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Wells Fargo Clearing Services Fires Gerald Klein

Jan 26, 2022 Fired Brokers

Gerald Klein (CRD #: 852224) was recently fired from his position at Wells Fargo Clearing Services, according to his BrokerCheck record, accessed on January 7, 2022. Details surrounding his termination have been provided below. 

Termination Details 

On October 29, 2021, Wells Fargo Clearing Services fired Gerald Klein after allegedly executing a transaction without client authorization. The allegations further state that Gerald Klein noted in an electronic record that he had spoken to the client when he had not. Gerald Klein also reportedly did not notify management after the client complained. 

A broker must always have the customer's permission before executing any transactions in their non-discretionary account. This is in accordance with FINRA Rule 3260(b).  

A broker executing unauthorized trades in a customer's account also violates FINRA Rule 2010, which requires associated persons to observe high standards of commercial honor and just and equitable principles of trade. 

Misrepresentation  

According to allegations filed on December 9, 2015, Gerald Klein allegedly failed to tell his client that her sale of securities would come with fees.  

Did you know that any of the following can be considered misrepresentation or omission? 

  • Inadequate due diligence concerning security offerings 
  • Failure to disclose all material risks 
  • Failure to disclose all transaction costs 
  • Unrealistic investment return projections 
  • Inaccurate investment performance calculation 

Misrepresentations and omissions concerning material facts in investment recommendations deprive investors of the information they need to assess risks associated with a particular investment. FINRA Rule 2020 prohibits brokerage firms and stockbrokers from making material misrepresentations or inducing people into buying investments with false statements about their potential benefits. This unethical conduct also violates FINRA Rule 2010, which states that brokers must uphold high standards of commercial honor.  

Losses that can be attributed to a stockbroker's material misrepresentations of facts may result in a securities arbitration claim for damages. 

Unauthorized Transactions 

According to allegations filed on July 9, 2014, Gerald Klein allegedly took $75,000 out of his client's accounts without authorization from the client. The case was denied. Investors should know that they can still pursue FINRA arbitration and recover their losses following a denial. 

FINRA Rule 2510 requires that brokers only execute trades without authorization in discretionary accounts. For non-discretionary accounts, investors must always seek their customer's written authorization.  Making unauthorized trades in or facilitating unauthorized withdrawals from a customer's account is a breach of the duty to observe high standards of commercial honor and just and equitable principles, in violation of FINRA Rule 2010. 

Background Information 

Gerald Klein has passed the following exams: 

  • Series 65 - Uniform Investment Adviser Law Examination 
  • Series 63 - Uniform Securities Agent State Law Examination 
  • SIE - Securities Industry Essentials Examination 
  • Series 3 - National Commodity Futures Examination 
  • Series 7 - General Securities Representative Examination 
  • Series 1 - Registered Representative Examination 

Gerald Klein has also worked with the following firms: 

  • Morgan Stanley (CRD#:149777) 
  • Morgan Stanley & Co. Incorporated (CRD#:8209) 
  • Morgan Stanley Dw (CRD#:7556) 
  • Wachovia Securities (CRD#:19616) 
  • First Union Capital Markets Corp. (CRD#:6124) 
  • PaineWebber Incorporated (CRD#:8174) 
  • Lehman Brothers (CRD#:7506) 
  • E. F. Hutton & Company(CRD#:235) 

Kurta Law Can Help 

If you lost money while working with Gerald Klein, don't hesitate to contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation. 

For nearly 20 years, Kurta Law has advocated for investors to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.