Linda Sue Zara of Boca Raton Florida a stockbroker formerly employed by Wells Fargo Clearing Services LLC has been fined $5,000.00 and suspended for three months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity supported by findings that Zara borrowed a customer’s funds in violation of the firm’s policies. Letter of Acceptance Waiver and Consent No. 2018056922501 (July 9, 2019).
According to the AWC, on June 28, 2017, during which time Zara was associated with Wells Fargo Clearing Services, Zara entered into a loan arrangement with customer, HR, evidenced through a promissory note. Evidently, the note stated that a total of $50,000.00 could be borrowed by Zara from the customer at a rate of two percent interest. FINRA stated that HR, who was ninety-four at the time the promissory note was executed, was not a member of Zara’s family. Therefore, Zara was prohibited under Wells Fargo’s rules from engaging in any lending or borrowing agreements with customers of the firm. FINRA found that by Zara borrowing $44,292 from the customer, Zara’s conduct was violative of FINRA Rule 2010 and 3240.
FINRA Public Disclosure additionally confirms that a customer initiated investment related arbitration claim concerning Zara’s conduct was settled for $52,500.00 in damages founded on allegations that the customer’s transactions were effected in violation of FINRA and National Association of Securities Dealers (NASD) rules as well as Florida securities laws; fiduciary duties owed to the customer had been violated; transactions executed in the customer’s account failed to be suitable for the customer; and false or misleading statements had been made concerning insurance products sold to the customer while Zara was employed by Citigroup Global Markets Inc.
Zara’s employment with Wells Fargo Clearing Services LLC has been terminated as of January 5, 2018. Between February 1, 2018 and March 20, 2019, Zara was registered with Summit Brokerage Services Inc.
