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 Expungement BrokeAndBroker.com BrokerAndBroker Guest Blog Employment Guest Blogger Wells Fargo Street Sweeper Aegis Frumento Bill SInger Jobs OBA U5 Fraud Promissory Note U4 Email Merrill Lynch Morgan Stanley UBS EFL Defamation CRD BrokeAndBroker Elderly InSecurities Wire Fraud Statutory Disqualification OHO Whistleblower NAC Suitability PST Forbes FBI DOJ Citigroup ALJ Supervision Ponzi Rule 3270 BrokerCheck Borrowing Form U4 IRS SDNY OIP Pro Se Willful Expenses Supreme Court Bank Securities Industry Commentator Outside Business Activity Felony Rule 8210 Ameriprise Dodd Frank Rule 2010 WSP Rule 2080 Wrongful Termination Discretion Form U5 Discovery IRA Wachovia RIA Raymond James JP Morgan Business Expenses Mail Fraud Punitive Damages Bar Insider Trading Wife NASD Conversion Bankruptcy TRO Husband Rule 1122 CCO Edward Jones Margin Forgery Stephen Kohn Estate Rule 3240 Checks Willfulness arbitration Settlement Schwab LPL Tax Trump Commissions 2Cir Outside Business Activities NYSE Wall Street Employment Tuesday Credit Card Promissory Notes Small Firm Beneficiary Madoff Corrective Action Statement Insurance Options Rule 3040 Frumento CFTC FAA Annuities Injunction Private Securities Transaction Facebook Antitrust Impersonation Tax Liens Bank of America Rule 3280 Customer Due Diligence Rule 12206 Indictment Real Estate Crypto Goldman Sachs Power of Attorney Trust Tax Lien OWB Remand TD Ameritrade Exam ETF Stay ATM Mortgage Misdemeanor Spouse Test SRO Offer of Settlement Street Legal Retaliation Solicitation Securities Fraud Eligibility Rule Barclays Complaint Discrimination COVID Explained Decision OTR Annuity Signature Trustee Away Account Schapiro Rule 2510 ACQ Motion to Dismiss Wire POA Case In Point NASDAQ Loan Sanctions email VA Jurisdiction Reg SP Blockchain Spouses Appeal Unauthorized Discretion Initial Decision Rule 4511 ARS DCCir Lien 9Cir Rule 4530 Rule 12200 Burris HFT NSF Conspiracy E*Trade T&P Fidelity CRS Employee Forgivable Loan JPMorgan Money Laundering Liens Mandatory Arbitration Class Action Great Recession Cease And Desist Unsuitability Bonus Failure to Supervise Signatures Compliance PCAOB Motion to Vacate Unfair Competition Deutsche Bank Retirement RBC NASAA Reimbursement Personal Expenses Flash Crash AML Manifest Disregard LOA Continuing Education Fiduciary Sexism Rule 3010 Divorce FINRA Board Dissent expungement Willfully REIT Broker Protocol Hacking 10Cir Sexist Due Process MSSB Severance Customer Complaint Vacatur Huffington Post Disgorgement Undisclosed Settlement Chase Scottrade Credit Cards Internet Identity Theft Hacker Cryptocurrency SDFL Rule 3110 Variable Annuity Spoofing Lehman Brothers BD Indemnification Fees Bharara Registered Rep Magazine Bitcoin Malware Social Media Deceased Disclosure Unauthorized Trading IAR Will MC-400 Rule 3050 brokeandbroker Gallagher Board RRBDLAW.com Solicited Self Regulation employment Emails Commission Zipper Rule 9552 Apple Coronavirus Kokesh Website Elder Abuse FINRA Arbitration Variable Annuities Trading Platform Lucia Stifel Audit Away Accounts Rule 12904 Widow Statute of Limitations LIBOR Private Placement Forex Annual Compliance Questionnaire Wedbush Wey Examination Gensler Stockbrokers 4Cir Letter of Authorization Loans Unsolicited OIG BrokeAndBroker Bill Singer RMBS Postponement BOP 3Cir Dakota Securities Rule 2150 Hedge Fund