- August 30, 2018
- Wells Fargo Advisors
The Wolper Law Firm is currently investigating claims against Aaron Parthemer, a former Financial Advisor at Wells Fargo in Fort Lauderdale, FL. Earle Tingley has been in the securities industry since the 1990s and previously worked at Morgan Stanley.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), on March 13, 2017, Aaron Parthemer was barred by the Securities and Exchange Commission (SEC) for “selling more than $5 million of unregistered, illiquid securities to certain professional athlete brokerage customers.” This practice is referred to as “selling away.”
FINRA strictly prohibits financial advisors from “selling away” or selling securities and investments to clients that are not offered by the brokerage firm with which they are employed. For example, it is illegal and a violation of industry rules for a financial advisor to recommend or even suggest that a client invest in the financial advisor’s own business or a business operated by his or her friends or family. It is not necessary that the financial advisor earn any compensation for recommending an outside investment.
The purpose behind this prohibition is to ensure that a financial advisor only offers to sell securities that have been vetted by his or her employer brokerage firm through a rigorous due diligence process. Most brokerage firms have an approved list of investments, products, and research that can be provided or made available to clients. Any deviation by the financial advisor from the approved product list may constitute selling away.
Since being sanctioned, Aaron Parthemer has received four customer complaints in 2017 and 2018, all based on the unlawful sale of unregistered securities not authorized by Wells Fargo. The complaints collectively seek damages of more than $1 million and allege that “FA solicited outside investment opportunities not authorized by the firm.”
Aaron Parthemer was also the subject of several customers complaints in 2015 and 2016 for sales practice violations, including the following:
- September 2016—“FA solicited to him outside investment opportunities that were unauthorized by the firm.” The matter was settled for $120,000.
- July 2016–“FA solicited to him outside investment opportunities that were unauthorized by the firm.
- June 2016—“FA solicited to him outside investment opportunities that were unauthorized by the firm.” The matter was settled for $120,000.” The matter was settled for $228,000.
- June 2015—“FA solicited to him outside investment opportunities that were unauthorized by the firm.” The matter was settled for $1.1MM.
In addition, Aaron Parthemer was on the losing end of two cases that went to a final arbitration hearing. The first resulted in an award of $700,000 and the second resulted in an award of $200,000.
To review a full copy of Aaron Parthemer’s FINRA disclosure report, click https://brokercheck.finra.org/individual/summary/2546369#disclosuresSection
Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Trading long-term investment vehicles in short duration is per se improper as it presents very little benefit to the customer and only benefits the Financial Advisor, who earns commissions. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.
If you or someone you know was a customer of Aaron Parthemer’s and you experienced investment losses, please contact the Wolper Law Firm at 800.931.8452 or by email at email@example.com to discuss your specific situation and the legal options available. The Wolper Law Firm represents investors nationwide in securities litigation and arbitration.
Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters.