Stoltmann Law Offices, P.C. is a Chicago-based investor rights and securities law firm that has represented investors nationwide for almost 17 years. Investors who are defrauded by financial advisors have rights and can pursue arbitration against firms like Wells Fargo in an attempt to recover investment losses. On November 2, 2021, FINRA, which is the federal regulator of broker/dealers like Wells Fargo Advisors and James Seijas, issued an “Acceptance, Waiver, and Consent” (AWC) in which James Seijas consented to a life-time ban from the securities industry. The reason for the ban was a result of Seijas consciously failing to respond to FINRA’s requests for information authorized by FINRA Rule 8210. If an advisor does not comply or cooperate with FINRA’s investigation, then the regulator will seek to bar the advisor for life. This is a stiff sentence for non-compliance but is not uncommon when brokers facing seriously allegations by customers or regulators are asked to comply with information requests or sit for an interview on the record.
The AWC was prompted by a filing made by Wells Fargo on Form U-5, which is a securities industry form filed with regulators when a broker’s registered ends with a firm like Wells Fargo. The U-5 Wells Fargo filed identified the reason for him no longer being registered with the firm and was enough to trigger an investigation by FINRA. The AWC does not say what that Form says, and even more peculiarly, his FINRA BrokerCheck Report does not say anything about him being terminated for cause, which is a required disclosure. What his BrokeCheck Report does reveal, however, is the existence of two pending customer complaints. Both complaints have to do with the recommendation to invest in a fraudulent hedge fund or an investment which was part of a Ponzi scheme.
According to AdvisorHub, Seijas is a defendant in a pending claim which alleges he was involved in a $30 million-plus crypto-currency investment scheme. This claim is pending in Hillsborough County, Florida, against Seijas and several other defendants, including Wells Fargo. The prevalence and sudden popularity of cryptocurrency creates a perfect storm for scammers and unsuspecting victims. There is a lot of “FOMO” – fear of missing out – when it comes to crypto-currency. Investors are eager to dip their toes into the pool but many are reluctant to dive in by opening accounts with crypto-exchanges like Coinbase. Instead, investors get involved with purported “hedge” funds that allegedly invest in crypto, like those that invested with Seijas.
If you lost money as a result of the misconduct by a broker, financial advisor, or brokerage firm, you have rights and could have a viable claim for arbitration. Please contact Stoltmann Law Offices at 312-332-4200 for a no-obligation initial consultation with a securities attorney. We are a contingency fee law firm which means we do not get paid until you do!