Breach of Contract Second Circuit Prison 2nd Circuit Confidential Information Registration PIABA Credit Suisse FINOP Brummer Net Capital Rule 2111 WSPs Private Securities Transactions Charles Schwab Waiver Bonds Lehman Public Interest Arbitraiton Rule 12805 PNC Exhaustion of Administrative Remedies Crowdfunding jobs Cheating aegis frumento BrokeandBroker guest blog NYAG Motion to Confirm Sanction Guidelines Hilton Weiner China bill singer Mother insecurities 9/11 Suspension Robinhood Whistleblowing JPM Diversity MetLife Unsuitable Morgan Keegan guest blogger Unjust Enrichment Series 7 Plea RRBDlaw.com Racism Bear Stearns IPO Bureau of Prisons Rule 13200 CMA BrokeAndBroker.com Blog Debit Card TOD Non-Solicitation SunTrust Imposter Time And Price CE ADA Telephone IC3 RR Marijuana Judgments Margin Call Newman Board of Governors FOREX Elder Fraud 11Cir Mutual Funds Small Firm Governor Rationale Testimony Membership Continuance Statutory Disqualification Committee JOBS Act Enforcement Rakoff Sexual Harassment Gold Lawyer DOL 1Cir Confirm Rule 2081 Concentration Auction Rate Securities Stifel Nicolaus Piwowar Tortious Interference Finra NDCA Puts Whistleblowers Charge Raiding EDNY Oppenheimer Joshua Brown Botkin Obstruction of Justice OSHA Absolute Immunity Rule 2210 Embezzlement FNMA Counterclaim Non Solicitation WB-APP Knight Covid Restaurant Protocol Leggett Regulation SP Puerto Rico Reg S-P CPA Restitution Rule 4513 NoCA Check Kiting Compensation Churning CNBC Employment Agreement Private Placements TCR Broke And Broker Testing Medicare Wine Preliminary Injunction DNJ EIA VIX Lawyers Federal Reserve Check Test Center 10b-5 AAA SAC HSBC Taxes Michael King Michael King Associates Cannabis Research money laundering supervision Bandimere Dementia Robert Cook Unregistered Biden Corruption Conflict Pennystock Customer Information Confidential Hurry CEO Form ADV Sales Assistant Confidentiality Day Trading Article V Feigenbaum Shah Gilani Ketchum Appointments Clause Phishing Stanford Deferred Compensation Rule 13805 Sarbanes Oxley Written Supervisory Procedures Rule 12504 Circuit Court Executor Reg D Pennystocks Khuzami Information Rosenthal Recruiting fraud USERRA TSSB TheBlot Affinity Fraud Standing PN Bank Fraud Banc of America securities industry commentator Funds Inability to Pay Bloomberg Leveraged ETF Affiliate Passcode Morgan Stanely Excessive Trading Securities America Service Charity Aleynikov Trade Secrets Wire Transfer Saad Customers Irreparable Harm MF Global Termination Woody Allen ING High Frequency Trading Johnny Burris Immunity Rule 21F Unauthorized Practice of Law Extraordinary Circumstances Superior Court Stipulated Award Guitron Yesenia Guitron Government Accountability Project Conflict of Interest 6Cir 6th Circuit Consent Order Whitman Mutual Fund signature Attorneys Fees Administrative Remedies FINRA Small Firm Hester Peirce Side Bar FMLA Pruco ICO Relevant Disciplinary History Sexual Discrimination Hugh Hewitt NPR Outside Account Motion to Compel Marketplace Over Concentration State Actor Ride the Thunder Death IM Vietnam Marines Honorarium Spoliation Marine Corps CGMI Bid Rigging Layering OCIE Argentina Cantor Fitzgerald Commodities Fraud Probate ACH 10b-10 Negligence 5Cir FINRA AWC Google Moon Trader Beneficiaries AXA Statement of Corrective Action BrokeAndBroke Rule 12212 Talman Harris McDuff Vault David Sobel Ethereum Smith Barney