August 9, 2015
Wells Fargo Advisors entered into a Letter of Acceptance Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA) to resolve allegations that from August 2005-July 2012, the company sold $12 million worth of Structured Repackaged Asset-Backed Trust Securities (STRATS) a complex structured product through brokers that had not been properly educated regarding the risks associated with the STRATs.
FINRA found that the firm’s internal use only brochure for the STRATs were not fair and balanced and failed to provide a sound basis for evaluating the risks of investing in the STRATs.
Wells Fargo was censured and assessed a fine of $500,000. In addition they agreed to pay restitution of over $240,000.
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.
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