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