Finra bars ex-Wells Fargo Advisors rep who did not cooperate with investigation
1
The broker, Stephen Klinger, had been fired earlier this year by Wells Fargo.
The Financial Industry Regulatory Authority Inc. on Thursday barred a former Wells Fargo Advisors broker who did not cooperate with a Finra investigation.
Earlier this year, the broker, Stephen Klinger, had been fired by Wells Fargo after it was revealed that he had traded options in his own account for a client and wound up losing the client’s money.
Finra typically bars brokers and advisers who do not cooperate with its inquiries as they are in violation of industry rules.
[Recommended video: What advice industry needs to do as nation’s diversity evolves]
According to Mr. Klinger’s BrokerCheck report, Wells Fargo Advisors fired the rep in February after he deposited a client’s funds into his own account to trade options and ended up losing all the client’s funds.
The client then sued Wells Fargo and Mr. Klinger, but only the rep was notified of the lawsuit, according to BrokerCheck.
Based in Asheville, N.C., Mr. Klinger settled the lawsuit without telling Wells Fargo. According to the Finra order, Wells Fargo ultimately made the client whole, but it does not state the amount.
Mr. Klinger, who had been registered with Wells Fargo or firms it acquired since 1994, accepted the Finra settlement without admitting to or denying its findings. He could not be reached on Monday to comment.
A spokeswoman for Wells Fargo, Shea Leordeanu, did not respond to a request for comment.
Learn more about reprints and licensing for this article.
