An irreverent Wall Street Blog
by Bill Singer

419 Retirement Plan Taxes Claimants in Wells Fargo Arbitration

July 3, 2013

In a Financial Industry Regulatory Authority ("FINRA") Arbitration Statement of Claim filed in April 2012, Claimants Saunders asserted fraudulent inducement, negligent misrepresentations, and breach of fiduciary duty in connection with alleged recommendations by the respondents concerning the creation of an employer-sponsored welfare benefit plan under §419 of the Internal Revenue Code. Claimants alleged that the recommended retirement vehicle was unsuitable and that they had not been advised by respondents of potential tax liabilities.  By the close of the hearing, Claimants sought $290,476.22 in compensatory damages plus punitive damages, interest, attorneys' fees, and costs. In the Matter of the FINRA Arbitration Between Michael Saunders and Yvonne Saunders, Claimants, vs. Wells Fargo Investments, LLC, John Wingate, Adam Suhr, Ross Friend, Strategic Financial Concepts, LLC, and Russell McNorton, Jr., Respondents (FINRA Arbitration 12-01470, June 21, 2013 ).


Respondents Wells Fargo Investments ("WFI"), Wingate, Suhr, Friend, and Strategic Financial Concepts ("SFI") generally denied the allegations and asserted various affirmative defenses. Additionally, the FINRA Arbitration Panel was asked to expunge the arbitration from the Central Registration Depository records ("CRD") of respondents Wingate, Suhr and Friend.

Arbitration Housekeeping

The FINRA Arbitration Panel determined that Respondent Russell McNorton, Jr. had not been properly served with the Statement of Claim or received due notice of the hearing.

After Claimants had presented their case-in-chief, around June 13, 2013, the Panel granted Respondent SFI's Motion To Dismiss.

Decision

The FINRA Arbitration Panel found Respondents WFI and Friend jointly and severally liable and ordered them to pay to Claimants  $75,000.00 in compensatory damages and $300 as reimbursement for FINRA's filing fee.

The Panel dismissed Respondent McNorton without prejudice.

The Panel dismissed Respondent Wingate with prejudice.

Expungements

The Panel denied the requested expungements of the CRDs or respondents Wingate and Friend.

The Panel recommended the expungement of the matter from the CRD of Respondent Suhr after finding that he had not been involved in the sale of the 419 plan product to Claimants. As explained in the Decision:

[L]ater, when Wells Fargo asked Mr. Suhr to try to help Claimants, Mr. Suhr provided the claimants with a possible solution to Claimants' concerns. However, Claimants decided not to act on the possible solution that was raised by Mr. Suhr. . .

SIDE BAR With Bill Singer (Thomson Reuters)
Is Self Regulation A Dinosaur on Wall Street? (8:51 run time) 

Martin Kaplan, Esq. explains the significance of his landmark victory in Fiero v. FINRA. Kaplan and Bill Singer, Esq. discuss whether FINRA is now a toothless tiger. 

READ: "FINRA Loses Landmark Federal Appeals Case on Collection of Fines" (BrokeAndBroker.com, October 7, 2011)

NEW EPISODE OF 
SIDE BAR WITH BILL SINGER 
NOW ONLINE
Martin Kaplan, Esq. Talks About FINRA

