SEC Fines Wells Fargo Advisors $5 Million Over Sales Misconduct Charges

Posted on June 29th, 2018 at 11:11 AM
SEC Fines Wells Fargo Advisors $5 Million Over Sales Misconduct Charges

From the Desk of Jim Eccleston at Eccleston Law LLC:

Wells Fargo Advisors has agreed to pay the SEC over $5 million to settle claims that the firm generated large fees by improperly encouraging retail customers to trade debt securities known as market-linked investments (MLIs).

More specifically, the SEC found that Wells Fargo supervisors failed to adequately understand or investigate the costs arising from recommendations to trade the MLIs actively, when the products were intended to be held until maturity. According to the SEC, the strategy of trading MLIs before the maturity date generated returns for Wells Fargo, while reducing investor profits. Moreover, Wells Fargo brokers actively traded MLIs for customers despite the firm’s policy against “flipping” the product.

As part of the settlement, without admitting or denying its wrongdoing, Wells Fargo agreed to pay $4 million in fines, as well as pay customers restitution in the amount of $1.1 million for the firm’s misconduct.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial investors and advisors including Securities FraudCompliance ProtectionBreach of Fiduciary DutyFINRA Matters, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

Tags: james eccleston, eccleston law, eccleston law llc, eccleston, SEC, Wells Fargo

Return to Archive



We just wanted to say thanks for your work in helping us get back some of the money we lost. We are not by any means rich, but we have saved some money and we have done so through a tight-fisted approach to most everything we do. So losing a significant chunk of money hurt…especially at a time when everyone else was growing their accounts. We really appreciate the work you did.

Allan and Adele


May 17, 2024
Fidelity Advisor Files Lawsuit Alleging Wrongful Termination Over Whistleblowing

A former Fidelity Investments advisor, Michael Maeker, has initiated legal action against his former firm, alleging wrongful termination in response to his reporting of anti-investor sales tactics.

May 16, 2024
CFTC Investigates Banks for Potential Whistleblower Suppression

The Commodity Futures Trading Commission (CFTC) has initiated inquiries into several banks, including JPMorgan Chase, Bank of America, and Citigroup, regarding potentially hindering whistleblowers from disclosing information, as reported by Bloomberg News.


May 15, 2024
NFA Issues Order Against Investments LLC

The National Futures Association's (NFA) Business Conduct Committee (BCC) has taken action against Investments LLC, a former NFA Member commodity pool operator and forex firm, for violating multiple NFA compliance rules.