DOJ, SEC Pursue Legal Action Against David Wells

Soreide Law Group is investigating possible investor claims against David S. Wells (also known as David Sheldon Wells) (CRD: 6774493, Mount Prospect, Illinois). Evidently, DOJ and SEC filed against the securities broker, who worked for Fifth Third Securities Inc. Allegedly, Wells misappropriated funds, but the matters are ongoing and he denies the allegations. Here is a brief summary of SEC’s allegations against Wells.

Chicago Financial Advisor Charged With Federal Crime

According to the indictment, Wells allegedly defrauded three of his clients, costing them around $683,000 in total. He has been charged with 3 counts of wire fraud. The formal charges were brought in a federal court.

Supposedly, Wells was working as a financial advisor in a Chicago office of a bank subsidiary located in the Midwest. During 2020 and 2021, he allegedly lied to three of his clients, including two older men with dementia. He allegedly told them he was going to use money to buy stocks in various companies.

Supposedly, clients gave him checks made out to "Wayne and Stark," a company that Wells claimed was publicly traded. However, Wayne and Stark wasn't a real business, it was just a fake company that Wells controlled, according to the indictment.

The official accusation states that Wells allocated that money for his own expenses, like paying rent and risky options trading. Allegedly, he spent or lost the entirety of the money the clients gave him.

Each charge could lead to a maximum of 20 years behind bars.

SEC Charges David Wells With Misappropriation

Also, on September 20, 2022, SEC initiated Complaint: 1:22-cv-05113 against David Wells. The Complaint alleges that from October 2020 to July 2021, Wells stole more than $683,000 from three individuals. Wells purportedly tricked these folks into giving him funds to invest through his company on their behalf. He allegedly had them buy cashier's checks (like pre-paid checks) made out to a business he made up just before taking their money.

According to SEC, in July 2021, Wells quit his job and in his resignation letter, he admitted to misusing his clients' money in dangerous investments. Because he allegedly lied to investors and stole $683,000 from them, SEC’s Complaint states that he violated Investment Advisers Act of 1940 and Securities Exchange Act of 1934.

Wells Barred By FINRA For Failure To Testify

Notably, FINRA issued Letter of Acceptance, Waiver, and Consent No. 2021071998001 on September 20, 2021 sanctioning David Wells for infractions. Allegedly, Wells failed to testify when FINRA carried out an investigation. Therefore, Wells was barred.

Employment Information

Wells worked for Fifth Third Securities Inc. as a securities broker from June 2019 to July 2021.

Did Fifth Third Securities Inc. Securities Broker David Wells Cause You To Experience Damages?

Did you suffer damages due to securities broker David Wells? If so, reach out to Soreide Law Group at (888) 760-6552 and speak with an experienced securities attorney about a possible recovery of your investment losses. Soreide Law Group, who has helped recover money for hundreds of investors in all 50 states, represents clients on a contingency fee basis and advances costs. Wells and brokerage firms Wells worked for deny all allegations of sales practice violations.