InvestmentFraudLawyers.com is now investigating complaints against former California broker and financial advisor Charles Henry Frieda. In December 2017, the Financial Industry Regulatory Authority permanently barred Mr. Frieda from associating with any FINRA member firm in any capacity. Mr. Frieda consented to the sanction after his customers at Wells Fargo Clearing Services, LLC (formerly Wells Fargo Advisors, LLC) lost millions of dollars based on his recommendations to invest heavily in the energy sector.
Our attorneys have over 50 years in securities litigation. They are both licensed securities brokers who formerly served as defense counsel for Wall Street firms. Today, they are dedicated to protecting the rights of investors throughout the country who have suffered harm due to broker negligence and misconduct.
If you lost money after working with Mr. Frieda, contact us today to discuss your case. We will provide a free and confidential consultation. We can start work right away on developing a strategy to recover the compensation you deserve.
Who Is Charles H. Frieda?
Table of Contents
You can find information about Charles H. Frieda (CRD# 5502319) through two databases that are open to the public, the FINRA Central Registration Depository (CRD) and Investment Adviser Registration Depository (IARD). Based on his FINRA BrokerCheck Report and IARD Public Disclosure Report:
Mr. Frieda entered the securities industry in 2008, when he became registered as a broker with Citigroup Global Markets Inc. in Brea, California. He stayed with Citigroup until June 2009, when he moved on to Morgan Stanley, also located in Brea. During his time at Morgan Stanley, Mr. Frieda was the subject of one customer complaint, which resulted in a $14,800.83 settlement in December 2012.
In October 2012, Mr. Frieda registered with Wells Fargo Advisors, LLC, in Irvine, California, which is known today as Wells Fargo Clearing Services, LLC. He remained at Wells Fargo until his termination in August 2017. Based on his activity at Wells Fargo, Mr. Frieda was the subject of 56 customer complaints which resulted in a total of $8,417,429.03 in settlements.
FINRA Sanction
In November 2017, Mr. Frieda consented to FINRA’s permanent ban on his association with any FINRA member firms. According to a Letter of Acceptance, Waiver and Consent (FINRA No. 2015045713302):
Between November 2012 and October 2015, Mr. Frieda and another Wells Fargo broker recommended an investment strategy to more than 50 customers. The strategy caused the customers’ accounts to become over-concentrated in the energy sector, primarily four speculative equity securities. The strategy exposed customers to significant potential losses. In some cases, the risk was compounded because the securities exceeded 50 percent of the customers’ net worth. When the energy market began a downturn in 2015, the customers suffered “millions of dollars in aggregate losses,” according to FINRA.
What Are the Complaints Against Charles H. Frieda?
A review of Mr. Frieda’s BrokerCheck report shows that Wells Fargo customers filed 56 complaints against him between October 2014 and November 2018, resulting in settlements. The total amount of those settlements exceeded $8 million. The settlements included:
- An $850,000 settlement in July 2016. The customers filed the complaint in April 2016, alleging that Mr. Frieda over-concentrated their portfolio in unsuitable energy investments.
- A $750,000 settlement in October 2017. In that case, the clients alleged in a March 2017 complaint that they suffered losses due to Mr. Frieda’s recommendation to purchase securities in the energy sector.
- A $575,000 settlement in March 2017. The customers alleged suitability and concentration issues in their March 2017 complaint.
The average of those 56 settlements was $150,311 each. The settlement amounts went as low as $11,000. In fact, 18 of them were for $50,000 or less.
How Can You Recover Investment Losses Involving Mr. Frieda?
Over-concentration is a financial industry term. It occurs when too much of an investor’s portfolio is invested in a single type of security, company or market sector. The strategy can expose an investor to unnecessary risks and losses. A broker owes a duty to customers to make suitable investment recommendations. For many customers, over-concentration clearly is not a suitable investment strategy. If a broker makes unsuitable recommendations, the firms that employ them could face liability based on their lack of adequate supervision.
At Investment Loss Recovery Group, we can thoroughly investigate your case if you suffered financial losses after investing with Charles H. Frieda and Wells Fargo Clearing Services, LLC. We can determine whether broker misconduct or negligence caused your losses, and we can develop a plan to pursue the maximum recovery for you. We work with investors throughout the U.S. to seek the recovery of their investment losses through litigation, arbitration, negotiation, mediation, and settlement. Call or reach us online today to discuss your legal options in a free and confidential consultation.
