Stephen Klinger, Registered Rep Formerly with Wells Fargo Clearing Services, LLC Has Been Sanctioned by FINRA for Failure to Cooperate with FINRA Investigation
Publicly available records recently provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker/advisor Stephen Klinger (CRD # 1294139), formerly with Asheville, NC based Wells Fargo Clearing Services, LLC (CRD # 19616) was recently sanctioned by FINRA’s Department of Enforcement for failing to cooperate with a FINRA investigation. The investigation was initiated after he was terminated for depositing customer funds into his personal account. The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Mr. Klinger.
Mr. Klinger has been registered in the securities industry since 1984 and has been with Wells Fargo Clearing Services, LLC from June 2002 until being terminated in March 2019. His prior registrations included Wachovia Securities, Inc. (CRD # 431) from November 1994 to June 2002 and Fortis Investors, Inc. (CRD # 421) from November 1994 to November 1994.
FINRA’s Finding and Conclusions
According to FINRA Letter of Acceptance, Waiver and Consent (AWC) dated October 10, 2019, Mr. Klinger consented to the following findings by FINRA’s Department of Enforcement, without either admitting or denying:
- On March 4, 2019, Wells Fargo Clearing Services, LLC filed a notice of termination regarding Stephen Klinger;
- The stated reason for termination was “[he] deposited a Firm client’s funds to [his] account to trade options”;
- The option trading in his personal account resulted in the loss of the Firm client’s funds;
- The Firm Client sued Klinger and Wells Fargo Clearing Services, LLC in State court and Klinger failed to advise Wells Fargo Clearing Services, LLC of the law suit;
- Klinger settled the law suit without notifying Wells Fargo Clearing Services, LLC of the suit;
- On August 14, 2019 FINRA sent a request to Klinger for the production of documents and information related to his termination; and
- Klinger received FINRA’s request and advised that he would not produce the requested documents and information.
FINRA Sanctions Stephen Klinger
Pursuant to FINRA Rule 8210, registered individuals are required to provide information with respect to a FINRA investigation. Violation FINRA Rule 8210 is also a violation of FINRA Rule 2010, which requires associated persons to “observe high standards of commercial honor and just and equitable principles of trade.” As a result of such violation and in addition to the above described findings and conclusions, FINRA’s October 10, 2019 AWC also indicates that Mr. Klinger consented to the following sanction:
- Being barred from associating with any FINRA member firm in any and all capacities.
If you or someone you know has or had a brokerage account with Stephen Klinger 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.