Stephen John Klinger (also known as Steve Klinger) of Asheville North Carolina a stockbroker formerly registered with Wells Fargo Clearing Services LLC has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity founded on findings that Klinger failed to cooperate with FINRA personnel during its investigation into Klingler’s options trades in a customer’s accounts that resulted in an entire loss of the customer’s funds. Letter of Acceptance Waiver and Consent No. 2019061847901 (Oct. 10, 2019).
According to the AWC, on August 14, 2019, Klinger was sent a request from FINRA personnel under Rule 8210 which required documents and information to be provided by Klinger specifically concerning the circumstances of the stockbroker’s termination from Wells Fargo Clearing Services. In fact, on February 11, 2019, Klinger was discharged by Wells Fargo Clearing Services based upon accusations that he placed a customer’s assets into his own account and then lost all of the customer’s funds through effecting bad options trades.
After no documents or information had been provided to the regulator by Klinger, a second request was made by FINRA personnel. The AWC stated that FINRA subsequently received a phone call from Klinger confirming that the stockbroker received the regulator’s request but would not be supplying any documentation or information for its investigation. FINRA determined that Klinger’s failure to cooperate was violative of FINRA Rules 2010 and 8210.
FINRA Public Disclosure additionally reveals that Klinger is the subject of a customer initiated investment related civil action brought in the Superior Court of North Carolina which was settled for $37,000.00 on April 4, 2019 supported by allegations that the customer was provided false information concerning the returns that would be generated by the investments selected for the customer’s account between July 1, 2014 and March 6, 2018. Civil Action No. 18CV00975 (Apr. 4, 2019).