REUTERS.COM


YouTube for iPhone/Pad Users


Permalink

Search BrokeAndBroker

Related Topics

Previous Entries

Tag Cloud

Bill Singer BrokeAndBroker FINRA Arbitration AWC SEC BrokeAndBroker.com Expungement Employment Street Sweeper Bill SInger Jobs Wells Fargo U5 Fraud OBA Promissory Note Email Guest Blog U4 Guest Blogger BrokerAndBroker Merrill Lynch Aegis Frumento UBS EFL Wire Fraud Morgan Stanley Elderly CRD Forbes Defamation FBI Suitability Statutory Disqualification PST ALJ Ponzi Citigroup Whistleblower Borrowing Rule 3270 BrokerCheck Supervision DOJ Outside Business Activity Bank OIP IRS Form U4 Willful Felony BrokeAndBroker NAC SDNY OHO Expenses Wrongful Termination Pro Se Wachovia Ameriprise Supreme Court IRA Rule 2080 Mail Fraud Insider Trading Wife WSP Discretion Husband Rule 8210 Dodd Frank Conversion Checks CCO Forgery RIA Rule 1122 Employment Tuesday Bankruptcy Discovery Business Expenses Raymond James Form U5 Settlement Punitive Damages NASD Madoff Tax Rule 3240 Estate Rule 2010 Willfulness Rule 3040 Credit Card Frumento Private Securities Transaction JP Morgan NYSE Small Firm LPL Power of Attorney Real Estate Indictment Commissions Outside Business Activities 2Cir Annuities Bar Wall Street Facebook Edward Jones Impersonation Bank of America Margin Promissory Notes Spouse Rule 3280 ETF Street Legal Corrective Action Statement Tax Lien Exam Beneficiary ATM Mortgage Tax Liens SRO InSecurities Complaint Schwab Injunction Offer of Settlement Trust Antitrust Wire Case In Point Stephen Kohn Appeal ARS Test Options Schapiro Away Account Insurance Securities Industry Commentator Rule 2510 Annuity CFTC Initial Decision Loan NSF Misdemeanor Trustee Barclays Signature Spouses Due Diligence Rule 12206 Employee Forgivable Loan T&P Goldman Sachs VA Signatures Remand Securities Fraud Unauthorized Discretion HFT NASAA POA Lien OTR RBC Deutsche Bank Conspiracy NASDAQ Chase Blockchain Eligibility Rule DCCir Liens Bonus Sanctions Trump Great Recession Fidelity Mandatory Arbitration PCAOB Cease And Desist Flash Crash Money Laundering Burris email Stay LOA Continuing Education Huffington Post Dissent Credit Cards Rule 3010 Compliance Failure to Supervise Undisclosed Settlement Rule 4511 E*Trade Crypto Solicitation Hacker Rule 3050 Identity Theft ACQ Disclosure Rule 4530 MSSB Gallagher Lehman Brothers Hacking Bharara Broker Protocol TRO Scottrade Variable Annuity Fiduciary Unsuitability Unfair Competition Deceased OWB Registered Rep Magazine RRBDLAW.com Forex Audit FINRA Arbitration Motion to Dismiss Retirement Explained Decision Unauthorized Trading Annual Compliance Questionnaire Customer employment Website Reimbursement Letter of Authorization Jurisdiction Willfully Malware Spoofing Board Divorce Reg SP Apple Cryptocurrency JPMorgan brokeandbroker Stockbrokers Sexist Discrimination Wedbush BrokeAndBroker Bill Singer Self Regulation Internet Rule 12805 jobs Variable Annuities Sexism Disgorgement arbitration Wey Elder Abuse LIBOR Personal Expenses Retaliation Away Accounts Will Prison Severance Lehman Social Media Second Circuit Registration Lucia Solicited 2nd Circuit Net Capital FINOP RMBS Customer Complaint Vacatur Judgments Private Securities Transactions Trading Platform Confidential Information BrokeandBroker Time And Price Unsolicited Commission China Motion to Vacate Newman Stifel FOREX Imposter IC3 MetLife Plea Hedge Fund Bonds BrokeAndBroker.com Blog Private Placement Postponement Zipper REIT Telephone 9Cir Arbitraiton Bitcoin Brummer RRBDlaw.com 10Cir Bureau of Prisons BOP Hilton Weiner Charles Schwab Loans FNMA Fees Rule 12200 Statute of