Client wins $357K clawback in arbitration from Wells Fargo over unsuitable investments

The award cited investments made in unspecified energy and housing products

Mar 13, 2017 @ 3:00 pm

By Mark Schoeff Jr.

An investor won a $357,000 arbitration award against Wells Fargo Advisors for unsuitable energy and housing investments.

The case summary in the March 9 award cited "investments in unspecified energy and housing products, and use of a margin line of credit."

The investor, Anthony J. Pryor, claimed fraud, negligent misrepresentation, breach of fiduciary duty and negligent supervision, among other causes of action. The arbitration award did not provide any further detail about the allegations.

The all-public arbitration panel awarded Mr. Pryor $357,000 in compensatory damages plus 8.75% interest on that amount from March 25, 2016, until March 2, 2017. Mr. Pryor initially sought $1 million in damages but at the close of the hearings, which ran from Feb. 28 through March 2, he requested $413,254.74.

Wells Fargo denied the allegations, according to the award statement. The firm initially sought to have the claim expunged from the Finra BrokerCheck record of its adviser, Jeff Wilson, who was not a party in the claim. But the arbitrators said that Wells Fargo "did not pursue its request for expungement" and made no ruling on it.

Mr. Wilson, who has been with Wells Fargo since 2014, has three customer disputes disclosed on his BrokerCheck record, two of which have been settled. One of the settlements, for $250,000 in May 2016, involved allegations of "unsuitable energy and other investments," according to BrokerCheck.

A Wells Fargo spokeswoman declined to comment. Mr. Wilson did not respond to a message left at the Wells Fargo Clearing Services office in Las Cruces, New Mexico.

Mr. Pryor and Wells Fargo split the hearing session fees, with Mr. Pryor paying $2,730 and the firm paying $6,370.


What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video


Why some retirement plan advisers think Fidelity is invading their turf

InvestmentNews editor Frederick P. Gabriel Jr. and reporter Greg Iacurci talk about this week's cover story that looks at whether Fidelity Investments is stepping on the toes of retirement plan advisers.

Latest news & opinion

Cetera reportedly exploring $1.5 billion sale

The company confirmed it's talking to investment bankers to 'explore how to best optimize [its] capital structure at lower costs.'

Advisers bemoan LPL's technology platform change

Those in a private LinkedIn chat room were sounding off about fears the independent broker-dealer will require a move to ClientWorks before it is fully ready.

Speculation mounts on whether others will follow UBS' latest move to prevent brokers from leaving

UBS brokers must sign a 12-month non-solicit agreement if they want their 2017 bonuses.

Maryland jumps into fiduciary fray with legislation requiring brokers to act in best interests of clients

Legislation requires brokers to act in the best interests of clients.

8 apps advisers love for getting stuff done

Smartphone apps that advisers are using in 2018 to run their business more efficiently.


Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting It'll help us continue to serve you.

Yes, show me how to whitelist

Ad blocker detected. Please whitelist us or give premium a try.


Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print