WFG Investments Sustains $700,000 FINRA Fine; Allegedly Failed to Supervise Registered Reps

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WFG Investments Inc., of Dallas, Texas, has recently been fined $700,000 by the Financial Industry Regulatory Authority Inc. (FINRA) for allegedly failing to commit the requisite time, attention and resources to a bevy of critical obligations in its supervision of registered reps, according a settlement released by FINRA.

Said settlement goes on to detail WFG’s failures in six areas of supervision, including allegedly failing to conduct appropriate due diligence and supervision with respect to a private placement offering sold by a registered representative away outside of the company as an approved securities transaction.

WFG Allegedly Failed to Adequately Supervise a Representative’s Sale of Alternative Investments

From March 2007 to January 2014, WFG, a midsize independent broker-dealer with 280 independent registered reps, failed “to supervise the private securities transactions of ones of its reps that were executed through the rep’s RIA,” and to regulate and maintain an adequate supervisory system to ensure that customer transactions were suitable, the aforementioned settlement goes on to detail.

What is more, WFG also failed to appropriately supervise a rep’s sale of alternative investments.

Between August 2012 and July 2013, the firm allegedly granted one of its reps a “blanket waiver” from compliance with its written supervisory procedures concerning sale of alternative investments, including real estate investment trusts and private equity.

Investment Rights Lawyers Investigating

The Peiffer Rosca Wolf investment rights lawyers 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 fraud or misconduct may contact the investment rights lawyers 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 (1168 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.