How Can Investors Can Sue Wells Fargo and Financial Advisor John Bradford Leonard for Losses from Energy Investments?
Posted on Monday, March 20th, 2017 at 4:05 pm
Erez Law is currently investigating Wells Fargo financial advisor John Bradford Leonard (CRD# 2113842) regarding losses from oil and gas investments. Leonard was registered with Wells Fargo in Toledo, Ohio from 2008 to 2016.
In one example of broker misconduct, two Ohio residents filed a FINRA arbitration against Leonard regarding devastating losses of $300,000 in retirement savings for investments tied to the energy sector. Leonard’s former customers allege that Leonard overconcentrated more than 70% of their investments in oil and gas stocks. Among several others, the companies that the customer invested in include:
- Linn Energy
- Breitburn Energy Partners
- SeaDrill Partners
- Memorial Production
- Energy Transfer Partners
- Kinder Morgan
- Teekay Offshore Partners
Breitburn Energy and Linn Energy have since filed for Chapter 11 of the U.S. Bankruptcy Code.
These and other oil and gas companies have experienced price fluctuations over the past few years, which has put financial stress on the oil and gas industry. A supply glut in 2014 and 2015 led to some of the lowest prices the market has seen in recent years. In turn, securities values also dropped. While financial advisers can effectively coax clients into lucrative high risk, high yield investments in the oil and gas industry, some fail to fully inform their clients of the inherent risks.
Leonard has been the subject of six customer complaints in 2016, according to his CRD report:
October 2016. “Customer alleges his portfolio is over weighted in energy MLP holdings and has declined in value. (1/1/2013-10/5/2016).”
September 2016. “Claimant alleges unsuitable investment recommendations were made on or about years 2013 and 2014.” The case was settled for $50,000.
June 2016. “Client verbally alleged unsuitable investments. (6/1/2010-8/31/2015).” The case was settled for $24,000.
June 2016. “Claimant alleges on or about 2014 unsuitable recommendations were made.” The customer seeks $150,000 in damages and the case is currently pending.
June 2016. “Claimant alleges on or about 2014 unsuitable recommendations were made. The case was settled for $25,000 in damages.
May 2016. “Client alleged unsuitable investments. (9/1/2014-5/2/2016).” The client sought $138,626.29 in damages and the case was settled for $60,000.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Wells Fargo may be liable for investment or other losses suffered by Leonard’s customers.
Erez Law represents investors in the United States for claims against Wells Fargo financial advisor John Bradford Leonard, who is alleged to overconcentrate investments in the volatile energy sector. If you were a client of Wells Fargo financial advisor John Bradford Leonard or another firm, and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.