The securities attorneys at Gana Weinstein LLP are investigating claims against Wunderlich Securities, Inc. (Wunderlich Securities) broker Derrick Watts (Watts). According to BrokerCheck records, Watts has been subject to a regulatory matter in which the Financial Industry Regulatory Authority (FINRA) sanctioned Watts for various violations of the securities laws including churning, otherwise known as excessive trading. In March 2016, FINRA found that Watts failed to report his involvement in four unsatisfied civil judgments from 2009 to 2013 on his U4 registration form. Without admitting or denying the findings, Watts consented to the sanctions and the entry of findings. In April 2016, Watts was suspended for three months.
In addition to the FINRA sanctions, Watts has been subject to three customer complaints and two financial disclosures – including filing for bankruptcy and a tax lien.
In February 2016, Watts was discharged for bankruptcy due to failure in a real estate development that he was involved in. Bankruptcies and large tax liens are a potential sign that the advisor has difficulty managing their own finances. FINRA provides this information to the public because it is material for consumers to know whether or not their advisor’s financial situation influences the advisor’s recommendations.
Most recently, in September 2017, a customer alleged that from January 2010 to November 2015, Watts had been excessively trading the customer’s account without customer knowledge or approval.
In February 2016, a customer alleged that from January 2010 to November 2015, Watts was churning a customer’s account without customer knowledge or approval. The client requested $32,914.56 for damages. Continue Reading