SEC Charges Chicago Advisor Who Allegedly Misappropriated $683,000 of Investor Funds

Posted on October 7th, 2022 at 1:08 PM
SEC Charges Chicago Advisor Who Allegedly Misappropriated $683,000 of Investor Funds

From the Desk of Jim Eccleston at Eccleston Law.

The Securities and Exchange Commission (SEC) has charged a Chicago-based advisor who allegedly misappropriated $683,000 of investor funds.

The advisor, David Wells, allegedly transferred the funds to a shell company he had created before making some risky options investments, which resulted in a loss of nearly all the funds. Wells confessed to his misconduct in a resignation letter to the registered investment advisory firm that employed him, according to the SEC.

The SEC’s complaint, which was filed in the U.S. District Court for the Northern District of Illinois, seeks a permanent bar, disgorgement, and civil penalties. According to the SEC, Wells specifically misappropriated funds from three clients, including two clients in their seventies, one of which had dementia. While the SEC did not identify the advisory firm that employed Wells, the Financial Industry Regulatory Authority (FINRA) noted that he worked for Fifth Third Securities when FINRA recently barred him from joining any member firms.

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

Tags: eccleston, eccleston law, advisors, law, sec

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