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You may have lost money in your investment portfolio,
due to mismanagement and not even know it.

Wells Fargo Advisors customers have new cause for concern

Wells Fargo's wealth management and brokerage branch, known as Wells Fargo Advisors, has attracted the attention of the Justice Department. Towards the end of 2017, the Justice Department told the bank to conduct an independent investigation of the branch after employees of the bank blew the whistle on alleged sales issues.

Overcharging and improper referrals

Concerns include inappropriate referrals or recommendations for 401(k) rollovers and alternative investments. In the filing Wells Fargo also noted potential concerns in regards to referrals of brokerage customers to the company's investment and fiduciary services business. Consumers may have been steered to unsuitable investments. The filing also disclosed that the bank is reviewing fee calculations within certain custody and fiduciary account which resulted in customers being overcharged.

Fallout from the investigation

Shares dropped 1.9 percent when Wells Fargo disclosed the board's investigation in a securities filing. The ongoing investigations have resulted in a cap on the bank's assets and growth expansion by the Federal Reserve until the issues are resolved. The investigation is still in the preliminary stages, but investors who made investments through Wells Fargo should review their portfolio and check for losses and disproportionate fee charges.

Scrutinize financial statements

Although investments, unlike standard banking transactions, are not guaranteed, the recent Wells Fargo fallout is still cause for concern. Investment mismanagement is a serious breach of fiduciary duty and often the mismanagement results is significant losses for the investor. Anyone who has used Wells Fargo and has lost money in their portfolio should be calling Marc Zussman directly.

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