by Brian Mahany
Broker dealers have bad days just like the rest of us. Everyone makes mistakes and no firm can satisfy every investor. When I saw a headline indicating that Wedbush Securities Inc was ordered to pay $3.5 million, however, the amount alone was enough to warrant some investigation. It turns out that Wedbush has a long and sordid history with regulators.
In the case reported today, a Financial Industry Regulatory Authority (FINRA) arbitration panel ordered Wedbush to pay a former employee $3.5 million in back pay. Perhaps more telling, the panel called Wedbush’s actions towards its former employee a “morally reprehensible failure.” It turns out that this isn’t the only failure by Wedbush in recent years.
A search of FINRA regulatory events reveals the firm has recently been tagged and accused of wrongdoing 52 times by regulators. Not enough? Their arbitration history shows 51 cases against the firm in recent years as well. Millions of dollars of in judgments have been entered against Wedbush – some for some very serious conduct. Breach of fiduciary duty, breach of contract, fraudulent activity and failure to supervise are among a few of the recent charges.
For its part, Wedbush has approximately 1000 brokers. Their website says they are dedicated to your financial success – the question is whether the company is rewarding the personal success of their customers or simply lining their own pockets.
Any organization is liable to have the occasional rotten apple. Wedbush seems to be rife with them. Over a 100 violations claimed in recent years should be cause for concern.
Stockbrokers and their employers can be held responsible for lying to their clients, fraud and even improper markups on the products they sell. In the case of Wedbush, there seems to be many significant problems. If you purchased municipal securities or other investment products through Wedbush, contact us. You may be entitled to recoup any losses caused by their negligence.
For more information, contact Brian Mahany at (414) 704-6731 or by email at Our stockbroker fraud lawyers have helped people across the United States. In many cases, we can represent you on a pure contingent fee basis meaning you need not worry about finding money for a lawyer.
Mahany & Ertl, LLC – stock fraud attorneys. Offices in Milwaukee, Wisconsin; Detroit, Michigan, Portland, Maine and (coming soon) San Francisco.