Regulators have penalized and suspended former Wells Fargo financial advisor Jarrett Thomas for allegedly executing an unauthorized transaction on behalf of an elderly client diagnosed with advanced dementia.
Thomas agreed to a $7,500 fine and a 45-day suspension without admitting or denying the allegations, according to a settlement letter published by Finra, the brokerage industry’s self-regulatory authority.
Having joined Wells Fargo Clearing Services in March 2008, Thomas remained with the firm until June 2023, when he resigned amid allegations that he mishandled the client’s financial matters.
Thomas’ attorney, Janet DeCosta of Secil Law in Washington, D.C., did not immediately respond to a request for comment. Since his departure from Wells Fargo, Thomas has not been affiliated with any brokerage or advisory firm.
Wells Fargo declined to comment on the suspension.
In April 2023, a physician from the client’s long-term care facility formally notified Thomas in writing that his client suffered from advanced dementia and could no longer manage her financial affairs.
The client maintained two accounts at Wells Fargo, both held under her living trust, with Wells Fargo designated as the successor trustee in the event of her incapacity or death, according to Finra.
Despite receiving this notification, Thomas failed to inform his employer of the client’s incapacitation. Instead, in June, he followed verbal instructions from the client to transfer $50,000 to her external bank account.
Since the client was legally incapacitated, she no longer had the authority to direct transactions within her Wells Fargo accounts. Finra alleges that Thomas executed an unauthorized transaction by processing the transfer on her behalf.
On June 15, 2023, two days after executing the transfer, Thomas resigned from Wells Fargo. According to Finra, the firm was unaware of the client’s incapacitation until after his departure.
In an August 2023 regulatory filing, Wells Fargo disclosed that Thomas had been the subject of an internal investigation related to allegations that he “took instructions from an unauthorized third party, failed to maintain accurate books and records, and failed to disclose an outside activity.”
