Soreide Law Suit Files Lawsuit on Behalf of Clients Against Daniel Fain and Wells Fargo Advisors, LLC

Soreide Law Group recently filed a lawsuit on behalf of three clients against registered representative, DANIEL FAIN (CRD# 19616), and WELLS FARGO ADVISORS, LLC (WELLS FARGO).
The Claimants, two of whom are in their 70s and retired, had placed all of their investment assets with WELLS FARGO to supplement their income through retirement.  Each of the Claimants maintains a net worth under $250,000.
On or about February 2011, two of the Claimants received their deceased mother’s stock portfolio which had been managed by Daniel Fain. The majority of the stock was invested in oil and gas investments. Fain allegedly recommended to the Claimants to hold the positions and continue to add to the already overly-concentrated oil and gas stocks despite the investments being totally unsuitable for the Claimants.
By 2014, Fain had concentrated over 80% of the Claimants’ account into oil and gas stocks: BP Prudhoe (-130,000), Breitburn Energy (-11,000), Dominion ($9,000), and Linn Energy (-$30,000). On or about March of 2016, the Claimants complained to WELLS FARGO management over the disastrous performance of their account and they were assigned a new broker. No one from WELLS FARGO, the lawsuit alleges, ever made an attempt to build a diversified portfolio to protect the retirement of the Claimants. There was also no hedging or stop loss strategy implemented in the accounts and the Respondents went all in on one idea that has now cost the Claimants over $280,000.
The lawsuit alleges that WELLS FARGO failed to supervise Daniel Fain, who exposed the Claimants to an inordinate amount of risk for their investment goals. The lawsuit also alleges that Fain traded over 90% of the Claimants’ portfolio in volatile individual energy stocks. This allocation violates industry standards. The failure of the Financial Advisor to recommend a meaningful allocation to investment grade fixed income, when the Claimants were seeking income to sustain them through retirement, left the Claimants exposed to risk that could have been significantly reduced without losing significant return potential.
WELLS FARGO’S alleged lack of supervision over their registered representative was evidenced by them allowing their broker, Daniel Fain, to over concentrate the Claimants’ accounts into speculative energy investments without disclosing the true nature and risk of maintaining these investments in such large concentrations. This strategy was completely unsuitable for the Claimants and the Respondents never made an attempt to protect their life savings in the face of overwhelmingly negative news as their life’s savings plummeted.
The lawsuit alleges that WELLS FARGO and Daniel Fain’s actions have caused Claimant damages of approximately $280,000.00.
The lawsuit alleges; negligence, breach of fiduciary duty, negligent supervision, breach of contract, and violation of Florida’s Investor Protection Act.
If you or an elderly family member have suffered financial losses due to the recommendations or actions of registered representative, DANIEL FAIN or WELLS FARGO ADVISORS, LLC, contact Soreide Law Group for a no-cost consultation with a lawyer regarding the possibility of recovering your investments at:  888-760-6552.
Soreide Law Group represents our clients nationwide before FINRA and we operate on a contingency fee basis.