New York, NY — October 21, 2016 — The Securities Arbitration Law Firm of Klayman & Toskes, P.A. (“K&T”), www.nasd-law.com, continues to investigate Wells Fargo Advisors for potential Financial Industry Regulatory Authority (FINRA) sales practice violations following California’s Attorney General Office search warrant which seeks bank customer records, as reported by the Los Angeles Times. According to public records there is probable cause that Wells Fargo (NYSE:WFC) violated two laws which are felony offenses, fraudulent impersonation and fraudulent use of personal information. The information sought by the warrant concerns Wells Fargo’s fraudulently opened customer accounts through “cross-selling” efforts that resulted in a recent $185 million settlement reached with Los Angeles County and federal regulators.
According to the Wells Fargo’s 3Q 2016 Quarterly Supplement, “cross-selling” referrals from Retail Banking to Wells Fargo Advisors resulted in excess of $1 billion in new deposits and $677 million in net income for the Wealth and Investment Management business lines which includes Wells Fargo Advisors, The Private Bank, Abbot Downing, Wells Fargo Institutional Retirement and Trust, and Wells Fargo Asset Management. Securities attorney, Lawrence L. Klayman, Esq., “Wells Fargo’s ability to supervise its employees, including their financial advisors, has been brought into question. The CEO, Robert G. Stumpf, has abruptly resigned, which seems to indicate that the Board recognizes the need to address the company’s culture that encouraged the opening of thousands of fraudulent accounts.” Mr. Klayman further explains, “Our investigation is focused on whether Wells Fargo prudently managed customer accounts that were opened by the firm. In some instances, Wells Fargo Advisors and its parent Wells Fargo bank may have failed to supervise the ‘cross-selling’ activities of their employees and could be responsible for any damages.”
The sole purpose of this release is to investigate whether Wells Fargo Advisors “cross-selling” efforts violated FINRA sales practice rules handling customer investment account including, unsuitable recommendations, breach of fiduciary duty, misrepresentations and omissions of material facts, unauthorized transactions and a failure to supervise. Current and former customers of Wells Fargo Advisors who have information about the sales practices of the investment firm or its financial advisors are encouraged to contact Lawrence L. Klayman, Esq. or Raymond Gentile, Esq. of Klayman & Toskes at (888) 997-9956, or visit our website at www.nasd-law.com.