTAFF REGARDING ITS PROGRESS ON MEETING THE SETTLEMENTOBLIGATIONS. TO ENSURE COMPLIANCE WITH THE TERMS, THESETTLEMENT PROVIDED FOR A POTENTIAL DEFERRED PENALTY IF THEFIRM DID NOT MEET ITS SETTLEMENT OBLIGATIONS. THE SEC HASDETERMINED THAT BASED ON THE FIRM'S COMPLIANCE WITH THESETTLEMENT, AS WELL AS OTHER FACTORS, NO PENALTIES WILL BEPURSUED.
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SEC LITIGATION RELEASE 21585, JUNE 30, 2010: THE SECURITIES ANDEXCHANGE COMMISSION ANNOUNCED THAT WACHOVIA SECURITIES LLCTHAT SETTLED THE COMMISSION'S AUCTION RATE SECURITIES (ARS)CHARGES AGAINST IT HAS SATISFIED ITS OBLIGATIONS UNDER THESETTLEMENT. WACHOVIA WAS REQUIRED TO OFFER TO PURCHASE ARSAT PAR FROM INDIVIDUAL, CHARITABLE, AND SMALL BUSINESSCUSTOMERS. WACHOVIA ALSO AGREED TO OFFER TO PURCHASE ARSFROM ALL OF ITS INSTITUTIONAL CUSTOMERS AS WELL. NEARLY 100% OFTHESE CUSTOMERS HAVE ACCEPTED THE OFFER. WACHOVIAPURCHASED ARS FROM ITS ELIGIBLE CUSTOMERS IN THE AMOUNT OF$7.45 BILLION. WACHOVIA ALSO MET ITS OTHER SETTLEMENTOBLIGATIONS, INCLUDING COMPENSATING INVESTORS WHO SOLD ARSBELOW PAR, REIMBURSING INVESTORS FOR EXCESS INTEREST COSTSASSOCIATED WITH LOANS TAKEN OUT DUE TO ARS ILLIQUIDITY, ANDPARTICIPATING IN SPECIAL ARBITRATION PROCEEDINGS BEFORE THEFINANCIAL INDUSTRY REGULATORY AUTHORITY. THE FIRM ALSOSUBMITTED PERIODIC REPORTS TO, AND MET QUARTERLY WITH, SECSTAFF REGARDING ITS PROGRESS ON MEETING THE SETTLEMENTOBLIGATIONS. TO ENSURE COMPLIANCE WITH THE TERMS, THESETTLEMENT PROVIDED FOR A POTENTIAL DEFERRED PENALTY IF THEFIRM DID NOT MEET ITS SETTLEMENT OBLIGATIONS. THE SEC HASDETERMINED THAT BASED ON THE FIRM'S COMPLIANCE WITH THESETTLEMENT, AS WELL AS OTHER FACTORS, NO PENALTIES WILL BEPURSUED.
iReporting Source: Firm
Initiated By: UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Date Court Action Filed: 02/05/2009
Principal Product Type: Other
Other Product Types: AUCTION RATE SECURITIES (ARS)
Court Details: UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OFILLINOIS, SECURITIES AND EXCHANGE COMMISSION V. WACHOVIASECURITIES, LLC, CIVIL CASE NO. 09 CV 743 (N.D. ILL.)
SEC LITIGATION RELEASE 20885, FEBRUARY 5, 2009: SECTION 15(C) OFTHE SECURITIES EXCHANGE ACT OF 1934 - THE SECURITIES ANDEXCHANGE COMMISSION ANNOUNCED A SETTLEMENT WITH WACHOVIASECURITIES, LLC THAT WILL PROVIDE MORE THAN $7 BILLION INLIQUIDITY TO THOUSANDS OF CUSTOMERS WHO INVESTED IN AUCTIONRATE SECURITIES (ARS) BEFORE THE MARKET FOR THOSE SECURITIESCOLLAPSED. THE SETTLEMENT RESOLVES THE SEC'S CHARGES THATWACHOVIA MISLED INVESTORS REGARDING THE LIQUIDITY RISKSASSOCIATED WITH ARS THAT IT UNDERWROTE, MARKETED AND SOLD.THE SEC'S COMPLAINT ALLEGES THAT WACHOVIA AND ANOTHER FIRM,WHOSE BROKER-DEALER OPERATIONS WERE CONSOLIDATED INTOWACHOVIA MISREPRESENTED TO CUSTOMERS THAT ARS WERE SAFE,HIGHLY LIQUID INVESTMENTS THAT WERE COMPARABLE TO CASH ORMONEY MARKET INSTRUMENTS. ACCORDING TO THE SEC'S COMPLAINT,WACHOVIA REINFORCED THE PERCEPTION OF LIQUIDITY BY ROUTINELYPURCHASING ARS FROM THE OTHER FIRM'S CUSTOMERS BETWEENAUCTIONS, WITHOUT TELLING CUSTOMERS THAT WACHOVIA'SWILLINGNESS TO DO SO DEPENDED UPON THE CONTINUED SUCCESS OFTHE AUCTIONS. THE SEC'S COMPLAINT ALLEGES THAT WACHOVIABECAME AWARE OF MOUNTING EVIDENCE THAT PUT THE FIRM ON NOTICETHAT THE RISK OF AUCTION FAILURES HAD MATERIALLY INCREASED.WACHOVIA, NEVERTHELESS, CONTINUED TO MARKET ARS TO ITSCUSTOMERS AS HIGHLY LIQUID INVESTMENTS. WACHOVIA FOLLOWEDTHE LEAD OF OTHER BROKER-DEALERS AND DECIDED TO STOPSUPPORTING AUCTIONS. WITHOUT BROKER-DEALER SUPPORT, ARSAUCTIONS FAILED AND THOUSANDS OF WACHOVIA'S CUSTOMERS WERELEFT HOLDING BILLIONS OF DOLLARS IN ILLIQUID ARS, WITHOUT ANYPRACTICAL MEANS OF REDEEMING, SELLING OR DERIVING VALUE FROMTHEM.
Allegations:
Current Status: Final
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Relief Sought: Injunction
Other Relief Sought: PERMANENT INJUNCTION, FINANCIAL PENALTIES
Other Product Types: AUCTION RATE SECURITIES (ARS)
Resolution: Judgment Rendered
Resolution Date: 02/17/2009
Other Sanctions: UNDERTAKINGS: THE SETTLEMENT, WHICH IS SUBJECT TO COURTAPPROVAL, PROVIDES, AMONG OTHER THINGS, THAT: WACHOVIA WILLOFFER TO BUY BACK ARS FROM ALL INVESTORS WHO PURCHASED ARSFROM WACHOVIA INTO ACCOUNTS MAINTAINED AT WACHOVIA ON ORBEFORE FEB. 13, 2008. WACHOVIA'S BUYBACK HAS TWO PHASES. IN THEFIRST PHASE, WHICH ENDED ON NOV. 28, 2008, WACHOVIA OFFERED TOPURCHASE ARS HELD BY NATURAL PERSONS, NOT-FOR-PROFIT ANDRELIGIOUS ORGANIZATIONS AND FOR OTHER ACCOUNTS WITH ACCOUNTVALUES OR HOUSEHOLD VALUES UP TO $10 MILLION. AS OF NOV. 28, ITPURCHASED OVER $6.2 BILLION OF ELIGIBLE ARS FROM CUSTOMERS.SECOND, BEGINNING NO LATER THAT JUNE 10 AND ENDING NO LATERTHAN JUNE 30, 2009, WACHOVIA WILL OFFER TO PURCHASE ARS HELD BYALL OTHER INVESTORS. WACHOVIA WILL PAY CUSTOMERS WHO SOLDTHEIR ARS BELOW PAR BETWEEN FEB. 13, 2008, AND NOV. 10, 2008, THEDIFFERENCE BETWEEN PAR AND THE SALE PRICE OF THE ARS, PLUSREASONABLE INTEREST. WACHOVIA WILL COMPENSATE CUSTOMERSWHO TOOK OUT LOANS FROM WACHOVIA AFTER FEB. 13, 2008, BECAUSEOF LIQUIDITY CONCERNS BY REIMBURSING CUSTOMERS FOR NO LESSTHAN THE NEGATIVE CARRY ASSOCIATED WITH ANY SUCH LOANS.WACHOVIA WILL OFFER TO LEND ITS CUSTOMERS THE FULL PAR VALUEOF THEIR ARS, PENDING THE CONTEMPLATED BUYBACK, WITH INTERESTRATES SET SO THAT CUSTOMERS WILL HAVE NO NEGATIVE CARRY ONTHEIR LOANS. FURTHER, IF ELIGIBLE CUSTOMERS INCURREDCONSEQUENTIAL DAMAGES BECAUSE OF THE ILLIQUIDITY OF THEIR ARS,THEY MAY PARTICIPATE IN SPECIAL FINANCIAL INDUSTRY REGULATORYAUTHORITY (FINRA) ARBITRATIONS.
Sanction Details: SEC JUDGMENT CIVIL CASE 09-CV-743, FEBRUARY 17, 2009: THESECURITIES AND EXCHANGE COMMISSION HAVING FILED A COMPLAINTAND DEFENDANT WACHOVIA SECURITIES, LLC HAVING ENTERED AGENERAL APPEARANCE; CONSENTED TO THE COURT'S JURISDICTIONOVER DEFENDANT AND THE SUBJECT MATTER OF THIS ACTION;CONSENTED TO ENTRY OF THIS JUDGMENT WITHOUT ADMITTING ORDENYING THE ALLEGATIONS OF THE COMPLAINT (EXCEPT AS TOJURISDICTION); WAIVED FINDINGS OF FACT AND CONCLUSIONS OF LAW;AND WAIVED ANY RIGHT TO APPEAL FROM THIS JUDGMENT: IT IS HEREBYORDERED, ADJUDGED, AND DECREED THAT DEFENDANT ANDDEFENDANT'S AGENTS, SERVANTS, EMPLOYEES, ATTORNEYS, AND ALLPERSONS IN ACTIVE CONCERT OR PARTICIPATION WITH THEM WHORECEIVE ACTUAL NOTICE OF THIS JUDGMENT BY PERSONAL SERVICE OROTHERWISE ARE PERMANENTLY RESTRAINED AND ENJOINED FROMVIOLATING, DIRECTLY OR INDIRECTLY, SECTION 15(C)(1) OF THESECURITIES EXCHANGE ACT OF 1934; THE COURT SHALL DETERMINEWHETHER IT IS APPROPRIATE TO ORDER A CIVIL PENALTY AND, IF SO, THEAMOUNT OF THE CIVIL PENALTY; THE CONSENT IS INCORPORATEDHEREIN WITH THE SAME FORCE AND EFFECT AS IF FULLY SET FORTHHEREIN, AND THAT DEFENDANT SHALL COMPLY WITH ALL OF THEUNDERTAKINGS AND AGREEMENTS SET FORTH THEREIN; THIS COURTSHALL RETAIN JURISDICTION OF THIS MATTER FOR THE PURPOSES OFENFORCING THE TERMS OF THIS JUDGMENT.WITHOUT ADMITTING ORDENYING THE SEC'S ALLEGATIONS, WACHOVIA AGREED TO BEPERMANENTLY ENJOINED FROM VIOLATIONS OF SECTION 15(C) OF THESECURITIES EXCHANGE ACT OF 1934, THE BROKER-DEALER FRAUDPROVISION, AND TO COMPLY WITH A NUMBER OF UNDERTAKINGS. AFTERWACHOVIA HAS COMPLETED ITS OBLIGATIONS UNDER THE SETTLEMENTAGREEMENT, THE SEC WILL DECIDE WHETHER TO SEEK A FINANCIALPENALTY.
Cease and Desist/InjunctionSanctions Ordered or ReliefGranted:
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SEC JUDGMENT CIVIL CASE 09-CV-743, FEBRUARY 17, 2009: THESECURITIES AND EXCHANGE COMMISSION HAVING FILED A COMPLAINTAND DEFENDANT WACHOVIA SECURITIES, LLC HAVING ENTERED AGENERAL APPEARANCE; CONSENTED TO THE COURT'S JURISDICTIONOVER DEFENDANT AND THE SUBJECT MATTER OF THIS ACTION;CONSENTED TO ENTRY OF THIS JUDGMENT WITHOUT ADMITTING ORDENYING THE ALLEGATIONS OF THE COMPLAINT (EXCEPT AS TOJURISDICTION); WAIVED FINDINGS OF FACT AND CONCLUSIONS OF LAW;AND WAIVED ANY RIGHT TO APPEAL FROM THIS JUDGMENT: IT IS HEREBYORDERED, ADJUDGED, AND DECREED THAT DEFENDANT ANDDEFENDANT'S AGENTS, SERVANTS, EMPLOYEES, ATTORNEYS, AND ALLPERSONS IN ACTIVE CONCERT OR PARTICIPATION WITH THEM WHORECEIVE ACTUAL NOTICE OF THIS JUDGMENT BY PERSONAL SERVICE OROTHERWISE ARE PERMANENTLY RESTRAINED AND ENJOINED FROMVIOLATING, DIRECTLY OR INDIRECTLY, SECTION 15(C)(1) OF THESECURITIES EXCHANGE ACT OF 1934; THE COURT SHALL DETERMINEWHETHER IT IS APPROPRIATE TO ORDER A CIVIL PENALTY AND, IF SO, THEAMOUNT OF THE CIVIL PENALTY; THE CONSENT IS INCORPORATEDHEREIN WITH THE SAME FORCE AND EFFECT AS IF FULLY SET FORTHHEREIN, AND THAT DEFENDANT SHALL COMPLY WITH ALL OF THEUNDERTAKINGS AND AGREEMENTS SET FORTH THEREIN; THIS COURTSHALL RETAIN JURISDICTION OF THIS MATTER FOR THE PURPOSES OFENFORCING THE TERMS OF THIS JUDGMENT.WITHOUT ADMITTING ORDENYING THE SEC'S ALLEGATIONS, WACHOVIA AGREED TO BEPERMANENTLY ENJOINED FROM VIOLATIONS OF SECTION 15(C) OF THESECURITIES EXCHANGE ACT OF 1934, THE BROKER-DEALER FRAUDPROVISION, AND TO COMPLY WITH A NUMBER OF UNDERTAKINGS. AFTERWACHOVIA HAS COMPLETED ITS OBLIGATIONS UNDER THE SETTLEMENTAGREEMENT, THE SEC WILL DECIDE WHETHER TO SEEK A FINANCIALPENALTY.
Firm Statement SEC LITIGATION RELEASE 21585, JUNE 30, 2010: THE SECURITIES ANDEXCHANGE COMMISSION ANNOUNCED THAT WACHOVIA SECURITIES LLCTHAT SETTLED THE COMMISSION'S AUCTION RATE SECURITIES (ARS)CHARGES AGAINST IT HAS SATISFIED ITS OBLIGATIONS UNDER THESETTLEMENT. WACHOVIA WAS REQUIRED TO OFFER TO PURCHASE ARSAT PAR FROM INDIVIDUAL, CHARITABLE, AND SMALL BUSINESSCUSTOMERS. WACHOVIA ALSO AGREED TO OFFER TO PURCHASE ARSFROM ALL OF ITS INSTITUTIONAL CUSTOMERS AS WELL. NEARLY 100% OFTHESE CUSTOMERS HAVE ACCEPTED THE OFFER. WACHOVIAPURCHASED ARS FROM ITS ELIGIBLE CUSTOMERS IN THE AMOUNT OF$7.45 BILLION. WACHOVIA ALSO MET ITS OTHER SETTLEMENTOBLIGATIONS, INCLUDING COMPENSATING INVESTORS WHO SOLD ARSBELOW PAR, REIMBURSING INVESTORS FOR EXCESS INTEREST COSTSASSOCIATED WITH LOANS TAKEN OUT DUE TO ARS ILLIQUIDITY, ANDPARTICIPATING IN SPECIAL ARBITRATION PROCEEDINGS BEFORE THEFINANCIAL INDUSTRY REGULATORY AUTHORITY. THE FIRM ALSOSUBMITTED PERIODIC REPORTS TO, AND MET QUARTERLY WITH, SECSTAFF REGARDING ITS PROGRESS ON MEETING THE SETTLEMENTOBLIGATIONS. TO ENSURE COMPLIANCE WITH THE TERMS, THESETTLEMENT PROVIDED FOR A POTENTIAL DEFERRED PENALTY IF THEFIRM DID NOT MEET ITS SETTLEMENT OBLIGATIONS. THE SEC HASDETERMINED THAT BASED ON THE FIRM'S COMPLIANCE WITH THESETTLEMENT, AS WELL AS OTHER FACTORS, NO PENALTIES WILL BEPURSUED.
