Tacoma-area broker who accepted thousands from elderly client’s will faces suspension
A former Tacoma-area broker who accepted more than $600,000 in bequests from a long-time client’s will has agreed to a suspension and fine.
Gary Len Wells was an investment adviser representative and securities salesperson. He violated a Financial Industry Regulatory Authority rule by “circumventing firm procedures designed to protect customers,” according to a Letter of Acceptance, Waiver, and Consent he filed with FINRA last week.
Wells’ attorney did not respond to a request for comment.
The letter gave this account of what happened:
The customer followed Wells to Wells Fargo Advisors in 2008 from another firm.
She named him in her will, the woman’s brother made a complaint, and the firm told Wells he couldn’t be a beneficiary.
The woman died at 92, and in 2014 Wells got a wire transfer from her estate. The firm reversed it and told Wells he wasn’t allowed to take the bequest.
Later Wells got several checks from the estate and put them in a personal savings account.
In 2016 on a Wells Fargo Advisors Financial Network compliance questionnaire, he said he wasn’t a beneficiary of and had not inherited from a customer’s will.
The letter he filed last week said Wells agreed to a $20,000 fine and “a 15-month suspension from associating with any FINRA member in all capacities,” and that he doesn’t have any relevant disciplinary history.
AdvisorHub reported on the settlement.
A statement of charges from the Securities Division of the Washington State Department of Financial Institutions made similar allegations in December, accusing Wells of violating the Securities Act of Washington.
In addition to accepting the bequests, they allege Wells had “ongoing involvement” with a different customer’s “care and finances.”
According to the statement of charges:
Wells helped sell her car, broke into her safe when she asked, helped find home care and was a contact for her home care providers. He spoke with her doctor, looked into a long-term care policy and paid her bills.
A WFAFN investigation found he “violated WFAFN’s Conflicts of Interest policy by ‘engaging in personal activities with an elderly client that creates a perception of impropriety or undue influence with respect to the Firm or Wells Fargo Advisors,’” the statement said.
He also recommended the client change from a brokerage account to an advisory account, “without a reasonable basis,” that significantly raised the client’s fees.
Wells has the right to a hearing on the allegations.
“The Securities Administrator believes these violations justify the entry of an order to cease and desist from such violations; to deny Respondent’s current applications as an investment adviser representative and a securities salesperson for American Wealth Management, Inc.; to deny any future application for investment adviser representative or securities salesperson registration by Respondent for a period of five years; to impose a fine; and to charge costs,” the statement said.
