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Broker Complaints: Waddell & Reed (CRD# 866)

According to the Financial Industry Regulatory Authority (FINRA), Kansas-based brokerage/advisory firm Waddell & Reed (CRD# 866) is the subject of numerous customer complaints, civil actions, and regulatory sanctions. The securities and investment fraud law firm Fitapelli Kurta is interested in hearing from investors who have complaints regarding Waddell & Reed.

Formed in 1981, Waddell & Reed is headquartered in Overland Park, Kansas, and is registered in 53 US states and territories. Thomas William Butch serves as Chief Executive Officer and Chairman of the Board; Derek David Burke serves as President and Chief Operating Officer. According to its BrokerCheck report,Waddell & Reed is the subject of 27 regulatory sanctions, one civil action, and eleven customer complaints that evolved into arbitration.

In 2013 FINRA sanctioned Waddell & Reed following allegations the firm failed to deliver “numerous” purchase confirmations for mutual fund asset allocation product accounts. Waddell & Reed was censured and issued a fine of $75,000.

In 2007 a customer alleged Waddell & Reed breached its fiduciary duty and sold unsuitable investments in annuities, municipal bonds, and other securities. The complaint resulted in an award to the customer of more than $12,500.

In 2006 the National Association of Securities Dealers (NASD) sanctioned Waddell & Reed following allegations the firm failed to prevent an individual from engaging in activities that required NASD registration. Waddell & Reed was censured and issued a fine of $20,000.

In 2006 the Kansas Securities Commissioner sanctioned Waddell & Reed following allegations the firm violated Kansas securities regulations related to mutual fund products. Waddell & Reed was issued a fine of $2,000,000.

In 2006 the US Securities and Exchange Commission (SEC) sanctioned Waddell & Reed following allegations the firm “willfully aided and abetted” violations of securities code by a subsidiary who breached its fiduciary duty to the board of a certain mutual funds and defrauded that fund’s shareholders. Waddell & Reed was censured and issued a fine of $10,000,000.

In 2005 a customer alleged Waddell & Reed breached its fiduciary duty, misrepresented and sold an unsuitable investment, and omitted material facts related to an investment. The complaint resulted in an award to the customer of more than $13,600.

In 2005 the State of Missouri sanctioned Waddell & Reed following allegations the firm failed to supervise its representative/s. Waddell & Reed was ordered to pay a civil penalty of $75,000 as well as more than $90,000 in restitution.

In 2001 a customer alleged Waddell & Reed breached its fiduciary duty, breached contract, failed to supervise its representatives, and engaged in negligence. The complaint resulted in an award to the customer of $55,032.

In 1995 a customer alleged Waddell & Reed misrepresented and sold an unsuitable investment, omitted material facts related to an investment, and engaged in negligence. The complaint resulted in an award to the customer of more than $1,320,000.

If you have lost money investing with Waddell & Reed, you may be entitled to recoup your losses. Call the securities and investment fraud law firm Fitapelli Kurta at 877-238-4175 for a free consultation. Since all cases are taken on contingency, we only get paid if and when you recover money.  Time to file your claim may be limited, so we encourage you to avoid delay. Call 877-238-4175 now to speak to an attorney for free.