311©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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SEC LITIGATION RELEASE 21585, JUNE 30, 2010: THE SECURITIES ANDEXCHANGE COMMISSION ANNOUNCED THAT WACHOVIA SECURITIES LLCTHAT SETTLED THE COMMISSION'S AUCTION RATE SECURITIES (ARS)CHARGES AGAINST IT HAS SATISFIED ITS OBLIGATIONS UNDER THESETTLEMENT. WACHOVIA WAS REQUIRED TO OFFER TO PURCHASE ARSAT PAR FROM INDIVIDUAL, CHARITABLE, AND SMALL BUSINESSCUSTOMERS. WACHOVIA ALSO AGREED TO OFFER TO PURCHASE ARSFROM ALL OF ITS INSTITUTIONAL CUSTOMERS AS WELL. NEARLY 100% OFTHESE CUSTOMERS HAVE ACCEPTED THE OFFER. WACHOVIAPURCHASED ARS FROM ITS ELIGIBLE CUSTOMERS IN THE AMOUNT OF$7.45 BILLION. WACHOVIA ALSO MET ITS OTHER SETTLEMENTOBLIGATIONS, INCLUDING COMPENSATING INVESTORS WHO SOLD ARSBELOW PAR, REIMBURSING INVESTORS FOR EXCESS INTEREST COSTSASSOCIATED WITH LOANS TAKEN OUT DUE TO ARS ILLIQUIDITY, ANDPARTICIPATING IN SPECIAL ARBITRATION PROCEEDINGS BEFORE THEFINANCIAL INDUSTRY REGULATORY AUTHORITY. THE FIRM ALSOSUBMITTED PERIODIC REPORTS TO, AND MET QUARTERLY WITH, SECSTAFF REGARDING ITS PROGRESS ON MEETING THE SETTLEMENTOBLIGATIONS. TO ENSURE COMPLIANCE WITH THE TERMS, THESETTLEMENT PROVIDED FOR A POTENTIAL DEFERRED PENALTY IF THEFIRM DID NOT MEET ITS SETTLEMENT OBLIGATIONS. THE SEC HASDETERMINED THAT BASED ON THE FIRM'S COMPLIANCE WITH THESETTLEMENT, AS WELL AS OTHER FACTORS, NO PENALTIES WILL BEPURSUED.
Disclosure 2 of 2
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Reporting Source: Regulator
Initiated By: STATE OF CALIFORNIA - DEPARTMENT OF CORPORATIONS
Relief Sought: Other
Other Relief Sought: CIV - CIVIL COMPLAINT FILED.
Date Court Action Filed: 09/30/2003
Principal Product Type: Other
Other Product Types: EQUITY - LISTED (COMMON PREFERRED STOCK).
Court Details: ORANGE COUNTY SUPERIOR COURT - SANTA ANA - CALIFORNIACASE NO. 03CC00433.
AGENT MISAPPORPRIATED CLIENT FUNDS AND WACHOVIA FAILED TOSUPERVISE ITS AGENTS AND TO ENFORCE WRITTEN PROCEDURES.
Allegations:
Current Status: Final
Date Notice/Process Served: 09/30/2003
Resolution: Dismissed
Resolution Date: 01/10/2005
Other Sanctions:
Sanction Details:
Regulator Statement LONG MISAPPROPRIATED FUNDS FROM 16 CLIENT ACCOUNTS WITHINVESTOR LOSSES TOTALING CLOSE TO 2 MILLION. THE BD FAILED TOSUPERVISE ITS AGENTS AND FAILED TO ENFORCE WRITTENPROCEDURES.
WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, A CONSENT ORDERWAS AGREED TO BY THE FIRM.
Sanctions Ordered or ReliefGranted:
iReporting Source: Firm
THE CALIFORNIA CORPORATIONS COMMISSIONER ALLEGES A FORMERBRANCH MANAGER FAILED TO SUPERVISE A FORMER REGISTEREDREPRESENTATIVE WHO MISAPPROPRIATED MONEY FROM HIS CLIENTS,ALL OF WHOM HAVE BEEN REIMBURSED BY THE FIRM.
Allegations:
Current Status: Final
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Initiated By: STATE OF CALIFORNIA , DEPARTMENT OF CORPORATIONS
Relief Sought: Other
Other Relief Sought: CIV - CIVIL COMPLAINT FILED
Date Court Action Filed: 09/30/2003
Principal Product Type: No Product
Other Product Types: MISAPPROPRIATION OF FUNDS
Court Details: ORANGE COUNTY SUPERIOR COURT; SANTA ANA; CALIFORNIA CASE NO.03CC00433
THE CALIFORNIA CORPORATIONS COMMISSIONER ALLEGES A FORMERBRANCH MANAGER FAILED TO SUPERVISE A FORMER REGISTEREDREPRESENTATIVE WHO MISAPPROPRIATED MONEY FROM HIS CLIENTS,ALL OF WHOM HAVE BEEN REIMBURSED BY THE FIRM.
Allegations:
Date Notice/Process Served: 11/12/2004
Resolution: Dismissed
Resolution Date: 01/10/2005
Other Sanctions:
Sanction Details:
Firm Statement WITHOUT ADMITTING OR DENYING THE ALLEGATIONS, A CONSENT ORDERWAS AGREED TO BY THE FIRM.
Sanctions Ordered or ReliefGranted:
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Arbitration Award - Award / Judgment
Brokerage firms are not required to report arbitration claims filed against them by customers; however, BrokerCheckprovides summary information regarding FINRA arbitration awards involving securities and commodities disputesbetween public customers and registered securities firms in this section of the report. The full text of arbitration awards issued by FINRA is available at www.finra.org/awardsonline.
Disclosure 1 of 337
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
04/03/2000
00-00937
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNTRELATED-FAILURE TO SUPERVISE
CORPORATE BONDS; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$115,000.00
AWARD AGAINST PARTY
06/04/2001
$90,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 2 of 337
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Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
NASD
04/12/2000
00-01242
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-CHURNING; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNTACTIVITY-SUITABILITY
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE314©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$300,000.00
AWARD AGAINST PARTY
03/01/2001
$23,076.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 3 of 337
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Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
05/11/2000
00-01331
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT RELATED-FAILURE TO SUPERVISE;ACCOUNT RELATED-NEGLIGENCE
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$784,000.00
AWARD AGAINST PARTY
12/09/2002
$21,600.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 4 of 337
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Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Allegations:
NASD
04/10/2000
ACCOUNT ACTIVITY-OTHER; DO NOT USE-NO OTHER CONTROVERSYINVOLVED
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Case Initiated:
Case Number:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
04/10/2000
00-01428
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$500,000.00
AWARD AGAINST PARTY
03/20/2002
$101,300.01
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 5 of 337
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Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
05/22/2000
00-01980
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT RELATED-BREACHOF CONTRACT; ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNTRELATED-NEGLIGENCE
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$34,000.00
AWARD AGAINST PARTY
01/22/2002
$8,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 6 of 337
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Reporting Source: Regulator
Type of Event: ARBITRATION
Allegations: ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT RELATED-BREACHOF CONTRACT; ACCOUNT RELATED-NEGLIGENCE; ACCOUNT RELATED-OTHER
316©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
07/05/2000
00-02369
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT RELATED-BREACHOF CONTRACT; ACCOUNT RELATED-NEGLIGENCE; ACCOUNT RELATED-OTHER
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$589,496.00
AWARD AGAINST PARTY
04/09/2002
$46,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 7 of 337
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Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
08/25/2000
00-03566
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT RELATED-BREACH OF CONTRACT; DONOT USE-EXECUTIONS-FAILURE TO EXECUTE
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; MUTUAL FUNDS
$18,816.48
AWARD AGAINST PARTY
07/16/2001
$8,816.48
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 8 of 337
i
Reporting Source: Regulator
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Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
11/01/2000
00-03623
ACCOUNT ACTIVITY-SUITABILITY; DO NOT USE-NO OTHER CONTROVERSYINVOLVED
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$14,388.00
AWARD AGAINST PARTY
04/27/2001
$62.50
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 9 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
10/27/2000
00-04266
ACCOUNT RELATED-BREACH OF CONTRACT; ACCOUNT RELATED-OTHER;DO NOT USE-NO OTHER CONTROVERSY INVOLVED
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$2,075.00
AWARD AGAINST PARTY
05/18/2001
$575.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 10 of 337
i
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Disclosure 10 of 337
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
10/11/2000
00-04341
ACCOUNT RELATED-BREACH OF CONTRACT; ACCOUNT RELATED-FAILURETO SUPERVISE; ACCOUNT RELATED-NEGLIGENCE; DO NOT USE-NOOTHER CONTROVERSY INVOLVED
ANNUITIES; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$30,000.00
AWARD AGAINST PARTY
07/16/2001
$29,306.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 11 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
10/12/2000
00-04456
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT RELATED-BREACHOF CONTRACT; ACCOUNT RELATED-NEGLIGENCE; DO NOT USE-NO OTHERCONTROVERSY INVOLVED
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$285,043.29
AWARD AGAINST PARTY
09/18/2002
$72,380.54
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There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 12 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
11/30/2000
00-05242
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT RELATED-BREACH OF CONTRACT; DONOT USE-NO OTHER CONTROVERSY INVOLVED
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$31,800.00
AWARD AGAINST PARTY
07/19/2002
$6,300.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 13 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
NASD
01/29/2001
00-05490
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-UNAUTHORIZED TRADING; DONOT USE-EXECUTIONS-LIMIT V MRKT ORDR
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$1,000,000.00
AWARD AGAINST PARTY
07/23/2002 320©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
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Disposition Date:
Sum of All Relief Awarded:
07/23/2002
$50,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 14 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
03/05/2001
01-00878
ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT RELATED-BREACHOF CONTRACT; ACCOUNT RELATED-NEGLIGENCE; DO NOT USE-EXECUTIONS-FAILURE TO EXECUTE
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$375,104.00
AWARD AGAINST PARTY
09/11/2002
$52,375.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 15 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
NASD
04/04/2001
01-01630
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT RELATED-BREACHOF CONTRACT; ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNTRELATED-NEGLIGENCE
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
321©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$3,000,000.00
AWARD AGAINST PARTY
01/14/2003
$368,428.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 16 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
06/19/2001
01-01785
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT RELATED-BREACHOF CONTRACT; ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNTRELATED-NEGLIGENCE
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$3,926,541.84
AWARD AGAINST PARTY
06/25/2002
$600.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 17 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Allegations:
NASD
05/08/2001
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-BREACH OF CONTRACT; ACCOUNTRELATED-FAILURE TO SUPERVISE
322©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Case Initiated:
Case Number:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
05/08/2001
01-02319
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$63,178.50
AWARD AGAINST PARTY
06/11/2002
$306,292.50
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 18 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
09/04/2001
01-03235
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-CHURNING; ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNTRELATED-NEGLIGENCE
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$117,493.00
AWARD AGAINST PARTY
09/23/2002
$108,000.01
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 19 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Allegations: ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-FAILURE TOSUPERVISE; ACCOUNT RELATED-NEGLIGENCE; DO NOT USE-NO OTHERCONTROVERSY INVOLVED
323©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
07/03/2001
01-03307
ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-FAILURE TOSUPERVISE; ACCOUNT RELATED-NEGLIGENCE; DO NOT USE-NO OTHERCONTROVERSY INVOLVED
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$300,000.00
AWARD AGAINST PARTY
08/05/2003
$53,615.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 20 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
08/23/2001
01-03451
ACCOUNT ACTIVITY-UNAUTHORIZED TRADING; ACCOUNT RELATED-BREACH OF CONTRACT; ACCOUNT RELATED-MARGIN CALLS; DO NOT USE-EXECUTIONS-FAILURE TO EXECUTE
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE;MUTUAL FUNDS; OPTIONS
$500,000.00
AWARD AGAINST PARTY
07/30/2002
$35,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 21 of 337
i
324©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
07/06/2001
01-03469
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-CHURNING; ACCOUNT ACTIVITY-UNAUTHORIZED TRADING; ACCOUNTRELATED-BREACH OF CONTRACT
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$410,000.00
AWARD AGAINST PARTY
04/22/2003
$60,300.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 22 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
08/15/2001
01-03781
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-CHURNING; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNTACTIVITY-OMISSION OF FACTS
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$501,125.00
AWARD AGAINST PARTY
10/24/2002
$86,546.84
325©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 23 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
07/24/2001
01-03824
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT RELATED-FAILURETO SUPERVISE; ACCOUNT RELATED-MARGIN CALLS; ACCOUNT RELATED-NEGLIGENCE
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE;OPTIONS
AWARD AGAINST PARTY
06/20/2003
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 24 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
NASD
08/03/2001
01-04057
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-CHURNING; ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNTRELATED-NEGLIGENCE
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; OTHERTYPES OF SECURITIES; REAL ESTATE INVESTMENT TRUST
$34,763.73
AWARD AGAINST PARTY 326©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Disposition:
Disposition Date:
Sum of All Relief Awarded:
AWARD AGAINST PARTY
05/15/2002
$212.50
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 25 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
08/16/2001
01-04244
ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT RELATED-BREACHOF CONTRACT; ACCOUNT RELATED-NEGLIGENCE; DO NOT USE-NO OTHERCONTROVERSY INVOLVED
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$20,000.00
AWARD AGAINST PARTY
04/19/2002
$212.50
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 26 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
NASD
09/17/2001
01-04580
ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OTHER;ACCOUNT RELATED-BREACH OF CONTRACT; ACCOUNT RELATED-TRANSFER
327©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Case Number:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
01-04580
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE;MUTUAL FUNDS
$58,234.35
AWARD AGAINST PARTY
05/17/2002
$17,460.15
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 27 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
09/07/2001
01-04743
ACCOUNT RELATED-BREACH OF CONTRACT; ACCOUNT RELATED-FAILURETO SUPERVISE; ACCOUNT RELATED-NEGLIGENCE; ACCOUNT RELATED-TRANSFER
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$200,000.00
AWARD AGAINST PARTY
07/02/2002
$0.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 28 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Allegations:
NASD
ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-SUITABILITY; DO NOT USE-NO OTHER CONTROVERSY INVOLVED
328©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Arbitration Forum:
Case Initiated:
Case Number:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
09/27/2001
01-04907
ANNUITIES; COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SECINVOLVE; OTHER TYPES OF SECURITIES
$33,086.34
AWARD AGAINST PARTY
09/23/2002
$10,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 29 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
10/17/2001
01-05146
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT RELATED-FAILURE TO SUPERVISE;ACCOUNT RELATED-NEGLIGENCE
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
Unspecified Damages
AWARD AGAINST PARTY
09/13/2002
$17,585.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 30 of 337
i
Reporting Source: Regulator
329©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
11/29/2001
01-05436
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-OTHER; DO NOT USE-NO OTHERCONTROVERSY INVOLVED
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; MUTUAL FUNDS
$9,164.00
AWARD AGAINST PARTY
04/22/2002
$425.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 31 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
11/14/2001
01-05629
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-FAILURE TO SUPERVISE; DO NOT USE-NO OTHER CONTROVERSY INVOLVED
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$733,157.20
AWARD AGAINST PARTY
07/03/2003
$92,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
330©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Disclosure 32 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
11/14/2001
01-06003
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-UNAUTHORIZED TRADING;ACCOUNT RELATED-MARGIN CALLS
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE;OPTIONS
$391,323.06
AWARD AGAINST PARTY
05/13/2003
$77,550.01
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 33 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
NASD
12/26/2001
01-06427
ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT ACTIVITY-UNAUTHORIZEDTRADING; ACCOUNT RELATED-FAILURE TO SUPERVISE; TRADINGDISPUTES-TRANSFERS
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; MUTUAL FUNDS
$5,386.03
AWARD AGAINST PARTY
05/21/2002
331©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Sum of All Relief Awarded: $175.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 34 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
01/02/2002
01-06890
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-CHURNING; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNTACTIVITY-SUITABILITY
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; OTHERTYPES OF SECURITIES
$1,400,000.00
AWARD AGAINST PARTY
01/14/2003
$612,674.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 35 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
NASD
03/18/2002
02-00424
ACCOUNT RELATED-NEGLIGENCE; DO NOT USE-EXECUTIONS-FAILURE TOEXECUTE; DO NOT USE-NO OTHER CONTROVERSY INVOLVED
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; MUTUAL FUNDS
$19,589.50
332©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Disposition:
Disposition Date:
Sum of All Relief Awarded:
AWARD AGAINST PARTY
10/31/2002
$15,699.85
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 36 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
03/15/2002
02-01371
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT RELATED-BREACHOF CONTRACT; ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNTRELATED-NEGLIGENCE
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; LIMITED PARTNERSHIPS;MUTUAL FUNDS; OTHER TYPES OF SECURITIES
$18,425.00
AWARD AGAINST PARTY
08/28/2002
$425.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 37 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
NASD
03/28/2002
02-01681
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-OMISSION OF FACTS; ACCOUNT ACTIVITY-OTHER; ACCOUNT ACTIVITY-UNAUTHORIZED TRADING
333©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Case Number:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
02-01681
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$5,000,000.00
AWARD AGAINST PARTY
02/26/2003
$65,765.11
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 38 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
04/22/2002
02-02172
DO NOT USE-NO OTHER CONTROVERSY INVOLVED; UNKNOWN TYPE OFCONTROVERSIES
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$11,900,000.00
AWARD AGAINST PARTY
08/11/2003
$318,288.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 39 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Allegations:
NASD
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT ACTIVITY-UNAUTHORIZED TRADING; DO NOT USE-NO OTHER CONTROVERSY INVOLVED
334©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Arbitration Forum:
Case Initiated:
Case Number:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
05/10/2002
02-02491
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$188,535.00
AWARD AGAINST PARTY
06/11/2003
$0.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 40 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
09/03/2002
02-04961
ACCOUNT RELATED-NEGLIGENCE; DO NOT USE-NO OTHERCONTROVERSY INVOLVED
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$120,905.60
AWARD AGAINST PARTY
10/23/2003
$50,608.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 41 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Allegations: ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSIONOF FACTS; ACCOUNT RELATED-EXCHANGES; ACCOUNT RELATED-NEGLIGENCE
335©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
10/17/2002
02-05151
ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSIONOF FACTS; ACCOUNT RELATED-EXCHANGES; ACCOUNT RELATED-NEGLIGENCE
ANNUITIES; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$19,355.37
AWARD AGAINST PARTY
10/11/2004
$2,125.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 42 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
10/21/2002
02-05447
DO NOT USE-EXECUTIONS-FAILURE TO EXECUTE; DO NOT USE-NO OTHERCONTROVERSY INVOLVED
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; MUTUAL FUNDS
$25,278.00
AWARD AGAINST PARTY
08/01/2003
$3,385.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 43 of 337
i
336©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
10/23/2002
02-06220
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNTRELATED-NEGLIGENCE
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$601,746.51
AWARD AGAINST PARTY
07/20/2004
$300,907.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 44 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
11/05/2002
02-06253
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT RELATED-NEGLIGENCE; TRADINGDISPUTES-MANIPULATION
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; MUTUAL FUNDS
$7,505.02
AWARD AGAINST PARTY
03/12/2003
$1,765.00
There may be a non-monetary award associated with this arbitration.
