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Another Wells Fargo Broker Under Investigation for Overconcentration and Unsuitability Oil and Gas Securities Claims

Our lawyers are investigating oil and gas securities fraud claims against Wells Fargo broker John B. Leonard (CRD# 2113842).

According to Leonard’s Financial Industry Regulatory Authority (“FINRA”) BrokerCheck report, his 25 years in the securities industry has been relatively clean.  But in the past three months, two customers have filed FINRA arbitration complaints against him, alleging unsuitable recommendations in the oil and gas industry totaling close to $300,000.  The two complaints are currently pending.

While many brokers and brokerage firms have unsuitably recommended oil and gas securities, Wells Fargo has been accumulating many complaints recently.  Our firms have previously investigated Irvine, California Wells Fargo brokers Charles B. Lynch Jr. (CRD# 3004877) and Charles H. Frieda (CRD# 5502319).  The brokers have a combined 60 misconduct disclosures on their FINRA BrokerCheck reports, all but two coming in the last two years and a significant majority alleging unsuitable recommendations and overconcentration in the oil and gas industry.

Of the 60 misconduct disclosures shared between Lynch and Frieda, 40 have settled.

Though Lynch and Frieda shared a California Wells Fargo branch, Leonard was based out of a Toledo, Ohio Wells Fargo branch.

Many brokers got caught up in the façade that was ever-increasing crude oil, improperly recommending master limited partnerships (“MLPs”), bonds, private placements, stocks, and other oil and gas securities to conservative investors based upon the high yields of these investments rather than the risk to principal.  Seeming like a sure bet and untouchable, these brokers neglected to conduct due diligence and investigate these investments and negligently recommended them to customers.

Despite market trends, there is no excuse to depart from time-tested principals brokers are required to employ with their customers, such as recommending suitable investments for each customer and diversifying their portfolios.

Become informed about your rights, explore whether you have a claim and see if we can be of assistance in trying to recover your investment losses.   Cases are taken on a contingency fee basis, meaning no attorney’s fee is owed if there is no recovery.   Our lawyers have collectively represented hundreds of investors in FINRA or securities arbitration claims and recovered millions of dollars from large and regional brokerage firms.

For more information about the Law Firms, the lawyers, and the oil and gas investment practice area, please visit the oil and gas investment website at: www.oilgasfinraarbitration.com.   You can also contact toll-free Mr. Silver at: (800) 975-4345 for a confidential, no-cost consultation on the potential for recovery of your investment losses.  Our attorneys represent clients nationwide in securities cases to recover investment losses.  There is no fee unless we obtain a recovery for you.

 

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