Stephen Allen Kelbick of Villanova Pennsylvania a stockbroker formerly registered with Wells Fargo Clearing Services LLC has been fined $5,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity founded on findings that Kelbick effected unauthorized trades in customer accounts while registered with Wells Fargo. Letter of Acceptance Waiver and Consent No. 2017055504801 (Aug. 13, 2019).
According to the AWC, during the time Kelbick was employed by Wells Fargo, he was prohibited from engaging in discretionary trading in accounts which had not been expressly authorized for that purpose. The AWC stated that between June of 2016 and November of 2016, Kelbick executed forty trades in a customer’s account on a discretionary basis. Those trades had been effected without Kelbick having received any written authorization from the customer. Kelbick was additionally not permitted by Wells Fargo from effecting trades in customer accounts on a discretionary basis. FINRA indicated that there had been no discussion between the customer and Kelbick on the days Kelbick executed trades in the customer’s account. FINRA found Kelbick’s conduct violative of FINRA Rule 2010 and NASD Rule 2510(b).
FINRA Public Disclosure reveals that Kelbick is referenced in three customer initiated investment related disputes which pertain to accusations of his misconduct during the period in which he was associated with Smith Barney and Wells Fargo Advisors. In fact, a customer filed an investment related complaint involving Kelbick’s activities where the customer sought unspecified damages based upon allegations that misrepresentations had been made concerning the stock trades placed in the customer’s account when Kelbick was employed by Smith Barney Inc.
Kelbick is also referenced in a customer initiated investment related civil action brought in the Commonwealth of Pennsylvania that was settled to resolve accusations that when Kelbick was employed by Wells Fargo, trades had been effected in the customer’s account on an unauthorized, unsuitable and excessive basis causing the customer to incur unwarranted losses. Case No. MJ-38106-CV-0000044 (Sept. 16, 2016). On December 21, 2016, another customer initiated investment related complaint regarding Kelbick’s activities was settled for $24,000.00 in damages supported by allegations that the customer’s assets had not been allocated in exchange traded funds according to the customer’s instructions.
Kelbick was discharged by Wells Fargo Clearing Services on August 16, 2017 founded on accusations of him trading in Wells Fargo customer accounts in a manner which ran contrary to the firm’s policies.