Frank A. Tegge, of East Lansing, Michigan, a stockbroker formerly registered with Wells Fargo Advisors, LLC, has been fined $10,000.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he placed unauthorized transactions in a customer’s investment account. Letter of Acceptance, Waiver and Consent, No. 2015047444601 (July 6, 2017).
According to the AWC, from February of 2015 to July of 2015, Tegge transacted in accounts of customers EF and MV during the time he was the customers’ account representative. The AWC stated that EF’s and MV’s accounts were further transacted upon by Tegge on sixty-four occasions, where he never obtained written consent from them before trades had been effected. The firm evidently concluded that the customers’ investment accounts were not approved for discretion to have been exercised by Tegge, and the firm even proscribed discretionary trading via its supervisory procedures. Consequently, Tegge’s conduct was found by FINRA to be violative of FINRA Rules 2010 and NASD Rule 2510(b).
The AWC further stated that Tegge placed transactions in customer BW’s account in June of 2015 during the time that Tegge was the customer’s account representative. Specifically, one-hundred and fifty-five shares of Medivation owned by BW, valued at $17,471.00, was sold by Tegge on June 16, 2015, without Tegge ever having apprised the customer. The AWC stated that the transaction was effected following Tegge’s communication with the customer’s spouse; however, the customer’s spouse lacked authority to trade on the customer’s behalf. FINRA concluded that Tegge’s conduct was violative of FINRA Rule 2010.
Wells Fargo Advisors terminated Tegge on October 5, 2015, based upon the firm’s allegations of Tegge’s unauthorized trading.
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