An advisor for Wells Fargo Advisors in Texas has been penalized for infractions involving business expenses, according to Advisor Hub.
Charles J. Lewis Jr was fined $10,000 and suspended for one month by the Financial Industry Regulatory Authority for submitting “fictitious” expenses during a period from 2019 to 2021.
“Lewis submitted hundreds of claims to the business-expense programs that were below the $75 threshold for required receipts and received reimbursement for at least $657 of fictitious expenses he had not incurred,” FINRA stated. “Lewis had generally incurred legitimate expenses in excess of the falsified claims for which he could have been reimbursed, but he had not reliably documented those expenses and thus did not submit them.”
Lewis was found to have violated FINRA Rule 2010, which requires persons subject to FINRA’s jurisdiction to observe high standards of commercial honor and just and equitable principles of trade in the conduct of their business. Submitting expense reports that contain false information violates FINRA Rule 2010.
FINRA noted that after Wells Fargo intervened, Lewis complied with a requirement that he submit receipts to substantiate all expenses, even small expenses, which was a limitation in addition to the firm’s standard requirements.
According to a letter of acceptance, waiver and consent, Lewis accepted and consented to FINRA’s findings without admitting or denying them. Lewis did not return a request for comment by AdvisorHub sent through LinkedIn.
A spokesperson for Wells Fargo said the firm is “pleased this matter is resolved”, adding that, “Wells Fargo is not a party to the settlement, and the noted conduct did not impact any clients.”
Since 2011, Lewis has been registered as a General Securities Representative through an association with Wells Fargo Clearing Services LLC.
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