Close Close

Regulation and Compliance > Federal Regulation > FINRA

Ex-Wells Fargo Rep Must Pay Firm $1.2M

Your article was successfully shared with the contacts you provided.

A financial advisor has been told to pay Wells Fargo Advisors (WFC) about $1.2 million, a FINRA panel ruled recently in a case that involve the repayment of promissory notes, interest on the notes and an advisor’s termination.

Robert Edward Loftus, now with New York-based Arcadia Securities, must pay his former broker-dealer $931,000 in compensatory damages and $300,000 for legal fees. He was let go by Wells Fargo in 2013, four years after he joined the firm.

According to FINRA records, Wells Fargo asked Loftus to leave the firm due to allegations that he deposited checks into an account without having sufficient funds to cover them.

Loftus says he was wrongfully terminated. In his FINRA records, he argues that he used a “command account” at Wells Fargo “in the standard manner” and that “at no time was my account considered to have an insufficient balance to pay checks.” The advisor also insists that he was “not advised at any time that the bank policies had changed.”

The FA has five FINRA disclosures, including liens totaling $554,000.

He entered the business in 1985 at E.F. Hutton and went on to work for Oppenheimer & Co., Morgan Stanley, Montgomery Securities, Banc of America Securities and Citigroup.

The arbitration document show that Loftus asked for some $2.5 million in compensatory damages and $3.5 million in punitive damages in a counterclaim. He later reduced the amount of compensatory damages requested to about $607,000.

In its recent ruling, FINRA denied Loftus’ request for a clearing (or expungement) of his U5 broker records.

Wells Fargo declined to comment on the matter, and the advisor involved in the case did not return a request for comment by press time. 

— Check out Ex-Morgan Advisor, in Unusual Move, Takes FINRA Arb Case to Federal Court on ThinkAdvisor.