FINRA’s Department of Enforcement investigated Ardey’s alleged misconduct and determined he reimbursed a customer for losses sustained in her account without prior written authorization rom Wells Fargo. Specifically, FINRA alleges Ardey sent a wire in the amount of $33,000 to the customer in order to cover the losses. According to FINRA, Ardey did not receive prior written approval to share in the losses with the customer. Although Ardey’s efforts to share in the losses may seem laudable, FINRA prohibits this sort of activity because it is often used to conceal customer losses and resolve disputes without knowledge by the firm.
Based upon the foregoing alleged misconduct, FINRA contends Ardey violated FINRA Rules 2010 and 2150. FINRA Rule 2150 prohibits a registered representative from sharing an account with a customer, including but not limited to sharing losses in the customer’s account without prior written authorization. Here, Ardey allegedly reimbursed a customer for losses sustained in her account without prior written authorization from Wells Fargo, thereby violating FINRA rules and regulations.
Lufrano Law, LLC is a national securities litigation firm and has experience representing investors who have investment disputes with brokers and broker-dealers. If you suffered investment losses and damages investing with Ardey through Wells Fargo, you may be able to recover your losses through FINRA arbitration. Our firm only receives a fee if you recover money. Please complete the contact form or contact one of our attorneys at (800) 627-2179 to schedule a free consultation.