Wells Fargo Faces New Investigation

Posted on April 3rd, 2018 at 5:15 PM
Wells Fargo Faces New Investigation

From the Desk of Jim Eccleston at Eccleston Law LLC:

Massachusetts Secretary of the Commonwealth, William Galvin, has announced that he is opening a probe into Wells Fargo's wealth management division. Secretary Galvin has stated that the inquiry is necessary to determine if Wells Fargo sold inappropriate investments to its clients and if it steered them into high-cost advisory accounts.

More specifically, Secretary Galvin asserted that his office will determine if Wells Fargo Advisors made unsuitable product and retirement planning recommendations, as well as examine Wells Fargo’s potential reverse churning, a practice of placing investor funds in a fee-based account for no reason other than to collect fees.

Secretary Galvin’s announcement comes more than 18 months since Wells Fargo’s banking division went through its own scandal where it had allegedly opened millions of fee-bearing bank accounts in clients' names without their knowledge.

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.

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