Skip to Main Content
SUBMIT A TIP RECEIVE DAILY NEWS
Menu AdvisorHub
  • News
      • Latest News
          • Business DealCI Financial Buys Chicago RIA and Asset Manager Overseeing $23 Billion
          • Finra signFinra Bars Ex-Merrill Broker Kenahan After Record NH Settlement
          • Female JudgeMorgan Stanley Prevails in TRO Standoff with $6-Mln RBC Team
          • Surprised investorThanks, Robinhood, but These Traders Now Want Professional Help
        • Close
      • Advisor Moves
          • Boca Raton, FloridaRockefeller Lures Two Florida Teams with $9.8 Mln Revenue
          • Morgan Stanley, UBS Advisor movesMorgan Stanley Rehires $3.3-Mln UBS Team in North Carolina
          • Lars Olson of Sanctuary Wealth Partners in Marion, OHSanctuary Hires $435-Mln Merrill Team, Snowden Lures Another from Retirement
          • Stifel Investment CompanyStifel Hires 33-Year Brokerage Vet from Jefferies in Dallas
        • Close
      • Enforcement
          • Advisor MoneyWells Fargo Recoups $2.5 Million from New Jersey Duo
          • Businessman in prison, fraudWells Fargo Claws Back $3 Million from Jailed Ex-Broker
          • Finra signFinra Fines, Supends Ex-Ameriprise Broker Who Flipped ‘A’ Shares
          • Barred from the securities industry.SEC Puts Nail in Ex-Morgan Stanley Broker’s Career Coffin
        • Close
      • Markets
        • `Nothing Safer Than Cash’: Tech Rout Puts Silicon Valley on Edge
        • ‘Any News Is Bad News’ as Earnings Fail to Save Equity Bulls
        • ‘50 Cent’ Profited From Volatility Jump, Wells Fargo Says
        • ‘Beaten Down’ ETF Is a Way to Play Inverted Curve, BofA Says
        • Close
      • Opinion
          • Opinion-How-Will-The-Coronavirus-Affect-The-Stock-Market-Opinion: Coronavirus – What Advisors Need to Know
          • opinion-investors-conquered-fees-next-up-is-their-own-behaviorOpinion: Investors Conquered Fees but Not Their Own Behavior
          • Investor-Confidence-In-Stocks-Rightly-Declines-Opinion-772x485Investor Confidence in Stocks Rightly Declines: Opinion
          • Opinion-Schwabs-Zero-Commission-Decision-Challenges-Its-Ria-ClientsOpinion: Schwab’s Zero Commission Decision Challenges Its RIA Clients
        • Close
      • Fintech News
          • System outageMerrill Systems Hiccuped on Thursday as Stocks Slid
          • 7 dollar rolls‘The Rock’ Invests in Finance App Acorns, and New Users Get $7
          • TraderHigh-Frequency Traders Love Business With Robinhood
          • EtheriumJay Z, Charles Schwab-Backed Ethereum App Opens Doors to Public
        • Close
      • From the Publisher
          • 2021 PredictionsFrom the Publisher: Sirianni’s Predictions for 2021
          • Josh Rogers – 772×485Seven Questions with Tony Sirianni: Josh Rogers, Founder and CEO, Arete Wealth
          • Phil Hildebrandt — 772×485Seven Questions with Tony Sirianni: Phil Hildebrandt, Principal, CEO of Segall Bryant & Hamill
          • Christian Hyldahl, President of Varium Investment Partners-772×485An AdvisorHub Interview with Christian Hyldahl, President of Varium Investment Partners
          • John Peluso – 772×485Timely interview with John Peluso and AdvisorHub CEO Tony Sirianni
          • Louis Dworsky Coronacrash Interview-772×485Coronacrash Update: Hayden Royal’s Louis Dworsky & Tony Sirianni
          • Stratos_Jeff pic.jpg-772×485Coronacrash Update: Stratos Wealth Partners’ Jeff Concepcion & Tony Sirianni
          • coronacrash ben harrison – 772×485Coronacrash Update: BNY Mellon | Pershing’s Ben Harrison & Tony Sirianni
        • Close
    • Close
  • Deals & Comp
  • Recruiting Wire
  • Breakaway Center
  • Resources
    • resources-home-menuResources Home
    • PRACTICE MANAGEMENT RESOURCESPractice Management Resources
    • Transition ResourcesTransition Resources
    • Fintech ResourcesFintech Resources
    • menu fintechFintech Product Directory
    • Menu-Institute-772×485Institute
    • Boutique Wealth AdvisorsBoutique
    • EventsEvents
    • Asset Manager Hub
    • Close
  • AdvisorHub TV
  • Podcasts
  • RIA Center
  • Virtual Summit
close X
February 17, 2016

