Former Green Bay Wells Fargo Clearing Services Broker Named Respondent in FINRA Complaint for Unsuitable Recommendations and Providing False Statements to his FirmFriday, December 21, 2018
On December 3, 2018, the Financial Industry Regulatory Authority (FINRA) Department of Enforcement filed a Complaint against Ronald Blasczyk, a former general securities representative at Wells Fargo Clearing Services, LLC (Wells Fargo) from 2011 to the present in Green Bay, Wisconsin, for alleged securities industry violations.
According to the Complaint, Blasczyk met with his 75-year old customer in June 2015 and stated that her money was at risk because she was invested with a variable annuity company that could go bankrupt or have other issues. Despite the Wisconsin Insurance Security Fund with a $300,000 claim limit covering her then $200,000 investment in the Voya VA, Blasczyk allegedly still recommended that she diversify her investment profile. FINRA claims that Blasczyk then, without his customer’s consent, liquidated the Voya VA variable annuity that the customer had owned for over ten years. The customer did not discover that the annuity was liquidated for cash for over two months. FINRA claims that the liquidation was unsuitable for the customer because of her age, investment objectives risk tolerance and investment profile information. The liquidation caused her to forfeit approximately $153,000 in guaranteed income that had accrued over ten years.
After the customer discovered the liquidation, Blasczyk recommended that she purchase another variable annuity that would have bound her to a new nine-year surrender period while offering her less beneficial features than Voya VA. Based on the foregoing, FINRA asserts that Blasczyk did not have a reasonable basis to believe that his recommendation was appropriate for the client, thus violating FINRA Rules 2111 and 2010.
FINRA also claims that in a separate incident, Blasczyk created a false and misleading firm business record by stating that the customer was aware he had liquidated the Voya VA and removed himself as the broker of record for her account in violation of FINRA Rule 2010.
FINRA Department of Enforcement is requesting relief to make findings of fact and conclusions of law that Ronald Blasczyk committed the violations alleged in the Complaint and order that sanctions and fines be imposed under FINRA Rule 8310(a) and 8330.
If a broker was not properly supervised while registered at a brokerage firm, the firm can be held liable for the broker’s misconduct. Did you invest with Ronald Blasczyk and lose money? If so, you may be able to recover from him or his brokerage firm Wells Fargo Clearing Services, LLC. Since 1998, the attorneys at ChapmanAlbin have been representing victims of investment fraud and broker misconduct. Call us (1-877-410-8172) today for a free, no obligation consultation.