Limitations TD Ameritrade Marijuana Testimony Examination Mutual Funds CE Indemnification Rule 3110 Rule 2111 DOL Check Kiting Rakoff Obstruction of Justice Joshua Brown ADA Crowdfunding FAA Lawyer Cheating Morgan Keegan Piwowar CNBC JOBS Act Sanction Guidelines bill singer Debit Card Stifel Nicolaus Unjust Enrichment PNC Compensation Botkin Knight IPO OSHA Auction Rate Securities Dakota Securities Protocol Emails Rule 2150 MC-400 WSPs Widow NYAG Suspension Affiliate Credit Suisse Bandimere Confidential CRS Sales Assistant EIA TSSB Rule 13805 Stanford Appointments Clause Charge Executor TOD Customer Information Reg S-P Wine Series 7 Rule 9552 USERRA Medicare Embezzlement CEO Gold Hurry Elder Fraud Public Interest Class Action Check Passcode Dementia Due Process Confirm Regulation SP Raiding Oppenheimer OIG Bear Stearns Counterclaim Aleynikov AML Rule 12504 Bloomberg PN Ketchum Unsuitable Non Solicitation Rule 2081 Reg D Morgan Stanely Article V Puerto Rico Conflict Banc of America Pennystock Rosenthal Recruiting Board of Governors Affinity Fraud Woody Allen Restaurant CPA Khuzami Whistleblowing Phishing Shah Gilani Inability to Pay MF Global Waiver Churning Cannabis High Frequency Trading ING Wire Transfer Rule 13200 SAC Hearing Moon Rule 4513 Johnny Burris Subpoena Private Placements HSBC Corruption ACH Leveraged ETF Smith Barney Casino Mutual Fund Bid Rigging Corzine Finder\'s Fee Termination TCR Morgan Stanley Smith Barney 6th Circuit Funds Form ADV Bank Fraud Mother Joint Account Kon Penson Linde Murphy McDuff Online Deferred Compensation Concentration Aguilar Charity Rule 3030 Commodities Fraud Probate SunTrust Consent Order Marketplace Poteroba Rule 2210 PAQ Laptop Ride the Thunder Medical Condition Star Wars Motion to Confirm Marine Corps Vietnam Marines Disability NPR Written Supervisory Procedures Parking Broke And Broker Small Firm Governor Chief Compliance Officer Accounting Tortious Interference Employment Agreement White Unregistered IM Self Regulatory Organization Trade Secrets Day Trading Failure To Supervise Side Bar Margin Call Whitman Statement of Corrective Action Vault Membership Continuance Statutory Disqualification Committee Testing Government Accountability Project Kokesh Federal Reserve Layering Guitron Yesenia Guitron David Sobel Pennystocks Slander Information Teleconference Obstruction Eligibility Standing Feigenbaum 401k Outside Account Manifest Disregard Unauthorized Practice of Law expungement Circuit Court Stipulated Award Thain Florida JPM Resignation CGMI WaMu Attorneys\' Fees Sexual Discrimination Do Not Call Fifth Amendment PIABA TheBlot 40 Act SP Scholander Sarbanes Oxley RRBDlaw Rule 9216 Electronic Communications Sexual Harassment Fowler AXA 11th Circuit Chiasson Research Data Rule 12212 Rory Flynn Cold Spring Advisory Group Female Schneiderman Escrow CD Non-Solicitation Turnover EDNY Password Commodities Money Market BATS Arrest Chase Investment Services Jennifer Tarr Argentina Excessive Trading Death David Lerner Oral Discretion Stockbroker Investment Adviser 401(k) FINRA AWC YouTube Verbal Discretion Over Concentration OWWP Judgment Stop Loss Investor Alert Google Negligence Elder Law BrokeAndbroker Trading Congress Timban Constitution Control Person Commissioner Stein BD CDO Hospital Regulation Fine Talman Harris Rule 21F WB-APP TIC Fines BrokeAndBroke OCIE ESOP Kiting Amazon Counterfeit Texting Guest Bloggers Robert Cook Equity Indexed Annuities signature Tax Fraud Inside Information Rule 2370 Rule 1031 Motion Outside Accounts Settling Away 4Cir Administrative Remedies First Amendment Backstage Wall Street Attorneys