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Posted Jan 26th, 2012
Is it legal for a bank member to sell something without full transparency?

Additional Details:
In 2007 I put a large sum on a mutual fund on a strong warm recommendation from a member of Wachovia
bank (today Wells Fargo). The fund today will be sold at a loss of over 10%. The staff member told
me that it was totally safe and was a conservative investment. He did not ask me to sign the
relevant forms that explains my risks. He did not explain to me that he had an interest that I
purchase the fund since he was acting in conflict of interest since he received a commission for the
sale. Can I sue Wells Fargo?
Legal Topic Area: Commercial Litigation in FL

The mere fact that the representative received a commission from the sale does not create a conflict as long as there was proper disclosure which it sounds like might have been a problem here. Notwithstanding this, if he gave you some bad investment advice this might constitute professional negligence for which the bank might be liable. More information would be needed to address the relative merits of the claim. I would suggest that you contact an attorney who concentrates in this area of practice.


Answered on Jan 30th, 2012 at 1:54pm