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 BrokerAndBroker Employment Guest Blog Guest Blogger Street Sweeper Wells Fargo Bill SInger Jobs Aegis Frumento OBA U5 Fraud Promissory Note U4 Email Merrill Lynch Morgan Stanley EFL UBS Defamation Wire Fraud Elderly CRD Statutory Disqualification InSecurities Suitability Forbes PST FBI OHO BrokeAndBroker Ponzi Rule 3270 ALJ Whistleblower NAC Citigroup DOJ Borrowing Supervision BrokerCheck Form U4 IRS OIP Expenses Outside Business Activity Bank Willful Supreme Court SDNY Felony Ameriprise Pro Se Wrongful Termination Securities Industry Commentator Rule 2080 WSP Wachovia Rule 8210 Discretion IRA Dodd Frank RIA Raymond James Business Expenses Mail Fraud Insider Trading NASD Rule 2010 Wife Discovery CCO Form U5 Rule 1122 Husband JP Morgan Conversion Forgery Punitive Damages Checks Bar Bankruptcy Estate Willfulness Trump LPL Tax Settlement Rule 3240 Employment Tuesday Outside Business Activities Credit Card Edward Jones Madoff NYSE Commissions Stephen Kohn Rule 3040 Frumento Wall Street Schwab Annuities Margin Private Securities Transaction Small Firm Insurance 2Cir Impersonation TRO Rule 3280 Corrective Action Statement Beneficiary Facebook Power of Attorney Tax Liens Injunction Real Estate Indictment Promissory Notes Bank of America Options Antitrust Exam ETF SRO Tax Lien Spouse Street Legal Mortgage Test ATM OTR arbitration Complaint Offer of Settlement FAA Due Diligence COVID Misdemeanor Remand Rule 12206 Trust Signature Rule 2510 Crypto Wire Sanctions Trustee Case In Point ACQ Annuity Away Account VA Barclays Stay Lien Initial Decision Schapiro ARS Customer NASDAQ Motion to Dismiss email Goldman Sachs Appeal CFTC POA T&P NSF Blockchain Money Laundering Loan Rule 4511 Eligibility Rule Rule 4530 Spouses OWB Unauthorized Discretion Employee Forgivable Loan Securities Fraud Liens Fidelity PCAOB Burris Reg SP Deutsche Bank NASAA DCCir RBC Retaliation Signatures HFT Jurisdiction Great Recession 9Cir Conspiracy Bonus Cease And Desist Compliance Chase LOA Reimbursement Unfair Competition Rule 12200 Solicitation Dissent Fiduciary Mandatory Arbitration JPMorgan Failure to Supervise Flash Crash E*Trade Severance Scottrade Willfully Vacatur Broker Protocol Discrimination Huffington Post Credit Cards Disgorgement AML Rule 3010 Hacking Explained Decision Continuing Education Retirement Personal Expenses Unsuitability Undisclosed Settlement Malware Bharara Deceased TD Ameritrade Lehman Brothers Customer Complaint Hacker Identity Theft Board Bitcoin Disclosure Class Action Unauthorized Trading Registered Rep Magazine Cryptocurrency Motion to Vacate REIT Gallagher 10Cir Rule 3050 brokeandbroker expungement Variable Annuity RRBDLAW.com Divorce MSSB Letter of Authorization Coronavirus BD Stockbrokers Lucia Will Internet Variable Annuities Wedbush Examination Manifest Disregard Away Accounts Annual Compliance Questionnaire employment Wey IAR Loans Audit Apple Sexist Forex Spoofing Stifel Website Sexism FINRA Arbitration Rule 3110 BOP Due Process MC-400 PNC Net Capital Brummer LIBOR BrokeAndBroker Bill Singer Elder Abuse Private Securities Transactions 2nd Circuit Registration Rule 12805 Credit Suisse Private Placement RMBS jobs Statute of Limitations CRS Zipper Commission Widow SDFL Lehman Self Regulation Second Circuit Trading Platform Social Media Confidential Information Kokesh Prison Postponement FINOP Solicited Telephone BrokeandBroker RRBDlaw.com FOREX Waiver Hilton Weiner Judgments Bureau of Prisons Charles Schwab China Cheating Arbitraiton Rule 2150 Rule 2111 Fees Imposter Marijuana IC3 Hedge Fund Bear Stearns Dakota Securities Sanction Guidelines Time And Price Unjust Enrichment ADA Unsolicited WSPs Indemnification Bonds bill singer Emails MetLife PIABA Morgan Keegan Debit Card Plea Crowdfunding BrokeAndBroker.com Blog Newman Rakoff Embezzlement Tortious Interference Auction Rate Securities Knight Regulation SP CNBC RR FINRA Board Counterclaim Lawyer FNMA Suspension JOBS Act Elder Fraud Small Firm Governor Board of Governors Charge IPO OSHA NYAG Reg S-P Obstruction of Justice Botkin Confirm