Securities Arbitration Lawyers BlogFINRA Bars Broker Charles Henry Frieda After Multiple Allegations of Unsuitable Investments
Former Broker Charles Henry Frieda (CRD #5502319) has been barred after FINRA investigated more than 50 client allegations of improper investments. Frieda’s last employer of record was Wells Fargo Clearing Services (aka Wells Fargo Advisors, CRD #19616) of Irvine, CA, where he was employed from 10/05/2012 through 09/20/2017. Although he was previously registered as a broker and as an investment advisor, he is not currently registered with any broker, and no information is available on any current employer.
His previous employment record includes:
- Morgan Stanley (CRD #19616) of Brea, CA, from 06/01/2009 through 10/24/2012
- Citigroup Global Markets Inc. (CRD #7059), of Brea, CA, from 05/06/2008 through 06/01/2009
FINRA has indefinitely barred Frieda from acting as a broker or being affiliated with any financial-related broker firms as of 12/11/2017. This bar is the result of 55 disputes from customers, four of which are still pending, and one that was withdrawn.
Frieda, along with another representative, made recommendations to their clients to invest heavily in energy-sector oil and gas securities, some of which were risky and speculative. Both Frieda and the other representative made these recommendations without examining their customers investment needs, history, experience or other factors normally taken into consideration. FINRA’s findings showed that between November 2012 through October 2015, 50 customers saw their portfolios moved primarily into four speculative energy-sector securities. By recommending clients move to these securities, Frieda was in violation of FINRA Rules 2111 and 2010. Some of these clients had more than 50% of their net worth invested in the volatile energy sector (personal residence excluded.)
Frieda continued to recommend these securities, even when the energy industry experienced a downturn starting in 2015. Orders to sell these securities were ignored, and customers suffered significant losses as a result.
All of these disputes were filed during his tenure at Wells Fargo. Due to these losses, the firm paid a total of $8,546,866.03 in settlements to clients.
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