Wells Fargo Fined by Finra Selling Structured Notes to Aged
This article is for subscribers only.
Wells Fargo & Co. was fined $2 million by the Financial Industry Regulatory Authority for failing to supervise its top salesman of reverse convertibles as he recommended the derivatives to elderly investors.
Alfred Chi Chen, 64, generated more than $1 million in commissions in 2008 as he sold “hundreds” of reverse convertibles, which are short-term bonds that convert into stock if a company’s share price plummets, according to a complaint released today by Finra, the Washington-based industry-funded brokerage regulator. Chen also made unauthorized trades in several customer accounts, including those of dead people.