Wells Fargo Advisors Broker Barred By SEC For Fraud
Barbara Ann Endres of Grand Junction Colorado a stockbroker formerly registered with Wells Fargo Advisors LLC and investment adviser representative of Lifetime Wealth Advisors LLC has been barred by Securities and Exchange Commission (SEC) in all capacities according to an Order Instituting Administrative Proceedings Pursuant to Investment Advisers Act of 1940 Section 203(f) containing findings that while Endres was associated with Lifetime Wealth Advisors LLC: (1) Endres made unauthorized securities trades (2) Endres churned customer’s investment accounts (3) Endres illegally retained fees that were supposed to go to customers and (4) Endres engaged in fraudulent activities. In the Matter of Barbara A. Endres Administrative Proceeding File No. 3-18528 (June 4, 2018).
According to the Order, between November of 2014 and December of 2017, Endres maintained an association with an investment advisory registered in the State of Colorado. SEC noted that Endres had been barred permanently by Colorado Securities Commissioner from associating with any investment adviser or broker-dealer conducting business in the State of Colorado. Case No. 2017 CDS 055 (Oct. 13, 2017). The Colorado Securities Commissioner barred Endres in order to settle claims that the Colorado Division of Securities pursued against her.
The Colorado Division of Securities reportedly filed a petition claiming that between September of 2016 and September of 2017, a number of customers had been placed into inappropriate investments by Endres while Endres was affiliated with Lifetime Wealth Advisors, LLC. Those customers, including senior investors, were reportedly exposed to a speculative and unsuitable investment strategy which focused on trading equities securities on a short term basis. Apparently, customers’ funds had been utilized by Endres to trade securities before the issuers’ earnings were reported; and customers were not provided information from Endres concerning the risks of engaging in short-term trading of speculative investments. Moreover, the Division of Securities contended that trades were effected by Endres in customers’ investment accounts without Endres obtaining customers’ consent beforehand. Further, Endres reportedly collected investment advisor fees from customers after Endres’ services had been terminated by a customer.
Considering the circumstances outlined in Colorado Division of Securities’ actions against Endres, SEC found there to be an adequate basis to bar Endres from the securities industry.
Prior to SEC’s bar of Endres, on January 17, 2018, he was barred by California Department of Business based on Colorado Division of Securities’ action, citing Endres effected unauthorized trades in a customer’s account; made investment recommendations to a customer that were not suitable; retained fees which were supposed to be provided to customers; and defrauded customers by making misleading and false statements to them concerning their investments. Apparently, California Department of Business found that under Corporations Code Sections 25232, Colorado Division of Securities’ barring of Endres served a proper basis to bar Endres from being in any position of employment with an investment adviser of broker dealer in California.
Additionally, on October 20, 2017, the State of Massachusetts fined Endres $5,000.00 and revoked Endres’ investment advisor registration because of Colorado Division of Securities’ action against her.