Former Wells Fargo Advisor Suspended For Unauthorized Bitcoin Purchase

Posted on December 17th, 2021 at 1:42 PM
Former Wells Fargo Advisor Suspended For Unauthorized Bitcoin Purchase

From the Desk of Jim Eccleston at Eccleston Law:

The Financial Industry Regulatory Authority (FINRA) has issued a $10,000 fine and suspended former Wells Fargo advisor, Johan Pereira, for seven months after a client hired him to assist with investing in bitcoin. 

According to FINRA, the Massachusetts-based advisor had directed clients through an approved outside business activity (OBA). However, the crypto advising exceeded the scope of what previously had been authorized by Wells Fargo. According to FINRA, Pereira violated FINRA Rule 3270 as well as Rule 2010, which requires “high standards”, by failing to “fully disclose” the nature of the outside business. Pereira joined Wells Fargo in 2017 and agreed to the suspension without admitting or denying FINRA’s findings. 

According to Wells Fargo, the firm terminated Pereira in February 2020 for allegedly “exceeding the conditions placed on his approved outside business activity by assisting an individual to purchase bitcoin for his business.” Wells Fargo did not offer bitcoin as an option to client at the time, according to the disclosure. Upon joining Wells Fargo, Pereira informed the firm that he would not provide advice on financing, investments or financial planning through his outside business, which Wells subsequently approved, according to FINRA.  

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

Tags: eccleston, eccleston law, wells fargo, bitcoin

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