(Source: MARKETWIRE)
The Securities Law Firm of Klayman & Toskes ("K&T"), www.nasd-law.com, announced today that the Financial Industry Regulatory Authority ("FINRA") has fined Wachovia Securities n/k/a Wells Fargo Advisors (NYSE: WFC) $1.4 million, for failure to deliver prospectuses and product descriptions to its customers, as well as failure to supervise. Specifically, FINRA found that Wachovia failed to provide prospectuses in about 6,000 of roughly 22,000 transactions that took place at the firm between July 2003 and December 2004. The total market value of the 6,000 transactions is estimated to be $256 million. The products sold by Wachovia without a prospectus included "exchange-traded funds (ETFs), collateral mortgage obligations (CMOs), auction market preferred securities, corporate debt securities, preferred stocks, mutual funds, alternative investment securities, equity syndicate initial public offerings (IPOs) and secondary purchases of equity non-syndicate initial public offerings." FINRA also determined "that Wachovia Securities had failed to have adequate supervisory systems and policies and procedures in place to ensure that customers who purchased these investment products received prospectuses."
As a result, some customers who purchased these products did not receive full disclosure concerning the products. According to Susan L. Merrill, FINRA Executive Vice President and Chief of Enforcement, "When a firm fails to provide prospectuses and other offering documents, it deprives the investing public of information valuable in making informed investment decisions. Equally troubling were firm supervisory failures that caused a failure to provide FINRA with timely and accurate information."
K&T has filed a FINRA arbitration claim against Wachovia Securities, No. 2008-04867, on behalf of two investors, alleging that the firm over-concentrated their accounts in preferred stocks, including Citigroup, Merrill Lynch, Barclays, and Fannie Mae. As a result of the unsuitable asset allocation, the Claimants have sustained significant damages. This case represents one of several claims being processed by K&T against Wachovia, to recover investment losses.
Retail and institutional investors who did not receive prospectuses or product descriptions for products sold to them by Wachovia, and who have sustained investment losses, can contact K&T to explore their legal rights and options. The attorneys at K&T are dedicated to pursuing claims on behalf of investors who have suffered investment losses. K&T, an experienced, qualified and nationally recognized securities litigation law firm, practices exclusively in the field of securities arbitration and litigation. It continues its representation of investors throughout the world in securities arbitration and litigation matters against major Wall Street brokerage firms.
If you wish to discuss this announcement or have investment losses of $250,000 or more, please contact Steven D. Toskes or Jahan K. Manasseh, Esquire of Klayman & Toskes, P.A., at 888-997-9956 or visit us on the web at http://www.nasd-law.com.
Contact: Steven D. Toskes, Esquire Jahan K. Manasseh, Esquire Klayman & Toskes, P.A. 888-997-9956 http://www.nasd-law.com
SOURCE: Klayman & Toskes
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