Fees Red Flags Libel Privilege Scottsdale Meals Sharemaster Ethereum Dell Robert Muh Puts Reverse Life Insurance BrokerAndBroker.com Nietzsche Christian Stanley Third Party Vendor 11Cir Lincoln Financial Elles 9/11 IAR VIX FOCUS FCI Beaumont Netschi Taft Correctional Institution Wanger Client Information Selling Away Department of Justice ICO Moore Inmate FCI Withdrawals VXX SIFMA RICO Undercover Offset Life Insurance false statements Series 79 Rule 3310 Reasonable Falsification Salman Short Sale Exhaustion Doctrine Rule 2330 Kierkegaard Wages Preet Bharara Tipper Tippee Game of Thrones Cherry Picking Practice Sale NFA Binary Options Texas State Securities Board Oilpro Kent Sharing Agreement SD Saad Liquidation Reason for Termination Work Product Summary Judgment Mattera FCPA In House Counsel Nationwide Fee 17a-5 Leveraged ETFs Outside Counsel Stock Promotion US Airways Solomon Kennedy Quasi Governmental State Actor Prime Bank Lawyers Romer Cellphone MSPB Johnson Laser 6Cir IBM Capital Gains Chevron FMLA Bribe Prudential Newbridge NY Life Compromise Production Books And Records AWC. FINRA Hugh Hewitt Confirmation Collateral Annual Audit Trainee Fee Reverse Merger Trader Arbitration Scam Books and Records Martin FDA Kenneth Starr MBS Daspin Cybercrime Turbeville Naskovets CMO Stephen A. Kohn Conflicts Murray Orders Hertz Crime NoCA Lexicon Rules of Practice Financial Disclosure Wells Fargo Advisors Goble House Financial Services QuadrigaCX Nasdaq Service Fiero BitTorrent AIG Customers Expense Skimming 3Cir ALJ Grimes Gifts Impersonator Clayton DWI Rule 9554 SIPC BBVA Transfer ADEA Age Discrimination Flash Drive FINRA Board Koval Apartment Payroll Springsteen Credit Repair McCartney Securities and Exchange Commission Altered Records Life Settlement Chase Bank Advisor Placement Group Supervisor Non-Prosecution Agreement Respondeat Superior iPhone Travel Wire Transfers Bank Guarantee Pacifico Reform Newport Coast Securities Beneficiaries AAA Brokeandbroker.com Executrix Guardian Broy Disciplinary History Currency Lee Pension Theft Dinner Merill Lynch Retired Woman With Cane Lewis Carroll Anderson 1099 Obamacare Checking Election Tennis Court Jon Corzine Merrill Finra Well Managed Portfolio Wires Honorarium Test Center Witness Tampering Fraudulent Inducement Taxes FTC Merger Banks Enforcement Molchatsky Initials Constructive Discharge Boyland Collateral Bar Sterne Agee Galleon Municipal Advisor Bartko Willfull NRSRO Rule 12904 Costa Rica Municipal Bonds Disparate Treatment Personal Information Capitalism BIll Singer National Securities Promoter Elon Musk Women Grievance Baby Boomers Fiduciary Duty Risk JPMorgan Chase Bill Singer BrokeAndBroker Confidential Customer Information State Farm Self Reporting Sex Retroactive Bar 1Cir RRBDLAW Spam Undertaking Walter Microcap Sears Fourth Amendment Permanent Bar GAP Gabelli Countrywide Proctor Diabetes Tran Restitution Dow Eric Stein Schumer Branch Manager Bob Dylan Blank Forms NYG Capital Immunity FNI Media Compliance Officer Retroactive Motion to Compel Mary Jo White Section 206 Motion To Dismiss Lek ADR Bezos PHC Compliance Questionnaire Customer Files S&P Exception Reports God Father Regulation S-P Mistake 9th Circuit SDFL Irreparable Harm Mary Schapiro Subway LLC Janney Montgomery Scott Martoma Pruco UIT Bill singer 10b-5 Silver Unauthorized Trades Evidence Office of Special Counsel Arbitrator FINRA Small Firm EDPA Ethics Expert Witness SEC Rules of Practice Statute of Limitation Coin BrokeandBroker.com Varney Relevant NML Criminal Reuters Spoliation Diamonds Rule 420 Excel Exotic ETF Rule 3210 Powell 8210