Tag Archives: wedbush securities complaints

Wedbush Securities Named In 97th Regulatory Complaint

OCTOBER 2017

On October 16, 2017, NYSE Regulation (New York Stock Exchange)  filed a Statement of Charges against Wedbush Securities and its co-founder Edward W. Wedbush. This brings the total number of regulatory complaints disclosed on the FINRA website, by Wedbush Securities, to 97.

A few of the prior disciplinary actions related to supervisory deficiencies include:

  • Wedbush Securities, et al Admin Proc File No. 3-16329, Aug 2016- The Securities and Exchange Commission upheld a FINRA order imposing a fine of $300,000 against Wedbush Securities and $50,000 against Mr. Wedbush for extensive and widespread supervisory deficiencies related to regulatory filings. Mr. Wedbush was suspended in all principal capacities for 31 days.
  • December 2015-Wedbush Securities consented to fines of $1.8 million in four related matters brought by the SEC and other regulators concerning deficient supervisory systems and procedures governing market access and anti-money laundering requirements.
  • In addition to the above, Wedbush Securities was fined over $2 million by regulators in more than a dozen separate actions brought by regulators during the decade before.

In the current regulatory matter Wedbush Securities is alleged to have participated in a systemic failure to oversee and supervise the trading activities of Mr. Wedbush which resulted in an allocation of profits and losses in his daily trading to accounts after the trade has been made, ie; after the fact.

CHERRY PICKING-This failure of oversight failed to protect investors and allowed “cherry picking” according to the NYSE. Cherry picking is when traders choose to allocate winning and losing trades to customer accounts as they decide at the end of the day. It is not uncommon for the trader who is cherry picking to allocate the winning trades to his own accounts and allocate the losing trades to other.

Wedbush Has Offices Nationwide 

Wedbush Securities is headquartered in Los Angeles, CA, and employs over 400 brokers in 100 branch offices, including :

  • Carlsbad, New Mexico
  • Dallas, Texas
  • Boca Raton, Miami and Sun City Center, Florida
  • Denver, Colorado Springs and Greeley, Colorado

If you have questions about how your account has been handled at Wedbush Securities, call to discuss your options.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Wedbush Securities Ordered to Pay Customer $1.8M For Elder Abuse-Los Angeles, CA

Los Angeles, CA-July 2017

A Financial Industry Regulatory Authority (FINRA) arbitration panel comprised of three public arbitrators ordered Wedbush Securities to pay two former customers (husband and wife) compensatory damages of $250,000. In addition the arbitration panel, who found that Wedbush subjected the couple to elder abuse,  awarded punitive damages of over $1 million and attorney fees of $277,000 pursuant to the California Elder Abuse and Adult Civil Protective Act, interest and costs.

The former customers alleged a number of causes of action, including unsuitable recommendations, failure to supervise the broker, misrepresentation and elder abuse in connection with investments in long term municipal bonds and structured certificates of deposit. Dancy, et al vs. Wedbush Securities, FINRA Case #16-0847.

FINRA ARBITRATION

Arbitration is similar to going to court, however it is generally less costly and a shorter process than court litigation. Most cases are resolved in about 12-14 months. If you have losses in your brokerage account which you believe are the result of negligent or fraudulent advice given to you by the broker, or if you believe your broker has made trades in your account without your permission (unauthorized trading) call to learn how you may be able to recover damages through FINRA arbitration.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Matthew J. Ronan-ViewTrade Securities Broker-Discloses Pending Regulatory Investigation

Boca Raton, Florida

According to FINRA recordsMatthew J. Ronan  a stock broker who works for ViewTrade Securities  discloses  a customer dispute that has been finalized and a pending regulatory investigation.

The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.

Ronan’s FINRA record discloses that FINRA instituted an investigation in September 2015 for potential violations of Section 5 of the Securities Act of 1933 and FINRA Rule 2010. Examination #20140404879.

Section 5 of the Securities Act of 1933 regulates the timeline and distribution process for issuers who offer securities for sale. FINRA Rule 2010 is entitled Standards of Commercial Honor and Principles of Trade and states that “A member, in the conduct of its business, shall observe high standards of commercial honor and just and equitable principles of trade.”

Ronan’s  previous employment includes Wedbush Securities and Oppenheimer & Co.

If you have questions about an account handled by Matthew J. Ronan, call for a no charge consultation.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Wedbush Securities Ordered to Pay Customer $350K in FINRA Arbitration

January 22, 2015- Los Angeles, CA

A FINRA arbitration panel in Los Angeles, CA, ordered Wedbush Securities to pay a customer $251,000 in compensatory damages and attorney fees of over $100,000. The customer brought claims for breach of fiduciary duty, constructive fraud, failure to supervise and alleged that the broker engaged in unauthorized trading. Karen Celehar v. Wedbush Securities, Inc. FINRA Case# 13-03313. 

If you have questions about losses in your brokerage account, call to speak with an experienced securities attorney.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Wedbush Fined/Sanctioned by Securities Regulators Over Supervison/Reporting Issues

December 11, 2014

The Financial Industry Regulatory Authority (FINRA) rendered a decision in Complaint #20070094044, appealing the sanctions imposed ay an earlier decision by a FINRA hearing panel against Wedbush Securities and Edward William Wedbush. It  the earlier hearing the panel found  that the company committed various regulatory failures with respect to the reporting of customer complaints and that its founder/president Edward Webush failed to reasonably supervise regulatory reporting.

The appeal affirmed the liability findings of the panel and modified the sanctions, imposing a $300,000 fine on Wedbush Securities and a 31 day suspension in all principal capacities and $50,000 fine on Mr. Wedbush.

According to the decision, “The Firm’s reporting failures included substantial settlements with customers, FINRA and SEC Wells Notices, criminal matters, bankruptcies, customer complaints and arbitration filings.”

With regard to prior supervision issues, the decision notes: “We considered the Firm’s extensive disciplinary history with respect to supervision failures. In the past 10 years alone, the Firm has been fined approximately $2,000.000 by FINRA, NASD and NASDAQ in 16 separate disciplinary actions and settlements involving supervisions failures. The Firm’s disciplinary history coupled with its failure to remedy regulatory reporting problems despite repeated warnings from regulators present a significant aggravating factor in our determination of sanctions”

If you have questions about losses in your brokerage account, call us to discuss your options.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870

Former LPL Broker Sanctioned By Securities Regulators-Unauthorized Trading

In July 2014, the Financial Industry Regulatory Authority (FINRA) fined former LPL Financial broker Richard D. Lewis $5,000 and suspended him for 20 business days for making over 80 discretionary trades in the securities account of a customer without obtaining written authorization and without having first obtained permission from LPL Financial. 

According to FINRA records, Lewis is currently registered with J.W. Cole Financial. He was registered with LPL Financial from 12/2010-4/2013 and prior to that Wedbush Securities 7/2005-12/2010.

Rex Securities Law provides nationwide representation to investors seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.  Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Rex Securities Law

561 391 1900