Kevin Schaefer, Broker with Wells Fargo, Accused of Recommending Unsuitable Investments

Schaefer has two pending customer disputes alleging unsuitable investment recommendations.

Kevin Schaefer (CRD#:1286030) is registered as a broker and investment adviser with Wells Fargo, where he has been employed since 2019. Previously, Schaefer was registered as a broker and investment adviser with Merrill Lynch from 2011 until 2019.

Schaefer has six disclosures on his BrokerCheck report. Two customer disputes filed against Schaefer were denied.

June 2020 Customer Dispute

• Status: Pending
• Allegations: The customer alleges unsuitable investment recommendations and misrepresentations.
• Damage Amount Requested: $1,000,000.00

June 2020 Customer Dispute

• Status: Pending
• Allegations: The customer alleges unsuitable investment recommendations, failure to follow instructions and misrepresentations from 2012 until 2020.
• Damage Amount Requested: $300,000.00

May 2008 Customer Dispute

• Status: Settled
• Allegations: Client alleges that these bonds were to be safe investments and not shares of stock. Client further states that had it been explained that these bonds could reset to lower interest rates, he would not have made the purchase. Damages estimated to be in excess of $5,000.
• Damage Amount Requested: $5,000.00
• Settlement Amount: $600,000.00
• Broker Comment: The complaint arose in connection with the industry wide breakdown of liquidity in the market for auction rate securities (“ARS”). The firm agreed to repurchase the ARS at issue at par value from the client pursuant to a global repurchase agreement it entered into with several regulatory bodies. This was not a settlement of a dispute between the client and the representative and was not based on the merits of the client’s specific concerns or any finding of fault or wrongdoing by the named representative. The named representative was not a party to, and did not agree to participate in, the repurchase agreement between the firm and the relevant regulatory bodies. The named representative did not make any payments to the client and the named representative was not asked to and did not contribute to the settlement amount. The listed “settlement amount” represents only the gross initial par value of the ARS position and does not take into account the actual value of the ARS position at the time the firm received it back from the client in connection with the settlement. This matter is being reported as a settlement pursuant to the requirements of FINRA Regulatory Notice 09-12.

August 2000 Customer Dispute

• Status: Settled
• Allegations: Clients allege fraudulent non-disclosure, negligent misrepresentation, breach of fiduciary duty, and failure to supervise with regard to their trading in the common stock of Syntech for the time period September 1993 through March 1996 and seek compensatory damages in excess of $100,000 and punitive damages.
• Settlement Amount: $14,000.00
• Broker Comment: Kevin Schaefer was dismissed, with prejudice, as a named respondent in this proceeding. Thereafter, without admitting any liability, Painewebber agreed to pay the claimants $14,000 as nuisance value, in full and final satisfaction of all claims against the firm.

Contact Us Today

The Sonn Law Group is currently investigating allegations surrounding Kevin Schaefer. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.