FINRA Fines Wedbush Securities $850,000 For Allegedly Falsifying Client Statements

Posted on November 21st, 2022 at 2:12 PM
FINRA Fines Wedbush Securities $850,000 For Allegedly Falsifying Client Statements

From the Desk of Jim Eccleston at Eccleston Law.

The Financial Industry Regulatory Authority (FINRA) has fined Wedbush Securities $850,000 to settle allegations that the firm falsified monthly client statements for five years.

Wedbush, which employs 540 registered advisors in 40 branch offices nationwide, has agreed to pay the fine without admitting or denying any of FINRA’s investigatory findings. According to FINRA, Wedbush “negligently misrepresented” monthly account statements sent to nearly 610 clients between 2013 and 2018 by indicating that 38 municipal and corporate bonds were making interest or principal payments when, in reality, the bonds were in default. While Wedbush was notified that the bonds were in default, Wedbush failed to inform the vendor it employed to maintain information about securities held by clients, according to FINRA.

FINRA additionally alleged that Wedbush failed to reasonably review the accuracy of the monthly account statements, even after a vendor notified the firm in 2016 that it was misreporting bond default information. According to the settlement, Wedbush also allegedly failed to delivery order execution and margin disclosures to nearly 14,900 clients between 2010 and 2020.

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

Tags: eccleston, eccleston law, advisors, law, finra

Return to Archive

TESTIMONIALS

Previous
Next

Jim, Stephany and the whole team were a God send.  We felt like we were put into a situation where we had no advocate. Jim’s team came in with a strong, well laid out strategy on how to get our story heard. Where our outside compliance company had no ability to help, our Broker Dealer was impenitent, and the regulators were aggressive pursuing vague rules, Jim came like a barricade against an assault we did not understand. Though you pay member dues to be affiliated with FINRA and a B/D, you have no voice. The only thing that is truly heard in this un-level playing field is a bulldog’s bark like Jim’s. I would encourage anyone to call Jim and his team to find a real ally in the tough and complicated world of securities regulation. They are truly the best.

Greg P.

LATEST NEWS AND ARTICLES

May 9, 2025
FINRA Suspends Former Wells Fargo Advisor Over Unauthorized Transfer in Elderly Client's Account

FINRA has fined and suspended former Wells Fargo financial advisor Jarrett Thomas after he executed a $50,000 transaction for an elderly client despite being informed that she was no longer capable of managing her finances.

May 8, 2025
All 50 States Now Aligned on Annuity Sales Standards

The annuity industry officially has secured uniformity in sales regulations across all 50 states.

May 7, 2025
Jury Finds Investment Advisor Liable for Failing to Disclose Annuity Commissions

A federal jury in Massachusetts has found investment adviser Jeffrey Cutter and his firm, Cutter Financial Group, liable for violating federal securities law by failing to disclose significant upfront commissions and conflicts of interest related to an annuity replacement scheme.