Wedbush Securities Inc. (“Wedbush Securities”) (CRD# 877) has many different complaints filed by FINRA (Financial Industry Regulatory Authority), state regulatory organizations, and investors such as yourself. At the Law Offices of Robert Wayne Pearce, we have investigated Wedbush Securities, its regulatory and customer complaints, and have also represented investors with claims of fraud, negligence, and breach of fiduciary duty against this organization and its financial advisors.
If you’ve lost money in your investment account at Wedbush Securities because of broker misconduct, unsuitable investments, or fraud, you have legal options to recover your losses. Most investors pursue claims through FINRA arbitration rather than going to court because arbitration clauses in account agreements typically require this process. The good news: you can still win compensation through arbitration, and the Law Offices of Robert Wayne Pearce, P.A., specializes in helping investors navigate this exact process to hold Wedbush Securities and its brokers accountable.
If you believe you have a claim against Wedbush Securities, you should strongly consider hiring an investment fraud lawyer. You should not wait until it’s too late to file a claim. The Law Offices of Robert Wayne Pearce, P.A., offers free consultations to discuss your case and see what we can do to help you get the compensation you need and deserve.
Can I Sue Wedbush Securities?
Yes, you can sue Wedbush Securities if you’ve lost money caused by Wedbush Securities and/or its employees’ misconduct, but the odds are you signed away your right to sue in court and agreed to resolve your dispute in a FINRA arbitration proceeding. Attorney Robert Wayne Pearce has over 45 years of personal experience in FINRA arbitration proceedings and knows very well how you can not only sue Wedbush Securities in FINRA arbitration proceedings, but WIN that arbitration.
How to Sue Wedbush Securities for Investment Losses
What Can I Do If I Lost Money at Wedbush Securities?
If you lost money at Wedbush Securities because of broker misconduct, you can file a claim through FINRA arbitration to recover your losses. FINRA arbitration is a legal process specifically designed for resolving disputes between investors and brokerage firms. Unlike traditional court litigation, FINRA arbitration is typically faster, less expensive, and conducted before a panel of industry experts who understand securities law. Most importantly, even if you signed an arbitration agreement when you opened your account, you still have the right to pursue claims and win compensation.
The documented regulatory problems at Wedbush Securities—including the firm’s 197 state and self-regulatory body disclosure events and multi-million dollar FINRA fines for supervisory failures—demonstrate a pattern of inadequate oversight that may have directly impacted your investments. These systemic issues create strong grounds for investor claims. Common problems at Wedbush Securities include failure to supervise brokers, unsuitable investment recommendations, excessive trading (churning), unauthorized transactions, and misrepresentation of investment risks.
To pursue a FINRA arbitration claim, you’ll need to file within specific time limits (typically within six years of the misconduct), gather documentation of your losses and the broker’s actions, and present evidence showing how the broker or firm violated industry rules or fiduciary duties. This process requires understanding complex securities regulations, FINRA rules, and arbitration procedures—which is why representation by an experienced securities attorney significantly increases your chances of success.
Who Can Help Me Sue Wedbush Securities?
The Law Offices of Robert Wayne Pearce, P.A. has extensive experience representing investors in FINRA arbitration cases against Wedbush Securities and similar independent broker-dealers. Our firm understands the specific supervisory failures and compliance lapses common at these types of firms, and we know how to connect these systemic problems to individual investor losses. We handle the entire arbitration process from start to finish, including investigating your claim, filing the necessary paperwork with FINRA, gathering evidence, and presenting your case before the arbitration panel.
What is Wedbush Securities?
Wedbush Securities (CRD# 877) is a registered broker-dealer. It operates as a full-service independent broker-dealer, providing a range of financial products and services to individual investors and financial advisors.
As a registered broker-dealer, Wedbush Securities is subject to regulations and oversight by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). It is required to comply with industry standards and regulations to ensure the protection of its clients’ interests.
A failure to comply with industry standards by either its brokers or the firm itself can result in disciplinary actions, fines, or other penalties imposed by regulatory authorities.
Why Does Wedbush Securities Have So Many Bad Reviews and Customer Complaints?
Independent broker-dealers like Wedbush Securities are notorious for lax supervision because of their unique business model. Unlike traditional brokerage firms with full-service branch offices, these franchise-type operations prioritize rapid expansion and steady revenue growth while minimizing costs. This model creates an environment where investor protection often becomes the lowest priority.
The registered representatives at these firms typically operate as separately incorporated businesses rather than employees. They control their own structure and costs to maximize profits, which means they’re not supervised in the same manner as representatives at full-service brokerage firms. The supervisors assigned to monitor these representatives usually work remotely from Offices of Supervisory Jurisdiction (OSJs) and often run their own separate businesses, so they cannot devote full-time attention to day-to-day oversight.
