Wells Fargo Reverse Convertible Investor Loss Recovery Options

The Financial Industry Regulatory Authority (“FINRA”) recently fined Wells Fargo & Co. $2 million recently for the actions of Alfred Chi Chen, a retail investment advisor registered with the firm. Chen placed roughly all the assets in the hundreds of accounts he was managing into reverse convertibles. As a result of this significant fine by FINRA, the attorneys at Eccleston Law are actively seeking investors who have suffered losses in reverse convertibles sold through Wells Fargo & Co.

Reverse convertibles, also known as “reversible notes” or “reverse exchangeable securities”, are a type of structured product that generally is composed of high yield, short term note that is linked to the performance of an unrelated asset, which is often stock. Reverse convertibles are not traded on exchanges and their performance is not reported publicly.

Mostly, reverse convertibles are reserved for extremely wealthy customers and hedge funds; in the case of Chen, most of his customers were elderly with no investment experience and very little savings to invest. Chen also bought reverse convertibles for recently deceased clients.

Eccleston Law represents individual and institutional investors nationwide to recover their investment losses caused by security fraud, unsuitable investment recommendations, breach of fiduciary duty, negligence or other misconduct. We have extensive experience representing investors in arbitration and litigation disputes with securities broker-dealers and investment advisory firms, and have recovered tens of millions of dollars for investors.

If you are an investor that has suffered substantial losses investing in reverse convertibles through Wells Fargo & Co. and/or Alfred Chi Chen, your losses may be recoverable through securities arbitration. Please contact Jim Eccleston at the Eccleston Law Offices at 312-332-0000