Facts

Lori Strayn, individually and on behalf of the PaytonAshleigh Strayn U/NV/UTMA Account filed a complaint against Wells Fargo Advisors LLC, ETrade Securities LLC, and Agent Fred Snyder alleging negligence, conversion, breach of contract, breach of fiduciary duty, violations of FINRA and NYSE Conduct Rules, and respondeat superior. The complaint related to the claimant's allegations that Wells Fargo and Snyder permitted Stray's ex-husband, Robert, to transfer funds from the Wells Fargo accounts into several ETrade accounts, without her knowledge or consent.

ETrade filed a cross-claim alleging negligence and indemnification. Wells Fargo also filed a cross-claim against ETrade and a third party seeking indemnification.

Damages

Strayn sought $138,700 in compensatory damages and an unspecified amount of damages for punitive damages, interest, attorney fees and costs, and other relief.

Result

The FINRA Panel found Wells Fargo liable to Strayn in the amount of $50,254 in compensatory damages; $7,177 in interest; and $13,500 in attorney fees. E*Trade was also found liable to Strayn in the sum of $33,503 in compensatory damages; $4,785 in interest; and $9,000 in attorney fees. The cross-claim and third party claims were dismissed with prejudice. Any other relief, including punitive damages, was also denied with prejudice.