National investment loss lawyers KlaymanToskes reports Charles Shields (CRD# 2067177) of Wells Fargo has been suspended from acting as a broker or associating with a broker-dealer firm by the Financial Industry Regulatory Authority (“FINRA”) due to allegations that he exercised discretion without authorization in his firm customer’s account.
According to FINRA BrokerCheck, Charles Daniel Shields Jr. was previously registered with Wells Fargo Clearing Services from 1999 to 2023 in Wayne, PA. A recent customer complaint filed against Shields was settled in favor of the investor for $255,000.
Investors that suffered losses with Charles Shields may be entitled to a financial recovery. Contact Lawrence L. Klayman, Esq. immediately at (888) 997-9956 or lawrence@klaymantoskes.com to discuss your recovery options. We do not collect attorney’s fees unless we are able to obtain a financial recovery for you.
FINRA’s Department of Enforcement entered into a Letter of Acceptance, Waiver, and Consent (“AWC”) with Charles Shields on September 8, 2023, disclosing that he consented to sanctions of a 15-business-day suspension from associating with any FINRA member in all capacities, and a $5,000 fine.
FINRA’s investigation found that between October 2014 and July 2015, “Shields exercised discretion in a customer’s account by acting on oral instructions he received from the customer’s family member in effecting six securities transactions in the customer’s brokerage account.” The customer had not given prior written authorization allowing Shields to exercise discretion, and Wells Fargo had not approved the account for discretionary trading.
Additionally, according to the AWC, “Wells Fargo’s written supervisory procedures prohibited the exercise of discretion in brokerage accounts unless a registered representative obtained prior written authorization from the customer and the account was approved as discretionary by the firm.”
Under FINRA Rule 3260(b), no registered representative “shall exercise any discretionary power in a customer’s account” without prior written authorization by the customer and written acceptance by the member.
When financial advisors have received written “discretionary” authorization, they must not misuse or exceed that authority by engaging in excessive trading, churning, or recommending unsuitable investment strategies. Excessive transactions could be deemed a breach of fiduciary duty and a FINRA sales practice violation, exposing the brokerage firm and its representative to liability for unauthorized trading or other misconduct.
A violation of Rule 3260(b) is also a violation of FINRA Rule 2010, which requires brokerage firms and their registered representatives to “observe high standards of commercial honor and just and equitable principles of trade.”
Customers of Charles Shields that suffered losses at Wells Fargo are encouraged to contact our firm immediately to discuss recovery options at 888-997-9956 or on the web at www.klaymantoskes.com.
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lawrence@klaymantoskes.com
www.klaymantoskes.com