337©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Please select the Case Number above to view more detailed information.
Disclosure 45 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
11/07/2002
02-06567
ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-BREACH OF CONTRACT; ACCOUNTRELATED-NEGLIGENCE
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$1,000,000.00
AWARD AGAINST PARTY
03/03/2004
$335,000.01
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 46 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
NASD
11/22/2002
02-06786
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT RELATED-ERRORS-CHARGES; ACCOUNT RELATED-FAILURE TO SUPERVISE;ACCOUNT RELATED-NEGLIGENCE
COMMON STOCK; CORPORATE BONDS; MUTUAL FUNDS; OPTIONS
$7,309,475.77
AWARD AGAINST PARTY
09/15/2004338©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Disposition Date:
Sum of All Relief Awarded:
09/15/2004
$420,494.94
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 47 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
11/29/2002
02-06799
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-CHURNING; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-BREACHOF CONTRACT
COMMON STOCK; CORPORATE BONDS; MUNICIPAL BONDS; MUTUALFUNDS
$768,315.00
AWARD AGAINST PARTY
02/02/2004
$98,375.01
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 48 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
NASD
12/09/2002
02-07178
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT ACTIVITY-SUITABILITY
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE339©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$10,575,140.76
AWARD AGAINST PARTY
07/08/2004
$2,692,591.01
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 49 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
12/17/2002
02-07435
ACCOUNT RELATED-OTHER; DO NOT USE-NO OTHER CONTROVERSYINVOLVED
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
Unspecified Damages
AWARD AGAINST PARTY
01/15/2004
$22,500.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 50 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Allegations:
NASD
12/27/2002
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-OTHER;ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-FAILURE TOSUPERVISE
340©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Case Initiated:
Case Number:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
12/27/2002
02-07610
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; MUTUAL FUNDS
$342,264.50
AWARD AGAINST PARTY
03/22/2004
$57,475.04
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 51 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
01/08/2003
02-07847
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-OTHER;ACCOUNT RELATED-FAILURE TO SUPERVISE; DO NOT USE-NO OTHERCONTROVERSY INVOLVED
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$521,295.00
AWARD AGAINST PARTY
02/23/2004
$343,116.09
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 52 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Allegations: ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNTRELATED-MARGIN CALLS
341©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
02/19/2003
03-00704
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNTRELATED-MARGIN CALLS
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$101,099,408.39
AWARD AGAINST PARTY
11/18/2004
$566,932.12
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 53 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
02/05/2003
03-00738
ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT ACTIVITY-UNAUTHORIZED TRADING; ACCOUNTRELATED-BREACH OF CONTRACT
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE;MUTUAL FUNDS
$150,000.00
AWARD AGAINST PARTY
12/18/2003
$36,000.01
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 54 of 337
i
342©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Disclosure 54 of 337
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
02/11/2003
03-00824
ACCOUNT ACTIVITY-OTHER; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNTRELATED-NEGLIGENCE; DO NOT USE-NO OTHER CONTROVERSYINVOLVED
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$93,000.00
AWARD AGAINST PARTY
03/15/2004
$28,776.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 55 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
03/24/2003
03-01817
ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSIONOF FACTS; ACCOUNT ACTIVITY-OTHER; ACCOUNT ACTIVITY-SUITABILITY
ANNUITIES; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; MUTUALFUNDS
$364,930.75
AWARD AGAINST PARTY
03/11/2004
$106,997.00
343©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 56 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
05/02/2003
03-01897
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT RELATED-NEGLIGENCE; ACCOUNTRELATED-OTHER
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; OTHER TYPES OFSECURITIES
$130,000.00
AWARD AGAINST PARTY
05/09/2006
$70,000.01
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 57 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
NASD
04/01/2003
03-02046
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-CHURNING; ACCOUNT RELATED-BREACH OF CONTRACT; ACCOUNTRELATED-NEGLIGENCE
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE;MUTUAL FUNDS
$999,990.69
AWARD AGAINST PARTY 344©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Disposition:
Disposition Date:
Sum of All Relief Awarded:
AWARD AGAINST PARTY
09/12/2006
$300,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 58 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
05/05/2003
03-02298
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT RELATED-BREACHOF CONTRACT; ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNTRELATED-NEGLIGENCE
ANNUITIES; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$155,000.00
AWARD AGAINST PARTY
09/10/2004
$6,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 59 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
NASD
04/14/2003
03-02491
ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSIONOF FACTS; ACCOUNT RELATED-BREACH OF CONTRACT; ACCOUNTRELATED-FAILURE TO SUPERVISE
COMMON STOCK; MUTUAL FUNDS; OPTIONS; OTHER TYPES OFSECURITIES
345©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
COMMON STOCK; MUTUAL FUNDS; OPTIONS; OTHER TYPES OFSECURITIES
$875,000.00
AWARD AGAINST PARTY
10/26/2004
$360,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 60 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
05/14/2003
03-03132
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT ACTIVITY-UNAUTHORIZED TRADING
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$448,018.00
AWARD AGAINST PARTY
04/29/2004
$27,700.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 61 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Allegations:
NASD
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT RELATED-FAILURE TO SUPERVISE;ACCOUNT RELATED-NEGLIGENCE
346©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Arbitration Forum:
Case Initiated:
Case Number:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
07/10/2003
03-04949
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$221,230.78
AWARD AGAINST PARTY
08/06/2004
$93,399.01
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 62 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
09/17/2003
03-05072
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNTRELATED-FAILURE TO SUPERVISE
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; MUTUAL FUNDS
$40,000.00
AWARD AGAINST PARTY
11/03/2004
$31,959.93
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 63 of 337
i
Reporting Source: Regulator
347©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
07/24/2003
03-05384
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT RELATED-BREACH OF CONTRACT;ACCOUNT RELATED-NEGLIGENCE
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$156,000.00
AWARD AGAINST PARTY
09/27/2004
$61,371.01
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 64 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
08/13/2003
03-05692
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNTRELATED-BREACH OF CONTRACT
ANNUITIES; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; MUTUALFUNDS
$205,000.00
AWARD AGAINST PARTY
10/22/2004
$141,800.01
There may be a non-monetary award associated with this arbitration.
348©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Please select the Case Number above to view more detailed information.
Disclosure 65 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
08/08/2003
03-05764
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT RELATED-BREACHOF CONTRACT; ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNTRELATED-NEGLIGENCE
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$21,748.07
AWARD AGAINST PARTY
02/09/2004
$13,295.35
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 66 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
NASD
09/17/2003
03-06298
ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSIONOF FACTS; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-NEGLIGENCE
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; MUTUAL FUNDS
$21,336.00
AWARD AGAINST PARTY
02/11/2004
349©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Sum of All Relief Awarded: $21,336.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 67 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
09/16/2003
03-06583
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT RELATED-FAILURE TO SUPERVISE;ACCOUNT RELATED-NEGLIGENCE
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; MUTUAL FUNDS
$750,000.00
AWARD AGAINST PARTY
09/10/2004
$122,500.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 68 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
NASD
10/08/2003
03-07234
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT RELATED-BREACH OF CONTRACT
ANNUITIES; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$140,000.00
350©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Disposition:
Disposition Date:
Sum of All Relief Awarded:
AWARD AGAINST PARTY
12/07/2005
$30,300.01
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 69 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
12/03/2003
03-08306
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT RELATED-BREACHOF CONTRACT; ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNTRELATED-NEGLIGENCE
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE;MUTUAL FUNDS; OTHER TYPES OF SECURITIES
$1,983,248.00
AWARD AGAINST PARTY
05/02/2005
$140,224.71
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 70 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
NASD
12/04/2003
03-08495
ACCOUNT ACTIVITY-CHURNING; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-FAILURE TOSUPERVISE
351©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Case Number:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
03-08495
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$681,310.00
AWARD AGAINST PARTY
12/01/2004
$295,875.93
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 71 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
02/06/2004
04-00705
ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSIONOF FACTS; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-FAILURETO SUPERVISE
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE;MUNICIPAL BONDS
$3,685,000.00
AWARD AGAINST PARTY
04/15/2005
$450,000.01
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 72 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Allegations: ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSIONOF FACTS; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-NEGLIGENCE 352©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
03/01/2004
04-00842
ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSIONOF FACTS; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-NEGLIGENCE
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE;MUTUAL FUNDS
$440,418.00
AWARD AGAINST PARTY
06/14/2005
$300.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 73 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
04/30/2004
04-01727
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT RELATED-BREACH OF CONTRACT;ACCOUNT RELATED-NEGLIGENCE
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$1,500,000.00
AWARD AGAINST PARTY
02/01/2006
$397,044.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 74 of 337
i
353©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Disclosure 74 of 337
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
03/26/2004
04-01979
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNTRELATED-FAILURE TO SUPERVISE
ANNUITIES; COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SECINVOLVE; MUTUAL FUNDS
$250,000.00
AWARD AGAINST PARTY
12/29/2005
$135,000.01
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 75 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
04/05/2004
04-02277
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; DO NOT USE-NO OTHER CONTROVERSY INVOLVED
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
Unspecified Damages
AWARD AGAINST PARTY
05/26/2005
$86,864.00
354©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 76 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
04/22/2004
04-02907
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT RELATED-FAILURE TO SUPERVISE;ACCOUNT RELATED-NEGLIGENCE
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$313,390.00
AWARD AGAINST PARTY
11/28/2005
$25,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 77 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
NASD
05/18/2004
04-03070
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-BREACH OF CONTRACT; ACCOUNTRELATED-NEGLIGENCE
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$949,604.00
355©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Disposition:
Disposition Date:
Sum of All Relief Awarded:
AWARD AGAINST PARTY
09/08/2005
$185,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 78 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
06/22/2004
04-03314
ACCOUNT RELATED-BREACH OF CONTRACT; ACCOUNT RELATED-FAILURETO SUPERVISE; ACCOUNT RELATED-MARGIN CALLS; ACCOUNT RELATED-NEGLIGENCE
CERTIFICATE OF DEPOSIT; COMMON STOCK; OTHER TYPES OFSECURITIES; PREFERRED STOCK
$6,700,000.00
AWARD AGAINST PARTY
04/03/2006
$35,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 79 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
NASD
05/14/2004
04-03410
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT RELATED-BREACHOF CONTRACT; ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNTRELATED-NEGLIGENCE
356©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Case Number:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
04-03410
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$241,646.67
AWARD AGAINST PARTY
12/27/2005
$12,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 80 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
06/21/2004
04-03813
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT RELATED-BREACHOF CONTRACT; ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNTRELATED-NEGLIGENCE
ANNUITIES; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$25,000.00
AWARD AGAINST PARTY
05/02/2005
$23,024.32
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 81 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Allegations:
NASD
ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-OTHER; DO NOTUSE-NO OTHER CONTROVERSY INVOLVED
357©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Arbitration Forum:
Case Initiated:
Case Number:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
06/30/2004
04-03907
ANNUITIES; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$18,000.00
AWARD AGAINST PARTY
12/27/2004
$106.25
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 82 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
06/23/2004
04-04336
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT RELATED-FAILURE TO SUPERVISE;ACCOUNT RELATED-NEGLIGENCE
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$3,600,000.00
AWARD AGAINST PARTY
10/10/2005
$369,850.01
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 83 of 337
i
Reporting Source: Regulator
358©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
08/03/2004
04-05459
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT RELATED-BREACH OF CONTRACT
COMMON STOCK; CORPORATE BONDS; GOVERNMENT SECURITIES;MUTUAL FUNDS
$869,060.59
AWARD AGAINST PARTY
06/29/2006
$28,000.01
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 84 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
08/30/2004
04-05743
ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSIONOF FACTS; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT ACTIVITY-UNAUTHORIZED TRADING
CORPORATE BONDS; FANNIE MAE; MUNICIPAL BOND FUNDS; MUTUALFUNDS
$25,000.00
AWARD AGAINST PARTY
06/15/2005
$212.50
There may be a non-monetary award associated with this arbitration.
359©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Please select the Case Number above to view more detailed information.
