Douglas Melzer Investigated Following Unauthorized Sales, Misappropriation of Funds Charges
Douglas J. Melzer Allegedly Misappropriated Funds, Engaged in Private Securities Transaction Without Proper Authorization from Wells Fargo Advisors, LLC
Douglas J. Melzer allegedly misappropriated funds from his Wells Fargo Advisors, LLC, and engaged in private securities transactions without authorization from Wells Fargo, according to a recent FINRA Letter of Acceptance, Waiver and Consent (AWC).
The AWC further alleges that Melzer had four customers invest $2 million in an investment for which he made approximately $27,000 in commissions plus a 2.5% member interest in the investment, but did not disclose to Wells Fargo.
Douglas J. Melzer Allegedly Requested Registered Rep Code on Certain Accounts be Altered; Barred by FINRA
Furthermore, Melzer, in May of 2011,allegedly requested that the registered representative code on certain accounts be altered, a code used by Wells Fargo to determine the appropriate split of commissions between Melzer and his partners, according to the AWC. Melzer, the AWC further alleges, had the code changed without the knowledge or authorization of his partners.
By changing the code in 2011, the AWC reports, Melzer caused commissions that should have been paid to one of his partners to be attributed to Melzer, causing commissions that should have been paid to both partners to be attributed to Melzer. As a result, the AWC further reports, between 201 1 and 2012, Melzer caused the Firm to pay him more than $9,500 in commissions that should have been paid to his partners.
As a result of the aforementioned behavior, Melzer violated FINRA Rules, and has been barred from association, in any and all capacities, with any FlNRA-member firm, according to the AWC.
The Peiffer Wolf Carr & Kane Investment Recovery Attorneys Often Represent Investors
The Peiffer Wolf Carr & Kane investment recovery attorneys often represent investors who lose money as a result of investment misconduct. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.
Investors who believe they lost money as a result of investment misconduct may contact the investment recovery attorneys at Peiffer Wolf Carr & Kane, Jason Kane or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at (585) 310-5140.