An arbitrator ruled in favor of Wells Fargo in its attempt to claw back unpaid recruiting loans from a former broker, AdvisorHub reported.
The sole public arbitrator with the Financial Industry Regulatory Authority ordered ex-broker Mathew Tong to repay over $778,000 in loans along with interest and $42,000 to cover Wells Fargo’s attorneys fees.
Tong joined Wells Fargo in San Francisco from JPMorgan Chase & Co. and voluntarily resigned in January 2025 after four months with Wells.
According to the arbitration award, Tong did not respond to several attempts by Wells to locate and serve him with its statement of claim. Wells attested that it had tried to contact Tong on numerous occasions, including a declaration from a private investigator.
The arbitrator stated that Tong did not file a statement of answer and did not have legal representation in the arbitration. Tong, who is no longer registered as a broker or an investment advisor, could not be reached for comment.
A Wells spokesperson said the firm is “pleased the arbitrator held him accountable for his loan.”
Tong’s record shows one customer dispute from March 2020 in which a customer who filed allegations related to suitability sought $43,700 in damages and settled for more than $20,500.
AdvisorHub’s report noted that clear-cut contracts require that loans be repaid if the broker leaves before the funds have vested and that brokers rarely prevail in cases involving clawback attempts.
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