Erez Law is currently investigating former Waddell & Reed financial advisor Steven Fonda (CRD# 2198086) regarding negligence, discretionary trading and unsuitable investments. Fonda has been registered with Waddell & Reed in Reno, Nevada from 2009 to February 2017, when he was terminated regarding, “RR terminated for violation of firm policies including the unauthorized use of discretion in client accounts and attempting to settle a client complaint without written approval from the Firm.”
Fonda has been the subject of two customer complaints between 2016 and 2017, according to his CRD report:
- February 2017. “Client alleges that the advisor was negligent in handling his account, exercised discretion without authorization, and placed him in unsuitable investments. Activity dates: client alleges several years.” The customer is seeking $100,000 in damages and the case is currently pending.
- May 2016. “Client alleges his investments were not supposed to be at risk and the principal was to be ‘Conserved,’ but the rr invested the account in a manner subjecting the account to risk without the client’s knowledge, resulting in losses to the account. Alleged activity dates approx. 09/01/2015-12/21/2015.” The customer sought $200,000 in damages and the case was settled for $140,000.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Waddell & Reed may be liable for investment or other losses suffered by Fonda’s customers.
Erez Law represents investors in the United States for claims against former Waddell & Reed financial advisor Steven Fonda regarding negligence, discretionary trading and unsuitable investments. If you were a client of Waddell & Reed or another firm, and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.
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