Wells Fargo Seeks $2.1 Million from ‘Bada Bing’ Broker

by Mason Braswell
|
Enforcement, News
|
Wells Fargo
|
No Comments
Share This
SUBMIT A TIP
Aaron Parthemer (second from left) pictured with actor and model Amber Rose at Play Nightclub

Wells Fargo Advisors has filed in bankruptcy court for $2.1 million of a signing bonus it is trying to reclaim from an advisor who allegedly lied about his outside business and lending activities.

Aaron Parthemer, a broker who managed $250 million of client assets at a Wells branch in Fort Lauderdale, Fla., used the bonuses to fund activities that violated securities law and the bank-owned broker-dealer’s internal policies, Wells argued in a filing Friday in U.S. Bankruptcy Court in the Southern District of Florida.

The case puts in high relief the dangers of overlooking a high-producing broker’s past in order to bring assets in-house, Parthemer has argued in a related arbitration filing before the Financial Industry Regulatory Authority.

Wells alleges that Parthemer is using bankruptcy to avoid repaying the $2.1 million, should it prevail with its arguments in the arbitration proceeding.

Wells Fargo Advisors hired Parthemer from Morgan Stanley in October 2011. It paid him an upfront recruiting bonus of about $1.5 million and another $600,000 in a promissory note that amortized over nine years, according to Wells’s court complaint. Morgan Stanley also has filed a Finra arbitration seeking $520,000 from the advisor, according to his bankruptcy filing.

Wells’ arbitration proceeding was stayed indefinitely when Parthemer filed for bankruptcy in November 2015. Wells wants the court to ensure that it will be able to collect the full $2.1 million plus interest and attorney fees, according to its filing with the bankruptcy court.

“[Parthemer] was unequivocally aware of the misrepresentation at the time he accepted employment with WFA and entered into the promissory notes,” the Wells Fargo Advisors filing said. “It was [his] intent to defraud WFA out of $2.1 million so that he could continue funding personal investment activities at minimal costs.”

Club Play

Finra barred Parthemer for life from the securities industry last year for failing to disclose his involvement in managing Club Play, a now defunct Miami Beach nightclub that was owned by several professional athletes who were also his clients.

The broker loaned the athletes almost $400,000 for the venture and also referred some clients to invest $3 million in a friend’s startup internet branding company, Finra said. It did not name the athletes.

Parthemer agreed to the bar without admitting or denying Finra’s findings. But in an arbitration counterclaim filed last August, he said his involvement in the nightclub was well-known locally and that his managers should have know about the possibility of regulatory and legal issues.

Shortly after he was hired, Parthemer was served with a civil lawsuit touching on some of the issues relating to the regulatory investigations. His branch manager told him not to worry about it. “[A]ll successful businessmen get sued at some point in their career,” the manager told him, according to his arbitration counterclaim.

Parthemer’s team generated about $4 million in revenue for Wells during his employment from October 2011 through April 2015, according to his arbitration counterclaim.

Since Parthemer’s bar was imposed, three Wells customers have filed complaints against him, according to his BrokerCheck report. One seeks almost $5 million in damages for recommending investments that the client alleges were not authorized by the firm.

Parthemer’s bankruptcy attorney, Jordan Rappaport of an eponymous law firm in Boca Raton, Fla., did not respond to a request for comment.

RESPOND TO STORY

NEXT: Hedge Fund Biggie Sells RCS Shares

Like this article? Let AdvisorHub come to you!  Sign up

Share This
No Comments

Leave a Reply Cancel reply

Tony Sirianni Podcast Banner

CORONACRASH NEWS

  • Finra Scrutinizes Brokers Who Took PPP Loans for Potential Violations

    Finra Scrutinizes Brokers Who Took PPP Loans for Potential Violations

    Jan 25, 2021
  • Merrill Touts Success of Growth Strategy in Pandemic-Afflicted Year

