- January 11, 2021
- Wells Fargo Advisors
Kevin Schaefer (CRD # 1286030) is a Financial Advisor at Wells Fargo Clearing Services, LLC in San Francisco, CA. Kevin Schaffer has been in the securities industry since 1984. Kevin Schaffer worked for Merrill Lunch, Pierce, Fenner & Smith Incorporated from 2011-2019. Kevin Schaefer’s employment history also includes UBS Financial Services Inc, Smith Barney Shearson Inc., Lehman Brothers Inc, and E.F. Hutton & Company Inc.
According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), Kevin Schaefer has been the subject of six (6) customer complaints, alleging sales practice misconduct:
• June 2020—”The customer alleges unsuitable investment recommendations and misrepresentations.” Alleged damages are $1,000,000 and the matter remains pending.
• June 2020—”The customer alleges unsuitable investment recommendations, failure to follow instructions and misrepresentations from 2012 until 2020.” Alleged damages are $300,000 and the matter remains pending.
• January 2017—”The Customer alleges misrepresentation and unsuitable investment recommendations from September 2012 to December 2016.”
• May 2008—”CLIENT ALLEGES THAT THESE BONDS (AUCTION RATE SECURITIES) WERE TO BE SAFE INVESTMENTS AND NOT SHARES OF STOCK. CLIENT FURTHER STATES THAT HAD IT BEEN EXPLAINED THAT THESE BONDS COULD RESET TO LOWER INTEREST RATES, HE WOULD NOT HAVE MADE THE PURCHASE. DAMAGES ESTIMATED TO BE IN EXCESS OF $5,000.” The matter settled for $600,000.
• February 2000—”CLIENT ALLEGES “FRAUDULENT NONDISCLOSURE/ MISREPRESENTATION/ SUITABILITY.” CLIENT ALLEGES COMPENSATORY DAMAGES IN AN AMOUNT GREATER THAN $5,000.” The matter was denied.
• August 1996—”CLIENTS ALLEGE FRAUDULENT NON-DISCLOSURE, NEGLIGENT MISREPRESENTATION, BREACH OF FIDUCIARY DUTY, AND FAILURE TO SUPERVISE WITH REGARD TO THEIR TRADING IN THE COMMON STOCK OF SYNTECH FOR THE TIME PERIOD SEPTEMBER 1993 THROUGH MARCH 1996 AND SEEK COMPENSATORY DAMAGES IN EXCESS OF $100,000 AND PUNITIVE DAMAGES.” The matter settled for $14,000.
For a copy of Kevin Schaefer’s CRD, click here
Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. 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.
Reasonable basis suitability requires that a recommended investment or investment strategy be suitable or appropriate for at least some investors. Reasonable basis suitability requires an advisor to conduct adequate due diligence so that he or she can determine the risks and rewards of the investment or investment strategy.
Quantitative suitability requires a brokerage firm or financial advisor with actual or de facto control over a customer’s account to have a reasonable basis for believing that a series of recommended transactions – even if suitable when viewed in isolation – is not excessive and unsuitable for the customer when taken together in light of the customer’s investment profile. No single test defines excessive activity, but factors such as the turnover rate, the cost-equity ratio, and the use of in-and-out trading in a customer’s account may provide a basis for a finding that a member or associated person has violated the quantitative suitability obligation.
Customer-specific suitability requires that a member or associated person have a reasonable basis to believe that the recommendation is suitable for a particular customer based on that customer’s investment profile. Among the criteria that a financial advisor must evaluate to satisfy his or her customer-specific suitability obligations include the investor’s:
• Other investments
• Financial situation and needs
• Tax status
• Investment objectives
• Time horizon
• Liquidity needs
• Risk tolerance
• Any other information disclosed by the customer
The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis. 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. We can be reached at 800.931.8452 or by email at email@example.com.