Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker/advisor Jerry Michael Wells (CRD # 1015358), currently with Rochester, NY based Sagepoint Financial, Inc. (CRD # 133763) was recently suspended from the securities industry by FINRA’s Department of Enforcement during the course of an investigation into submitting fraudulent documents and unauthorized discretionary trading. The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Wells.
Registration Background for Jerry Michael Wells
Mr. Wells became registered in the securities industry in August 1982. His prior registrations include MetLife Securities, Inc. (CRD # 14251) from April 1991 to May 2016, Metropolitan Life Insurance Company (CRD # 4095) from April 1991 to July 2007 and Pruco Securities Corporation (CRD # 5685) from September 1990 to December 1990.
FINRA’s Finding and Conclusions
According to FINRA Letter of Acceptance, Waiver and Consent (AWC) dated December 4, 2019, Mr. Wells consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- From January 2012 and December 2015, “[Mr.] Wells completed and submitted applications that falsely represented that ten annuity purchases were not annuity replacements, even though each purchase was funded by the sale of, or distributions from, another annuity”;
- “[Mr.] Wells knew, each of the ten recommended VA purchases was funded, in whole or in part, by proceeds from the sale of, or distributions from, another VA”;
- “[Mr.] Wells failed to complete the replacement forms the Firm required for these recommended VA purchases”; and
- As a result of his actions, Mr. Wells either violated or caused his member firm to violate the following rules of the securities industry:
- FINRA Rule 4511, requiring member firms to make and preserve books and records;
- FINRA Rule 2010, which requires associated persons, in the conduct of business, to “observe high standards of commercial honor and just and equitable principles of trade.”
FINRA Sanctions Jerry Michael Wells
As a result of such above described violations and conclusions, FINRA’s December 4, 2019 AWC also indicates that Mr. Wells consented to the following sanction(s):
- A suspension from association with any FINRA member firm in any and all capacities for two months; and
- A fine of $5,000.00.
Jerry Michael Wells has a History of Customer Complaints
In addition to the findings of FINRA’s Department of Enforcement, FINRA BrokerCheck for Mr. Wells reveals he has a history of customer complaints and/or arbitrations:
- On May 24, 2017 a customer initiated a complaint alleging Mr. Wells misrepresented the variable life insurance purchased in April 1998. On August 1, 2017, the complaint was settled in which the customer was compensated $18,280.42;
- On April 7, 2008, a customer initiated a complaint against Mr. Wells alleging the variable annuity purchased in December 2007 may not have been in her best interest due to the seven year surrender charge period. On May 23, 2008, the complaint was settled in which the customer was compensated $7,860.62;
- On August 11, 1999, customers initiated a complaint against Mr. Wells alleging their signatures were forged with regards to variable universal life insurance policies. On March 10, 2000, the complaint was settled in which the customers were compensated $744.25; and
- On May 24, 2012, a customer initiated a complaint against Mr. Wells regarding variable life insurance policies purchased in June 1992 and May 1993. The complaint alleged they were not advised that future premium payments may need to be increased. On June 19, 2012, the complaint was denied.
If you or someone you know has or had a brokerage account with Mr. Jerry Michael Wells and have concerns regarding losses in your investments or possible fraud, you may be entitled to recover lost funds. The Law Office of Kevin J. Deloatch, Esq. has an extensive securities law practice and over 30 years of experience on Wall Street. Call today at (646) 792-2156 for a free consultation. The time to file your claim may be limited so you should call today to avoid delay.
