Wells Fargo fraud lawyer

Wells Fargo Advisor James Paige Has Customer Complaints

December 2, 2024 | by Staff Attorney

Financial advisor James Paige (Paige), currently employed by brokerage firm Wells Fargo Clearing Services, LLC (Wells Fargo) has been subject to at least five customer complaints and one tax lien or judgement during the course of his career. According to the most recent complaints, Paige has been accused by customers of engaging in unsuitably risky investments among other allegations against the financial advisor.

In February 2024 a customer complained that Paige violated the securities laws by alleging that Paige in or around the year 2021 made financial recommendations that were unsuitable and too risky for Claimants’ investment knowledge and needs. The claim is currently pending.

In May 2023 a customer complained that Paige violated the securities laws by alleging that Paige, sometime after 2020, failed to diversity her portfolio and made unsuitable investment recommendations without disclosing the risks involved with the investments. The claim settled for $95,000.

Brokers are required to adhere to the SEC’s Regulation Best Interest (Reg BI) standard of care under the Securities Exchange Act of 1934 which establishes a “best interest” standard for broker-dealers and associated persons. This standard applies when brokers make recommendations to retail customer for any securities transaction or investment strategy involving securities, including recommendations of types of accounts. Reg BI is drawn from fiduciary principles that include an obligation to act in the retail investor’s best interest and the broker is prohibited from placing their own interests ahead of the investor’s interest.

Scott Reed Barred Over Pebblekick Investment Scheme – Investor Recovery Options

August 28, 2022 | by Staff Attorney

The law offices of Gana Weinstein LLP are currently investigating claims that advisor Scott Reed (Reed) has been accused by clients of engaging in fraudulent investment activities including undisclosed outside business activities (OBAs) and private securities transactions. According to records kept by The Financial Industry Regulatory Authority (FINRA), Reed was employed by Wells Fargo Clearing Services, LLC (Wells Fargo) at the time of the activity. If you have been a victim of Reed’s alleged misconduct our firm may be able to assist you in recovering funds.

Reed has been subject to regulatory action by both FINRA and the State of Arizona. With respect to the FINRA action, the regulator found that Reed consented to sanctions and findings that he participated in private securities transactions totaling at least $3.5 million without providing prior written notice to or obtaining advanced approval from his member firm. Reed solicited individuals, including at least two firm customers, to invest in securities issued by a software and web development company believed to be Pebblekick, Inc. Reed participated in these investments away from the firm by providing written materials about the company to investors, and by communicating with them orally, by email and text message about the company and encouraging them to invest. Reed is alleged to have received selling compensation of $191,340 from the company for his role in soliciting and facilitating the investments. It was also claimed that Reed had his own personal financial interest in the company and personally invested over $200,000 in the company.

Massachusetts Regulator Investigates Wells Fargo Over Unsuitable Investment Advice

May 30, 2019 | by Staff Attorney

The law offices of Gana Weinstein LLP are following the investigation by the Massachusetts Secretary of the Commonwealth’s office where the Secretary of the Commonwealth opened an investigation into Wells Fargo’s brokerage and advisory sales practices. Specifically, the state announced that the investigation seeks information related to inappropriate referrals of brokerage customers to managed and advisory accounts, unsuitable recommendations of alternative investments, as well as unsuitable referrals and recommendations in connection with 401(k) rollovers.

These three areas have been incredibly problematic in the securities industry in recent years. First, brokerage firms have been accused of referring clients from brokerage accounts into advisory accounts even though the client does not need the advisory account. The issue is that the fee structure in the advisory account is much greater and the client receives no additional investment service that the customer needs for the increased cost. The second issue concerns complex securities products often referred to as alternative investments. These investments can be problematic because they advisors are often paid high commissions in order to sell alternative investments that are rarely appropriate for investors. Finally, in recent years there have been issues with advisors recommending a 401(k) rollover into a brokerage account. The issue is that most 401(k) plans are very cost effective for investors and keep fees very low. By contrast, brokers want to amass client’s 401(k) assets where the firm and broker can charge much higher fees for services that the client does not need. Many times the client would have been better off not transferring their accounts to an advisor due to the higher cost and the potential for unsuitable investment advice.