APRIL 2018 UPDATE–FINRA records for Wedbush Securities now disclose 100 final regulatory events and 2 pending regulatory events. Recent regulatory sanctions include:
- March 2018-New York Stock Exchange fine of $30,000 to resolve allegations related to inadequate supervisory systems.
- February 2018-$1 million fine by US Securities and Exchange Commission , and other sanctions, including disgorgement, restitution, cease and desist injunction to resolve allegations for violating the Customer Protection Rule between September 2014-January 2015. According to the SEC Wedbush failed to properly fund its Reserve Account and included inaccurate information in its financial reports.
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.
Florida-561 391 1900