FINRA Arbitrator Finds Wells Fargo Defamed Former Employee

Posted on December 4th, 2020 at 2:45 PM
FINRA Arbitrator Finds Wells Fargo Defamed Former Employee

From the Desk of Jim Eccleston at Eccleston Law LLC:

November 2020, a FINRA arbitrator found that Wells Fargo defamed a former employee on her Uniform Termination Notice for Securities Registration (“Form U-5”). The former employee served as a Wells Fargo Advisors bank branch broker from 2007 to March of 2020.  On the Form U-5 originally filed by Wells Fargo with FINRA, Wells Fargo stated that the employee was “discharged” for enrolling two clients in insurance policies with the authorization of those clients.

However, after a hearing via Zoom, the Arbitrator found that the reason for termination published by Wells Fargo on the former employee’s Form U-5 was defamatory and ordered that the reason for termination be changed from “discharged” to “other” and that the termination explanation be changed to “not for cause termination”. Given the Arbitrator’s ruling, it is reasonable to infer that Wells Fargo failed to prove that the original termination explanation was true.

Importantly, the Arbitrator also awarded the former employee $30,000 in attorneys’ fees.

Tags: eccleston, finra, wells fargo, arbitrator

Return to Archive



I learned two important things working with Eccleston Law. First, I made a friend and ally with Jim and Steph for life. Secondly, and this is a crucial life lesson - if you need counsel, then seek out the very best. Jim was referred to me by a most trusted source. I've never had to hire an attorney for anything. Now, I know the value of hiring an important partner. Meticulous, thorough and detailed in preparation is the best way to describe Jim. Brilliant too, I might add. Bottom line, I would highly highly recommend Jim and Stephany for your legal needs. One of the best life decisions I've ever made.

Howard S.


September 26, 2023
Looming Real Estate Crisis Poses Risk to U.S. Banking Sector

With the current downturn in the commercial real estate market, trillions of dollars in loans and investments pose a looming threat to both the banking industry and potentially the broader economy.

September 25, 2023
Legal Challenges Over 'Money-for-Nothing' Payments Gain Momentum

Apollo Global Management and Carlyle Group, two major private equity firms, now face investor lawsuits regarding payments made to insiders without apparent justification.

September 22, 2023
State Regulators Maintain Opposition to FINRA's Remote Supervision Pilot Program

The North American Securities Administrators Association (NASAA) and the Public Investor Advocate Bar Association (PIABA) has consistently opposed the Financial Industry Regulatory Authority's (FINRA) proposal for a voluntary three-year pilot program for remote inspections.