FINRA fined Wells Fargo Advisors for failing to reasonably supervise a representative who excessively traded in three trust accounts owned by an elderly customer, resulting in $300,000 in commissions and fees over a four-year period. Earlier, FINRA barred former Wells Fargo broker Matthew C Maczko, claiming he excessively and unsuitable traded a senior client's account, resulting in nearly $400,000-worth of trading losses.
According to AWC #2017053034301, Wells Fargo Advisors' representative placed more than 2,000 trades in the 88-year-old client's accounts over the span of several years, and the client subsequently paid at least $300,000 in commissions and other fees.
FINRA wrote that Wells Fargo failed to adequately address red flags regarding potential trading abuses, despite the firm's computer system identifying potentially unsuitable trading activity.
In a separate decision, FINRA permanently barred Wells Fargo Advisors broker Matthew Christopher Maczko for excessive and unsuitable trading in a senior citizen customer's account over several years, resulting in losses.
Investigators wrote in AWC #2016050430201 that Maczko effected over 2800 transactions generating $581,650 in commissions, $84,270 in other fees, and $397,000 in trading losses. FINRA barred Maczko after he purportedly provided inaccurate and misleading information to investigators.
Mathew Maczko's BrokerCheck file (CRD #188519) lists several settled customer disputes alleging unsuitable investment recommendations, misrepresentation, excessive commission rates, and unauthorized trades.
Wells Fargo discharged Maczko in 2016 based on concerns about the level of trading in a customer's account.
If you have invested with Wells Fargo Advisors or with any firm that failed to adequately supervise the activities of its brokers and advisers, and such supervisory failures produced an unsuitable or high velocity trading scenario that has proven harmful to your investments or interests due to excessive commissions, fees, or outright trading losses, please call an experienced FINRA arbitration attorney at The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for an investigation and consultation.