FINRA Suspends Former Wells Fargo Broker for Trading on Deceased Customer’s Account
The Financial Industry Regulatory Authority has suspended and fined former Wells Fargo broker, Michael David Garris, for making 26 unauthorized transactions in a deceased customer’s account over a two-month period.
The Financial Industry Regulatory Authority has suspended and fined former Wells Fargo broker, Michael David Garris, for making 26 unauthorized transactions in a deceased customer’s account over a two-month period.
Garris joined Wells Fargo in May 2011 but was terminated approximately seven years later after the firm realized that he had “placed trades in a customer’s accounts without sufficient authorization.”
According to a FINRA letter of acceptance, waiver and consent, in June 2014, Garris began providing brokerage services to a customer who maintained two accounts with the firm. In March 2017, his assistant received a telephone call informing her that the customer had passed away. That same month, Garris exchanged emails and had a telephone call with the customer’s nephew, who also confirmed that the customer had passed away.
Wells Fargo requires its registered representatives to notify the firm upon receiving notice of a customer’s death. However, Garris did not report the death, and six months later, executed 26 unauthorized transactions totaling roughly $381,500, which generated more than $9,300 in commissions.
Wells Fargo has since reversed the unauthorized transactions and refunded all commissions.
FINRA suspended Garris for one year and issued a $5,000 fine.
Garris, who has no relevant disciplinary history, signed the AWC letter without admitting or denying the findings.
