John David Holshouser Junior of Danville Virginia a stockbroker currently registered with Wells Fargo Clearing Services LLC is the subject of a customer initiated investment related written complaint on June 8, 2018 where the customer requested damages estimated to exceed $5,000.00 in damages based upon allegations that in March 2018, Holshouser poorly advised the customer concerning the termination of the customer’s investment account which caused the customer to be assessed commissions and undue tax liability on the liquidation of equities.
The customer paid these taxes because they had a profit, and at no time did Holshouser ever volunteer to run for political office to reform the nation’s federal tax laws. Either the customer was planning on dying, and needed to pass the subject investments at a cost basis, based on the market value at the time of the investor’s death, or the investor was hoping the securities would decrease in value, in which case, they would not owe any tax.
As a general matter, unless the broker makes misrepresentations concerning taxability, it does not sound like much of a case.
Additionally, the broker has had no complaints for almost twenty years.
Financial Industry Regulatory Authority (FINRA) Public Disclosure additionally reveals that on May 31, 2001, a customer filed an investment related complaint concerning Holshouser’s activities in which the customer sought $300,000.00 in damages supported by accusations that while Holshouser was associated with UBS PaineWebber Inc., stocks had been sold from the customer’s individual retirement account with the proceeds invested in other stocks despite the customer neither knowing or consenting to the transactions. The customer ultimately alleged, inter alia: that his account failed to be reasonably supervised and managed; risks of investments were not disclosed to the customer; over-the-counter equities recommendations were not suitable for the customer; trades were placed in the customer’s account on an excessive basis; and that activities in the customer’s account were part of a scheme to defraud the customer.
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