David Sheldon Wells (CRD # 6774493) “voluntarily resigned” from Fifth Third Securities, Inc. in July 2021 after admitting to misappropriating funds from three clients. In a resignation letter to his employer, Wells confessed to using his clients’ money for “very risky” options trading.
On September 20, 2022, the United States Securities and Exchange Commission (SEC) filed a civil lawsuit against Wells, alleging that from at least October 2020 through July 2021, while working as a representative of Fifth Third Securities, Inc., Wells misappropriated over $683,000 from three clients.
According to the complaint, Wells fraudulently solicited the clients to purchase cashiers’ checks made out to a corporate entity he created and then transferred the clients’ funds to personal brokerage accounts owned or controlled by him. Wells lost nearly all the funds through risky options trading and misappropriated some funds for personal expenses.
The SEC claims that Wells made false statements and misleading omissions about how he planned to invest the victim’s money and created a shell entity to conceal that they were writing checks to Wells. The complaint alleges that Wells committed securities fraud in violation of Section 10(b) of the Securities Exchange Act of 1934, Rule 10b-5, and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940.
The Financial Institutions Regulatory Authority (FINRA) has permanently barred Wells from the securities industry.
Our firm is investigating claims of investment losses by former customers of David Sheldon Wells and his former broker-dealer Fifth Third Securities, Inc.
How To Recover Your Losses
If you suffered losses due to false statements made by David Sheldon Wells, contact Reif Law Group immediately. We have the skills and resources to help you recover your investment losses, but you must act quickly. Contact us today for a free consultation.