Category Archives: Wells Fargo

Churning, Failure to Supervise, FINRA, Finra Investigation of Stockbroker, Misrepresentation, Stifel Nicolaus & Co., Stockbroker Malpractice, StockBroker Misconduct, UIT (Unit Investment Trust), Unsuitable Investments, Wells Fargo

Kurt Gunter-Former Stifel Nicolaus Broker-Sanctioned Over UIT Sales-Austin, TX

November 2020- Austin, TX 

According to his FINRA record  Kurt Jason Gunter a financial advisor currently employed by Wells Fargo Clearing Services has recently been sanctioned by FINRA for unsuitable sales of unit investment trusts (UITs).

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.

In November 2020 Gunter, without admitting or denying the findings, agreed to a three month suspension and a fine of $10,000 to resolve FINRA’s allegations that from July 2013-December 2016 he engaged in an unsuitable pattern of short-term trading of UITs in customer accounts at Stifel Nicolaus.

In addition, FINRA found that Gunter signed switch letters that were sent to customers that contained inaccurate or missing information about the costs they were incurring as a result of early rollovers of UITs.

Unit Investment Trusts are designed to be long term investments and short term trading is generally improper. According to FINRA findings, Gunter recommended that his customers roll over UITs more than 100 days prior to maturity on more than 270 occasions. As a result customers incurred unnecessary sales charges and the recommendation was unsuitable in view of the frequency and cost of the transaction.

On average, according to FINRA, the switch letters that contained inaccurate information understated the sales charges incurred by customers by about $2,500.

Kurt Gunter was employed by Stifel Nicolaus from 6/2013-8/2017. Since 8/2017 he has been employed by Wells Fargo Clearing Services in Bee Cave, TX.

If you had an account with Kurt Gunter that suffered losses, or if you were a victim of his short term UIT switching  scheme,  you may be entitled to collect damages from his prior employer.

Call for a no charge consultation 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

Failure to Supervise, Finra Investigation of Stockbroker, Selling Away, Stifel Nicolaus & Co., StockBroker Misconduct, Unregistered Securities, Wells Fargo

Jason Dukas-Former Stifel Nicolaus & Co Broker-Discloses Regulatory Event and a Termination- Clearwater, FL

November 2020- Clearwater, FL

According to publicly available records Jason Dukas (CRD#4188239), a  stockbroker with  Stifel, Nicolaus & Company, discloses a regulatory event and a termination from employment.

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.

In May 2020, in case #2017055028101, FINRA alleged that Dukas participated in a private securities transaction involving a customer of his member firm without providing prior written notice to his firm.   The findings stated that Dukas participated in an investment by the customer in a start-up  company away from the firm.   He solicited the transaction by recommending the investment to a customer, arranging for the customer to attend a promotional meeting about the company and provided advertising materials about the company to the customer.     He helped facilitate the transaction by forwarding a promissory note and other investment related documents to the customer.    Sanctions were a nine month suspension starting June 2020 until February 2021 and a $15,000 fine.

In June 2017 Dukas was allowed to voluntarily resign from his employment with Wells Fargo Clearing Services after allegations that his conduct related to a private security conflicted with the firm’s policy related to private securities transactions.

Dukas has worked with Stifel Nicolaus & Co., Inc. since August 2017.   Before that time he was employed with Wells Fargo Clearing Services, Wells Fargo Advisors and Morgan Stanley Smith Barney. 

If you had an account with Jason Dukas that suffered losses, you may be entitled to collect damages from his prior employer. 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

Energy Securities, Failure to Supervise, Oil and Gas Partnerships, Oil related investments, Stockbroker Malpractice, StockBroker Misconduct, Unsuitable Investments, Wells Fargo

Richard DeYoung, Jr.-Wells Fargo Broker-Discloses $750,000 Customer Award

October 2020- The Woodlands, TX

According to publicly available records Richard DeYoung, Jr. (CRD#863849), a stockbroker with  Wells Fargo Clearing Services,  discloses that a FINRA arbitration panel awarded substantial damages to a Wells Fargo customer who claimed that he had been sold speculative, unsuitable investments.

