Bradley Pottorf, of Vienna, Virginia, a stockbroker formerly associated with Wells Fargo Clearing Services was terminated on April 16, 2026, “after a review that included a failure to properly authenticate a client resulting in financial loss to the Firm.”
Under the “Customer Protection Rule,” SEC Rule 15c3-3, a securities broker-dealer has exclusive responsibility with respect to accounts carried on a fully disclosed basis to safeguard customer funds and securities, prepare and transmit statements of account to customers, execute orders, extend credit and effect the receipt and delivery of funds and securities.
Securities Broker-Dealers may be responsible for cybertheft.
FINRA Conduct Rule 3010, provides that:
Each member shall establish and maintain a system to supervise the activities of each registered representative and associated person that is reasonably designed to achieve compliance with applicable securities laws and regulations, and with the Rules of this Association. Final responsibility for proper supervision shall rest with the member.
Rule 3012 regarding the establishment of a Supervisory Control System specifically requires all firms:
to establish, maintain and enforce written supervisory control policies and procedures that, among other things, include procedures that are reasonably designed to review and monitor the transmittal of funds (e.g., wires or checks) or securities:
• from customer accounts to third-party accounts (i.e., a transmittal that would result in a change of beneficial ownership);
• from customer accounts to outside entities (e.g., banks, investment companies);
• from customer accounts to locations other than a customer’s primary residence (e.g., post office box, “in care of” accounts, alternate address); and
• between customers and registered representatives (including the hand-delivery of checks).
NASD Rule 3012 (Supervisory Control System) and Incorporated NYSE Rule 401, See also, Regulatory Notice 09-64 (Nov. 2009)(“FINRA firms must have and enforce policies and procedures governing the withdrawal or transmittal of funds or assets from customer accounts, including instructions froman investment adviser or other third party purporting to act on behalf of the customer”); FINRA Regulatory Notice 12-05 (Jan. 2012)(“firms must have adequate policies and procedures to review and monitor all disbursements it makes from customers’ accounts, including but not limited to third-party accounts, outside entities or an address other than the customer’s primary address”); FINRA Department of Enforcement v. Ameriprise, Letter of Acceptance Waiver & Consent, No. 2010-02515730 (March 1, 2013)(Ameriprise fined $750,000 for Failing to Supervise and have reasonable supervisory systems in place to monitor wire transfer requests and the transmittal of customer funds to third-party accounts).
The Guiliano Law Group, P.C.
For more than thirty years, our practice is limited to the representation of investors. If you believe that you have been the victim of misconduct or fraud, contact us for a free consultation or a confidential evaluation of your claim. We accept representation on a contingent fee basis, meaning there is no cost to you unless we make a recovery for you. There is never any charge for a consultation For more information, contact us at (877) SEC-ATTY.
