Massachusetts Secretary of Commonwealth Announces Regulatory Investigation Against Wells Fargo
In a recent press release, Massachusetts Secretary of the Commonwealth, William F. Galvin announced the launch of an investigation into Wells Fargo advisors. The investigation comes after speculation that advisors for the financial giant made “inappropriate referrals of brokerage customers to managed and advisory accounts, unsuitable recommendations of alternative investments, as well as unsuitable referrals and recommendations in connection with 401 (k) rollovers.”
Prior to the launch of the investigation by the Secretary of Commonwealth’s office, Wells Fargo had announced an internal audit over the same concerns. The Massachusetts state regulatory body announced it not only be “seeking additional information” about the internal investigation but will also be asking for “reasonable assurances” that affected investors are compensated for their losses.
Wells Fargo has been under immense scrutiny after federal regulators uncovered millions of fake accounts created by bank employees. The accounts were used to accumulate fees and enhance sales employee revenues. The Consumer Financial Protection Bureau (CFPB) fined Wells Fargo Bank, N.A. $100 million for the “widespread illegal practice of secretly opening unauthorized accounts” in accordance with the scandal. Recently, the financial institution agreed to a $1 billion settlement after the CFPB found that it had violated the Consumer Financial Protection Act (CFPA) related to the company’s auto loan and mortgage interest rate programs.
Contact Levin Law today at (305) 402-9050 or firstname.lastname@example.org if you feel that you were victimized by a Wells Fargo advisor. We handle cases on a contingency fee basis and can help obtain compensation for your losses.