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

stockbroker fraud attorneyThe Peiffer Rosca 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 Alan Rosca 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 Alan Rosca 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 Rosca 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 Rosca Wolf, Alan Rosca or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 888-998-0520.

Alan Rosca (1159 Posts)

Alan is a securities lawyer. He also teaches Securities Regulation at the Cleveland-Marshall College of Law. He focuses his legal practice on complex commercial and financial litigation and arbitration, particularly in the areas of securities and investment fraud. His office is in Cleveland, Ohio.


In our legal system, every person is innocent until and unless found guilty by a court of law or a tribunal. Whenever we reference “allegations” or charges that are “alleged,” such allegations or charges have not been proven, and are merely accusations, not findings of fault, as of the date of the blog. We do not have, nor do we undertake, a duty to continue to monitor or follow cases about which we report, and/or to publish subsequent blogs regarding various developments that may occur in such cases. Readers are encouraged to conduct their own research regarding any such cases and any developments that may or may not have occurred in such cases.