This creates dangerous gaps in supervision. There’s typically no immediate review of new accounts, securities transactions, business records, or correspondence. Nobody is onsite to detect forged signatures, catch inaccurate information about clients’ financial situations, or prevent unsuitable investment recommendations. Often, compliance audits happen only once per year—far too infrequently to catch ongoing problems. The North American Securities Administrators Association (NASAA) has documented more instances of sales abuse and investor losses at these independent firms than at traditional brokerage firms with on-site managers and compliance personnel.
Wedbush Securities Has Many Different Regulatory Problems
Wedbush Securities’ rapid growth has not been without consequences. There have been approximately 197 state and self-regulatory body disclosure events; that is, final and formal proceedings initiated by a regulatory authority (e.g., a state or federal securities agency like the U.S. Securities and Exchange Commission (SEC) or self-regulatory body like the Financial Industry Regulatory Authority (FINRA) for a violation(s) of investment-related rules or regulations. In addition, there have been hundreds of customer complaints filed against Wedbush Securities for misconduct by its securities sales and investment advisory representatives that are not reported by the firm on its Central Depository Record.
We have reported and written about these regulatory problems and customer complaints over many years. Wedbush Securities is a repeat offender: there are over 197 FINRA-reported disciplinary proceedings citing the firm with one form of supervisory lapses or another.
A Brief Overview of Some of the Regulatory Problems Wedbush Securities Has Faced Over the Years*
Wedbush Securities has been repeatedly censured, warned, and fined multi-millions of dollars for its own misconduct and failure to supervise its army of financial advisors.* A few of the notable FINRA Sanctions for its Supervisory Failures are below:
Wedbush Securities Inc. Fined $1.5 Million by FINRA for Rule Violations
Brief Overview: The Financial Industry Regulatory Authority (FINRA) has fined Wedbush Securities Inc. $1.5 million for violating the Securities and Exchange Commission’s (SEC) Customer Protection and Net Capital Rules, as well as for related supervisory and books and records failures. The SEC Customer Protection Rule aims to safeguard customers’ funds and securities by requiring broker-dealers to have physical possession or control over certain securities and maintain a reserve of cash or qualified securities in a bank account to cover the net cash owed to customers. Wedbush Securities’ failure to comply with these rules resulted in the fine imposed by FINRA.
FINRA Fines Wedbush $975K Over Trade Supervision Lapses
Brief Overview: Wedbush Securities, a Los Angeles-based broker/dealer, has been fined $975,000 by the Financial Industry Regulatory Authority (FINRA) for failing to properly supervise trades executed by third-party broker/dealers. The firm mistakenly believed that the third-party broker/dealers were responsible for detecting potential market manipulation. This is not the first time Wedbush has faced regulatory scrutiny, as it has previously been fined for similar lapses, including failure to implement risk controls and detect manipulative trades. As a result of previous actions, Wedbush ceased offering market access services to customers but continued to allow electronic trading customers to access third-party platforms for trade execution.
Wedbush Securities Charged with Unregistered Sales of Microcap Securities and Failing to Report Suspicious Transactions
Brief Overview: Wedbush Securities Inc., a California-based broker-dealer, has agreed to pay more than $1.2 million to settle charges brought by the Securities and Exchange Commission (SEC) for engaging in unlawful unregistered distribution of nearly 100 million shares of over 50 different low-priced microcap companies. The charges also include Wedbush’s failure to file suspicious activity reports (SARs) for certain transactions executed on behalf of an offshore customer, Silverton SA (also known as Wintercap SA). The SEC found that Wedbush did not conduct a reasonable inquiry into the facts surrounding the sales, leading to the disqualification of the usual exemption from registration that applies to brokers’ transactions. Additionally, Wedbush failed to file SARs for transactions suspected to involve fraudulent activity, despite identifying red flags in its written guidance to employees.
*Above are only some of the regulatory disciplinary actions filed against Wedbush Securities by FINRA. NASSA and other state securities regulator investigations and enforcement actions account for another 197 BrokerCheck disclosures.
Did Wedbush Securities Advisor Misconduct Cause You Investment Losses?
When financial advisor misconduct has caused you to lose substantial value to your investment accounts, you have the right to seek reimbursement from the responsible parties. Wedbush Securities is responsible like any employer for its financial advisors acts and omissions. In addition, it has an independent duty to supervise its stockbrokers and investment advisors. These cases can be extremely complex, and so having the support of a reputable attorney who is experienced in recovering investment losses for investors is key to your success. Many customers make the mistake of contacting Wedbush Securities without representation with an attorney about their complaints and have their complaints denied.
Consult With An Attorney Who Recovers Investment Losses Caused By Wedbush Securities Today
The investment loss attorneys at The Law Offices of Robert Wayne Pearce, P.A., have helped countless investors over the last 45 years recover the losses from their investment accounts that were caused by broker negligence or misconduct. The firm has extensive experience with Wedbush Securities cases, and Attorney Pearce is committed to seeing that those responsible for the losses you have suffered are held fully accountable.
Give us a call at 800-732-2889. Let’s discuss your case and see what we can do to help you get the compensation you need and deserve.