    Merrill Touts Success of Growth Strategy in Pandemic-Afflicted Year

    Jan 19, 2021
  • Raymond James Slashes CEO Pay 17% in Turbulent Year

    Raymond James Slashes CEO Pay 17% in Turbulent Year

    Jan 8, 2021
  • Solomon Sees Vaccine Bringing Goldman Staff Back by End of Year

    Solomon Sees Vaccine Bringing Goldman Staff Back by End of Year

    Jan 5, 2021
  • J.P. Morgan Bank Broker Cleared of Coronavirus Crash Claim

    J.P. Morgan Bank Broker Cleared of Coronavirus Crash Claim

    Dec 4, 2020

NEWS

  • CI Financial Buys Chicago RIA and Asset Manager Overseeing $23 Billion

    CI Financial Buys Chicago RIA and Asset Manager Overseeing $23 Billion

    Jan 25, 2021
  • Finra Bars Ex-Merrill Broker Kenahan After Record NH Settlement

    Finra Bars Ex-Merrill Broker Kenahan After Record NH Settlement

    Jan 25, 2021
  • Morgan Stanley Prevails in TRO Standoff with $6-Mln RBC Team

    Morgan Stanley Prevails in TRO Standoff with $6-Mln RBC Team

    Jan 25, 2021
  • Thanks, Robinhood, but These Traders Now Want Professional Help

    Thanks, Robinhood, but These Traders Now Want Professional Help

    Jan 25, 2021
  • Finra Scrutinizes Brokers Who Took PPP Loans for Potential Violations

    Finra Scrutinizes Brokers Who Took PPP Loans for Potential Violations

    Jan 25, 2021

FINANCIAL INDUSTRY PODCASTS

AllIndependenceSuccess
The must listen-to podcast for financial advisors by Tony Sirianni. Guests to include:
-Ron Kruszewski
-Shirl Penney
-Penny Pennington
-Eric Clarke
and many more
Michael Kitces and Carl Richards discuss financial advising topics.
Suzanne Siracuse asks the questions nobody else asks, as influencers and interviewer collide in her new and truly unique podcast series The Big Reveal.
The “new advice value stack,” and how firms can use it to help maximize their own value propositions for their clients.
The Brighthouse Financial Insights Panel is a group of leading, independent experts providing powerful insights into the big challenges facing you and your clients.
Equipping independent financial advisors with the tips, insights, and knowledge needed to evolve in every aspect of his or her life
Powering Independence Podcast, insights and ideas for RIAs, presented by Dynasty Financial Partners. A podcast dedicated to presenting fresh ideas and best practices for the wealth management industry.
As an industry expert, Frank LaRosa provides guidance and advice on a host of topics from recruiting and transitions, succession planning, practice management, M&A and more.
Our goal is to unlock the challenges to reveal the opportunities and what it means to provide advice in the 21st century.
Our webcast is dedicated to helping our viewers get real insights by avoiding the cognitive dissonance of today’s media outlets and biased editorial filters.
Go behind the scenes with registered investment advisors and other related independent business model experts
As a nationally recognized recruiter and consultant to financial advisors, Mindy Diamond has unmatched experience in introducing advisors to the independent space.
The must listen-to podcast for investors, venture capitalists and financial advisors, with Tony Sirianni and Paul Dietrich.
An Introduction to Independence: 5 Key Episodes to Jumpstart Your Knowledgebase
Jay is an investment strategist, CERTIFIED FINANCIAL PLANNER™ and business consultant to financial advisors.
In this podcast business owners, entrepreneurs and executives reveal their top tips for success.
We interview top financial advisors and visionary voices to bring you the strategies, tips, and tools you need to make a difference in people’s lives.
A financial literacy and commentary show that features a number of investors, financial experts, professional athletes, business owners and more.
Join Sound Financial Group CEO Paul Adams and President Cory Shepherd every week, as they help you Design and Build a Good Life™.
The Kuderna Podcast, focusing on wealth in it's original meaning- a state of well being.
Timeless wisdom, actionable information you can use right now to make smarter investment decisions.
Made for and dedicated to those folks serious about their financial plan.
Latest News 
Advisor Moves 
Enforcement 
Opinion 
  • About Us
  • Contact Us
  • Advertise
  • Events
  • Careers

 get our newsletter

Industry focused content and breaking news.

SIGN UP

Contact Us

EMAIL US
1707 Post Oak Blvd.
#484
Houston, TX 77056

© 2021 AdvisorHub
  • |Terms of Use
  • |Privacy Policy
  • |Advertise
  • |Careers
  • Facebook
  • Linkedin
  • Twitter

Back to top