Defendant Name: Wells Fargo Securities LLC

Defendant Type: Subsidiary of Public Company
Public Company Parent: Wells Fargo & Co.
SIC Code: 6021
CUSIP: 94974610

Initial Case Details

Legal Case Name In the Matter of Wells Fargo Brokerage Services, LLC n/k/a Wells Fargo Securities, LLC and Shawn Patrick McMurty
First Document Date 14-Aug-2012
Initial Filing Format Administrative Action
File Number 3-14982
Allegation Type Municipal Securities & Public Pensions

Violations Alleged

Securities Act
• Sec 17(a)(2)
• Sec 17(a)(3)

Resolutions

First Resolution Date 14-Aug-2012
Headline Total Penalty and Disgorgement $6,606,572

Related Documents:

2012-155 14-Aug-2012 Press Release--Administrative Proceeding
SEC Charges Wells Fargo for Selling Complex Investments Without Disclosing Risks
On August 14, 2012, the SEC announced that it "charged Wells Fargo's brokerage firm and a former vice president for selling investments tied to mortgage-backed securities without fully understanding their complexity or disclosing the risks to investors."
33-9349 14-Aug-2012 Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Section 8A of the Securities Act of 1933, Section 15(b) of the Securities Exchange Act of 1934, and Section 9(b) of the Investment Company Act of 1940, Making Findings, and Imposing Remedial Sanctions and a Cease-and-Desist Order
On August 14, 2012, the SEC instituted settled administrative and cease-and-desist proceedings against Wells Fargo Brokerage Services LLC n/k/a Wells Fargo Securities, LLC and Shawn Patrick McMurtry. According to the SEC: "From at least January 1, 2007 through August 14, 2007 ('relevant time period'), Wells Fargo and certain of its registered representatives made recommendations to certain institutional customers to purchase asset-backed commercial paper issued by limited purpose companies called Structured Investment Vehicles ('SIVs'), which were complex investment vehicles backed largely by high-risk mortgage-backed securities ('MBS') and collateral debt obligations ('CDOs'). Wells Fargo registered representatives in Wells Fargo's Institutional Brokerage and Sales Division, including McMurtry, recommended and sold these asset-backed commercial paper investments to certain institutional customers, including municipalities and non-profit institutions."
34-67829 11-Sep-2012 Administrative Proceeding
Order Appointing Tax Administrator
On September 11, 2012, the SEC ordered the appointment of Damasco and Associates, LLP as the Tax Administrator for the Qualified Settlement Fund.
34-67972 03-Oct-2012 Administrative Proceeding
Extension Order
On October 3, 2012, the Commission granted the Division of Enforcement's request for an extension of time until March 18, 2013 for the submission of a proposed Plan of Distribution. According to the SEC: "the Division discussed a potential distribution and determine that it requires additional time to identify eligible claimants, develop a plan methodology, and propose a Plan of Distribution...."
34-69149 15-Mar-2013 Administrative Proceeding
Extension Order
On March 15, 2013, the Commission granted the Division of Enforcement's request for an extension of time until June 18, 2013 for the submission of a proposed Plan of Distribution. According to the SEC: "After further deliberations, the Division has now determined that it requires an additional extension of time to submit a proposed Plan of Distribution."
34-69917 02-Jul-2013 Administrative Proceeding
Order Appointing Fund Administrator and Approving Fund Administrator Bond Amount
On July 2, 2013 the SEC approved the Division of Enforcement request for an approval of "Michael J. Liccar and Company LLC as the Fund Administrator" and a "fund administrator bond" that is "equal to size of Fair Fund."
34-79888-dp 27-Jan-2017 Administrative Proceeding
Proposed Plan of Distribution
On August 14, 2012 the SEC issued a settled order against Wells Fargo Brokerage Services, LLC n/k/a Wells Fargo Securities, LLC and Shawn Patrick McMurtry. The Order created a Fair Fund pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002. This "proposed plan of distribution provides for a distribution to certain institutional customers who bought asset backed commercial paper ("ABCP") recommended and sold by [the Defendants]."
34-79888 27-Jan-2017 Administrative Proceeding
Notice of Proposed Plan of Distribution and Opportunity for Comment
On January 17, 2017, "notice [was] give, pursuant to Rule 1103 of the United States Securities and Exchange Commission's ("Commission") Rules on Fair Fund and Disgorgement Plans, 17 C.F.R. § 201.1103, that the Division of Enforcement has submitted to the Commission a proposed Plan of Distribution (the "Plan") for the distribution of monies paid by Wells Fargo Brokerage Services, LLC n/k/a Wells Fargo Securities, LLC ("Wells Fargo") and Shawn Patrick McMurtry ("McMurtry") (collectively, the "Respondents")" in relation to the August 14, 2012 settled order against Respondents.
34-80302-dp 23-Mar-2017 Administrative Proceeding
Plan of Distribution
According to the SEC, "[t]he Plan of Distribution (the “Plan”) provides for a distribution to certain institutional customers (“Customers”) who bought asset backed commercial paper (“ABCP”) recommended and sold by Wells Fargo Brokerage Services, LLC n/k/a Wells Fargo Securities, LLC (“Wells Fargo”) and Shawn Patrick McMurtry (“McMurtry”)1 (collectively, the “Respondents”) from January 1, 2007 through August 14, 2007 (the “Relevant Period”)." This Plan is in relation to the Fair Fund constituting $6,606,571.96 paid by the Respondents and created by the Order instituted on August 14, 2012.
34-80302 23-Mar-2017 Administrative Proceeding
Order Approving Plan of Distribution
On March 23, 2017 the SEC instituted an order approving the Proposed Plan of Distribution that was published for notice and opportunity for comment on January 27, 2107. This approved plan is related to an Order submitted on August 14, 2012 against Wells Fargo Brokerage Services, LLC n/k/a Wells Fargo Securities, LLC and Shawn Patrick McMurtry instituting a cease-and-desist order as well as disgorgement, prejudgment interest, and civil money penalties to be paid to a Fair Fund.
34-81064_3-14982 30-Jun-2017 Administrative Proceeding
Notice of Name Change of Appointed Tax Administrator
On June 30, 2017, the SEC announced a Name Change of Appointed Tax Administrator, and amended the Omnibus Order, beginning June 2017 and for calendar year 2018, to replace all references to Damasco with "Miller Kaplan Arase LLP which acquired Damasco & Associates LLP" in order to reflect Damasco's name change.
34-85384 21-Mar-2019 Administrative Proceeding
Order Directing Disbursement of Fair Fund
The SEC stated: "[I]t is ORDERED that the Commission staff shall direct the payment of $6,604,693.16 from the Fair Fund to the Customer Recipients in accordance with the Plan."
34-94768 21-Apr-2022 Administrative Proceeding
Order Authorizing the Transfer to the U.S. Treasury of the Remaining Funds and Any Funds Returned to the Fair Fund in the Future, Discharging the Fund Administrator, Canceling the Administrator's Bond, and Terminating the Fair Fund
The Commission stated: "The Commission staff has confirmed that the Fund Administrator has completed the distribution process in accordance with the Commission's orders, that all taxes, fees, and expenses have been paid, and that all monies remaining in the Fair Fund have been received by the Commission.8 The final accounting, which was submitted to the Commission for approval . . . and as set forth in the Plan, has been approved."

Other Defendants in Action:

Shawn Patrick McMurtry