CE 3Cir Public Interest Compensation Rule 9552 Concentration Rule 13200 TOD WB-APP Stifel Nicolaus DOL Protocol Motion to Confirm Non-Solicitation Rule 4513 Employment Agreement Joshua Brown Check Kiting Piwowar Mutual Funds Mother Whistleblowers CPA Oppenheimer Puerto Rico Testimony Diversity Gold Woody Allen OIG Bank Fraud Ketchum Termination Exhaustion of Administrative Remedies Racism Federal Reserve 11Cir NoCA Shah Gilani Margin Call Reg D Appointments Clause Whistleblowing MF Global VIX Check Bloomberg Rule 12504 Information Bandimere EIA Funds SAC Unregistered Rule 13805 Stanford Puts Testing Phishing TheBlot Circuit Court Wine Rule 12904 ING 9/11 Affinity Fraud Inability to Pay Passcode Membership Continuance Churning 4Cir Series 7 Wire Transfer Feigenbaum Confidential Day Trading High Frequency Trading Broke And Broker Charity Sales Assistant Executor Non Solicitation Private Placements Banc of America Customer Information Affiliate Dementia Pennystock Taxes Cannabis USERRA Hurry Restaurant AAA Raiding Morgan Stanely Standing CEO Biden Irreparable Harm PN Immunity Unsuitable Statutory Disqualification Committee Khuzami Aleynikov Article V TSSB Rosenthal Recruiting Rule 2081 Pennystocks Medicare Conflict Motion to Compel Marines Moon Vietnam SunTrust Marine Corps Medical Condition Side Bar Star Wars Corruption Slander Ride the Thunder NDCA Unauthorized Practice of Law Whitman Argentina OCIE Parking Honorarium Trade Secrets Bid Rigging Relevant Disciplinary History JPM Chase Investment Services Statement of Corrective Action Covid Hugh Hewitt Obstruction Wanger Chief Compliance Officer Commodities Fraud Finra Michael King ACH Michael King Associates Failure To Supervise Hester Peirce Eligibility Sexual Harassment Yesenia Guitron Government Accountability Project BrokeAndBroke Guitron Laptop Johnny Burris Vault Corzine Poteroba Administrative Remedies Confidentiality Rule 2210 Nietzsche White Robert Cook Teleconference Negligence Third Party Vendor Finder\'s Fee Probate Accounting Leveraged ETF 401k Constitution securities industry commentator Amazon ICO Absolute Immunity PAQ Saad EDNY McDuff TCR Test Center Attorneys Fees FINRA AWC Rule 3310 Penson Form ADV Rule 12212 Aguilar Outside Account Kon Consent Order Sharemaster Written Supervisory Procedures Breach of Contract 1Cir AXA Hearing Layering Lincoln Financial Smith Barney Libel Subpoena Talman Harris signature NPR Research Marketplace 6th Circuit Rule 3030 Lawyers Online HSBC Casino Sarbanes Oxley Morgan Stanley Smith Barney Ethereum Disability Mutual Fund David Sobel IM Deferred Compensation Self Regulatory Organization fraud Joint Account 6Cir Red Flags Disciplinary History Self Reporting Johnson Female Control Person RICO Outside Counsel Revocation CD SIFMA NRF 17a-5 Stipulated Award YouTube supervision Withdrawals Electronic Communications Excessive Trading OWWP Stockbroker Fowler NY Life DNJ Investment Adviser Beneficiaries Guest Bloggers Meals Fifth Amendment Rory Flynn WaMu 10b-5 ESOP Pruco Escrow Rationale Rule 13504 Money Market wrongful termination Commodities Inside Information BrokeAndbroker BrokerAndBroker.com 11th Circuit elderly Chiasson Reform Series 79 Trader Schneiderman Turnover 40 Act Hospital RRBDlaw Confirmation Congress Acosta CDO Rule 2430 Rule 9554 Preliminary Injunction Scottsdale David Lerner Fee Relevant Do Not Call Password State Actor Newport Coast Securities Verbal Discretion Rule 21F Data CGMI Oral Discretion Attorneys\' Fees Scholander Fine NYG Capital Reuters Gensler Regulation CMA S&P FCI Enforcement FCI Beaumont FINRA Small Firm Netschi Backstage Wall Street 10b-10 Google Annual Audit Judgment SD Copyright First Amendment Service Non Solicit Self Directed Risk Stop Loss Puerto Rico Bonds SP Rule 1031 Moore TIC Timban Fines Department of Justice Motion Capital Gains Death Kiting Trading Regulation S-P Elder Law Equity Indexed Annuities Counterfeit Client Information Elles Life Insurance VXX Prudential Texting Rule 2370 Settling Away Permanent Bar Investor Alert Wires Rule 9216 Cold Spring Advisory Group LLC Son money laundering