Disclosure 85 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
10/08/2004
04-07044
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-CHURNING; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-NEGLIGENCE
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$1,200,000.00
AWARD AGAINST PARTY
07/18/2006
$240,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 86 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
NASD
12/02/2004
04-08079
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-BREACH OF CONTRACT; ACCOUNTRELATED-NEGLIGENCE
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$2,000,000.00
AWARD AGAINST PARTY360©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Disposition:
Disposition Date:
Sum of All Relief Awarded:
AWARD AGAINST PARTY
04/13/2006
$1,701,930.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 87 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
11/29/2004
04-08117
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT RELATED-BREACHOF CONTRACT; ACCOUNT RELATED-NEGLIGENCE; DO NOT USE-NO OTHERCONTROVERSY INVOLVED
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$425,000.00
AWARD AGAINST PARTY
03/12/2008
$421,031.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 88 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
NASD
12/01/2004
04-08161
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT RELATED-FAILURETO SUPERVISE; ACCOUNT RELATED-MARGIN CALLS; ACCOUNT RELATED-NEGLIGENCE
361©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Case Number:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
04-08161
COMMON STOCK; CORPORATE BONDS; DO NOT USE-NO OTHER TYPE OFSEC INVOLVE
$110,643.78
AWARD AGAINST PARTY
08/16/2005
$14,654.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 89 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
05/20/2005
04-08571
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-OTHER;ACCOUNT RELATED-BREACH OF CONTRACT; ACCOUNT RELATED-NEGLIGENCE
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
Unspecified Damages
AWARD AGAINST PARTY
04/24/2006
$243,250.01
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 90 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Allegations: ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT RELATED-FAILURE TO SUPERVISE; DONOT USE-NO OTHER CONTROVERSY INVOLVED 362©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
02/04/2005
04-08618
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT RELATED-FAILURE TO SUPERVISE; DONOT USE-NO OTHER CONTROVERSY INVOLVED
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$90,000.00
AWARD AGAINST PARTY
04/13/2006
$41,900.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 91 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
01/06/2005
05-00019
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT RELATED-FAILURETO SUPERVISE; ACCOUNT RELATED-NEGLIGENCE; ACCOUNT RELATED-TRANSFER
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$80,000.00
AWARD AGAINST PARTY
12/22/2005
$72,342.01
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 92 of 337
i
363©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Disclosure 92 of 337
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
01/07/2005
05-00058
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-OMISSION OF FACTS; ACCOUNT RELATED-BREACH OF CONTRACT;ACCOUNT RELATED-FAILURE TO SUPERVISE
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$193,879.35
AWARD AGAINST PARTY
05/04/2006
$300.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 93 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
03/10/2005
05-01222
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNTRELATED-NEGLIGENCE
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; MUNICIPAL BONDS
$30,525.00
AWARD AGAINST PARTY
09/16/2005
$26,775.00
364©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 94 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
03/22/2005
05-01452
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT RELATED-BREACHOF CONTRACT; ACCOUNT RELATED-MARGIN CALLS; ACCOUNT RELATED-NEGLIGENCE
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE;OPTIONS
$2,500,000.00
AWARD AGAINST PARTY
06/09/2006
$9,600.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 95 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
NASD
03/31/2005
05-01616
ACCOUNT RELATED-BREACH OF CONTRACT; ACCOUNT RELATED-NEGLIGENCE; DO NOT USE-NO OTHER CONTROVERSY INVOLVED
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$32,199.47
AWARD AGAINST PARTY
12/19/2005 365©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Disposition Date:
Sum of All Relief Awarded:
12/19/2005
$16,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 96 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
04/13/2005
05-01870
ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSIONOF FACTS; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-NEGLIGENCE
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; MUTUAL FUNDS
$19,153.00
AWARD AGAINST PARTY
11/29/2005
$212.50
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 97 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
NASD
04/25/2005
05-02096
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-BREACH OF CONTRACT; ACCOUNTRELATED-FAILURE TO SUPERVISE
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
366©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$624,771.00
AWARD AGAINST PARTY
01/03/2007
$295,822.01
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 98 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
06/10/2005
05-02573
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-OMISSION OF FACTS; ACCOUNT RELATED-FAILURE TO SUPERVISE;ACCOUNT RELATED-NEGLIGENCE
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$999,999.00
AWARD AGAINST PARTY
11/30/2005
$431,042.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 99 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Allegations:
NASD
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT RELATED-FAILURE TO SUPERVISE;ACCOUNT RELATED-NEGLIGENCE
367©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Arbitration Forum:
Case Initiated:
Case Number:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
08/11/2005
05-03586
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$12,000,000.00
AWARD AGAINST PARTY
05/23/2006
$2,021,200.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 100 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
10/07/2005
05-05190
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT RELATED-BREACHOF CONTRACT; DO NOT USE-NO OTHER CONTROVERSY INVOLVED
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$2,500.00
AWARD AGAINST PARTY
04/21/2006
$1,877.21
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 101 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
368©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
12/13/2005
05-05339
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-UNAUTHORIZED TRADING; ACCOUNT RELATED-BREACH OF CONTRACT;ACCOUNT RELATED-NEGLIGENCE
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; MUTUAL FUNDS
$450,000.00
AWARD AGAINST PARTY
01/08/2007
$40,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 102 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
10/20/2005
05-05346
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-UNAUTHORIZED TRADING;ACCOUNT RELATED-BREACH OF CONTRACT
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; MUTUAL FUNDS
$80,000.00
AWARD AGAINST PARTY
09/11/2006
$30,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 103 of 337
i
369©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
11/09/2005
05-05673
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT RELATED-BREACHOF CONTRACT; ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNTRELATED-NEGLIGENCE
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; MUTUAL FUNDS; OTHERTYPES OF SECURITIES
$500,000.00
AWARD AGAINST PARTY
12/19/2006
$12,833.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 104 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
12/02/2005
05-06026
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT RELATED-NEGLIGENCE; DO NOT USE-NO OTHER CONTROVERSY INVOLVED
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$25,000.00
AWARD AGAINST PARTY
05/04/2006
$10,619.98
There may be a non-monetary award associated with this arbitration.
370©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Please select the Case Number above to view more detailed information.
Disclosure 105 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
08/15/2006
05-06078
ACCOUNT RELATED-MARGIN CALLS; DO NOT USE-EXECUTIONS-INCORRECT QUANTITY; DO NOT USE-NO OTHER CONTROVERSYINVOLVED
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$99,000.00
AWARD AGAINST PARTY
04/23/2007
$11,099.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 106 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
NASD
01/31/2006
05-06113
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT RELATED-BREACHOF CONTRACT; ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNTRELATED-NEGLIGENCE
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE;MUTUAL FUNDS
$600,000.00
AWARD AGAINST PARTY
02/11/2009371©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Disposition Date:
Sum of All Relief Awarded:
02/11/2009
$375.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 107 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
01/23/2006
06-00085
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT RELATED-BREACH OF CONTRACT
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$1,500,000.00
AWARD AGAINST PARTY
05/05/2008
$775,012.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 108 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
NASD
01/17/2006
06-00170
ACCOUNT RELATED-NEGLIGENCE; DO NOT USE-NO OTHERCONTROVERSY INVOLVED
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$288,954.88 372©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
$288,954.88
AWARD AGAINST PARTY
01/19/2007
$25,712.09
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 109 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
04/28/2006
06-02094
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT ACTIVITY-SUITABILITY
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; REAL ESTATEINVESTMENT TRUST
$11,550,000.00
AWARD AGAINST PARTY
10/10/2007
$343,000.01
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 110 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Allegations:
NASD
06/05/2006
ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSIONOF FACTS; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-FAILURETO SUPERVISE
373©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Case Initiated:
Case Number:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
06/05/2006
06-02660
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; MUTUAL FUNDS
$11,602,637.06
AWARD AGAINST PARTY
08/01/2007
$10,513.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 111 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
06/22/2006
06-02953
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNTRELATED-NEGLIGENCE
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$25,000.00
AWARD AGAINST PARTY
03/26/2007
$425.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 112 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Allegations: ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT RELATED-BREACHOF CONTRACT; ACCOUNT RELATED-DIVIDENDS; ACCOUNT RELATED-NEGLIGENCE 374©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Arbitration Forum:
Case Initiated:
Case Number:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
07/12/2006
06-03014
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT RELATED-BREACHOF CONTRACT; ACCOUNT RELATED-DIVIDENDS; ACCOUNT RELATED-NEGLIGENCE
ANNUITIES; COMMON STOCK; MUNICIPAL BONDS; OTHER TYPES OFSECURITIES
$499,000.00
AWARD AGAINST PARTY
05/19/2008
$98,709.35
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 113 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
07/19/2006
06-03324
ACCOUNT RELATED-OTHER; DO NOT USE-NO OTHER CONTROVERSYINVOLVED
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$25,000.00
AWARD AGAINST PARTY
03/30/2007
$25,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 114 of 337
i
Reporting Source: Regulator
375©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
11/09/2006
06-04869
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT RELATED-BREACHOF CONTRACT; ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNTRELATED-NEGLIGENCE
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$400,000.00
AWARD AGAINST PARTY
11/08/2007
$293,659.25
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 115 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
02/14/2007
07-00417
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; DO NOT USE-NO OTHERCONTROVERSY INVOLVED
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; MUTUAL FUNDS
$32,851.00
AWARD AGAINST PARTY
11/12/2007
$13,713.36
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
i376©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Disclosure 116 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
04/05/2007
07-00666
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT RELATED-BREACH OF CONTRACT
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; HEDGEFUND
$120,000,000.00
AWARD AGAINST PARTY
04/02/2012
$852,000.01
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 117 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
04/05/2007
07-00905
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-CHURNING; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNTACTIVITY-OMISSION OF FACTS
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
Unspecified Damages
AWARD AGAINST PARTY
08/05/2008
$136,289.00 377©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Sum of All Relief Awarded: $136,289.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 118 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
04/24/2007
07-01186
ACCOUNT RELATED-OTHER; DO NOT USE-EXECUTIONS-FAILURE TOEXECUTE; DO NOT USE-NO OTHER CONTROVERSY INVOLVED
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$4,058.73
AWARD AGAINST PARTY
11/16/2007
$87.50
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 119 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
NASD
06/12/2007
07-01557
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNTRELATED-NEGLIGENCE
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
Unspecified Damages
AWARD AGAINST PARTY 378©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Disposition:
Disposition Date:
Sum of All Relief Awarded:
AWARD AGAINST PARTY
03/19/2009
$162,135.89
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 120 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
09/14/2007
07-01706
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-UNAUTHORIZED TRADING; ACCOUNT RELATED-FAILURE TO SUPERVISE;ACCOUNT RELATED-NEGLIGENCE
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE;MUTUAL FUNDS
$410,000.00
AWARD AGAINST PARTY
04/13/2010
$18,384.40
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 121 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
FINRA
07/31/2007
07-01716
ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT ACTIVITY-UNAUTHORIZED TRADING; ACCOUNTRELATED-FAILURE TO SUPERVISE
379©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Case Number:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
07-01716
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
Unspecified Damages
AWARD AGAINST PARTY
11/12/2010
$1,817,900.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 122 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
07/16/2007
07-01729
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT RELATED-BREACHOF CONTRACT; DO NOT USE-NO OTHER CONTROVERSY INVOLVED
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$6,354,498.00
AWARD AGAINST PARTY
07/30/2008
$5,297,001.72
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 123 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Allegations: ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT RELATED-BREACHOF CONTRACT; ACCOUNT RELATED-NEGLIGENCE; DO NOT USE-EXECUTIONS-FAILURE TO EXECUTE
380©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Arbitration Forum:
Case Initiated:
Case Number:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
08/13/2007
07-02263
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT RELATED-BREACHOF CONTRACT; ACCOUNT RELATED-NEGLIGENCE; DO NOT USE-EXECUTIONS-FAILURE TO EXECUTE
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE;MUTUAL FUNDS
$7,000.00
AWARD AGAINST PARTY
01/23/2008
$162.50
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 124 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
11/02/2007
07-03084
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNTRELATED-FAILURE TO SUPERVISE
ANNUITIES; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$25,000.00
AWARD AGAINST PARTY
04/17/2008
$212.50
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 125 of 337
i
Reporting Source: Regulator
381©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
11/07/2007
07-03105
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-NEGLIGENCE; DO NOT USE-NO OTHERCONTROVERSY INVOLVED
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; OPTIONS
$15,000,000.00
AWARD AGAINST PARTY
11/26/2008
$250,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 126 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
11/26/2007
07-03227
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT RELATED-BREACHOF CONTRACT; ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNTRELATED-NEGLIGENCE
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; FUTURES (OTHER THANCOMMODITIES)
$650,000.00
AWARD AGAINST PARTY
11/12/2008
$525,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
382©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Disclosure 127 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
01/07/2008
07-03507
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT RELATED-BREACHOF CONTRACT; ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNTRELATED-NEGLIGENCE
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$924,613.84
AWARD AGAINST PARTY
08/31/2009
$375.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 128 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
03/20/2008
08-00408
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-OMISSION OF FACTS; ACCOUNT RELATED-FAILURE TO SUPERVISE;ACCOUNT RELATED-NEGLIGENCE
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; MUNICIPAL BOND FUNDS
$24,491.00
AWARD AGAINST PARTY
11/06/2008
$212.50383©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Sum of All Relief Awarded: $212.50
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 129 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
04/14/2008
08-00751
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT RELATED-NEGLIGENCE
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; MUTUAL FUNDS
$9,935.72
AWARD AGAINST PARTY
11/13/2008
$162.50
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 130 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
FINRA
04/03/2008
08-00956
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT RELATED-BREACHOF CONTRACT; ACCOUNT RELATED-OTHER; DO NOT USE-EXECUTIONS-FAILURE TO EXECUTE
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE;MUTUAL FUNDS
$98,000.00384©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
$98,000.00
AWARD AGAINST PARTY
04/13/2009
$89,338.37
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 131 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
04/07/2008
08-01002
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT RELATED-BREACH OF CONTRACT;TRADING DISPUTES-TRANSFERS
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$25,000.00
AWARD AGAINST PARTY
05/20/2009
$32,182.86
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 132 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
FINRA
07/15/2008
08-02037
DO NOT USE-EXECUTIONS-FAILURE TO EXECUTE; DO NOT USE-NO OTHERCONTROVERSY INVOLVED
385©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Case Number:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
08-02037
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; MUTUAL FUNDS;UNKNOWN TYPE OF SECURITIES
$24,916.12
AWARD AGAINST PARTY
02/26/2009
$212.50
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 133 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
06/30/2008
08-02041
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNTRELATED-BREACH OF CONTRACT
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE;MUTUAL FUNDS; OTHER TYPES OF SECURITIES
$700,000.00
AWARD AGAINST PARTY
06/24/2010
$375.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 134 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Allegations: ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; DO NOT USE-NO OTHER CONTROVERSY INVOLVED
386©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
07/30/2008
08-02454
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; DO NOT USE-NO OTHER CONTROVERSY INVOLVED
ANNUITIES; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
Unspecified Damages
AWARD AGAINST PARTY
