FINRA Complaint: Tampa Broker Submitted False Reimbursement; Misled Investigators
Nancy Kimball Mellon (CRD#: 1253484) is a former registered broker and registered investment advisor. From 2012 to 2016, Ms. Mellon was associated with Wells Fargo Clearing Services, LLC based at a branch office in Tampa, Florida. Previously, she was also a representative for Morgan Stanley (2009 to 2012) and for Citigroup (2004 to 2009).
In December of 2016, Nancy Kimball Mellon was discharged by Wells Fargo after the brokerage firm allegedly discovered evidence indicating that she submitted false expenses for reimbursement. Soon after, the Financial Industry Regulatory Authority (FINRA) Department of Enforcement launched its own investigation into this broker’s conduct. On November 9th, 2018, FINRA filed a complaint against former Wells Fargo broker Nancy Kimball Mellon.
Allegations of Misconduct: False Reimbursement Claims
In its complaint, FINRA alleges that Nancy Kimball Mellon submitted at least four inaccurate expense reports to her brokerage firm (Wells Fargo). In total, these false reports allowed her to obtain $4,300 in financial reimbursements from the broker-dealer. It was this conduct that eventually led Wells Fargo to terminate her as a securities representative.
FINRA also alleges that when the agency undertook its own investigation into her alleged misconduct, Nancy Kimball Mellon provided false information to investigators. Pursuant to rule 8210, FINRA requested personal bank records and other related financial documents from this broker. In a response to FINRA, Ms. Mellon claimed that she requested the records from her bank — but that the bank denied her request, stating that its internal policy prohibited it from producing such records. FINRA alleges that this never actually occurred, and that Ms. Mellon eventually acknowledged the lie and admitted that she could obtain such records. After that, they were produced for investigators.
FINRA is requesting that the Hearing Panel makes conclusions of facts and law, and that it imposes the appropriate sanctions. This could potentially include suspension or expulsion from the securities industry and financial penalties.
Investor Complaint: Unsuitable Investment Recommendations
Investors need to be able to put their full faith in the hands of their financial advisor. In May of 2017, a customer filed a complaint against former Wells Fargo broker Nancy Kimball Mellon alleging that investment losses were sustained as a result of unsuitable investment advice that she offered. According to the allegations raised in the complaint, Ms. Mellon negligently over-concentrated (failed to diversify) a client’s investment holdings. More specifically, this investor alleged that their portfolio was over-concentrated in the energy sector and, as a result, considerable losses were sustained when crude oil prices fell in 2014 and 2015. Eventually, this investor’s complaint was settled for $40,000 in financial compensation.
Get Help From an Experienced Florida Investment Fraud Lawyer
At Carlson & Associates, P.A., we are a trial law firm specializing in securities arbitration and securities litigation. If you sustained significant investment losses due to broker misconduct, our legal team is here to help. To arrange a fully private review of your legal claim, please call our Miami law office today at (305) 372-9700.