A Financial Industry Regulatory Authority (FINRA) arbitration panel ordered Wells Fargo Institutional Securities LLC to repurchase $2.2 million in auction rate securities from two investors and a trust, an amount over $1 million less than the $3.3 million the investors had initially sought for full reimbursement of the face value of the securities.
In 2010, two investors filed this case against Wells Fargo, claiming that the broker-dealer misrepresented investments and engaged in fraudulent conduct.
While FINRA did not find Wells Fargo culpable for fraud, the ruling panel determined the investors "were not treated fairly." For instance, when Wells Fargo reached a $1.4 billion settlement with the State of California's attorney general in 2009 over auction rate securities that became illiquid, the company failed to include some investors' claims.
If you believe a firm or broker has engaged in practices that have proven harmful to your investments, please call The Law Offices of Jonathan W. Evans & Associates at 818-760-9880 for an investigation and consultation.