Retiree Files Claim Against Wells Fargo After Suffering Losses Again

FT. LAUDERDALE, Fla., Feb. 22, 2011 /PRNewswire/ -- A Florida retiree who gave her Wachovia broker a second chance "to do a better job" with her IRA investments has filed claim against Wells Fargo, formerly known as Wachovia Investments, Inc., after suffering losses, again.

The claim filed by the law firm of Securities Fraud Attorney Mark A. Tepper against Wells Fargo (NYSE: WFC) contends that the retiree transferred her IRA to another broker-dealer after suffering losses and then back to her Wachovia broker "after he told her that he would watch her IRA and do a better job."

The claim alleges that instead, Wells Fargo "breached its duty to make suitable recommendations; mis-marked her investment objective and risk tolerance; and engaged in short term trading and speculating on Latin America and China mutual funds, and on 'ultra bull' leveraged exchange traded funds."

The claim contends that the recommendations were unsuitable because the broker "was trading and speculating with Claimant's irreplaceable funds, which was inconsistent with Claimant's financial situation and needs – requiring current income and preservation."

Pointing to allegations of "excessive trading", the claim contends that the broker "generated an annual turnover rate of more than 17 times the average monthly equity in Claimant's IRA."

Wells Fargo "needed an accurate customer profile to make suitable recommendations in Claimants IRA – including her investment objectives and risk tolerance, time frame, withdrawals, annual income, net worth, investment experience and her employment. Instead, the broker's key forms included both contradictory and untrue information about Claimant," the claim alleges.

Wells Fargo "breached its duty to supervise its registered representative's activities in Claimant's IRA by failing to act decisively to detect and prevent its registered representative's unsuitable recommendations," the claim alleges.

About Mark A. Tepper, P.A. (www.MarkTepper.com)

A former Chief Trial Counsel at the Bureau of Investor Protection and Securities, Attorney Mark Tepper has earned the reputation of "Investor Advocate" while practicing law for over 35 years and representing the individual investor. A member of the Florida, New York and California Bars, Mr. Tepper is AV®-rated, the highest rating of lawyers in the Martindale-Hubbell Law Directory.

SOURCE Mark A. Tepper, P.A.