Securities Lawyers Blog
The investment lawyers at Gana Weinstein LLP have experience helping investors determine whether their portfolio losses at investment firms, such as Wells Fargo Clearing Services, LLC, were caused by broker misconduct. There are many different ways that your broker can impermissibly drain your accounts. Our attorneys can help you understand the cause of your investment losses, uncover misconduct, and apply the law to hold accountable those responsible.
Wells Fargo Clearing Services, LLC is the broker-dealer and investment adviser that does business as Wells Fargo Advisors, providing brokerage and wealth management services to individual investors, and it also offers clearing and custody services to outside brokerage firms under the First Clearing name. Headquartered in St. Louis, Missouri, the firm took its current form in 2016 when Wells Fargo Advisors, LLC and First Clearing, LLC merged, and it is a subsidiary of Wells Fargo & Company.
Wells Fargo Clearing Services, LLC – By the Numbers:
- CRD #: 19616
- Regulatory Events: 184
- Arbitration Events: 303
- Broker Employees: 17,834
Wells Fargo Clearing Services, LLC – Investment Advisors:
- SEC #: 37967
- Assets Under Management: $671,421,842,699
- ADV Form Employee: 18,895
Wells Fargo Clearing Services, LLC – In the News:
FINRA v. Wells Fargo Clearing Services, LLC (Case #2019062519601) – From January 2018 to July 2022, Wells Fargo failed to report 837,805 fractional share trades to the FINRA/Nasdaq Trade Reporting Facility (FNTRF) or the Over-the-Counter Reporting Facility (ORF). Additionally, from January 2018 to October 2023, the firm failed to report approximately 46,000 error correction trades to the FNTRF or ORF. Therefore, Wells Fargo violated FINRA Rules 6380A(b), 6622(b), and 2010. From January 2019 to April 2022, the firm violated FINRA Rules 7230A(d), 7330(d), and 2010 by failing to identify the contra side executing broker-dealer in 468,005 fractional share trade reports submitted to the FNTRF or ORF. From January 2018 to October 2023, the firm violated FINRA Rules 3110 and 2010 by failing to establish, maintain, and enforce a supervisory system reasonably designed to comply with its trade reporting obligations. For these violations, the firm agrees to a censure, a $125,000 fine, and an undertaking to pay regulatory transaction fees as described.
FINRA v. Wells Fargo Clearing Services, LLC (Case #2022073287901) – From November 2016 through November 2023, Wells Fargo failed to timely cancel or close out 209 failed inter-dealer transactions in municipal securities totaling approximately $6.5 million and failed to timely deliver I 06 municipal securities totaling approximately $3.8 million, violating MSRB Rule G-12(h). During the same period, Wells Fargo failed to promptly obtain physical possession or control of 178 short positions totaling approximately $4.1 million resulting from failures to receive municipal securities, violating Securities Exchange Act of 1934 Section 15(c)(3), Exchange Act Rule 15c3-3(d)(2), and FINRA Rule 2010.
FINRA v. Wells Fargo Clearing Services, LLC (Case #2023078410201) – From at least June 2019 to November 2024, Wells Fargo failed to establish and maintain a supervisory system, including written supervisory procedures (WSPs), that was reasonably designed to achieve compliance with Section 15B(a)(1)(B) of the Securities Exchange Act of 1934, which prohibits unregistered municipal advisory activity. As a result, Wells Fargo violated MSRB Rule G-27 and FINRA Rules 3110(a) and (b) and 2010. For these violations, Wells Fargo is censured and fined $275,000.
FINRA v. Wells Fargo Clearing Services, LLC (Case #2021073472601) – From January 2014 through March 2022, Wells Fargo failed to establish and maintain a supervisory system, including written supervisory procedures, reasonably designed to safeguard customer information. When certain registered representatives departed the firm, it failed to notify insurance carriers, resulting in the former representatives maintaining access to firm customer records and information through the carriers’ portals. As a result, the firm violated Rule 30(a) of Regulation S-P of the Securities Exchange Act of 1934, FINRA Rules 3110(a), 3110(b), and 2010, and NASD Rule 3010. The firm is censured and fined $150,000.
FINRA v. Wells Fargo Clearing Services, LLC (Case #2019062573101) – From at least 2011 through February 2023, Wells Fargo Clearing Services submitted approximately 22,000 blue sheets to FINRA that inaccurately reported one or more of 10 types of transaction information. Collectively, the firm failed to include required transactions or transaction information, or included incorrect information, for approximately 5.5 million transactions. Therefore, WFCS violated FINRA Rules 8211, 8213, and 2010.
Gana Weinstein LLP has successfully litigated broker disputes through verdict or settlement. We represent both individuals and institutions throughout the country in FINRA arbitration, as well as commercial litigation in state and federal courts. Our consultations are both free and thorough and our securities litigation attorneys can help you uncover wrongful activity in your account.