Investors Sue Cetera For Unsuitable Private Placement Sales

Susan Lavon Welo of Mayville North Dakota a stockbroker formerly employed by Cetera Advisor Networks LLC has been identified in a customer initiated investment related arbitration claim where the customer sought $100,000.00 in damages founded on accusations of unsuitable private placements being sold to the customer while Welo was employed by Securities America Inc. and Cetera. Financial Industry Regulatory Authority (FINRA) Arbitration No. 20-01173 (June 4, 2020).

FINRA Public Disclosure indicates that Welo has been identified in additional customer initiated investment related disputes pertaining to allegations of her misconduct while employed by securities broker dealers including UBS Financial Services, Securities America and Cetera. On August 18, 2017, a customer filed an investment related complaint pertaining to Welo’s conduct in which the customer requested $500,000.00 in damages supported by allegations that the customer was placed into business development company and real estate security products whose performance had been guaranteed by Welo and whose liquidity had been misrepresented by the stockbroker while registered with Cetera and Securities America.

Welo is also the subject of a customer initiated investment related written complaint on August 29, 2017 where the customer sought $33,000.00 in damages based upon accusations of misrepresentations and bad advice as it concerned investments including mutual funds and equities sold to the customer of Securities America and Investment Centers of America. On September 7, 2017, another customer filed an investment related complaint involving Welo’s conduct in which the customer requested unspecified damages based upon allegations that false or misleading representations had been made to the customer with respect to the business development company products sold by the stockbroker while at Cetera.

On September 27, 2017, another customer filed an investment related complaint concerning Welo’s activities where the customer sought $50,000.00 in damages founded on accusations of a business development company being misrepresented by the stockbroker as it concerned investment risks and the ability for the Securities America customer to access principal. Welo is also the subject of a customer initiated investment related written complaint on March 12, 2019 in which the customer requested more than $5,000.00 in estimated damages based upon allegations that the features of a real estate security were inaccurately or falsely represented by the stockbroker when she was associated with Securities America.

On June 3, 2020, another customer initiated investment related arbitration claim concerning Welo’s activities was resolved for $11,665.00 in damages founded on accusations of misrepresentation and bad investment recommendations by Welo in regard to a non-traded business development company that had been sold to the Securities America customer. FINRA Arbitration No. 20-01173. According to the claim, there was a breach of contract and violation of a fiduciary duty that had been owed to the customer. Transactions executed by Welo had allegedly ran afoul of North Dakota Securities Act.

Welo has also been referenced in a Cease and Desist Order issued by North Dakota based upon allegations that Welo did securities business in North Dakota without registration as a stockbroker or investment advisor. Case No. 17-671 (July 21, 2017). She was also alleged by the regulator to have made misrepresentations and omissions.

Welo was discharged by Cetera supported by allegations of a customer loan arrangement involving Welo that she never disclosed to the securities broker in violation of its policies. Cetera also indicated that Welo took possession of signed but otherwise incomplete customer account documents.