FINRA Criticized Over Alleged Rigging Of Arbitration Matters Involving Wells Fargo

Posted on February 21st, 2022 at 12:09 PM
FINRA Criticized Over Alleged Rigging Of Arbitration Matters Involving Wells Fargo

From the Desk of Jim Eccleston at Eccleston Law:

Senate and House lawmakers have criticized the Financial Industry Regulatory Authority (FINRA) Dispute Resolution over the fairness of its arbitration system after a judge recently determined that a FINRA arbitration panel was biased against an investor claimant in 2019.


Senator Elizabeth Warren sent a letter last week to FINRA Chief Executive Robert Cook citing the order by Georgia Superior Court Judge Belinda Edwards to vacate an arbitration claim in which Wells Fargo had prevailed in 2019. The claim, which was filed by former Wells client Brian Leggett, accused the firm of mismanaging his account. The rigging of the arbitrator selection system allegedly occurred at FINRA several times, if not each time, a certain attorney represented Wells Fargo in an arbitration matter.


Judge Edwards determined that FINRA enabled Wells Fargo to alter the list of available arbitrators to hear the case, which compromised the neutrality of the arbitration space. Warren’s letter posed numerous questions for Cook to answer, including how arbitrators were selected for the Wells case as well as whether the firms discussed their selection with FINRA officials. Warren had previously written to Cook in 2021 after GameStop’s trading frenzy, which prompted Cook to assure her of the neutrality of FINRA’s arbitration system.


Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

 

 
 
 
 

Tags: eccleston, eccleston law, wells fargo, finra

Return to Archive

TESTIMONIALS

Previous
Next

I want to thank you for your excellent professional representation. It was greatly appreciated.

Michael M.

LATEST NEWS AND ARTICLES

April 29, 2025
Merrill Lynch Fires Veteran Advisor for Ignoring Mandated Commission Discounts

Merrill Lynch has terminated Daniel G. Diaz, a 37-year industry veteran, for refusing to apply commission discounts to certain client accounts as instructed by management, according to his Central Registration Depository (CRD) record.

April 28, 2025
Former Morgan Stanley Advisor Barred After Fraudulent Check Allegations

Roger A. Gallagher has accepted an industry bar from FINRA rather than cooperate with a regulatory investigation. According to a FINRA Acceptance, Waiver, and Consent letter (“AWC”).

April 25, 2025
Rosedale Advisory Firm Fined for Role in NCAA Player Referral Bribery Scheme

The Securities and Exchange Commission (SEC) has finalized a cease-and-desist proceeding against Rosedale, a former SEC-registered investment adviser, for violations of the Investment Advisers Act of 1940.