Thursday, September 22, 2016

From the comments; "Wells Fargo CEO John Stumpf has got to resign now"

Wells Fargo defrauded, recommitted and is currently committing fraud on thousands of Wells Fargo clients whose accounts are governed by The Investment Advisors Act of 1940 via misleading Envision financial plans updated without matching Envision financial plan asset allocation models to investment accounts, so Financial Advisors could qualify for the 4front incentive bonus' after the Wells Fargo Wachovia merger.

In 2009, while in possession of TARP monies, Wells Fargo initiated a pattern of the use of a device and scheme to defraud the U.S. government and clients with more than $250,000 held at Wells Fargo, by omitting to state material facts necessary in order to make statements made by hundreds if thousands of Envision plan reports delivered by wire and the mail, created by thousands of financial advisors, in the light of the circumstances under which they were made, not misleading via the 4front Envision plan related financial advisor retention bonus program...in violation of federal laws.

Many of the households whose accounts were/are governed under the Investment Advisors Act of 1940 were used to get the 4front bonus', which makes it illegal, as Financial Advisors were compensated over and above what was disclosed to clients via the use of misleading information.

Section 206 of the Investment Advisors Act of 1940 states "It shall be unlawful for any investment adviser, …to employ any device, scheme, or artifice to defraud any client or prospective client;  to engage in any transaction, practice, or course of business which operates as a fraud or deceit upon any client or prospective client; or...  to engage in any act, practice, or course of business which is fraudulent, deceptive, or manipulative."

If about 10,000  Financial Advisors had to do a minimum of 25 Envision Investment Plans on households worth at least $250,000 to receive Wells Fargo 4Front compensation retention bonus' after Wells acquisition of Wachovia, and the average assets held by households that received 4Front Envision plans was/is about $450,000, and the average number of qualifying for 4Front Envision Plans was/is about 35 per Financial Advisor, and if about 10,000 FA's created about 35 plans each = 350,000 4Front Envision Plans, and about 350,000 x what could be about $450,000 of assets held for each household = $157,500,000,000, meaning it looks like it happened to more than $150 billion of Wells Fargo Advisors client assets, much of which was covered by fiduciary obligations under the Investment Advisors Act of 1940, which made the scheme illegal.

As a fiduciary, Wells Fargo is currently defrauding and recommitting fraud on what appears to be hundreds of thousands of clients, many with accounts governed by The Investment Advisors Act of 1940, via misleading Envision financial plans created to qualify for the 4front incentive bonus and updated without including charged investment costs in projected minimum client goals.

I believe Wells Fargo violated the following laws;

29 U.S. Code § 1104 - Fiduciary duties

8 U.S. Code § 1343 - Fraud by wire, radio, or television

17 CFR 240.10b-5 - Employment of manipulative and deceptive devices

15 U.S. Code § 77q - Fraudulent interstate transactions

15 U.S. Code § 80a–35 - Breach of fiduciary duty

15 U.S. Code § 80a–47 - Liability of controlling persons; preventing compliance

15 U.S. Code § 80b–6 - Prohibited transactions by investment advisers

17 CFR 240.10b-3 - Employment of manipulative and deceptive devices by brokers or dealers

15 U.S. Code § 78t - Liability of controlling persons and persons who aid and abet violations

http://www.marketwatch.com/story/wells-fargo-ceo-john-stumpf-has-got-to-resign-now-2016-09-14