Wells Fargo Investments LLC has been fined $2 million for failure to supervise the conduct of one of its brokers who sold unsuitable reverse convertible securities to elderly customers, the Financial Industry Regulatory Authority, or FINRA, announced on Dec. 15. The firm was also censured.

The fine also covered Wells Fargo’s also failure to provide sales charge discounts to eligible customers on unit investment trust transactions, or UITs, FINRA said.

A subsidiary of Wells Fargo Bank, Wells Fargo Investments LLC changed its n...

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Patricia E. Collantes, the former operations manager at the Palo Alto, Calif., office of Citigroup Global Markets Inc., has been fined and suspended by the Financial Industry Regulatory Authority, or FINRA, for her failure to supervise a sales assistant who misappropriated almost $750,000 from customers.

Collantes agreed last month to an $8,000 fine and a suspension from associating with any FINRA member in a principal capacity for four months. Collantes signed a Letter of Acceptance Waiver and Consent, or Read Full Article

According to forensic accountant and frequent expert witness Gordon Yale, the billions of dollars in allegedly fraudulent private placements sold to investors resulted partly from broker-dealers’ massive failure to meet their due-diligence responsibilities.

Yale is certified public account and principal of Yale & Co. who has worked on more than 50 lawsuits brought by investors against broker-dealers after failed deals. He has served as an expert witness for a dozen different plaintiff's lawyers in lawsuits pursuing more than $100 million in claims.

Las...

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LPL Financial LLC has been fined $100,000 for failing to supervise Jack Kleck, a broker who sold unsuitably risky investments to clients in their 80s, the Oregon Department of Consumer and Business Services announced on Nov. 22.

Boston-based LPL is a broker-dealer licensed by the State of Oregon and responsible for the activities of Kleck, once a licensed broker and the former manager of LPL’s branch office in La Grande, Oregon.

Pursuant to a consent order in which it neither adm...

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The Financial Industry Regulatory Authority (FINRA) issued a regulatory notice this month that contained the results of a survey of retail broker-dealer firms regarding the use and oversight of senior designations in an effort to better understand their approach to a vulnerable segment of the population.

One area of particular focus was the use of certifications and designations that imply expertise, certification, training or specialty in advising senior investors.

Vulnerable c...

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