Wells Fargo Stockbroker Sanctioned For Customer Loan
Glen Joseph Webster of Atlanta Georgia a stockbroker formerly registered with Wells Fargo Clearing Services LLC has been suspended for three months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon Webster’s consent to findings that he engaged in a prohibited borrowing arrangement with a customer of Wells Fargo. Letter of Acceptance Waiver and Consent No. 2019061193201 (Dec. 19, 2019).
According to the AWC, during the period in which Webster was employed by Wells Fargo, he was prohibited from borrowing customer funds unless the customer was a family member. Nevertheless, Webster borrowed at least $10,000.00 from a Wells Fargo customer in July of 2017 without having disclosed that information to the securities broker dealer. There was no point in which the arrangement was authorized by Wells Fargo. FINRA found Webster’s conduct violative of FINRA Rules 2010 and 3240.
FINRA Public Disclosure reveals that Webster has been referenced in three customer initiated investment related disputes that concern allegations of Webster’s violative conduct while he was associated with Wells Fargo Advisors. Specifically, on November 23, 2016, a customer initiated investment related complaint was settled for $25,000.00 in damages based upon accusations that Webster failed to disclose the risks of an investment strategy implemented in the customer’s Wells Fargo account.
Webster is also the subject of a customer initiated investment related complaint which was resolved for $145,000.00 in damages on March 14, 2017 founded on allegations of Webster failing to tell the customer about the costs of withdrawing from a covered call strategy that he recommended. On September 30, 2019, another customer initiated investment related complaint regarding Webster’s conduct was settled for $12,500.00 supported by accusations of non-disclosures pertaining to the liquidation of the customer’s equity holdings.
Webster’s employment with Wells Fargo Clearing Services has been terminated as of November 6, 2018. Between November 1, 2018 and August 7, 2019, Webster was associated with IFS Securities Inc.