Wells Fargo Advisors Slapped with $1.5 Million FINRA Fine for Alleged Anti-Money Laundering Compliance Failure

stockbroker fraud attorneyThe Peiffer Wolf investment fraud attorneys are currently investigating Wells Fargo Advisors. From 2003 to 2012, Wells allegedly failed to properly examine as many as 220,000 new clients, and not completing the requisite identity verification, according to FINRA documents currently being poured over by attorneys Jason Kane and Joe Peiffer.

A statement from the regulator alleges that the error was simply the result of a “design flaw” in the firm’s transaction processing system.

Meanwhile, said FINRA documents further allege that the system occasionally assigned old client identifiers from closed accounts to new customer accounts, leading to the firm’s client verification program not being able to recognize that a new account had been opened and needed to be verified.

The 220,000 accounts allegedly represented more than 3% of the 6.9 million accounts opened during the aforementioned nine year period at Wells Fargo Advisors, a firm which currently has around 15,200 brokers and advisers, according to FINRA papers being scrutinized by attorneys Jason Kane and Joe Peiffer.

Wells Fargo reportedly accepted the fine without admitting or denying the allegations from FINRA, whose anti-money laundering compliance requirements maintain that firms must maintain a customer identification program that collects and verifies information about who is opening an account.

Investor Rights Attorneys Investigating

The Peiffer Wolf investor rights attorneys often represent investors who lose money as a result of investment misconduct. They are currently investigating Wells Fargo, and the possibility of assisting any investors who believe that they have lost money with the firm. 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.

Any Investors who believe they lost money as a result investment through investments with Wells Fargo may contact the investment rights attorneys at Peiffer Wolf, Jason Kane or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 585-310-5140.

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