Wells Fargo and Former Advisor Ordered to Pay Customers In Churning Dispute

Posted on August 22nd, 2022 at 1:39 PM
Wells Fargo and Former Advisor Ordered to Pay Customers In Churning Dispute

From the Desk of Jim Eccleston at Eccleston Law.

A Financial Industry Regulatory Authority (FINRA) arbitration panel has ordered Wells Fargo and a former advisor to pay a Pennsylvania couple at least $731,000 over a churning dispute that last nearly five years.

The couple initially filed their claim with FINRA in October 2017 alleging that their Wells Fargo advisor repeatedly violated their fiduciary duty by churning accounts, completing unauthorized trades, and recommending unsuitable investments. According to FINRA, the advisors additionally failed to minimize expenses and tax liability. The former Wells Fargo advisor, Gregory Pease, departed the firm in January 2017 and has not been registered as an investment advisor since May 2021.

According to the arbitration claim, Pease “unilaterally altered risk profiles on Claimants’ account application forms, routinely churned Claimants’ investments through various investment vehicles, and placed Claimants in many investments and portfolios that exceeded Claimants’ stated risk tolerance.” The couple, Edward and Wendy Pesicka, alleged that the investments were “made with the sole purpose of generating additional commission or fees in Pease’s favor.” While the couple prevailed in arbitration, the award fell substantially short of the $9.4 million in damages the couple was initially seeking.

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

Tags: eccleston, eccleston law, advisors, law

Return to Archive

TESTIMONIALS

Previous
Next

I learned two important things working with Eccleston Law. First, I made a friend and ally with Jim and Steph for life. Secondly, and this is a crucial life lesson - if you need counsel, then seek out the very best. Jim was referred to me by a most trusted source. I've never had to hire an attorney for anything. Now, I know the value of hiring an important partner. Meticulous, thorough and detailed in preparation is the best way to describe Jim. Brilliant too, I might add. Bottom line, I would highly highly recommend Jim and Stephany for your legal needs. One of the best life decisions I've ever made.

Howard S.

LATEST NEWS AND ARTICLES

January 27, 2026
FINRA Sanctions, Criminal Cases, and Industry Bars in 2025

AdvisorHub has compiled a year-end review of enforcement actions and criminal proceedings.

January 26, 2026
James Eccleston Named 2026 Super Lawyer in Securities Litigation

Eccleston Law announces James Eccleston's selection to the 2026 Illinois Super Lawyers list, continuing a track record of excellence since 2005.

January 26, 2026
FINRA Enforcement Actions for Reg BI Violations Surge Past 2024 Levels

The Financial Industry Regulatory Authority (FINRA) already has brought more Regulation Best Interest cases in 2025 than it did during all of 2024, according to statements from the regulator’s top enforcement official and a review of FINRA’s disciplinary records by AdvisorHub.