CDO Poteroba Subpoena Wanger Chase Investment Services Lincoln Financial Rule 9554 JPMS White Chief Compliance Officer DMD Disability Medical Condition Laptop Teleconference Accounting Online Sharemaster RICO Third Party Vendor Hearing Self Regulatory Organization Corzine Congress Star Wars Rule 3030 Failure To Supervise Privilege Nietzsche Eligibility NRF Penson Joint Account Morgan Stanley Smith Barney Constitution Finder\'s Fee Rule 2430 Casino Rule 3310 Obstruction PAQ Parking Aguilar Kon Self Directed Amazon Default 401k Florida 40 Act FCPA Taft Correctional Institution Schneiderman Backstage Wall Street Christian Stanley RRBDlaw Johnson ESOP Permanent Bar Subject Matter Jurisdiction Expert Witness Timban Daughter Motion Reverse Life Insurance Fowler Life Insurance Attorneys\' Fees FCI Beaumont WaMu Title VII Offset Kiting Rory Flynn Red Flags Newport Coast Securities TIC Res Judicata Rule 13504 NY Life Turnover Resignation Chiasson Transamerica BrokeAndbroker Fine Guest Bloggers Wires Capital Gains Texting Extraordinary Cooperation Gamification Withdrawals Fifth Amendment 11th Circuit FCI Chase Bank Control Person SD Non Solicit Hospital Fines Do Not Call Settling Away Counterfeit CD GameStop For Cause Dell David Lerner Arbitration Meals Rule 9216 Crime Electronic Communications Penalty Scholander Harassment Moore Netschi Falsification OWWP elderly FOCUS BrokerAndBroker.com Stockbroker Investment Adviser Ethics Financial Professionals Coalition Acosta Inmate Extortion Interactive Brokers S&P Investor Alert Oral Discretion Mistake NYG Capital Slander LLC Prudential Female Fee Jennifer Tarr Equity Indexed Annuities VXX Data Rule 2370 Client Information First Amendment FAP Son Password Revocation SIFMA Libel BATS Commodities Risk Commissioner Stein Tesla 401(k) Arrest Money Market Blackbook Gross Escrow Relevant Selling Away Zoom Puerto Rico Bonds YouTube EDPA Rule 1031 Reform Outside Accounts Chevron Hotel Blank Forms Annual Audit 17a-5 Conflicts Outside Counsel Verbal Discretion Cold Spring Advisory Group WBAPP Department of Justice Racial Discrimination Respondeat Superior Civil Rights Regulation wrongful termination securities fraud Inside Information wire fraud Microcap Elles Fiduciary Duty Elder Law Disciplinary History Liquidation Series 79 Trading EEOC Pension Obama UIT Thain Scottsdale Confirmation mail fraud Regulation S-P WhatsApp Book of Business Reuters Copyright Stop Loss Peirce Self Reporting Judgment Tax Fraud SP EDVA Compliance Officer ADEA McCartney Jon Corzine State Farm Quasi Governmental CAT Dostoevsky Bob Dylan Allstate BIll Singer Compromise Age Discrimination Undercover Retired Woman With Cane Springsteen NFT Merger Series 66 Exotic ETF Exemption Mary Jo White Practice Sale Fidelity Brokerage Services Success Fee ALJ Foelak Rule 2330 Capitalism SIE Bill Singer BrokeAndBroker Traders Proctor Short Sale Gabelli Clearing Firm Wages Private Actor Rule 420 Overtime Father SEC Rules of Practice Bezos Motion to Postpone Flash Drive Evidence Fraudulent Inducement Fiero Income Berthel Fisher JPMorgan Chase Kennedy Ecuador Witness Tampering Swaps NML Diamonds Silver Non Compete Motion To Dismiss Dylan SDCA Compliance Questionnaire TradeStation Cryptocurrencies Sterne Agee Supervisor DWI Expense Principal Martoma Dinner Punitive Fourth Amendment No Show Guardian Municipal Bonds Motion to Compel Arbitration Examinations Solomon Wire