A Financial Industry Regulatory Authority (FINRA) arbitration panel has ruled that Aaron T. Olson, was the subject of a "vindictive and defamatory" Form U5 amendment. Olson is said to receive $1.4 million in compensatory and punitive damages and costs from Wells Fargo Advisors.
The actions of one management-level employee resulted in the firm filing a U5 amendment "which was vindictively motivated", according to the arbitrators' decision. The decision further stated, Wells Fargo "failed to follow filing requirements outlined in FINRA's requirements and guidelines and acted inconsistently with earlier and later more egregious takings of Wells Fargo Advisor's highly confidential non-protocol customer information by other terminated financial advisors." Representatives from the firm have disputed the panel's ruling, but they have not stated whether Wells Fargo will attempt to have the decision vacated.
Olson filed a claim against Wells Fargo in October 2020, alleging the firm conducted fraudulent inducement, U5 defamation, and interference with prospective economic advantage relating to his employment and termination. Olson requested between $250,000 and $750,000 in compensatory damages on the fraud claim and $250,000 to $1.75 million for defamation, as well as punitive damages of $250,000 for each of the two allegations. Olson also requested expungement of the U5 disclosure.
Wells Fargo sought dismissal and filed a counterclaim seeking $367,372.78 with interest on an unpaid promissory note and $200,000 and $300,000 for a "breach of the Trade Secrets Agreement." The panel granted Wells Fargo payment of the promissory note and rejected the firm's trade secrets claim.
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