FINRA Complaint Alleges Wells Fargo’s DAVID MANOR Made Unsuitable Trades

On April 16, 2019, FINRA brought Complaint #2017056648801 against Wells Fargo broker David Manor (CRD#: 6033220, Boston, Massachusetts), alleging Manor broke FINRA rules by engaging in outside business activities. FINRA Department of Enforcement claims Manor was involved in an undisclosed outside business activity and engaged in unsuitable options trading. Notably, those allegations, if true, would mean Manor violated FINRA Rules 3270, 2111, 2360 and 2010.

FINRA Alleges David Manor Was Involved In Outside Business Activities

Manor became a Wells Fargo Clearing Services, LLC securities representative on August 8, 2016. FINRA argues that by 2017, Manor involved himself with an outside business venture involving a customer of Wells Fargo. The Complaint stated that the customer, who happened to be 75 and retired, was advised by Manor on disposing of the customer’s mineral rights. Supposedly, the customer paid Manor $107,000 because of Manor’s involvement in liquidating the customer’s mineral rights. However, FINRA stated that Manor did not make Wells Fargo aware of his involvement with the customer’s affairs. Because of this, the Complaint alleged Manor violated FINRA Rules 2370 and 2010.

David Manor Allegedly Engages In Private Securities Transaction With Customer

Allegedly, Manor persuaded the customer to use the mineral rights sale proceeds for investments through Charles Schwab. Notably, the Complaint stated that Manor advised the customer to invest in an account held away from Wells Fargo. FINRA says that Manor and the customer agreed to split profits derived from Manor’s trading in the customer’s account at Charles Schwab. However, Manor failed to notify Charles Schwab or Wells Fargo about his account transactions. Critically, FINRA stated that Manor engaged in private securities transactions because his activities were beyond the scope of his employment with Wells Fargo. As a result, the Complaint alleged Manor violated FINRA Rules 2150, 3280 and 2010.

David Manor Allegedly Made Unsuitable Options Recommendations Causing Customer $224k In Losses

FINRA Department of Enforcement further alleges that Manor gained access to the customer’s Charles Schwab account after it was set up. Allegedly, Manor logged into the customer’s Charles Schwab account and began making high-risk trades of uncovered options. Specifically, in 2017, Manor advised the customer to buy 94 S&P 500 Index put options for a total of nearly $225,000. In FINRA’s view, this was unsuitable for the customer because the customer wanted to invest in moderate risk investments.
Also, FINRA stated that the customer had no experience with uncovered options trading. Allegedly, this precluded the customer from being able to understand what Manor recommended. Secondly, FINRA says that Manor was advising the customer to put as much as 50% of the customer’s net worth in the put options. Allegedly, in under three months, Manor caused the customer about $224,837 in losses. For this reason, the Complaint alleged that Manor violated FINRA Rules 2111, 2360 and 2010.
Evidently, two customers brought investment-related disputes about Manor’s sales practices. For example, check out the following disputes:

April 30, 2018 Dispute Involving David Manor, Allegations Of Unsuitable Derivatives

A customer of Wells Fargo and Charles Schwab brought a FINRA Arbitration #17-03210 on April 30, 2018. Principally, the customer claims that Manor gave bad advice on derivatives. According to the customer, Manor’s unsuitable recommendations caused the customer to sustain losses. As a result, Wells Fargo agreed to pay the customer $95,000 to settle the claim on September 7, 2018.

January 22, 2016 Dispute Alleging Misrepresentation

Previously, from 2013 to 2016, Manor worked at Santander Securities LLC.  Evidently, a customer of Santander Securities LLC contested Manor’s sales practices according to a complaint dated January 22, 2016. Apparently, the customer purchased a misrepresented variable annuity. Supposedly, this annuity was not suitable because the customer had limited funds for generating income. All things considered, Santander Securities settled the customer’s dispute for $30,000.

If you experienced losses by investing with Wells Fargo broker David Manor, contact Soreide Law Group at (888) 760-6552 and speak with experienced counsel about a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The firm has recovered millions of dollars for investors who have suffered losses due to misconduct of brokers and brokerage firms.