Reverse Life Insurance Christian Stanley Chevron Jennifer Tarr Resignation Sexual Discrimination Outside Accounts Expert Witness Blank Forms Microcap Taft Correctional Institution Obama Fiduciary Duty Florida Privilege Selling Away FOCUS Tax Fraud Arrest Dell Crime Over Concentration Inmate Robinhood Arbitration Civil Rights Conflict of Interest Restitution 401(k) Commissioner Stein Thain FMLA FCPA BATS Respondeat Superior Unauthorized Trades Principal Life Settlement JPMorgan Chase Women ALJ Foelak Office of Special Counsel Witness Tampering Summary Judgment Exception Reports JAMS Racial Discrimination Age Discrimination ADEA Lek Section 206 Guardian Sterne Agee EEOC Stipulation Spoliation Obamacare Eric Stein Customers Bill singer Branch Manager Municipal Bonds ETFs Well Managed Portfolio Undertaking bank Harris Bank Guarantee 5Cir Currency College false statements Flash Drive Books and Records Texas State Securities Board MDLA Expense Impersonator Merill Lynch Falsification Sharing Agreement Hackers Nasdaq mail fraud Beatles Berthel Fisher wire fraud Covid-19 Prime Bank Willfull Subway BitTorrent Frivolous FDA NYLIFE Altered Records ADR Constructive Discharge GAP BBVA Newbridge Tippee Tipper Executrix Jon Corzine Ecuador Reasonable Preet Bharara Zoom Lewis Carroll Fiero DWI Cybersecurity Checking Daughter Rule 2330 Allocation Cherry Picking Bob Dylan South Park Merrill Lexicon Confidential Customer Information Rule 420 Anderson FINRA Foundation Kent Oilpro Credit Repair Punitive Sears Liu God Advisor Placement Group Exotic ETF Gnomes MSPB Grievance Income Quasi Governmental Notice MBS National Securities Vacate Non Compete Promoter Conflicts Turbeville Extraordinary Circumstances Traders Non-Prosecution Agreement Cybercrime Pacifico Exhaustion Doctrine Solomon Lee Orders Daspin Theft Goble Twitter Martin Rule 144 Back Dated Altered Mantar Last Known Address Investment Advisers Act Extortion Tysk Game of Thrones Apartment Merger Particularity Stock Promotion ACT! Cantor Fitzgerald 1099 Dissident Walter Schumer Clayton Rule 12104 Leveraged ETFs EB-5 Coin Cryptocurrencies PSRO Rule 3210 Dostoevsky Murray Kennedy Mattera FinCEN Romer Pension Fraudulent Inducement Law School FTC FNI Media Patriot Act Costa Rica Mary Schapiro Bank Secrecy Act BrokeandBroker.com Boyland Subject Matter Jurisdiction sexism Work Product Wang expenses HBO Arbitrator Kenneth Starr Capitalism Ten Commandments Deceased Customer Ethics EDPA QuadrigaCX Dow Retired Woman With Cane Tennis Court Statute of Limitation Securities and Exchange Commission State Farm Father Martoma Janney Montgomery Scott UIT Kierkegaard William Faulkner Transamerica Bribe Penalty Harassment Margin Calls Collateral Hertz Burden of Proof Reason for Termination AIG BIll Singer FAP Initials Rule 12511 PHC NPI Default Hayden Galleon Spam Nationwide Led Zeppelin Silver Customer Files NML ALJ Grimes Bill Singer BrokeAndBroker Stephen A. Kohn Diabetes Diamonds Disparate Treatment Sex Mistake Banks Production Legend SIPC Molchatsky In House Counsel Investacorp Dylan Evidence SEC Rules of Practice 9th Circuit Baby Boomers Khan Malice House Financial Services Gabelli Supervisor Undercover Pershing Broy Public Arbitrator Practice Sale 8210 Dinner Title VII iPhone Financial Disclosure Travel RRBDLAW Securities America Motion To Dismiss Payroll For Cause Wire Transfers Excel Compromise Short Sale Swaps Rules of Practice Court of Appeal Superior Court Salman Scam Reverse Merger Allstate Liquidation CAT Springsteen McCartney Transfer Elon Musk DPA Cellphone Wells Fargo Advisors AWC. FINRA Gifts Hurtado US Airways Third Party Beneficiary Fourth Amendment Wages Deferred Prosecution Agreement Koval Varney Chase Bank Naskovets SDOH Examinations Mary Jo White Preliminary Determination Compliance Officer Blackbook Proctor Powell Countrywide Bartko Compliance Questionnaire Personal Information Municipal Advisor Skimming Voya Res Judicata Series 66 Offset NRSRO Collateral Bar Retroactive Bar Tran Disney Books And Records Trainee Fee CMO Criminal Bezos Laser Retroactive IBM Binary Options Brokeandbroker.com NFA