FINRA Fines Former Wells Fargo Rep for Unauthorized Transaction Involving Client With Dementia

The Financial Industry Regulatory Authority announced that it has fined former Wells Fargo representative Jarrett Carter Thomas $7,500 for making an unauthorized transaction in an older client’s account.

According to FINRA, in June 2023, Thomas accepted instructions from an older customer to transfer $50,000 from her account at Wells Fargo Clearing Services to her outside bank account. FINRA reported that Thomas had previously received written notice from the customer’s doctor that she was suffering from advanced dementia and lacked the capacity to manage her personal affairs. Despite this knowledge, Thomas did not inform anyone at Wells Fargo Clearing Services about the customer’s incapacitation and proceeded with the $50,000 transfer. Wells Fargo did not discover the customer’s incapacitation until after Thomas’ voluntary resignation from the firm on June 15, 2023.

By effecting the transfer, Thomas made an unauthorized transaction, violating FINRA Rule 2010, which requires associated persons, in the conduct of their business, to “observe high standards of commercial honor and just and equitable principles of trade.”

The matter originated from FINRA’s review of an amended Form U5, also known as a Uniform Termination Notice for Securities Industry Registration, filed by Wells Fargo Clearing Services. The amended form disclosed that Thomas was the subject of an internal review into allegations that he “took instructions from an unauthorized third party, failed to maintain accurate books and records and failed to disclose an outside activity.”

In addition to the $7,500 fine, Thomas has been suspended for 45 days. Thomas consented to the findings without admitting or denying them.

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