by Brian Mahany
Two former brokers working for Wachovia Securities were charged with securities fraud by the Securities and Exchange Commission. The government says William Harrison and Eddie Sawyers defrauded dozens of Wachovia customers out of at least $8 million. Wachovia is now known as Wells Fargo Advisors.
According to court records, Harrison and Sawyer told their clients that they had a “foolproof” method of trading options and promised a 35%, risk free return.
To shield the trading activity from compliance officials at Wachovia, the two opened an account in the name of Harrison’s wife.
The scheme apparently went undetected for 10 months.
Although the SEC has charged the two brokers, Wells Fargo Advisors will likely be forced to make the customers whole. Brokerage firms have a duty to supervise their employees, even if their brokers operate an independent or franchise office.
If you have been defrauded by a broker, contact the fraud recovery lawyers at Mahany & Ertl, LLC. We have helped people throughout Wisconsin and the United States.
Our skilled team of asset recovery lawyers have successfully pursued claims against stockbrokers, insurance agents, welfare benefit plans, offshore assets, Ponzi scheme promoters and even lawyers. If your claim must be arbitrated before the Financial Regulatory Authority (FINRA), we can help. In many instances our services are handled on a contingent or success fee basis meaning you do not pay unless we win.
For more information or a no obligation, no nonsense consultation, contact Brian Mahany at (414) 704-6731 or through the firm’s website, www.mahanyertl.com
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#2 by admin on June 7, 2011 - 10:38 pm
Wells Fargo is getting more than their share of bad ink these days. Between the rip off report and others coming forward with their own horror stories it is not where I would want to park my money. Unfortunately, Wells Fargo has allowed a few bad people to destroy their reputation. I know some great brokers at WF… but unless you know someone personally, how would anyone ever trust them again?
#3 by Entrepreneur Spirit on June 9, 2011 - 11:33 am
I have a few insecurities and curiosities. I am seeking to start an investment on $1,000.00…a slow pace paves the way to a secure future. I was told that the best market to invest was in BlackRock Global Allocation Fund by a WF Broker. However, I am a bit skeptical dealing with brokers since I have read horror stories on how customers are swindled. The Madoff incident was one that gave me shivers.
My question is how credible is Wells Fargo and their brokers? I completely agree that knowing someone personally is a key component, but it is also a huge risk when placing you finances in and unknown persons care. I am interested in investing my money, but have many concerns. I am familiar with the fund named above. What I am most unsure is entrusting my money in a WF Broker.
Any tips from those who have a wealth of experience?
Much appreciated,
E.Spirit