Wedbush Securities - Law Offices of Robert Wayne Pearce

Jan 30, 2019

Wedbush Securities & Its Founder Fined for Negligence

On July 19, 2018 a judgment issued by the United States Court of Appeals for the Ninth Circuit became final in which Wedbush Securities Inc. was fined $300,000 and Edward William Wedbush was fined $50,000 and suspended from association with any FINRA member in any principal capacity for 31 days. Edward Wedbush founded his firm in 1955 and served as a general partner when it was a partnership and became president of the Firm when it was incorporated. He also became Chief Compliance Officer (CCO) and the Business Conduct Manager (BCM) in August 2006. Wedbush was responsible for the firm’s compliance system and all regulatory filings. According to FINRA, from January 2005 to July 2010, the firm committed 158 violations of the rules and by-laws of the National Association of Securities Dealers Inc. (NASD), the New York Stock Exchange Inc. (NYSE) and FINRA. The findings stated that the firm reported 129 events late (RE-3, U4 and U5), 18 events inaccurate, and failed to file 11 forms (RE-3, U4 and U5). The Firm and Mr. Wedbush allegedly failed to reasonably supervise regulatory reportings, failed to implement the firm’s supervisory system, failed to detect and prevent violations and failed to implement corrective measures to address the regulatory reporting failures.

Apr 5, 2016

Wedbush Securities Broker Permanently Barred by FINRA for Conversion of Elderly Customer’s Funds

Michael B. Winegar, a former General Securities Representative with Los Angeles, California-based Wedbush Securities, Inc. (Wedbush) submitted a Letter of Acceptance, Waiver and Consent (AWC) in which he was permanently barred by the Financial Industry Regulatory Authority (FINRA). According to FINRA, Michael Winegar, of Salem, Oregon, converted $100,000 from an elderly customer and used the money to repay his family and personal debts and trade securities. According to FINRA, Mr. Winegar enticed an 85-year-old elderly customer into paying him $100,000. Mr. Winegar allegedly told the customer that he intended to use the money to establish an independent investment advisory firm and would supposedly pay back the $100,000 debt by providing the customer with free investment advice for the next four years. FINRA found that soon after Mr. Winegar had received the $100,000, he did not establish an independent advisory firm but instead sold his securities business to another Wedbush registered representative and left the securities industry. Part of the sale involved Mr. Winegar entering into a non-compete agreement that prevented him from providing the elderly customer the investment advice that he had intended to provide in order to obtain the money for the business.