The White Law Group Reviews the Regulatory History of Wedbush Securities
Wedbush Securities, (CRD #877, Los Angeles, CA) is a national financial advisory and brokerage firm. According to its FINRA BrokerCheck report, the firm reportedly has over 200 disclosure events, including 142 regulatory actions, 60 arbitrations, and 3 civil events.
Regulatory actions against a broker-dealer may include censures, fines, suspensions, or restitution, and can significantly impact a firm’s reputation and compliance record. Below is a review of notable FINRA and SEC sanctions, disciplinary actions, and customer complaints involving Wedbush Securities.
November 2025: Wedbush Sanctioned for Customer Protection and Disclosure Failures
On November 7, 2025, FINRA announced that Wedbush Securities was censured and fined $150,000 for multiple violations of federal securities laws and FINRA rules.
Between June 2018 and December 2022, Wedbush reportedly violated Section 15(c)(3) of the Securities Exchange Act of 1934, Exchange Act Rule 15c3-3, and FINRA Rule 2010 by failing to maintain possession or control of customers’ fully paid and excess margin securities.
During that same period, Wedbush allegedly violated FINRA Rules 3110 and 2010 by failing to establish and maintain a supervisory system reasonably designed to ensure compliance with Rule 15c3-3.
Additionally, between August 2022 and August 2023, Wedbush purportedly violated MSRB Rule G-15 and FINRA Rules 2232 and 2010 by failing to disclose required mark-up and mark-down information on retail customer confirmations.
The firm also allegedly failed to establish and maintain an adequate supervisory system, violating MSRB Rule G-27 and FINRA Rules 3110 and 2010. For these violations, FINRA imposed a $150,000 fine and a censure.
September 2024: Wedbush Sanctioned for Unsuitable Investments
In September 2024, FINRA sanctioned Wedbush with a censure and fine for supervisory failures involving unsuitable recommendations of variable rate structured products (VRSPs).
From 2015 through 2019, Wedbush representatives allegedly recommended VRSPs to customers with low or moderate risk tolerances, leading to inappropriate concentrations and significant sales charges.
August 2023: SEC Fine for Off-Channel Communications
In August 2023, Wedbush Securities was fined as part of a broader SEC action for brokers’ private messaging on WhatsApp and other platforms. The SEC described violations as “pervasive at all seniority levels,” and Wedbush agreed to pay $10 million in penalties.
November 2022: FINRA Sanctions for Misleading Customer Statements
In November 2022, FINRA censured and fined Wedbush Securities $850,000 for misrepresenting information on monthly client statements between 2013 and 2018.
More details: FINRA Sanctions Wedbush Securities for Regulatory Failures
December 2021: SEC Charges for Distributing Unregistered Shares
Wedbush agreed to pay more than $1.2 million after the SEC found that the firm unlawfully distributed nearly 100 million unregistered microcap shares.
SEC order: SEC Administrative Proceeding
Additional Disclosure and Supervision Failures
- September 2019: The SEC sanctioned multiple firms—including Wedbush—for share class disclosure failures.
- February 2018: FINRA fined Wedbush $1.5 million for net capital deficiencies and improper customer reserve calculations.
Pump-and-Dump Supervision Failures
In March 2018, Wedbush was labeled a “recidivist” by the SEC for ignoring red flags related to a representative engaged in a long-running pump-and-dump scheme.
SEC release: SEC Press Release
Broker Misconduct and Customer Complaints
Wedbush has faced multiple broker misconduct issues, including unauthorized trading, excessive trading, and elder abuse.
June 2023: FINRA barred a representative in Napa, CA after an internal review relating to excessive and unauthorized trading. Broker report: FINRA BrokerCheck
January 2019: FINRA suspended former Wedbush advisor Mark Heiden for unauthorized trading and other violations. More information: FINRA Broker Report
FINRA Arbitration Award: $1.4 Million for Elder Abuse
In June 2017, a FINRA arbitration panel ordered Wedbush to pay $1.4 million after finding elder abuse and unauthorized trading involving municipal bonds and structured CDs.
FINRA’s Supervision Rule
All broker-dealers have a duty to reasonably supervise their financial advisors and maintain systems designed to detect misconduct. When firms fail to supervise, they may be held liable for investor losses through FINRA arbitration.
Class Action vs. Individual FINRA Arbitration
Class actions may benefit smaller claims, but investors with losses over $100,000 often achieve better results through individual FINRA arbitration.
Free Consultation with a Securities Attorney
The White Law Group is a national securities fraud and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington.
If you have concerns about investments made through Wedbush Securities, please call (888) 637-5510 for a free consultation with a securities attorney.
FAQs about Wedbush Securities
1. What are the most recent FINRA sanctions against Wedbush Securities?
In November 2025, FINRA fined Wedbush Securities $150,000 for multiple violations related to customer protection, confirmations, and inadequate supervision.
2. Can I recover investment losses caused by Wedbush through FINRA arbitration?
Yes. FINRA arbitration allows investors to pursue claims for unsuitable recommendations, unauthorized trading, or supervisory failures.
3. How can I check my Wedbush advisor’s disciplinary history?
You can review your broker’s record through FINRA’s BrokerCheck: https://brokercheck.finra.org/
