FINRA Suspends Former Wells Fargo Advisor Over Unauthorized Transfer in Elderly Client's Account

Posted on May 9th, 2025 at 1:36 PM
FINRA Suspends Former Wells Fargo Advisor Over Unauthorized Transfer in Elderly Client's Account

From the desk of Jim Eccleston at Eccleston Law

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. InvestmentNews reports that Thomas agreed to a $7,500 fine and a 45-day suspension, but neither admitted nor denied FINRA’s findings, according to the settlement agreement known as an
Acceptance, Waiver and Consent (“AWC”).

Thomas, who began his career with Wells Fargo Clearing Services in 2008, resigned in June 2023 amid concerns over his handling of the client’s account. In April 2023, a doctor at the client’s long-term care facility formally notified Thomas that she had advanced dementia and could no longer make financial decisions. The client’s Wells Fargo accounts were held in the name of her living trust, with the firm designated as the successor trustee upon her incapacity or death, according to the AWC.

Despite receiving this notification, Thomas failed to report the client’s condition to Wells Fargo and, in June 2023, processed a $50,000 transfer from her account based on her oral instructions. Since the client was legally incapacitated, FINRA determined that the transaction was unauthorized. Wells Fargo only became aware of the issue after Thomas resigned on June 15, 2023, two days after executing the transfer.

In an August 2023 regulatory filing, Wells Fargo disclosed that Thomas had been the subject of an internal review concerning allegations that he took instructions from an unauthorized third party, failed to maintain accurate records, and did not disclose an outside activity.

According to InvestmentNews, FINRA has previously disciplined advisors for similar misconduct, including cases involving unauthorized trading and excessive transactions that led to significant client losses. With millions of Americans aging into retirement and facing cognitive health challenges, financial professionals must remain vigilant in addressing the fiduciary risks associated with diminished capacity.

 

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

Tags: eccleston, eccleston law, finra

Return to Archive

TESTIMONIALS

Previous
Next

Thank You from the bottom of our hearts for all you have done for us. When we realized this was a very bad investment - we did not know where to turn for help. Then we received your name. When we called you - you were so kind to us and then agreed to help us. For this we are so very grateful. The world would be a much nicer place if there were more people like the two of you in it. We will always remember all the help and kindness you have shown us. Thank you so very very much for everything.

Wayne and Judy S.

LATEST NEWS AND ARTICLES

May 13, 2025
Merrill's Investment Solutions Chief Outlines Growing Role for Alternatives in Client Portfolios

At Merrill and Bank of America Private Bank, alternative investments have become a core focus of portfolio construction, according to Financial Planning.

May 12, 2025
FINRA Clarifies Proposed Changes to Outside Activities Rule

FINRA released a statement this week addressing misconceptions surrounding its proposed updates to the rules governing outside business activities by associated persons of broker-dealers.

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.