WellsTrade® Prices and Fees
5 stars based on
Instead she recommended an imprudent investment strategy that earned fees and commissions for her company but wrecked his inheritance, Wilkinson, a former Wells Fargo client, claimed in a FINRA arbitration proceeding against the bank. Margin loan Ostendarp also placed him in a margin loan account, which gave him the ability to write checks.
What Wilkinson didn't understand—and wasn't told—was that each time he wrote a check he was, in fact, borrowing money against the value of the securities held in his brokerage account, according to the arbitration filing.
He had also paid for his sons' tuition, back child support and other expenses, again not realizing that he was borrowing money to pay for these things. Neither Ostendarp nor her attorney, Demian Betz, an in-house attorney at Wells Fargo, had any comment. Because the value of the portfolio could not cover what Wilkinson had wells fargo advisors brokerage account fees borrowed, Ostendarp had to sell off securities to pay off the heavily margined account.
Despite the decline, Ostendarp continued to assure Wilkinson that everything was fine and that he should "stay the course" and "trust her," Place said in the wells fargo advisors brokerage account fees filing.
In fact, in SeptemberOstendarp sent Wilkinson a letter wishing him a happy 55th birthday and recommending that he "go out and buy himself the little speedster he'd always dreamt about," Place said.
In MayOstendarp dropped Wilkinson as a client. Triple dipping Place rebuked Wells Fargo and Ostendarp for "triple dipping" on Wilkinson's inheritance, noting that Ostendarp earned over 3.
In short, Wells fargo advisors brokerage account fees Fargo was "motivated by earning fee and commission revenue rather than ensuring Drew met his objectives," Place argued. Place noted that Wilkinson could have bought his farm in cash had Ostendarp not tied up all his money in mutual funds and put him in a situation where he unknowingly was borrowing funds on margin.
As a result, he wound up paying Place summed up the saddest aspect of Wilkinson's story: Now he's on food stamps," Place said.
Already have an account? Don't have an account? Register for Free Unlimited Access. The network for financial advisors The network for financial advisors. Resources Practice Portfolio Industry Voices. Register or login for access to this item and much more All Bank Investment Consultant content is archived after seven days. All recent wells fargo advisors brokerage account fees archived articles Conference offers and updates A full menu of enewsletter options Web seminars, white papers, ebooks Already have an account?
Log In Don't have an account? Like what you see? Make sure you're getting it all Get news and analysis for bank wealth managers.