Wells Fargo Sued By Investor For Securities Fraud

Raymond Phillip Kvalvog of Fargo North Dakota a former Wells Fargo Advisors LLC branch manager has been ordered by an Arbitration Panel to pay a customer $75,383.75 in compensatory damages based on the Panel finding Kvalvog and Wells Fargo liable for committing fraud by steering the customer into placing more than $2,000,000.00 of the customer’s life savings in Quicksilver Resources Senior Notes – a speculative and unsuitable investment. FINRA Arbitration No. 16-03388 (Sept. 25, 2018).

The Arbitration Panel found that Kvalvog and Wells Fargo defrauded the customer, breached a fiduciary duty, and breached a contractual obligation to the customer. Additionally, the Panel found Kvalvog and Wells Fargo committed violations of: Unlawful Trade Practices Act; False Statement in Advertisement Act; Uniform Deceptive Trade Practices Act; Minnesota Consumer Fraud Act; Minnesota Securities Act Securities Act of 1933; and Securities Exchange Act of 1934.

FINRA Public Disclosure additionally confirms that Kvalvog is the subject of a customer initiated investment related arbitration claim in which the customer was awarded $172,000.00 in damages, $100,000.00 in punitive damages, and $68,800.00 in attorney’s fees based upon Wells Fargo having been found liable on the customer’s claims of negligence, fraud, breach of contract, breach of fiduciary duty, violation of North Dakota Securities Act, violation of North Dakota Unlawful Sales or Advertising Practices Act, and violation of federal securities laws in regard to junk bonds purchased in the customer’s account, including investments in: Pengrowth Energy Corp; BP PLC SPONS ADR; CNH Global NV; Intrepid Potash, Inc.; James River Coal, Inc.; Monsanto Co New; Arts-Way MFG Co., Inc.; TCF Financial Corp.; Ritchie Bros Auctioneers, Inc.; and Oasis Petroleum, Inc. FINRA Arbitration No. 16-02832 (Oct. 30, 2018). Evidently, Kvalvog gave the elderly and unemployed customer bad advice – he was cognizant of the customer having a low risk tolerance because she depended on her Wells Fargo account to produce an income stream to support her living expenses.

Kvalvog’s registration with Wells Fargo Advisors, LLC has been terminated as of September 10, 2013. Between September 10, 2013 and October 1, 2015, he was associated with Dougherty & Company LLC.

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