07/21/2009
$108,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 135 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
09/03/2008
08-02610
ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSIONOF FACTS; ACCOUNT ACTIVITY-SUITABILITY; DO NOT USE-NO OTHERCONTROVERSY INVOLVED
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; MUTUAL FUNDS
$12,000.00
AWARD AGAINST PARTY
02/12/2009
$425.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 136 of 337
i
Reporting Source: Regulator
387©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
10/07/2008
08-03219
ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT ACTIVITY-UNAUTHORIZEDTRADING; DO NOT USE-NO OTHER CONTROVERSY INVOLVED; UNKNOWNTYPE OF CONTROVERSIES
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$440,000.00
AWARD AGAINST PARTY
05/27/2010
$391,375.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 137 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
10/31/2008
08-03999
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNTRELATED-BREACH OF CONTRACT
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; OTHERTYPES OF SECURITIES
$241,169.00
AWARD AGAINST PARTY
06/19/2009
$60,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
388©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Disclosure 138 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
12/09/2008
08-04027
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-CHURNING; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-NEGLIGENCE
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; OPTIONS
$8,400,000.00
AWARD AGAINST PARTY
03/29/2010
$82,837.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 139 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
07/09/2009
08-04431
DO NOT USE-EXECUTIONS-FAILURE TO EXECUTE
COMMON STOCK
$25,000.00
AWARD AGAINST PARTY
12/15/2009
$340.00
389©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 140 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
12/09/2008
08-04559
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT RELATED-BREACHOF CONTRACT; ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNTRELATED-NEGLIGENCE
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; OTHER TYPES OFSECURITIES
$376,691.07
AWARD AGAINST PARTY
12/23/2009
$123,324.22
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 141 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
FINRA
12/18/2008
08-04797
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-UNAUTHORIZED TRADING;ACCOUNT RELATED-FAILURE TO SUPERVISE
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE;MUNICIPAL BOND FUNDS
$10,000.00
AWARD AGAINST PARTY 390©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Disposition:
Disposition Date:
Sum of All Relief Awarded:
AWARD AGAINST PARTY
06/09/2009
$3,995.94
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 142 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
01/05/2009
08-05005
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-OMISSION OF FACTS; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNTRELATED-FAILURE TO SUPERVISE
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$50,000.00
AWARD AGAINST PARTY
03/17/2010
$14,376.85
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 143 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
FINRA
01/22/2009
09-00314
ACCOUNT ACTIVITY-OMISSION OF FACTS; ACCOUNT ACTIVITY-SUITABILITY;ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNT RELATED-NEGLIGENCE
391©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Case Number:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
09-00314
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; STOCK INDEX FUTURES
$61,842.33
AWARD AGAINST PARTY
04/29/2010
$17,533.74
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 144 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
04/17/2009
09-00958
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT RELATED-NEGLIGENCE; DO NOT USE-NO OTHER CONTROVERSY INVOLVED
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$9,118.00
AWARD AGAINST PARTY
11/11/2009
$9,443.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 145 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Allegations: ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT RELATED-BREACHOF CONTRACT; ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNTRELATED-NEGLIGENCE; DO NOT USE-EXECUTIONS-EXECUTION PRICE; DONOT USE-EXECUTIONS-FAILURE TO EXECUTE
392©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Arbitration Forum:
Case Initiated:
Case Number:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
03/12/2009
09-01271
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT RELATED-BREACHOF CONTRACT; ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNTRELATED-NEGLIGENCE; DO NOT USE-EXECUTIONS-EXECUTION PRICE; DONOT USE-EXECUTIONS-FAILURE TO EXECUTE
COMMON STOCK; MUTUAL FUNDS
$8,320.21
AWARD AGAINST PARTY
07/21/2009
$212.50
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 146 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
04/06/2009
09-01766
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-BREACH OFCONTRACT; ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNTRELATED-NEGLIGENCE
MUTUAL FUNDS
$66,000.00
AWARD AGAINST PARTY
07/08/2010
$20,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 147 of 337
i
393©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
04/13/2009
09-01827
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNTRELATED-BREACH OF CONTRACT; ACCOUNT RELATED-FAILURE TOSUPERVISE; ACCOUNT RELATED-NEGLIGENCE
$95,000.00
AWARD AGAINST PARTY
05/18/2010
$26,225.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 148 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
04/16/2009
09-01981
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT ACTIVITY-OTHER; ACCOUNT RELATED-FAILURE TO SUPERVISE
COMMON STOCK; MUTUAL FUNDS
$155,000.00
AWARD AGAINST PARTY
05/05/2010
$15,000.00
394©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 149 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
04/29/2009
09-02283
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-BREACH OF CONTRACT
ANNUITIES; MUTUAL FUNDS
$7,127.70
AWARD AGAINST PARTY
02/11/2010
$1,106.25
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 150 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
FINRA
05/08/2009
09-02513
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-BREACH OFCONTRACT; ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNTRELATED-NEGLIGENCE
VARIABLE ANNUITIES
$75,000.00
AWARD AGAINST PARTY395©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Disposition:
Disposition Date:
Sum of All Relief Awarded:
AWARD AGAINST PARTY
12/21/2009
$50,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 151 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
05/07/2009
09-02527
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-CHURNING; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-BREACHOF CONTRACT; ACCOUNT RELATED-NEGLIGENCE
COMMON STOCK
$19,995.87
AWARD AGAINST PARTY
10/14/2009
$9,412.51
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 152 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Allegations:
FINRA
07/10/2009
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT ACTIVITY-OTHER; ACCOUNT RELATED-BREACH OF CONTRACT;ACCOUNT RELATED-NEGLIGENCE; ACCOUNT RELATED-OTHER; TRADINGDISPUTES-OTHER
396©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Case Number:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
09-02748
FANNIE MAE; PREFERRED STOCK
$1,937,806.00
AWARD AGAINST PARTY
08/23/2010
$25,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 153 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
06/02/2009
09-03013
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT ACTIVITY-UNAUTHORIZEDTRADING; ACCOUNT RELATED-BREACH OF CONTRACT; ACCOUNTRELATED-FAILURE TO SUPERVISE; ACCOUNT RELATED-NEGLIGENCE
COMMON STOCK; FANNIE MAE; FREDDIE MACS; PREFERRED STOCK;VARIABLE ANNUITIES
$1,440,000.00
AWARD AGAINST PARTY
05/19/2010
$276,844.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 154 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Allegations: ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT RELATED-NEGLIGENCE
397©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
06/12/2009
09-03471
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT RELATED-NEGLIGENCE
UNKNOWN TYPE OF SECURITIES
$46,489.00
AWARD AGAINST PARTY
02/14/2011
$25,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 155 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
06/12/2009
09-03489
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-FAILURE TOSUPERVISE; ACCOUNT RELATED-NEGLIGENCE
$226,865.86
AWARD AGAINST PARTY
07/12/2010
$90,000.01
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 156 of 337
i
398©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Disclosure 156 of 337
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
06/18/2009
09-03593
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-OTHER;ACCOUNT RELATED-BREACH OF CONTRACT; ACCOUNT RELATED-FAILURETO SUPERVISE; ACCOUNT RELATED-NEGLIGENCE
COMMON STOCK; FANNIE MAE; MUTUAL FUNDS; PREFERRED STOCK
$50,000.00
AWARD AGAINST PARTY
03/21/2011
$10,000.01
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 157 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
07/15/2009
09-03773
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT RELATED-NEGLIGENCE
COMMON STOCK
$1,248,000.00
AWARD AGAINST PARTY
03/31/2010
$91,128.70
399©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 158 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
06/30/2009
09-03803
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT RELATED-FAILURETO SUPERVISE; DO NOT USE-EXECUTIONS-FAILURE TO EXECUTE
OTHER TYPES OF SECURITIES
$66,945.00
AWARD AGAINST PARTY
02/22/2011
$34,304.92
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 159 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
07/01/2009
09-03903
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-SUITABILITY
FANNIE MAE; PREFERRED STOCK
$24,320.00
AWARD AGAINST PARTY
12/15/2009
$212.50400©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Sum of All Relief Awarded: $212.50
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 160 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
07/15/2009
09-04136
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-BREACH OFCONTRACT; ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNTRELATED-NEGLIGENCE
COMMON STOCK; MUTUAL FUNDS; OTHER TYPES OF SECURITIES
$74,518.00
AWARD AGAINST PARTY
09/14/2010
$49,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 161 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
FINRA
08/05/2009
09-04471
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-CHURNING; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNTACTIVITY-UNAUTHORIZED TRADING; ACCOUNT RELATED-BREACH OFCONTRACT; ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNTRELATED-NEGLIGENCE
401©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Case Number:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
09-04471
MUNICIPAL BOND FUNDS
Unspecified Damages
AWARD AGAINST PARTY
12/20/2010
$210,891.01
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 162 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
08/18/2009
09-04773
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT RELATED-BREACH OF CONTRACT; ACCOUNT RELATED-FAILURETO SUPERVISE; DO NOT USE-EXECUTIONS-OTHER
COMMON STOCK; MUTUAL FUNDS; REAL ESTATE INVESTMENT TRUST
$1,467,091.06
AWARD AGAINST PARTY
01/04/2011
$208,000.01
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 163 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Allegations: ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNTRELATED-BREACH OF CONTRACT; ACCOUNT RELATED-FAILURE TOSUPERVISE; ACCOUNT RELATED-NEGLIGENCE 402©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Arbitration Forum:
Case Initiated:
Case Number:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
08/21/2009
09-04887
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNTRELATED-BREACH OF CONTRACT; ACCOUNT RELATED-FAILURE TOSUPERVISE; ACCOUNT RELATED-NEGLIGENCE
COMMON STOCK
$130,085.96
AWARD AGAINST PARTY
07/23/2010
$39,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 164 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
10/01/2009
09-05158
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT RELATED-ERRORS-CHARGES; ACCOUNT RELATED-NEGLIGENCE; ACCOUNTRELATED-TRANSFER
MUNICIPAL BOND FUNDS; MUNICIPAL BONDS; MUTUAL FUNDS
Unspecified Damages
AWARD AGAINST PARTY
12/14/2010
$53,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 165 of 337
i
Reporting Source: Regulator
403©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
09/30/2009
09-05301
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-OMISSION OF FACTS; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNTRELATED-FAILURE TO SUPERVISE; ACCOUNT RELATED-NEGLIGENCE
COMMON STOCK; OPTIONS
$237,000.00
AWARD AGAINST PARTY
08/05/2011
$260,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 166 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
09/24/2009
09-05435
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT ACTIVITY-OTHER; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNTRELATED-FAILURE TO SUPERVISE; ACCOUNT RELATED-NEGLIGENCE
COMMON STOCK; CORPORATE BONDS; MUTUAL FUNDS
$250,000.00
AWARD AGAINST PARTY
11/16/2010
$100,300.01
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
404©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Disclosure 167 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
10/06/2009
09-05626
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-CHURNING; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNTACTIVITY-SUITABILITY; ACCOUNT RELATED-BREACH OF CONTRACT;ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNT RELATED-NEGLIGENCE
PRIVATE EQUITIES
$130,000.00
AWARD AGAINST PARTY
04/02/2012
$50,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 168 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
10/07/2009
09-05655
ACCOUNT RELATED-OTHER
Unspecified Damages
AWARD AGAINST PARTY
04/16/2010
$0.00405©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Sum of All Relief Awarded: $0.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 169 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
11/03/2009
09-06162
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-OTHER;ACCOUNT RELATED-BREACH OF CONTRACT; ACCOUNT RELATED-FAILURETO SUPERVISE; ACCOUNT RELATED-NEGLIGENCE
AUCTION RATE SECURITIES; FREDDIE MACS
$100,000.00
AWARD AGAINST PARTY
09/09/2011
$225.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 170 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
FINRA
12/16/2009
09-06534
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT ACTIVITY-OTHER; ACCOUNT RELATED-BREACH OF CONTRACT;ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNT RELATED-NEGLIGENCE
VARIABLE ANNUITIES
406©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
$29,145.22
AWARD AGAINST PARTY
11/04/2010
$20,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 171 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
01/07/2010
09-06730
ACCOUNT RELATED-TRANSFER; DO NOT USE-EXECUTIONS-FAILURE TOEXECUTE; TRADING DISPUTES-TRANSFERS
EXCHANGE-TRADED FUNDS; OTHER TYPES OF SECURITIES
$22,088.72
AWARD AGAINST PARTY
08/04/2010
$20,368.44
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 172 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
FINRA
12/31/2009
09-07137
ACCOUNT RELATED-BREACH OF CONTRACT; ACCOUNT RELATED-NEGLIGENCE; ACCOUNT RELATED-OTHER
OTHER TYPES OF SECURITIES407©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
OTHER TYPES OF SECURITIES
$809,677.92
AWARD AGAINST PARTY
03/24/2011
$292,952.71
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 173 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
01/06/2010
09-07145
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-CHURNING; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-FAILURETO SUPERVISE
COMMON STOCK; MUTUAL FUNDS
$600,000.00
AWARD AGAINST PARTY
04/14/2011
$100,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 174 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Allegations:
FINRA
01/15/2010
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT RELATED-BREACHOF CONTRACT; ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNTRELATED-NEGLIGENCE
408©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Case Initiated:
Case Number:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
01/15/2010
09-07236
ANNUITIES; COMMON STOCK; MUTUAL FUNDS
$2,575.00
AWARD AGAINST PARTY
07/20/2010
$37.50
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 175 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
02/22/2010
10-00742
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-FAILURE TOSUPERVISE; ACCOUNT RELATED-NEGLIGENCE; ACCOUNT RELATED-OTHER
OTHER TYPES OF SECURITIES; STRUCTURED PRODUCTS
$18,207.15
AWARD AGAINST PARTY
07/30/2010
$28,582.55
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 176 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Allegations: ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT RELATED-BREACH OF CONTRACT;ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNT RELATED-NEGLIGENCE
409©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
03/12/2010
10-01040
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT RELATED-BREACH OF CONTRACT;ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNT RELATED-NEGLIGENCE
OTHER TYPES OF SECURITIES
$425,000.00
AWARD AGAINST PARTY
04/25/2011
$153,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 177 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
03/12/2010
10-01051
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNTRELATED-NEGLIGENCE
MUNICIPAL BOND FUNDS; MUTUAL FUNDS
$375,000.00
AWARD AGAINST PARTY
07/07/2011
$217,928.40
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 178 of 337
i
410©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Disclosure 178 of 337
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
04/22/2010
10-01102
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-UNAUTHORIZED TRADING; ACCOUNT RELATED-BREACH OF CONTRACT;ACCOUNT RELATED-ERRORS-CHARGES; ACCOUNT RELATED-NEGLIGENCE; ACCOUNT RELATED-TRANSFER; TRADING DISPUTES-SELLOUTS
$750,000.00
AWARD AGAINST PARTY
03/16/2012
$37,645.87
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 179 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
03/26/2010
10-01194
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-NEGLIGENCE
MUTUAL FUNDS; OTHER TYPES OF SECURITIES
$4,100,000.00
AWARD AGAINST PARTY
06/26/2013
$100,000.00
411©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 180 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
03/17/2010
10-01209
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-NEGLIGENCE
OTHER TYPES OF SECURITIES; PREFERRED STOCK
Unspecified Damages
AWARD AGAINST PARTY
08/03/2011
$60,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 181 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
05/05/2010
10-01585
ACCOUNT ACTIVITY-UNAUTHORIZED TRADING
COMMON STOCK
$1,445.32
AWARD AGAINST PARTY
10/26/2010
$37.50412©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Sum of All Relief Awarded: $37.50
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 182 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
05/27/2010
10-01775
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT ACTIVITY-UNAUTHORIZEDTRADING; ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNTRELATED-NEGLIGENCE
COMMON STOCK; MUTUAL FUNDS
Unspecified Damages
AWARD AGAINST PARTY
07/20/2012
$227,750.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 183 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
FINRA
04/30/2010
10-01950
ACCOUNT ACTIVITY-UNAUTHORIZED TRADING
OTHER TYPES OF SECURITIES
$5,642.15
AWARD AGAINST PARTY 413©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Disposition:
Disposition Date:
Sum of All Relief Awarded:
AWARD AGAINST PARTY
09/24/2010
$5,804.65
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 184 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
06/14/2010
10-01997
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT RELATED-BREACH OF CONTRACT; ACCOUNT RELATED-NEGLIGENCE
$48,000.00
AWARD AGAINST PARTY
06/29/2011
$43,579.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 185 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
FINRA
05/14/2010
10-02160
ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNT RELATED-NEGLIGENCE; ACCOUNT RELATED-OTHER; ACCOUNT RELATED-TRANSFER
CERTIFICATE OF DEPOSIT; COMMON STOCK; MUTUAL FUNDS 414©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
CERTIFICATE OF DEPOSIT; COMMON STOCK; MUTUAL FUNDS
$180,000.00
AWARD AGAINST PARTY
08/05/2011
$78,343.24
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 186 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
07/06/2010
10-03013
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-FAILURE TOSUPERVISE; ACCOUNT RELATED-NEGLIGENCE
COMMON STOCK; MUTUAL FUNDS
$25,000.00
AWARD AGAINST PARTY
12/22/2010
$31,673.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 187 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Allegations:
