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Written by 7:29 am Blog, Broker Investigations, FINRA SEC Sanctions

Chicago Advisor David Wells Allegedly Defrauded Clients  

Chicago Advisor David S. Wells Allegedly Defrauded Clients, featured by top securities fraud attorneys, the White Law Group

SEC Bars David Wells for Allegedly using Senior Clients’ Cash for Secret Options Trading

The SEC has reportedly barred David Sheldon Wells, a former Fifth Third advisor who purportedly secretly used hundreds of thousands of dollars of elderly clients’ money into failed options trades.

David Wells, Fifth Third Securities, Reportedly Indicted for Fraud Scheme  

Financial advisor David Wells of Chicago, IL, has reportedly been criminally charged with allegedly stealing $683,000 from three clients, including two men suffering from dementia, according to an article in the Chicago Sun Times on February 6, 2023.  

The indictment comes more than four months after the Securities and Exchange Commission filed its own charges against Wells.  

Between 2020 and 2021, Wells allegedly lied to his clients that he would invest their money in publicly traded companies, according to a federal indictment.  

Wells allegedly instructed his clients to buy cashiers’ checks made out to “Wayne and Stark,” which Wells purportedly claimed was a publicly traded company, according to the charges. However, Wayne and Stark was a shell company allegedly set up and controlled by Wells.  

The charges allege that Wells spent the money on personal expenses such as rent and unauthorized trading in “high-risk options contracts,” according to the charges.  According to the SEC’s parallel charges, Wells lost most of the money through risky options trading.   

According to his broker report, David Wells was affiliated with the following firms during his career in the securities industry:  

 06/06/2019 – 07/16/2021, FIFTH THIRD SECURITIES, INC. (CRD#:628), CHICAGO, IL,
B, 06/26/2017 – 06/12/2019, MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED (CRD#:7691), MOUNT PROSPECT, IL  

FINRA Attorneys to Recover Investment Losses    

The Financial Industry Regulatory Authority (FINRA) operates the largest securities dispute resolution forum in the United States, and provides a fair and effective venue to handle a securities-related dispute   

When brokers violate securities laws, such as making unauthorized transactions or unsuitable investments, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.

Free Consultation
   

If you have suffered losses investing with David S. Wells, the securities attorneys at the White Law Group may be able to help you by filing a FINRA claim. For a free consultation with a securities attorney, please call (888) 637-5510.       

The foregoing information, which is all publicly available, is being provided by The White Law Group. 
 
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Seattle, Washington. 
       

 

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