Wells Fargo Advisors is the subject of an exploitative and fraudulent conduct lawsuit filed by Karen E. Henderson, an elderly female client. The primary reason appears to be that Robert Kreifels, the broker advising her, did not stop her from lending over $337K to his (broker’s) sister and her husband. The complaint was initially filed in state court but later moved to the federal court in the Northern District of Florida. She has sought over $30,000 as damages, and attorney fees in addition.
Haselkorn & Thibaut is currently investigating Mr. Robert Kreifels and is interested in talking to his clients. Investors are encouraged to call our toll-free number at 1-888-614-9356.
The Case
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Wells Fargo stands accused of “exploitation of a vulnerable adult,” apart from a breach of their fiduciary duty, and a failure to disclose a conflict of interest.
Kreifels’ sister happened to be the physician of the complainant, as disclosed in the complaint. It was on the physician’s recommendation that Henderson had hired Kreifels more than 12 years back. His sister, who is not only Henderson’s doctor but was also the doctor of her late mother, had “strongly encouraged” her to do so.
Sometime later, when the doctor’s sister and her husband started “experiencing financial difficulties and needed additional monies to support their lavish lifestyle,” a request to “extend loans to them” was made, according to the lawsuit.
According to the lawsuit, Henderson advised Kreifels of this request and that she needed money to fulfill her request.
Between March 2008 and April 2013, the total amount of unsecured loans extended by her to the doctor and her husband added up to $337K. Checks made out to the doctor and husband that were cashed were included by Henderson as exhibits in her complaint.
The complainant alleges that she was never advised of the conflict of interest between the firm and her, by either Kreifels or anyone else representing the firm. According to her, Kreifels even “induced” her to sell stocks in her account when it appeared she did not have the liquidity to be able to extend the loan required by his sister.
Her contention is that She “obviously would not have initiated these certain purchases and sales had Wells Fargo represented that they had a conflict of interest and/or that these purchases and sales were not in her best interest.”
No comment has been forthcoming from Wells Fargo on the case.
Record of Robert Kreifels
Kreifels is an industry veteran with over 40 years of experience. He has since retired and is no longer registered with any firm. Kreifels began his career in the industry in 1976 at Lamson Brothers & Co., which is no longer a registered firm. Before joining Wells Fargo Advisors in 2008, he worked at seven other firms. He left Wells in 2017. He is not a named defendant in the case.
Kreifels has not responded to messages left for him through social media.