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.

In FINRA case #17-01426 a Well Fargo customer whose account was handled by DeYoung alleged the following causes of action:  unsuitability, common law negligence, breach of contract, respondeat superior, control person and aider liability and failure to supervise. The investments at issue included Breitburn Energy Partners and Linn Energy.   After a full evidentiary hearing, the arbitration panel awarded damages of $750,000, plus interest and costs.

If you had an account with Richard Deyoung that suffered losses, you may be entitled to collect damages from his prior employer. 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

Stockbroker Discharged, Stockbroker Malpractice, StockBroker Misconduct, Unsuitable Investments, Wells Fargo

Leonard “Lenny” Kinsman-Former Wells Fargo Broker- Subject of Customer Suits & Regulatory Bar-Staten Island, NY

June 2020-Staten Island, NY

According to publicly available records of Leonard “Lenny” Kinsman (CRD#2816535) ,  a former broker who was last registered with Wells Fargo Advisors Financial Network, discloses 5 prior customer disputes and a regulatory action resulting in his bar from the securities industry..

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.

In 5/2020 FINRA barred Kinsman from the industry after he failed to appear for on the record testimony in an investigation related to his termination from his firm and sales practice complaints. The findings stated he had been discharged for unprofessional conduct.

A customer of Kinsman’s previous employer, Wells Fargo Advisors Financial Network,  alleging that they were told their investment was principal protected, would be guaranteed an annual return of at least 5%, and had no fees associated with it.   The case settled for $24,000.

A customer of Citigroup Global Markets, Inc., alleged the sale of an auction rate security that was made prior to the widespread illiquidity in the ARS Market.    The case was settled for $200,626.

A Royal Hutton Securities Corp. customer alleged suitability, misrepresentation, churning and omission of facts.    The case settled for $180,000.

A Wells Fargo Advisors Financial Network, customer alleged that from 2012 through 2017, Kinsman made unsuitable investment recommendations as well as forging and falsifying business records.  That case was settled for $995,000. FINRA case 19-0957.

Kinsman was employed with Wells Fargo Advisors Financial Network, from June 2014 until July 2019.   Before that time he was employed by Merrill Lynch, Pierce, Fenner & Smith Incorporated, Wells Fargo Advisors, Citigroup Global Markets, inc., Citigroup Investment Services, and Royal Hutton Securities. 

If you have questions about an account with Leonard Kinsman , 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

Failure to Supervise, Finra Investigation of Stockbroker, Raymond James, Stockbroker Discharged, Stockbroker Malpractice, StockBroker Misconduct, Unsuitable Investments, Wells Fargo

Dave Sears, Jr. -Former Wells Fargo Broker- Barred from Securities Industry-San Antonio, TX

April 2020- San Antonio, TX

The FINRA records of Vernon David “Dave” Sears, Jr. , a broker previously employed  by  Wells Fargo Clearing House, disclose  a regulatory event resulting in his bar from the securities industry, 2 customer disputes and a termination.

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.

In February 2020, Sears  was permanently barred from the securities industry by FINRA after allegations that he failed to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.

In September 2017 a Wells Fargo Advisors client, who was also his fiance,  alleged that Sears forged her signature on the application to open a joint account for the client and himself when he was supposed to open an individual account for her.   She further alleged that Sears then transferred the funds she deposited into his personal account.   The matter was settled for $35,000 in 8/2018.

In November 2015 a Wells Fargo Advisors client alleged that he was not told that withdrawals from his annuity account would impact his potential for annual step ups in value, nor that the annual step ups would not continue for the beneficiary of the policy after his death.  The matter settled for $45,135 in 12/2015.

Sears was employed with Wells Fargo Clearing Services  from August of 2014 to April of 2018 when he was discharged for concerns related to Sears’ unit investment trust (UIT) sales practices including concerns related to Sears’ analysis of clients’ ability to hold to maturity.    Prior to that Sears worked with Raymond James & Associates, Inc. 

If you have problems in an account  handled by David Sears, Jr.  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.

International Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 

Texas-512-329-2870