FINRA
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT RELATED-BREACH OF CONTRACT;ACCOUNT RELATED-NEGLIGENCE
415©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Arbitration Forum:
Case Initiated:
Case Number:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
08/26/2010
10-03052
$95,000.00
AWARD AGAINST PARTY
07/30/2012
$49,500.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 188 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
07/16/2010
10-03084
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-FAILURE TOSUPERVISE; ACCOUNT RELATED-NEGLIGENCE
COMMON STOCK; MUTUAL FUNDS; VARIABLE ANNUITIES
$540,000.00
AWARD AGAINST PARTY
11/11/2011
$55,860.71
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 189 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
416©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
07/22/2010
10-03151
ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSIONOF FACTS; ACCOUNT ACTIVITY-SUITABILITY
AUCTION RATE SECURITIES
$925,000.00
AWARD AGAINST PARTY
06/07/2011
$250,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 190 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
08/30/2010
10-03357
ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-NEGLIGENCE
FANNIE MAE; PREFERRED STOCK
$23,467.51
AWARD AGAINST PARTY
03/07/2011
$23,892.51
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 191 of 337
i
Reporting Source: Regulator
417©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
08/04/2010
10-03416
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNTRELATED-BREACH OF CONTRACT; ACCOUNT RELATED-FAILURE TOSUPERVISE; ACCOUNT RELATED-NEGLIGENCE; ACCOUNT RELATED-OTHER
COMMON STOCK; GOVERNMENT SECURITIES; OPTIONS
$5,400,000.01
AWARD AGAINST PARTY
02/14/2012
$370,882.53
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 192 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
08/18/2010
10-03554
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-UNAUTHORIZED TRADING; ACCOUNT RELATED-BREACH OF CONTRACT;ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNT RELATED-NEGLIGENCE
OTHER TYPES OF SECURITIES
$6,000,000.00
AWARD AGAINST PARTY
07/03/2013
$2,752,049.01
418©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 193 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
08/19/2010
10-03674
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT RELATED-BREACH OF CONTRACT; ACCOUNT RELATED-NEGLIGENCE
COLLATERALIZED MORTGAGE OBLIGATIONS; FANNIE MAE; FREDDIEMACS; PREFERRED STOCK
$952,666.88
AWARD AGAINST PARTY
09/16/2011
$0.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 194 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
FINRA
09/21/2010
10-03782
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-OTHER;ACCOUNT RELATED-BREACH OF CONTRACT; ACCOUNT RELATED-NEGLIGENCE; ACCOUNT RELATED-OTHER
$78,000.00
419©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Disposition:
Disposition Date:
Sum of All Relief Awarded:
AWARD AGAINST PARTY
06/01/2011
$225.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 195 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
09/28/2010
10-04159
ACCOUNT ACTIVITY-OTHER; ACCOUNT RELATED-BREACH OF CONTRACT;ACCOUNT RELATED-NEGLIGENCE; ACCOUNT RELATED-OTHER
$500,000.00
AWARD AGAINST PARTY
10/12/2011
$3,536.82
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 196 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
FINRA
09/30/2010
10-04321
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT ACTIVITY-OTHER; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNTRELATED-BREACH OF CONTRACT; ACCOUNT RELATED-FAILURE TOSUPERVISE; ACCOUNT RELATED-NEGLIGENCE
420©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Case Number:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
10-04321
ANNUITIES; MUTUAL FUNDS; OTHER TYPES OF SECURITIES; PRIVATEEQUITIES
$652,204.30
AWARD AGAINST PARTY
12/03/2013
$297,516.01
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 197 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
12/07/2010
10-04904
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-FAILURE TOSUPERVISE; ACCOUNT RELATED-MARGIN CALLS; ACCOUNT RELATED-NEGLIGENCE
COMMON STOCK
$811,867.00
AWARD AGAINST PARTY
10/21/2011
$375.01
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 198 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Allegations: ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-CHURNING; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNTACTIVITY-UNAUTHORIZED TRADING; ACCOUNT RELATED-DIVIDENDS;ACCOUNT RELATED-MARGIN CALLS; ACCOUNT RELATED-NEGLIGENCE
421©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
11/23/2010
10-05212
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-CHURNING; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNTACTIVITY-UNAUTHORIZED TRADING; ACCOUNT RELATED-DIVIDENDS;ACCOUNT RELATED-MARGIN CALLS; ACCOUNT RELATED-NEGLIGENCE
COMMON STOCK
$780,000.00
AWARD AGAINST PARTY
12/08/2011
$214,100.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 199 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
11/24/2010
10-05215
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT RELATED-BREACH OF CONTRACT; ACCOUNT RELATED-FAILURETO SUPERVISE; ACCOUNT RELATED-NEGLIGENCE
FANNIE MAE; FREDDIE MACS; PREFERRED STOCK
$100,000.00
AWARD AGAINST PARTY
03/05/2012
$62,515.01
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
422©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Disclosure 200 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
12/01/2010
10-05260
ACCOUNT ACTIVITY-OTHER; ACCOUNT RELATED-OTHER
PREFERRED STOCK
$34,411.80
AWARD AGAINST PARTY
02/16/2012
$5,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 201 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
01/11/2011
10-05826
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-BREACH OFCONTRACT; ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNTRELATED-NEGLIGENCE
COMMON STOCK; MUTUAL FUNDS
$154,000.00
AWARD AGAINST PARTY
12/01/2011
$130,300.00423©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Sum of All Relief Awarded: $130,300.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 202 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
01/13/2011
11-00052
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-OTHER;ACCOUNT ACTIVITY-UNAUTHORIZED TRADING; ACCOUNT RELATED-BREACH OF CONTRACT; ACCOUNT RELATED-FAILURE TO SUPERVISE;ACCOUNT RELATED-NEGLIGENCE
PREFERRED STOCK
$425,000.00
AWARD AGAINST PARTY
03/05/2012
$90,297.79
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 203 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
FINRA
01/21/2011
11-00185
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-OTHER;ACCOUNT RELATED-BREACH OF CONTRACT; ACCOUNT RELATED-FAILURETO SUPERVISE; ACCOUNT RELATED-NEGLIGENCE
COMMON STOCK; MUTUAL FUNDS
$300,000.00424©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
$300,000.00
AWARD AGAINST PARTY
04/17/2012
$61,894.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 204 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
01/21/2011
11-00216
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT RELATED-FAILURETO SUPERVISE; ACCOUNT RELATED-NEGLIGENCE
OTHER TYPES OF SECURITIES
$13,624.24
AWARD AGAINST PARTY
08/05/2011
$425.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 205 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
FINRA
02/05/2011
11-00416
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT ACTIVITY-OTHER; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNTRELATED-FAILURE TO SUPERVISE; ACCOUNT RELATED-NEGLIGENCE
425©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Case Number:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
11-00416
UNIT INVESTMENT TRUST
$64,000.00
AWARD AGAINST PARTY
01/17/2012
$24,879.79
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 206 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
02/11/2011
11-00482
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNTRELATED-FAILURE TO SUPERVISE; ACCOUNT RELATED-NEGLIGENCE
MUTUAL FUNDS
$987,015.00
AWARD AGAINST PARTY
08/13/2012
$50,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 207 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Allegations: ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT ACTIVITY-UNAUTHORIZED TRADING; ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNT RELATED-NEGLIGENCE
426©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Arbitration Forum:
Case Initiated:
Case Number:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
03/17/2011
11-00484
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT ACTIVITY-UNAUTHORIZED TRADING; ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNT RELATED-NEGLIGENCE
ANNUITIES; MUNICIPAL BOND FUNDS; MUTUAL FUNDS
$10,000,000.00
AWARD AGAINST PARTY
10/10/2012
$97,250.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 208 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
02/18/2011
11-00556
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT RELATED-BREACH OF CONTRACT; ACCOUNT RELATED-FAILURETO SUPERVISE
COMMON STOCK; MUNICIPAL BONDS
$1,904,290.00
AWARD AGAINST PARTY
01/09/2013
$1,333,933.01
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 209 of 337
i
Reporting Source: Regulator
427©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
04/14/2011
11-01076
ACCOUNT ACTIVITY-OTHER
CORPORATE BONDS
$23,993.00
AWARD AGAINST PARTY
11/15/2011
$20,819.30
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 210 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
05/18/2011
11-01444
ACCOUNT ACTIVITY-OMISSION OF FACTS; ACCOUNT RELATED-NEGLIGENCE
MUNICIPAL BOND FUNDS; MUTUAL FUNDS
$11,500.00
AWARD AGAINST PARTY
11/18/2011
$141.66
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 211 of 337
i
Reporting Source: Regulator
428©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
06/03/2011
11-01510
ACCOUNT ACTIVITY-CHURNING; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNT RELATED-NEGLIGENCE
FANNIE MAE; LIMITED PARTNERSHIPS; MUNICIPAL BONDS
$100,348.00
AWARD AGAINST PARTY
02/17/2012
$225.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 212 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
05/12/2011
11-01830
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-CHURNING; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNTACTIVITY-SUITABILITY; ACCOUNT RELATED-BREACH OF CONTRACT;ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNT RELATED-NEGLIGENCE
COMMON STOCK; MUTUAL FUNDS; STRUCTURED PRODUCTS
$100,000.00
AWARD AGAINST PARTY
02/27/2012
$21,000.01
429©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 213 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
08/23/2011
11-03046
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT RELATED-BREACH OF CONTRACT; ACCOUNT RELATED-FAILURETO SUPERVISE; ACCOUNT RELATED-NEGLIGENCE
COMMON STOCK
$500,000.00
AWARD AGAINST PARTY
06/14/2012
$70,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 214 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
FINRA
12/01/2011
11-04241
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OTHER; ACCOUNT ACTIVITY-UNAUTHORIZED TRADING; ACCOUNT RELATED-BREACH OF CONTRACT;ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNT RELATED-NEGLIGENCE
AUCTION RATE SECURITIES
$80,000,000.00430©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
$80,000,000.00
AWARD AGAINST PARTY
12/24/2013
$0.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 215 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
11/21/2011
11-04268
ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSIONOF FACTS
$9,000.00
AWARD AGAINST PARTY
06/11/2012
$325.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 216 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
FINRA
02/06/2012
11-04377
ACCOUNT ACTIVITY-CHURNING; ACCOUNT RELATED-TRANSFER
COMMON STOCK; MUTUAL FUNDS; VARIABLE ANNUITIES
431©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
$9,325.00
AWARD AGAINST PARTY
08/27/2012
$162.50
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 217 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
12/15/2011
11-04556
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT RELATED-BREACH OF CONTRACT; ACCOUNT RELATED-FAILURETO SUPERVISE; ACCOUNT RELATED-NEGLIGENCE
COMMON STOCK
Unspecified Damages
AWARD AGAINST PARTY
03/08/2013
$70,930.20
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 218 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Allegations: ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MANIPULATION; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNTACTIVITY-OMISSION OF FACTS; ACCOUNT ACTIVITY-OTHER; ACCOUNTRELATED-BREACH OF CONTRACT; ACCOUNT RELATED-ERRORS-CHARGES; ACCOUNT RELATED-EXCHANGES; DO NOT USE-EXECUTIONS-FAILURE TO EXECUTE
432©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Arbitration Forum:
Case Initiated:
Case Number:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
12/30/2011
11-04763
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MANIPULATION; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNTACTIVITY-OMISSION OF FACTS; ACCOUNT ACTIVITY-OTHER; ACCOUNTRELATED-BREACH OF CONTRACT; ACCOUNT RELATED-ERRORS-CHARGES; ACCOUNT RELATED-EXCHANGES; DO NOT USE-EXECUTIONS-FAILURE TO EXECUTE
VARIABLE ANNUITIES
$737,733.14
AWARD AGAINST PARTY
01/15/2013
$306,127.28
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 219 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
01/27/2012
11-04797
DO NOT USE-EXECUTIONS-FAILURE TO EXECUTE
$8,692.83
AWARD AGAINST PARTY
10/16/2012
$8,692.84
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 220 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Allegations: ACCOUNT ACTIVITY-SUITABILITY
433©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
03/02/2012
12-00515
ACCOUNT ACTIVITY-SUITABILITY
ANNUITIES
$71,775.00
AWARD AGAINST PARTY
12/27/2012
$15,786.45
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 221 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
04/04/2012
12-00793
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-CHURNING; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNTACTIVITY-OMISSION OF FACTS; ACCOUNT ACTIVITY-OTHER; ACCOUNTACTIVITY-SUITABILITY; ACCOUNT RELATED-BREACH OF CONTRACT;ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNT RELATED-NEGLIGENCE
COMMON STOCK
$9,000,000.00
AWARD AGAINST PARTY
07/30/2013
$1,802,508.08
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 222 of 337
i
434©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Disclosure 222 of 337
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
03/26/2012
12-00996
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-OTHER;ACCOUNT RELATED-BREACH OF CONTRACT; ACCOUNT RELATED-FAILURETO SUPERVISE; ACCOUNT RELATED-NEGLIGENCE
COMMON STOCK; FANNIE MAE; GOVERNMENT SECURITIES; PREFERREDSTOCK
$50,000.00
AWARD AGAINST PARTY
02/06/2013
$48,399.70
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 223 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
FINRA
07/11/2012
12-02349
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-BREACH OFCONTRACT; ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNTRELATED-NEGLIGENCE
COMMON STOCK
Unspecified Damages
AWARD AGAINST PARTY
11/26/2013435©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Disposition Date:
Sum of All Relief Awarded:
11/26/2013
$1,307,920.80
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 224 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
09/25/2012
12-02817
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT RELATED-BREACHOF CONTRACT; ACCOUNT RELATED-OTHER; ACCOUNT RELATED-TRANSFER; DO NOT USE-OTHER-OTHER
COMMON STOCK; EXCHANGE-TRADED FUNDS; MUTUAL FUNDS
$50,000.00
AWARD AGAINST PARTY
07/02/2013
$300.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 225 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
FINRA
10/09/2012
12-03473
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-OMISSION OF FACTS; ACCOUNT ACTIVITY-UNAUTHORIZED TRADING;ACCOUNT RELATED-ERRORS-CHARGES
EXCHANGE-TRADED FUNDS
$50,000.00 436©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
$50,000.00
AWARD AGAINST PARTY
01/22/2014
$35,952.94
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 226 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
12/26/2012
12-03924
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT ACTIVITY-UNAUTHORIZEDTRADING; ACCOUNT RELATED-BREACH OF CONTRACT; ACCOUNTRELATED-FAILURE TO SUPERVISE; ACCOUNT RELATED-NEGLIGENCE
COMMON STOCK
$100,000.00
AWARD AGAINST PARTY
03/02/2015
$60,000.01
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 227 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Allegations: ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT ACTIVITY-UNAUTHORIZEDTRADING; ACCOUNT RELATED-BREACH OF CONTRACT; ACCOUNTRELATED-NEGLIGENCE; TRADING DISPUTES-SELL OUTS
437©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Arbitration Forum:
Case Initiated:
Case Number:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
01/28/2013
13-00033
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT ACTIVITY-UNAUTHORIZEDTRADING; ACCOUNT RELATED-BREACH OF CONTRACT; ACCOUNTRELATED-NEGLIGENCE; TRADING DISPUTES-SELL OUTS
MUTUAL FUNDS; OTHER TYPES OF SECURITIES; PREFERRED STOCK
Unspecified Damages
AWARD AGAINST PARTY
12/16/2013
$10,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 228 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
01/09/2013
13-00034
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-OTHER;ACCOUNT RELATED-BREACH OF CONTRACT; ACCOUNT RELATED-NEGLIGENCE; ACCOUNT RELATED-OTHER
VARIABLE ANNUITIES
$420,150.21
AWARD AGAINST PARTY
11/06/2013
$300.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 229 of 337
i
Reporting Source: Regulator
438©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
03/21/2013
13-00333
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-BREACH OFCONTRACT; ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNTRELATED-NEGLIGENCE
VARIABLE ANNUITIES
Unspecified Damages
AWARD AGAINST PARTY
11/06/2014
$144,808.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 230 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
03/15/2013
13-00469
ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT RELATED-FAILURETO SUPERVISE; ACCOUNT RELATED-NEGLIGENCE; DO NOT USE-EXECUTIONS-EXECUTION PRICE; DO NOT USE-EXECUTIONS-FAILURE TOEXECUTE; DO NOT USE-EXECUTIONS-INCORRECT QUANTITY; DO NOTUSE-EXECUTIONS-OTHER; OTHER-UNDERWRITING; TRADING DISPUTES-OTHER
COMMON STOCK
$4,914.32
AWARD AGAINST PARTY
10/29/2013
$3,289.00 439©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Sum of All Relief Awarded: $3,289.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 231 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
04/16/2013
13-00779
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-CHURNING; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNTACTIVITY-UNAUTHORIZED TRADING; ACCOUNT RELATED-BREACH OFCONTRACT; ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNTRELATED-NEGLIGENCE
COMMON STOCK; MUTUAL FUNDS
$500,000.00
AWARD AGAINST PARTY
07/30/2014
$144,125.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 232 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
FINRA
06/07/2013
13-01405
ACCOUNT ACTIVITY-UNAUTHORIZED TRADING
$4,999.00
AWARD AGAINST PARTY 440©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Disposition:
Disposition Date:
Sum of All Relief Awarded:
AWARD AGAINST PARTY
02/11/2014
$2,881.92
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 233 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
07/08/2013
13-01756
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-FAILURE TOSUPERVISE
CERTIFICATE OF DEPOSIT
$193,327.68
AWARD AGAINST PARTY
03/28/2014
$61,725.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 234 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Allegations:
FINRA
08/19/2013
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-CHURNING; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-BREACHOF CONTRACT; ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNTRELATED-NEGLIGENCE
441©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Case Number:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
13-02375
ANNUITIES; VARIABLE ANNUITIES
$49,292.36
AWARD AGAINST PARTY
02/19/2014
$34,982.02
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 235 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
08/27/2013
13-02468
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT RELATED-ERRORS-CHARGES; ACCOUNT RELATED-FAILURE TO SUPERVISE;ACCOUNT RELATED-NEGLIGENCE; ACCOUNT RELATED-OTHER; TRADINGDISPUTES-OTHER
COMMON STOCK
$12,000.00
AWARD AGAINST PARTY
03/27/2015
$600.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 236 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Allegations: ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-BREACH OFCONTRACT; ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNTRELATED-NEGLIGENCE
442©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Arbitration Forum:
Case Initiated:
Case Number:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
08/30/2013
13-02508
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-BREACH OFCONTRACT; ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNTRELATED-NEGLIGENCE
