Susan Lavon Welo of Mayville, North Dakota, a stockbroker formerly registered with Cetera Advisor Networks LLC, is subject of a Cease and Desist Order issued by the North Dakota Securities Department based upon findings that Welo sold insurance and securities to the public while not registered with a broker-dealer; advised the public while not registered as an investment advisor; and misrepresented her status in that regard to investors. In the Matter of Susan L. Welo. Case No. 17-671 (July 21, 2017).
According to the Order, Welo did business under the name Welo Wealth Management and had various offices located in North Dakota, including in Mayville, Oakes, Marion, Lisbon, Lamoure, Hillsboro, Hatton, Enderlin, Casselton, Buffalo, and Arthur. Apparently, from October 4, 2017 to July 2017, Welo took possession of customer funds to buy and sell securities even though she was not registered as an agent in the state or exempt from registration as an agent. North Dakota Securities Department found her unregistered agent status to be in violation of N.D.C.C. § 10-04-10(2).
Welo reportedly recommended that customers liquidate securities and reinvest proceeds in securities accounts at other institutions, however, she was not registered as an investment adviser at any point in the state. North Dakota Securities Department found Welo’s unregistered investment adviser status to be violative of N.D.C.C. § 10-04-10(3). Evidently, throughout this time, customers in North Dakota were never informed that Welo was not registered in the state as an investment adviser or agent because of Welo’s misrepresentations and omissions in that regard. Consequently, Welo was ordered to cease and desist continued violations of the North Dakota Securities Act according to N.D.C.C. § 10-04-16.
Since North Dakota Securities Department sanctioned Welo, Financial Industry Regulatory Authority (FINRA) Public Disclosure reveals that she is subject of seven customer initiated investment related disputes pertaining to accusations of Welo’s wrongdoing. In particular, on August 9, 2017, a customer filed an investment related written complaint involving Welo’s conduct, in which the customer requested $14,941.00 in damages supported by allegations that while Welo was associated with Cetera Advisor Networks LLC, she failed to place the customer’s assets into investments that conformed with the customer’s principal protection goals.
Subsequently, on August 18, 2017, a customer filed an investment related written complaint involving Welo’s conduct, where the customer requested $500,000.00 in damages founded upon allegations that Welo made misrepresentations to the customer concerning the guarantee of returns and liquidity on business development companies, real estate securities, and variable annuity products. Another customer filed a customer dispute on August 18, 2017, seeking $113,000.00 in damages based upon allegations that Welo failed to accurately represent the illiquid nature of a real estate security purchased by the customer.
Then, on August 29, 2017, two more customer disputes were filed concerning Welo’s improper conduct while associated with Investment Centers of America, Inc. and Securities America Inc., in which customers sought at least $33,000.00 in damages supported by allegations that Welo, inter alia, made unsuitable investment recommendations regarding real estate investment trusts, stocks, mutual funds and variable annuities.
Further, on September 7, 2017, a customer filed an investment related written complaint regarding Welo’s activities, in which the customer requested $5,000.00 in damages based upon allegations that Welo made misrepresentations to the customer concerning a business development company. Another written complaint concerning Welo’s conduct was brought by a customer on September 27, 2017, alleging that the guarantee of investment returns and liquidity of business development companies had been misrepresented.
Welo was fired from Cetera Advisors Networks, LLC, on October 3, 2016, founded on allegations of Welo’s impermissible loan arrangements and use of blank, signed customer account forms in violation of the firm’s policies.
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