Former Wells Fargo Financial Adviser Aaron Parthemer Barred By FINRA
Posted on Monday, April 17th, 2017 at 1:12 pm
Erez Law is currently investigating former Wells Fargo financial adviser Aaron Parthemer (CRD# 2546369) regarding outside business activities for an unregistered and illiquid company. Parthemer was registered with Wells Fargo in Fort Lauderdale, Florida from 2011 to 2015 and Morgan Stanley in Fort Lauderdale, Florida from 2009 to 2001. Parthemer was terminated from Wells Fargo in April 2015 following FINRA allegations. Parthemer was a National Football League Players Association (NFLPA) Registered Financial Advisor between 2012 and 2015.
In April 2015, FINRA alleged that Parthemer engaged in outside business activities without providing notice to Wells Fargo, and based on the findings he was permanently barred from acting as a broker or otherwise associating with firms that sell securities to the public. FINRA found that Parthemer loaned almost $400,000 to a firm customer for something non securities related, despite firm prohibitions against such transactions. It is alleged that Parthemer also, “presented to firm customers an undisclosed private security in which the customers ultimately invested in approximately $3.08 million of preferred stock of a company,” according to the Acceptance, Waiver and Consent form. Parthemer also provided false information and documentation during the FINRA investigation.
Parthemer raised more than $5 million in capital from Wells Fargo customers for an unregistered and illiquid company, Global Village Concerns, Inc., a branding and marketing company that helped high schools and non-profit organizations earn money by selling customized school or organizational memorabilia and products. It is alleged that Parthemer sold these securities to NFLPA members and other investments clients of Wells Fargo and Morgan Stanley, communicating to the investors that they would see millions, despite not having any basis for this valuation. It is also alleged that Parthemer misrepresented and omitted material information about the investment to his clients, and he failed to conduct due diligence regarding the validity of information regarding this investment.
In September 2015, Parthemer was the subject of an investigation by the New Jersey Bureau of Securities which alleged that he engaged in dishonest or unethical practices in the securities business.
Parthemer has been the subject of six customer complaints between 2015 and 2016, according to his CRD report:
September 2016. “Claimant alleged, inter alia, that FA solicited to him outside investment opportunities that were unauthorized by the firm.” The customer is seeking $205,000 in damages and the case is currently pending.
July 2016. “Claimants alleged, inter alia, that FA solicited to them outside investment opportunities that were unauthorized by the firm.” The customer is seeking $7,818,162.85 in damages and the case is currently pending.
June 2016. “Claimants allege that investments made between 2011 and 2015, specifically investments in Global Village Concerns, Inc., were misrepresented and unsuitable.” The case is currently pending.
June 2015. “Claimants allege, inter alia, that in 2009 and 2011 the fa recommended an investments that was not authorized by the firm.” The customer sought $4,864,846 in damages and the case was settled for $1,100,000.
May 2015. “Negligence, gross negligence, breach of contract, fraud, fraudulent misrepresentation, negligent misrepresentation, fraud in the inducement, and breach of fiduciary duty.” The client was awarded $700,000 in damages.
May 2015. “Negligence, gross negligence, breach of contract, fraud, fraudulent misrepresentation, negligent misrepresentation, fraud in the inducement, and breach of fiduciary duty” The claimant was awarded $200,000 in damages.
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 Parthemer’s customers.
Erez Law represents investors in the United States for claims against former Wells Fargo financial adviser Aaron Parthemer regarding misrepresentation and outside business activities. If you were a client of former Wells Fargo financial adviser Aaron Parthemer 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.