Shepherd Smith Edwards & Kantas Investigates Wells Fargo & Company in Light of FINRA Fine of $2M for Failure to Supervise a Top Producer for Selling Reverse Convertibles to the Elderly


SACRAMENTO, Calif., Dec. 20, 2011 (GLOBE NEWSWIRE) -- The Securities Law Firm of Shepherd Smith Edwards & Kantas LLP, www.sseklaw.com, is investigating Wells Fargo & Company, in light of the Financial Industry Regulatory Authority's (FINRA) action by fining the firm $2 million for the failure to supervise one of its top producers who sold reverse convertibles to elderly investors.

The broker, Alfred Chi Chen, out of the Sacramento office, not only persuaded elderly investors to sell other investments and buy the unsuitable reverse convertibles but he made unauthorized trades in accounts, including those of customers who were deceased, according to FINRA. The FINRA investigation determined that reverse convertibles, interest bearing notes linked to underlying stock, were not suitable for the clients who had limited investment experience, little tolerance for risk and were mostly over 80 years old. By generating over $1 million in commissions from the sale of reverse convertibles in 2008, Chen became the poster boy for how to sell reverse convertibles and was promoted at Wells Fargo, rather than being reasonably supervised or reprimanded, according to the FINRA complaint.

If you were a customer of Alfred Chi Chen or Wells Fargo & Company who was sold reverse convertibles or other complex structured products, we would like to visit with you to discuss your potential claims.

Shepherd Smith Edwards & Kantas LLP has a team of attorneys, consultants and staff with more than 100 years of combined experience in the securities industry and in securities law. Since 1990, we have represented thousands of investors nationwide to recover losses. We have represented clients in Federal and State courts and in arbitration through the Financial Industry Regulatory Authority (FINRA), the New York Stock Exchange Inc. (NYSE), the American Arbitration Association (AAA) and in private arbitration actions. Collectively, we have represented over 1,000 investors over the last 20 years in negotiation, mediation, arbitration and litigation.



            

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