MUTUAL FUNDS
$60,000.00
AWARD AGAINST PARTY
07/09/2015
$60,545.10
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 237 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
10/11/2013
13-02910
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT RELATED-NEGLIGENCE; DO NOT USE-EXECUTIONS-FAILURE TOEXECUTE
COMMON STOCK
$11,923.00
AWARD AGAINST PARTY
04/25/2014
$2,225.01
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 238 of 337
i
443©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Disclosure 238 of 337
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
10/25/2013
13-02939
DO NOT USE-EMPLOYMENT-DISCRIMINATION AGE; DO NOT USE-EMPLOYMENT-EMPLOYMENT DISCRM ; EMPLOYMENT-BREACH OFCONTRACT; EMPLOYMENT-COMMISSIONS; EMPLOYMENT-COMPENSATION;EMPLOYMENT-WRONGFUL TERMINATION
$81,131.63
AWARD AGAINST PARTY
03/03/2016
$0.01
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 239 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
10/17/2013
13-03009
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNTRELATED-BREACH OF CONTRACT; ACCOUNT RELATED-FAILURE TOSUPERVISE; ACCOUNT RELATED-NEGLIGENCE
PREFERRED STOCK
$49,999.00
AWARD AGAINST PARTY
05/01/2014
$49,999.01444©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Sum of All Relief Awarded: $49,999.01
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 240 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
11/21/2013
13-03327
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MANIPULATION; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNTACTIVITY-OMISSION OF FACTS; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNTRELATED-BREACH OF CONTRACT; ACCOUNT RELATED-FAILURE TOSUPERVISE; ACCOUNT RELATED-NEGLIGENCE
COLLATERALIZED DEBT OBLIGATIONS; COLLATERALIZED MORTGAGEOBLIGATIONS; COMMON STOCK; MUTUAL FUNDS
$100,000.00
AWARD AGAINST PARTY
12/15/2015
$10,600.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 241 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
FINRA
01/29/2014
14-00189
ACCOUNT ACTIVITY-OTHER; ACCOUNT RELATED-FAILURE TO SUPERVISE
OTHER TYPES OF SECURITIES
$87,500.00445©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
$87,500.00
AWARD AGAINST PARTY
02/10/2015
$94,500.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 242 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
03/27/2014
14-00455
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT RELATED-NEGLIGENCE
$24,000.00
AWARD AGAINST PARTY
12/05/2014
$866.14
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 243 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Allegations:
FINRA
03/26/2014
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNTRELATED-BREACH OF CONTRACT; ACCOUNT RELATED-FAILURE TOSUPERVISE; ACCOUNT RELATED-NEGLIGENCE; ACCOUNT RELATED-OTHER
446©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Case Initiated:
Case Number:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
03/26/2014
14-00895
COMMON STOCK; MUTUAL FUNDS; OPTIONS; OTHER TYPES OFSECURITIES
$41,441.66
AWARD AGAINST PARTY
11/05/2014
$300.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 244 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
05/21/2014
14-01404
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-CHURNING; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNTACTIVITY-OMISSION OF FACTS; ACCOUNT ACTIVITY-OTHER; ACCOUNTACTIVITY-SUITABILITY; ACCOUNT RELATED-BREACH OF CONTRACT;ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNT RELATED-NEGLIGENCE; ACCOUNT RELATED-OTHER
COMMON STOCK
$300,000.00
AWARD AGAINST PARTY
06/19/2015
$50,300.01
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 245 of 337
i
Reporting Source: Regulator
447©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
06/05/2014
14-01701
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-FAILURE TOSUPERVISE; ACCOUNT RELATED-NEGLIGENCE; ACCOUNT RELATED-OTHER
PREFERRED STOCK
$65,895.23
AWARD AGAINST PARTY
05/21/2015
$300.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 246 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
06/06/2014
14-01741
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT ACTIVITY-OTHER; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNTRELATED-BREACH OF CONTRACT; ACCOUNT RELATED-FAILURE TOSUPERVISE; ACCOUNT RELATED-NEGLIGENCE; TRADING DISPUTES-OTHER
COMMON STOCK
$473,603.60
AWARD AGAINST PARTY
01/07/2016
$346,881.41 448©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Sum of All Relief Awarded: $346,881.41
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 247 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
10/21/2014
14-02593
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT RELATED-BREACHOF CONTRACT; ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNTRELATED-NEGLIGENCE; DO NOT USE-EXECUTIONS-FAILURE TO EXECUTE
VARIABLE ANNUITIES
$95,930.00
AWARD AGAINST PARTY
12/16/2015
$3,600.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 248 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
FINRA
09/03/2014
14-02644
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OTHER; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-BREACH OF CONTRACT; ACCOUNTRELATED-FAILURE TO SUPERVISE; ACCOUNT RELATED-NEGLIGENCE;ACCOUNT RELATED-OTHER
OTHER TYPES OF SECURITIES
449©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
Unspecified Damages
AWARD AGAINST PARTY
05/09/2016
$113,607.84
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 249 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
10/23/2014
14-02759
ACCOUNT RELATED-OTHER
$100,000.00
AWARD AGAINST PARTY
12/09/2015
$225.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 250 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Allegations:
FINRA
10/17/2014
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-BREACH OFCONTRACT; ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNTRELATED-NEGLIGENCE
450©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Case Number:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
14-02849
MUTUAL FUNDS
$100,000.00
AWARD AGAINST PARTY
05/31/2016
$66,225.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 251 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
10/21/2014
14-02953
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT ACTIVITY-OTHER; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNTACTIVITY-UNAUTHORIZED TRADING; ACCOUNT RELATED-BREACH OFCONTRACT; ACCOUNT RELATED-NEGLIGENCE; ACCOUNT RELATED-OTHER; DO NOT USE-EXECUTIONS-EXECUTION PRICE; DO NOT USE-EXECUTIONS-FAILURE TO EXECUTE; DO NOT USE-EXECUTIONS-OTHER;TRADING DISPUTES-OTHER
MUTUAL FUNDS
$150,000.01
AWARD AGAINST PARTY
07/18/2016
$181,757.12
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 252 of 337
i
Reporting Source: Regulator
451©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
01/13/2015
15-00074
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-OTHER;ACCOUNT RELATED-BREACH OF CONTRACT; ACCOUNT RELATED-FAILURETO SUPERVISE; ACCOUNT RELATED-NEGLIGENCE; ACCOUNT RELATED-OTHER
COMMON STOCK; MUTUAL FUNDS
$342,077.89
AWARD AGAINST PARTY
06/16/2016
$423,770.50
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 253 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
02/10/2015
15-00235
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-FRAUD;ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OTHER;ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-BREACH OFCONTRACT; ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNTRELATED-NEGLIGENCE; ACCOUNT RELATED-OTHER
COMMON STOCK
Unspecified Damages
AWARD AGAINST PARTY
10/24/2016
$5,987.76
452©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 254 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
04/30/2015
15-00949
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-BREACH OFCONTRACT; ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNTRELATED-NEGLIGENCE
VARIABLE ANNUITIES
$47,169.00
AWARD AGAINST PARTY
09/21/2015
$600.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 255 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
FINRA
07/20/2015
15-01676
$275,000.01
AWARD AGAINST PARTY
09/12/2016 453©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Disposition Date:
Sum of All Relief Awarded:
09/12/2016
$262,354.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 256 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
08/28/2015
15-01842
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-FRAUD;ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSIONOF FACTS; ACCOUNT ACTIVITY-OTHER; ACCOUNT ACTIVITY-SUITABILITY;ACCOUNT ACTIVITY-UNAUTHORIZED TRADING; ACCOUNT ACTIVITY-VIOLATE OF BLUE SKY LWS; ACCOUNT RELATED-BREACH OF CONTRACT;ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNT RELATED-MARGINCALLS; ACCOUNT RELATED-NEGLIGENCE; ACCOUNT RELATED-OTHER
COMMON STOCK; MUTUAL FUNDS
$100,000.01
AWARD AGAINST PARTY
08/02/2016
$98,750.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 257 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
FINRA
04/11/2016
16-00066
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS
454©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Case Number:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
16-00066
ANNUITIES; VARIABLE ANNUITIES
Unspecified Damages
AWARD AGAINST PARTY
10/11/2016
$300.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 258 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
02/10/2016
16-00213
$10,600.00
AWARD AGAINST PARTY
08/23/2016
$212.50
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 259 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Allegations:
FINRA
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-BREACH OFCONTRACT; ACCOUNT RELATED-FAILURE TO SUPERVISE
455©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Arbitration Forum:
Case Initiated:
Case Number:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
05/03/2016
16-01123
COMMON STOCK; LIMITED PARTNERSHIPS; MUTUAL FUNDS; REAL ESTATEINVESTMENT TRUST; STRUCTURED PRODUCTS
$1,000,000.00
AWARD AGAINST PARTY
03/09/2017
$357,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 260 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
07/20/2016
16-01810
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-FRAUD;ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSIONOF FACTS; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT ACTIVITY-VIOLATEOF BLUE SKY LWS; ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNTRELATED-NEGLIGENCE
OTHER TYPES OF SECURITIES
$150,000.00
AWARD AGAINST PARTY
04/26/2018
$76,257.01
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 261 of 337
i
Reporting Source: Regulator
456©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
03/22/2017
17-00704
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-NEGLIGENCE
$50,000.00
AWARD AGAINST PARTY
09/08/2017
$50,600.01
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 262 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
07/11/2017
17-01341
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MANIPULATION; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNTACTIVITY-OMISSION OF FACTS
ANNUITIES
$4,433.16
AWARD AGAINST PARTY
03/08/2018
$58.33
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 263 of 337
i
457©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Disclosure 263 of 337
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
07/18/2017
17-01522
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS; TRADINGDISPUTES-OTHER
WARRANTS/RIGHTS
$2,500.00
AWARD AGAINST PARTY
01/04/2018
$37.50
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 264 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
FINRA
06/21/2017
17-01621
ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT ACTIVITY-VIOLATE OF BLUE SKY LWS; ACCOUNTRELATED-FAILURE TO SUPERVISE; ACCOUNT RELATED-OTHER
COMMON STOCK; OTHER TYPES OF SECURITIES; REAL ESTATEINVESTMENT TRUST
$50,000.00
AWARD AGAINST PARTY
01/16/2018
$70,600.00
458©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 265 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
01/01/1989
89-01661
ACCOUNT ACTIVITY-OMISSION OF FACTS; DO NOT USE-NO OTHERCONTROVERSY INVOLVED
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$10,000.00
AWARD AGAINST PARTY
12/11/1989
$10,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 266 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
NASD
01/01/1990
90-00374
ACCOUNT RELATED-TRANSFER; DO NOT USE-NO OTHER CONTROVERSYINVOLVED
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$7,261.00
AWARD AGAINST PARTY
07/06/1990 459©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Disposition Date:
Sum of All Relief Awarded:
07/06/1990
$2,547.25
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 267 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
05/15/1991
91-01469
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OTHER; ACCOUNT ACTIVITY-SUITABILITY
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; MUNICIPAL BOND FUNDS
$139,000.00
AWARD AGAINST PARTY
09/01/1992
$31,833.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 268 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
NASD
08/09/1991
91-01908
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-OTHER;ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-NEGLIGENCE
COMMON STOCK; CORPORATE BONDS; UNKNOWN TYPE OF SECURITIES
$90,383.00
460©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
$90,383.00
AWARD AGAINST PARTY
11/23/1992
$20,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 269 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
01/21/1992
91-03839
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-CHURNING; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNTACTIVITY-SUITABILITY
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; OPTIONS
$45,906.00
AWARD AGAINST PARTY
10/21/1992
$10,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 270 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
NASD
05/18/1992
92-01018
ACCOUNT ACTIVITY-MISREPRESENTATION; DO NOT USE-NO OTHERCONTROVERSY INVOLVED
461©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Case Number:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
92-01018
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; MUNICIPAL BONDS
$9,800.00
AWARD AGAINST PARTY
12/29/1992
$6,600.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 271 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
04/28/1992
92-01252
ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-SUITABILITY; DO NOT USE-NO OTHER CONTROVERSY INVOLVED
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; LIMITED PARTNERSHIPS
Unspecified Damages
AWARD AGAINST PARTY
10/12/1992
$20,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 272 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Allegations:
NASD
05/06/1993
ACCOUNT ACTIVITY-MISREPRESENTATION; DO NOT USE-NO OTHERCONTROVERSY INVOLVED
462©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Case Initiated:
Case Number:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
05/06/1993
92-03851
CORPORATE BONDS; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$30,000.00
AWARD AGAINST PARTY
03/16/1994
$6,500.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 273 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
04/22/1993
92-04217
ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OTHER;ACCOUNT ACTIVITY-SUITABILITY; DO NOT USE-NO OTHER CONTROVERSYINVOLVED
GINNIE MAES; GOVERNMENT SECURITIES; LIMITED PARTNERSHIPS;MUTUAL FUNDS
$45,240.00
AWARD AGAINST PARTY
12/28/1993
$15,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 274 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Allegations: ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNTACTIVITY-UNAUTHORIZED TRADING
463©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
03/25/1993
93-00889
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNTACTIVITY-UNAUTHORIZED TRADING
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$110,404.00
AWARD AGAINST PARTY
03/28/1994
$110,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 275 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
04/29/1993
93-00971
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-CHURNING; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNTACTIVITY-SUITABILITY
ANNUITIES; COMMON STOCK; CORPORATE BONDS; MUNICIPAL BONDFUNDS
$100,000.00
AWARD AGAINST PARTY
12/20/1994
$98,159.63
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 276 of 337
i
464©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Disclosure 276 of 337
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
05/10/1993
93-01849
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT ACTIVITY-UNAUTHORIZED TRADING; ACCOUNTRELATED-FAILURE TO SUPERVISE
CORPORATE BONDS; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE;MUTUAL FUNDS; OPTIONS
$680,000.00
AWARD AGAINST PARTY
02/09/1994
$134,053.16
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 277 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
01/04/1994
93-04411
ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNTRELATED-NEGLIGENCE
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$44,000.00
AWARD AGAINST PARTY
11/30/1994
$13,211.40
465©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 278 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
03/02/1994
94-00149
ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSIONOF FACTS; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT ACTIVITY-UNAUTHORIZED TRADING
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; MUTUAL FUNDS
$7,911.00
AWARD AGAINST PARTY
02/16/1995
$810.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 279 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
NASD
04/14/1994
94-00197
ACCOUNT ACTIVITY-CHURNING; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNTACTIVITY-UNAUTHORIZED TRADING
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$1,500,000.00
AWARD AGAINST PARTY
03/31/1995 466©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Disposition Date:
Sum of All Relief Awarded:
03/31/1995
$305,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 280 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
07/05/1994
94-01485
ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-UNAUTHORIZED TRADING; ACCOUNT RELATED-OTHER; DO NOT USE-NOOTHER CONTROVERSY INVOLVED
CORPORATE BONDS; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$10,600.00
AWARD AGAINST PARTY
06/27/1995
$10,600.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 281 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
NASD
08/10/1994
94-02471
ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSIONOF FACTS; DO NOT USE-NO OTHER CONTROVERSY INVOLVED
CORPORATE BONDS; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$100,000.00
467©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
$100,000.00
AWARD AGAINST PARTY
05/29/1996
$15,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 282 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
07/19/1994
94-02529
ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-FAILURE TOSUPERVISE; DO NOT USE-NO OTHER CONTROVERSY INVOLVED
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$425,000.00
AWARD AGAINST PARTY
06/10/1996
$13,164.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 283 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
NASD
08/17/1994
94-02866
ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSIONOF FACTS; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-NEGLIGENCE
468©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Case Number:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
94-02866
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; OPTIONS
$10,000.00
AWARD AGAINST PARTY
08/21/1995
$4,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 284 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
09/15/1994
94-03482
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-BREACH OF CONTRACT; ACCOUNTRELATED-NEGLIGENCE
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; LIMITED PARTNERSHIPS
$106,689.75
AWARD AGAINST PARTY
06/28/1995
$70,968.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 285 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Allegations:
NASD
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNTRELATED-NEGLIGENCE
469©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Arbitration Forum:
Case Initiated:
Case Number:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
11/09/1994
94-03639
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; LIMITEDPARTNERSHIPS
$425,000.00
AWARD AGAINST PARTY
08/02/1996
$23,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 286 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
11/08/1994
94-03991
ACCOUNT ACTIVITY-UNAUTHORIZED TRADING; DO NOT USE-NO OTHERCONTROVERSY INVOLVED
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$23,375.85
AWARD AGAINST PARTY
12/07/1995
$30,109.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 287 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Allegations: ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSIONOF FACTS; ACCOUNT ACTIVITY-UNAUTHORIZED TRADING; DO NOT USE-NOOTHER CONTROVERSY INVOLVED
470©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
11/15/1994
94-04168
ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSIONOF FACTS; ACCOUNT ACTIVITY-UNAUTHORIZED TRADING; DO NOT USE-NOOTHER CONTROVERSY INVOLVED
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$73,920.34
AWARD AGAINST PARTY
02/23/1996
$22,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 288 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
12/07/1994
94-04341
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNTRELATED-BREACH OF CONTRACT
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE;MUNICIPAL BONDS; MUTUAL FUNDS
$2,799,104.00
AWARD AGAINST PARTY
04/16/1996
$193,350.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 289 of 337
i
471©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Disclosure 289 of 337
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
12/22/1994
94-04806
ACCOUNT RELATED-ERRORS-CHARGES; DO NOT USE-NO OTHERCONTROVERSY INVOLVED
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$2,320.80
AWARD AGAINST PARTY
06/23/1995
$1,182.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 290 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
01/11/1995
94-05052
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT RELATED-NEGLIGENCE
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
Unspecified Damages
AWARD AGAINST PARTY
10/13/1995
$109,992.00
472©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 291 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
12/14/1994
94-05072
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNTRELATED-BREACH OF CONTRACT
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$343,637.24
AWARD AGAINST PARTY
07/15/1996
$23,931.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 292 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
NASD
02/10/1995
95-00161
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT RELATED-NEGLIGENCE; DO NOT USE-NO OTHER CONTROVERSY INVOLVED
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; FANNIE MAE
$3,005,642.14
AWARD AGAINST PARTY
08/01/1996
473©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Sum of All Relief Awarded: $77,250.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 293 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
03/02/1995
95-00354
ACCOUNT ACTIVITY-OTHER; ACCOUNT ACTIVITY-SUITABILITY; DO NOTUSE-NO OTHER CONTROVERSY INVOLVED
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$4,000.00
AWARD AGAINST PARTY
08/25/1995
$2,714.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 294 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
NASD
05/03/1995
95-00462
ACCOUNT ACTIVITY-SUITABILITY; DO NOT USE-NO OTHER CONTROVERSYINVOLVED
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; FREDDIE MACS
$10,000.00
AWARD AGAINST PARTY
12/21/1995474©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Disposition Date:
Sum of All Relief Awarded:
12/21/1995
$150.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 295 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
03/29/1995
95-00571
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS; DO NOTUSE-NO OTHER CONTROVERSY INVOLVED
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; OTHER TYPES OFSECURITIES
$40,000.00
AWARD AGAINST PARTY
04/22/1996
$12,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 296 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
NASD
02/21/1995
95-00735
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNTRELATED-FAILURE TO SUPERVISE
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE475©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$272,841.56
AWARD AGAINST PARTY
05/04/1998
$91,912.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 297 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
03/07/1995
95-00874
ACCOUNT RELATED-BREACH OF CONTRACT; DO NOT USE-NO OTHERCONTROVERSY INVOLVED
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$2,000,000.00
AWARD AGAINST PARTY
03/20/1996
$400,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 298 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Allegations:
NASD
03/16/1995
ACCOUNT RELATED-OTHER; DO NOT USE-NO OTHER CONTROVERSYINVOLVED
476©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Case Number:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
95-01190
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$10,000.00
AWARD AGAINST PARTY
09/25/1995
$662.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 299 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
08/16/1995
95-03876
ACCOUNT RELATED-NEGLIGENCE; DO NOT USE-NO OTHERCONTROVERSY INVOLVED
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$3,852.25
AWARD AGAINST PARTY
02/14/1996
$3,915.02
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 300 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Allegations:
NASD
09/12/1995
ACCOUNT RELATED-OTHER; DO NOT USE-NO OTHER CONTROVERSYINVOLVED
477©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Case Initiated:
Case Number:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
09/12/1995
95-04229
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; MUTUAL FUNDS
$7,014.86
AWARD AGAINST PARTY
03/28/1996
$2,949.06
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 301 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
10/18/1995
95-04646
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-CHURNING; ACCOUNT ACTIVITY-UNAUTHORIZED TRADING; ACCOUNTRELATED-FAILURE TO SUPERVISE
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$180,000.00
AWARD AGAINST PARTY
02/18/1997
$77,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 302 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Allegations: ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSIONOF FACTS; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-FAILURETO SUPERVISE 478©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Arbitration Forum:
Case Initiated:
Case Number:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
01/24/1996
96-00060
ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSIONOF FACTS; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-FAILURETO SUPERVISE
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; LIMITED PARTNERSHIPS
$512,500.00
AWARD AGAINST PARTY
04/09/1997
$287,130.75
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 303 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
01/29/1996
96-00347
ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSIONOF FACTS; ACCOUNT ACTIVITY-SUITABILITY; DO NOT USE-NO OTHERCONTROVERSY INVOLVED
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$201,245.40
AWARD AGAINST PARTY
05/06/1997
$129,661.04
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 304 of 337
i
Reporting Source: Regulator
479©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
02/09/1996
96-00589
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT RELATED-BREACHOF CONTRACT; ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNTRELATED-NEGLIGENCE
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; OTHERTYPES OF SECURITIES
$121,462.50
AWARD AGAINST PARTY
09/09/1996
$143,809.41
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 305 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
03/21/1996
96-00877
ACCOUNT ACTIVITY-OTHER; ACCOUNT ACTIVITY-SUITABILITY; DO NOTUSE-NO OTHER CONTROVERSY INVOLVED
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; LIMITED PARTNERSHIPS
$100,000.00
AWARD AGAINST PARTY
03/31/1997
$9,750.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
i480©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Disclosure 306 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
03/08/1996
96-00885
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT RELATED-FAILURETO SUPERVISE; ACCOUNT RELATED-NEGLIGENCE; DO NOT USE-EXECUTIONS-OTHER
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$53,500.00
AWARD AGAINST PARTY
01/28/1997
$7,500.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 307 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
04/11/1996
96-01455
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT RELATED-BREACHOF CONTRACT; ACCOUNT RELATED-NEGLIGENCE; DO NOT USE-EXECUTIONS-FAILURE TO EXECUTE
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; OPTIONS
$45,000.00
AWARD AGAINST PARTY
03/09/1998
$10,520.00
481©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 308 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
03/21/1997
97-00915
ACCOUNT ACTIVITY-CHURNING; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNTRELATED-FAILURE TO SUPERVISE
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$772,105.00
AWARD AGAINST PARTY
11/03/1999
$3,700.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 309 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
NASD
05/01/1997
97-02147
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT ACTIVITY-SUITABILITY
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$236,318.67
AWARD AGAINST PARTY482©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Disposition:
Disposition Date:
Sum of All Relief Awarded:
AWARD AGAINST PARTY
10/14/1997
$76,721.69
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 310 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
07/31/1997
97-02255
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-OTHER;ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-NEGLIGENCE
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$2,000,000.00
AWARD AGAINST PARTY
06/08/1999
$203,101.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 311 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
NASD
06/12/1997
97-02831
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-OMISSION OF FACTS; ACCOUNT ACTIVITY-OTHER; ACCOUNT RELATED-FAILURE TO SUPERVISE
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE 483©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$208,000.00
AWARD AGAINST PARTY
02/06/1998
$25,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 312 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
09/16/1997
97-04296
ACCOUNT RELATED-ERRORS-CHARGES; ACCOUNT RELATED-OTHER; DONOT USE-NO OTHER CONTROVERSY INVOLVED
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; OTHER TYPES OFSECURITIES
$27,012.00
AWARD AGAINST PARTY
07/15/1998
$3,700.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 313 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Allegations:
NASD
10/02/1997
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-UNAUTHORIZED TRADING;ACCOUNT RELATED-FAILURE TO SUPERVISE
484©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Case Initiated:
Case Number:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
10/02/1997
97-04300
ANNUITIES; COMMON STOCK; GOVERNMENT SECURITIES; PREFERREDSTOCK
$311,607.53
AWARD AGAINST PARTY
03/29/1999
$75,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 314 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
04/15/1998
98-01192
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT RELATED-BREACH OF CONTRACT;ACCOUNT RELATED-FAILURE TO SUPERVISE
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$169,000.00
AWARD AGAINST PARTY
05/19/1999
$114,850.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 315 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Allegations: ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT RELATED-FAILURE TO SUPERVISE
485©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
04/13/1998
98-01226
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT RELATED-FAILURE TO SUPERVISE
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$5,000,000.00
AWARD AGAINST PARTY
09/22/1999
$100,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 316 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
04/13/1998
98-01226
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT RELATED-FAILURE TO SUPERVISE
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$5,000,000.00
AWARD AGAINST PARTY
09/22/1999
$100,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
486©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Disclosure 317 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
09/03/1998
98-02926
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT RELATED-BREACHOF CONTRACT; ACCOUNT RELATED-FAILURE TO SUPERVISE; ACCOUNTRELATED-NEGLIGENCE
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$890,537.00
AWARD AGAINST PARTY
09/10/1999
$250.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 318 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
NASD
09/09/1998
98-03100
DO NOT USE-EMPLOYMENT-DISCRIMINATION AGE; DO NOT USE-NOOTHER CONTROVERSY INVOLVED; EMPLOYMENT-BREACH OF CONTRACT;EMPLOYMENT-COMPENSATION
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$2,150,000.00
AWARD AGAINST PARTY
12/10/1999
487©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Sum of All Relief Awarded: $117,610.01
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 319 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
12/11/1998
98-03452
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-CHURNING; ACCOUNT ACTIVITY-UNAUTHORIZED TRADING; ACCOUNTRELATED-FAILURE TO SUPERVISE
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$1,100,000.00
AWARD AGAINST PARTY
08/23/2001
$65,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 320 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
NASD
12/15/1998
98-04080
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-CHURNING; ACCOUNT RELATED-BREACH OF CONTRACT; ACCOUNTRELATED-FAILURE TO SUPERVISE
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
488©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$166,496.00
AWARD AGAINST PARTY
01/26/2000
$54,969.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 321 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
12/30/1998
98-04168
ACCOUNT ACTIVITY-SUITABILITY; DO NOT USE-EXECUTIONS-FAILURE TOEXECUTE; DO NOT USE-NO OTHER CONTROVERSY INVOLVED
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; MUTUAL FUNDS
$5,538.63
AWARD AGAINST PARTY
07/16/1999
$5,538.63
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 322 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
NASD
03/10/1999
98-04822
DO NOT USE-NO OTHER CONTROVERSY INVOLVED; UNKNOWN TYPE OFCONTROVERSIES
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
489©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$84,000.00
AWARD AGAINST PARTY
06/09/2000
$0.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 323 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
03/24/1999
99-00292
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-CHURNING; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-NEGLIGENCE
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$16,000,000.00
AWARD AGAINST PARTY
02/20/2002
$408,646.31
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 324 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Allegations:
NASD
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-OTHER;ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-NEGLIGENCE
490©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Arbitration Forum:
Case Initiated:
Case Number:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
02/25/1999
99-00579
CORPORATE BONDS; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$50,000.00
AWARD AGAINST PARTY
02/04/2000
$28,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 325 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
05/06/1999
99-01034
ACCOUNT RELATED-OTHER; DO NOT USE-NO OTHER CONTROVERSYINVOLVED
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$1,300.00
AWARD AGAINST PARTY
02/10/2000
$25.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 326 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Allegations: ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-OMISSION OF FACTS; ACCOUNT ACTIVITY-OTHER; ACCOUNT RELATED-BREACH OF CONTRACT 491©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
05/21/1999
99-02222
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-OMISSION OF FACTS; ACCOUNT ACTIVITY-OTHER; ACCOUNT RELATED-BREACH OF CONTRACT
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE;MUNICIPAL BONDS; OPTIONS
$650,000.00
AWARD AGAINST PARTY
09/07/2000
$31,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 327 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
08/11/1999
99-02526
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT RELATED-BREACHOF CONTRACT; ACCOUNT RELATED-NEGLIGENCE; DO NOT USE-NO OTHERCONTROVERSY INVOLVED
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$148,061.41
AWARD AGAINST PARTY
07/16/2001
$21,000.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 328 of 337
i
492©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
07/27/1999
99-02596
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-CHURNING; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNTRELATED-FAILURE TO SUPERVISE
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$798,416.21
AWARD AGAINST PARTY
08/22/2001
$70,194.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 329 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
07/28/1999
99-03182
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-OMISSION OF FACTS; DO NOT USE-NO OTHER CONTROVERSY INVOLVED
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$5,653.00
AWARD AGAINST PARTY
06/07/2000
$162.50
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
493©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Disclosure 330 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
08/26/1999
99-03288
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNT RELATED-BREACH OF CONTRACT; ACCOUNTRELATED-NEGLIGENCE
CORPORATE BONDS; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$59,000.00
AWARD AGAINST PARTY
09/25/2000
$30,210.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 331 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
NASD
10/12/1999
99-03729
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-OTHER;ACCOUNT ACTIVITY-SUITABILITY; DO NOT USE-NO OTHER CONTROVERSYINVOLVED
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$537,501.66
AWARD AGAINST PARTY
12/21/2000
494©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Sum of All Relief Awarded: $221,954.03
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 332 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
09/22/1999
99-03778
ACCOUNT ACTIVITY-CHURNING; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNTACTIVITY-UNAUTHORIZED TRADING
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE;OPTIONS
$1,000,000.00
AWARD AGAINST PARTY
05/03/2001
$10,041.00
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 333 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
NASD
10/14/1999
99-04019
ACCOUNT ACTIVITY-SUITABILITY; DO NOT USE-NO OTHER CONTROVERSYINVOLVED
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; UNKNOWN TYPE OFSECURITIES
$98,325.16495©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
$98,325.16
AWARD AGAINST PARTY
04/24/2002
$40,990.17
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 334 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
10/18/1999
99-04104
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT ACTIVITY-SUITABILITY
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE
$5,000.00
AWARD AGAINST PARTY
10/30/2000
$87.50
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 335 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
NASD
11/15/1999
99-04914
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT RELATED-BREACH OF CONTRACT;ACCOUNT RELATED-NEGLIGENCE
496©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Case Number:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
99-04914
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; OPTIONS
$54,870.65
AWARD AGAINST PARTY
11/30/2000
$9,220.43
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 336 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Arbitration Forum:
Case Initiated:
Case Number:
Allegations:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
01/18/2000
99-04915
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-SUITABILITY; ACCOUNTRELATED-FAILURE TO SUPERVISE
COMMON STOCK; DO NOT USE-NO OTHER TYPE OF SEC INVOLVE;OPTIONS; WARRANTS/RIGHTS
$1,726,929.46
AWARD AGAINST PARTY
10/23/2001
$208,925.91
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
Disclosure 337 of 337
i
Reporting Source: Regulator
Type of Event: ARBITRATION
Allegations: ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT RELATED-BREACH OF CONTRACT
497©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
Arbitration Forum:
Case Initiated:
Case Number:
Disputed Product Type:
Sum of All Relief Requested:
Disposition:
Disposition Date:
Sum of All Relief Awarded:
NASD
01/31/2000
99-05550
ACCOUNT ACTIVITY-BRCH OF FIDUCIARY DT; ACCOUNT ACTIVITY-MISREPRESENTATION; ACCOUNT ACTIVITY-OMISSION OF FACTS;ACCOUNT RELATED-BREACH OF CONTRACT
DO NOT USE-NO OTHER TYPE OF SEC INVOLVE; MUTUAL FUNDS
$6,319.05
AWARD AGAINST PARTY
10/24/2000
$5,221.33
There may be a non-monetary award associated with this arbitration.Please select the Case Number above to view more detailed information.
498©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC
www.finra.org/brokercheck User Guidance
End of Report
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499©2018 FINRA. All rights reserved. Report about WELLS FARGO CLEARING SERVICES, LLC