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