Transfers Janney Montgomery Scott Laser Trainee Fee Mattera Harris Romer Hostile Workplace ESG iPhone College FDA Gnomes ETFs Production Bonus Jury Instructions Branch Manager Alcoholism Liu Covid-19 Sears Disparate Treatment Eric Stein Motiion to Acquit Non-Prosecution Agreement Section 1332 Vacate Vaccarelli Rule 21F-17 Undertaking annuities Non-Solicit Molchatsky Merill Lynch Rule 12511 FINRA Eligibility Rule Tipper National Securities GME Beatles Khan Exception Report DCO God Currency Clayton Rule 1210 Pacifico Schottenstein Burden of Proof Lewis Carroll bank Coin Kovack Securities Section 206 Summary Judgment finra Stock Promotion Vungarala Communications Pershing Purshe Kaplan Howey Game of Thrones EB-5 Cybersecurity Cherry Picking Kent Exception Reports Allocation Exhaustion Doctrine Led Zeppelin Oilpro Lek Rule 13201 Executrix SDOH JAMS NPI Altered Records Orders Promoter Women MBS Texas State Securities Board Third Party Beneficiary Transitional Bonus Twitter Goble Turbeville Notice Impersonator Training Constructive Discharge Customer Files Nasdaq Binary Options Preet Bharara Rule 13904 MDLA Reasonable Tennis Court Checking Life Settlement Obamacare Well Managed Portfolio Forfeiture Shotgun Pleading Lexicon DDC Ronald Filler Public Arbitrator NMS BitTorrent Frivolous Hayden Cybercrime Tippee AI Initials Discharge BBVA Rule 13212 Back Dated Voya Reg SHO ACT! Daspin Altered Tysk NYLIFE Motion to Exclude Sharing Agreement whistleblower false statements Books and Records Jay Clayton At Will Bequest Rule 3210 Hackers Production Subway Prime Bank Corporate Credit Card Expert Elon Musk South Park Malice Confidential Customer Information Scam Preliminary Determination defamation BrokeandBroker.com Mary Schapiro Fernandez Arbitrability Disney Criminal Koval Reverse Merger Gifts Grievance Cellphone ALJ Grimes Hurtado Naskovets US Airways Citibank FINRA Foundation Rule 12104 Rule 13104 Address MSPB Walter Form TCR Transfer ADR Mail Diabetes Ten Commandments Brokeandbroker.com Bank Guarantee Particularity NFA Salman Spam Reason for Termination Dow Schumer DAO GAP Arbitrator Kierkegaard Stephen A. Kohn Espionage PSRO Law School Rules of Practice Hearsay HBO Skimming Sex reimbursement expenses CMO Legend Margin Calls Varney Stipulation sexism Galleon Costa Rica Work Product Calls Personal Information Press Release Banks Rule 13206 Statute of Limitation Ineligibility Excel 9th Circuit 529 Plan DPA Deferred Prosecution Agreement Financial Disclosure FTC DMCA Murray Kenneth Starr Joint Production Boyland Bill singer Investment Advisers Act Nicolas Corcione In House Counsel 8210 Panama Fundacion Nicor Guardianship Office of Special Counsel Ruder Task Force Leveraged ETFs Securities and Exchange Commission Travel Audit Committee Deceased Customer Payroll Collateral Dissident Unauthorized Trades Justice Martin IBM Newbridge AMC Broy SLUSA Books And Records FNI Media Rule 144 Merrill DRS House Financial Services AWC. FINRA William Faulkner Tax Advice QuadrigaCX PHC Bribe In Connection With Baby Boomers Willfull JP Morgan Securities Wang NRSRO Municipal Advisor Powell Collateral Bar Bartko Wells Fargo Advisors SIPC Investacorp Theft Lee AIG Anderson Patriot Act Hertz Retroactive Bank Secrecy Act Lorenzo Retroactive Bar 1099 Mantar FinCEN Last Known Address Advisor Placement Group Court of Appeal MAP Nationwide Credit Repair Tran Apartment Countrywide RRBDLAW