The White Law Group reviews the regulatory history of Wells Fargo Clearing Services, LLC.
Wells Fargo Clearing Services, LLC (CRD#: 19616 / SEC#: 801-37967, 8-37180), based in St. Louis, Missouri, is a dual-registered broker-dealer and investment adviser operating under the trade name Wells Fargo Advisors. According to FINRA BrokerCheck, the firm has reported 486 disclosure events, including 303 arbitrations, 181 regulatory actions, and 2 civil matters.
This post explores recent regulatory sanctions, enforcement actions, broker misconduct, and potential claims for investors involving Wells Fargo Clearing Services.
Recent Regulatory Sanctions (2023–2025)
- April 28, 2025 – California Department of Insurance: Fined $2,500 for failing to disclose administrative actions and respond to background inquiries.
- May 19, 2025 – FINRA Sanction: Censured and fined $150,000 for supervisory failures related to compliance and oversight.
- January 17, 2025 – SEC Action: Censured and fined for failure to implement adequate procedures for its Bank Deposit Sweep Program.
- December 20, 2024 – SEC & FINRA Actions:
SEC: Over 11,000 inaccurate Electronic Blue Sheet submissions (2018–2023); firm censured and fined.
FINRA: Supervisory and reporting deficiencies; firm censured and fined $300,000. - September 12, 2024 – FINRA: Ordered to pay nearly $3 million (including fines and disgorgement) for failure to supervise reps who made unsuitable recommendations of long-term products for short-term trading.
- September 5, 2023 – Maine Office of Securities: Fined $5,000 for failing to conduct a branch inspection at a remote office.
Broker Misconduct & FINRA Bars
- Sevag Raffi Haddadian (CRD#: 3249290) – Barred by FINRA (2023) after failing to respond to regulatory requests following multiple suspensions.
- Michael Jay Sharenow (CRD#: 1195028) – Formerly with Wells Fargo and RBC Capital; record includes multiple customer disputes involving unsuitable investments.
- Joe David Gainer Jr (CRD#: 4517367) – Barred by FINRA (2023) for failing to cooperate in an investigation involving a $3 million gift from a client.
- Louis Peter Goff (CRD#: 4882759) – Barred by both FINRA and the SEC (2024) for participating in a fraudulent $2.1 million offering involving false statements and misappropriation of funds.
- Mario E. Rivero Jr. (CRD#: 5856503) – Pleaded guilty in 2023 to stealing $626,000 from clients while registered with Wells Fargo (2010–2020).
- James Dunn Jr. (CRD#: 6084258) – Barred by FINRA after 22 customer complaints and unauthorized trades in client accounts.
- Kenneth Welsh (CRD#: 4657872) – Charged by the SEC (2021) for stealing $2.86 million from elderly and unsophisticated clients through unauthorized transactions.
Notable Wells Fargo Regulatory Cases & Settlements
Unsuitable Investment Recommendations – FINRA Case (2024)
From 2017–2018, 40 Wells Fargo reps recommended short-term trading of long-term products like closed-end funds and preferred stock. Wells Fargo earned $1.8M in commissions but agreed to pay:
- $400,000 fine
- $600,000 restitution
- $2 million disgorgement
Early UIT Rollovers – $2.7 Million Settlement (2021)
FINRA found that Wells Fargo reps recommended early rollovers of Unit Investment Trusts, resulting in excessive sales charges. Wells Fargo paid:
- $550,000 in fines
- $2.083 million in restitution
Inaccurate REIT & DPP Valuations – $300,000 Fine (2020)
FINRA cited the firm for failing to provide accurate valuations on non-traded investments.
Variable Annuity Switch Failures – $2 Million Total (2020)
Failure to supervise switches from variable annuities led to:
- $1.4M restitution to 100 customers
- $675,000 in fines
Inverse ETF Sales – SEC Fine of $35 Million (2020)
The SEC fined Wells Fargo for failing to supervise and train reps on the risks of single-inverse ETFs, leading to inappropriate sales to retail investors.
Wells Fargo Lawsuits Filed by The White Law Group
In May 2023, The White Law Group filed a FINRA arbitration claim against Wells Fargo Clearing Services on behalf of a Florida investor for losses related to unsuitable high-risk equity investments. Claims included:
- Breach of fiduciary duty
- Negligence and negligent supervision
- Damages sought: $1–2 million
Can I Sue Wells Fargo Clearing Services?
Brokerage firms like Wells Fargo are responsible for supervising their financial advisors. When they fail, and misconduct occurs—such as unauthorized trading, fraud, or unsuitable investment recommendations—they may be liable for damages through FINRA arbitration.
If you’ve lost money due to misconduct by Wells Fargo or its advisors, you may be eligible to file a claim for recovery.
Contact The White Law Group
The White Law Group is a national securities fraud and investor protection law firm with offices in Seattle and Chicago. Since 2010, our firm has handled over 800 FINRA arbitration claims.
Call 888-637-5510 for a free consultation or visit us online to learn more.
FAQs – Wells Fargo Clearing Services
- What types of misconduct has Wells Fargo Clearing Services been fined for?
Wells Fargo has been fined for supervisory failures, unsuitable recommendations, inaccurate trade reporting, compliance failures, and inadequate policies tied to high-risk investments. - Can I file a lawsuit if I lost money with a Wells Fargo broker?
Yes. If your broker made unsuitable investment recommendations or engaged in misconduct, you may be eligible to recover losses through FINRA arbitration. - How much has Wells Fargo paid in fines recently?
Since 2020, Wells Fargo has paid over $43 million in fines, restitution, and disgorgement for regulatory violations and supervisory failures.
