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Attorney Jake Zamansky Comments on Wells Fargo’s Appeal of Fraud Ruling in Financial-Planning.com

March 8, 2022 Breaking News

Wells Fargo recently appealed a Georgia judge’s decision that the financial institution and its outside lawyer committed fraud on FINRA, rigging the investor dispute process and putting into question the fairness of the regulator’s entire arbitration system. We’ve discussed the legal woes surrounding Wells Fargo in the past; however, this appeal casts more of an unflattering light on FINRA and the SEC (the government agency that oversees FINRA).

A Look at What Happened

In 2019, two Wells Fargo customers filed a lawsuit in Georgia state court against the bank after losing their arbitration claim and on January 25, 2022, Fulton County Superior Court Judge Belinda Edwards vacated the arbitration panel’s award, citing misconduct by Wells Fargo, FINRA and the arbitrators by “procuring perjured testimony, intentionally misrepresenting the record and refusing to turn over a key document.” The decision is very significant because judges rarely question the fairness of FINRA’s process.

Investment fraud attorney Jake Zamansky told Financial Planning Magazine that arbitration is “supposed to be a neutral forum where neither side has a special advantage,” and further noted that “it’s unusual for FINRA to have an independent investigation, because it means their credibility is at stake.” When choosing arbitrators, FINRA’s computers are supposed to randomly create an unbiased list of possible candidates and based on that list, the parties have to select and agree on three individuals.

However, in this particular instance, the customers alleged that Wells Fargo’s attorney had two names removed from the list with FINRA’s permission. In regard to the judge’s ruling, Zamansky told the magazine that “in future FINRA arbitrations, you’re going to have customers who ask courts to ask, ‘was there any improper influence?’”

Need Assistance? Contact Investment Fraud Attorney Jake Zamansky

If you believe you are the victim of investment fraud or if you believe the arbitration process in your case is biased, speak to investment fraud attorney Jake Zamansky today by calling 212-742-1414 or emailing jake@zamansky.com.

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“Jake Zamasky and his colleagues represented me in a FINRA arbitration case against a large multinational bank and succeeded in obtaining an award for the full amount of my investment losses. I would highly recommend the Zamansky firm for their experience in securities litigation, their level of detailed research and case preparation, and their ability to effectively fight for what’s right.”

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