Miller Stern Lawyers – 410-Law-Firm is currently investigating clients of Wells Fargo Advisors who are victims of, and suffered damages and losses, due to the failure to supervise. It has been reported that Wells Fargo Advisors has agreed to pay more than $550,000 in fines and restitution for failing to follow up on warnings it received about two now-barred California brokers who piled their customers into speculative energy stocks, according to FINRA. Miller Stern Lawyers recently won a $1.5 Million award against Stifel for similar actions of piling their customers into biotechnology and health care stocks.
According to FINRA, the firm failed to investigate trading across customer accounts managed by the brokers. Red flags were raised about overconcentration in the accounts of four customers in a single, low-priced energy stock (ranging from 35.2% to 87.0%), according to a consent letter signed on Thursday by Wells Fargo Advisors CEO Jim Hays.
According to Advisor Hub, Seventy customers of the former Irvine, Calif.-based brokers ultimately lost more than $10 million when energy stocks tanked in 2014 and 2015. The advisors recommended four stocks for three years through October 2015, representing a substantial portion of assets for many of the customers, according to the acceptance, waiver and consent letter.