The client alleges the FA failed to follow his instructions about holding invested instruments so not to incur a loss by selling at a declined value.

The firm and registered rep believe the client allegations to be without merit. The firm has denied the client's request for alleged damages and is prepared to vigorously defend all claims.

FINRA

WITHOUT ADMITTING OR DENYING THE FINDINGS, APPLEWHITE CONSENTED TO THE SANCTIONS AND TO THE ENTRY OF FINDINGS THAT HE EXERCISED DISCRETION BY EFFECTING TRANSACTIONS IN CUSTOMERS' ACCOUNTS WITHOUT OBTAINING PRIOR WRITTEN AUTHORIZATION FROM THE CUSTOMERS AND WITHOUT HAVING THE ACCOUNTS ACCEPTED AS DISCRETIONARY ACCOUNTS BY HIS MEMBER FIRM. THE FINDINGS STATED THAT THE DISCRETION WAS GENERALLY EXERCISED PURSUANT TO A STRATEGY PREVIOUSLY AGREED UPON WITH THE CUSTOMERS. HOWEVER, THE FIRM DID NOT PERMIT DISCRETIONARY TRADING, EXCEPT FOR MANAGED ACCOUNTS AND CERTAIN FAMILY BROKERAGE ACCOUNTS WITH PRE-APPROVED WRITTEN DISCRETION.

Acceptance, Waiver & Consent(AWC)

Civil and Administrative Penalty(ies)/Fine(s)

$5,000.00

Suspension

ALL CAPACITIES

ONE MONTH

6/16/2014

7/15/2014

IN ORDER TO AVOID THE UNCERTAINTY AND EXPENSE OF LITIGATION, THE BROKER AGREED TO SETTLE THE MATTER. NO CUSTOMER HARM OR COMPLAINT WAS ALLEGED IN THE AWC.

WELLS FARGO ADVISORS, LLC.

Discharged

MR. APPLEWHITE EXERCISED DISCRETION IN CERTAIN CLIENT-DIRECTED, FEE BASED ADVISORY ACCOUNTS WITHOUT HAVING OBTAINED PRIOR WRITTEN AUTHORIZATION.

PLAINTIFFS, NORTH CAROLINA RESIDENTS, SEEK CERTIFICATION OF A CLASS ACTION BASED ON ALLEGATIONS OF FRAUD, MISREPRESENTATION AND OMISSION, UNAUTHORIZED TRANSACTIONS, UNFAIR AND DECEPTIVE TRADE PRACTICES, AND VIOLATIONS OF FEDERAL AND STATE SECURITIES LAWS FOR BOND TRANSACTIONS MADE BETWEEN 2004 AND DECEMBER 2, 2008. PLAINTIFFS SEEK JUDGMENT FOR UNSPECIFIED COMPENSATORY DAMAGES AND PUNITIVE DAMAGES OF $1,000,000, AS WELL AS ALL COSTS OF THIS ACTION.

$157,000.00

PLAINTIFF SETTLED FOR $157,000. **FA'S RESPONSE: CLIENTS ALLEGED THAT I AGREED IN WRITING TO PURCHASE MUNICIPAL BONDS AT NO MORE THAN 0.5% MARKUP. I DENY THAT I EVER MADE ANY SUCH AGREEMENT, AND AN INTERNAL REVIEW BY THE FIRM AND BY FINRA FOUND NO EVIDENCE OF ANY SUCH AGREEMENT NOR ANY EVIDENCE OF EXCESSIVE MARKUPS ON ANY TRADES. CLIENT IS A SUCCESSFUL CLASS ACTION ATTORNEY, AND OUR FIRM AGREED TO SETTLE THE CASE RATHER THAN CONTINUE TO LITIGATE. I DENY ALL OF THE ALLEGATIONS.

NC RESIDENTS HAVE STATED THAT THEIR $400,000 PURCHASE ON 4/4/06 OF GJT - FLOATING RATE STRUCTURED SECURITY WAS MISREPRESENTED. CLIENT STATES THAT THEY WANTED TO "PARK" THEIR FUNDS FOR 12-18 MONTHS WHILE THEY WAITED ON THE CONSTRUCTION OF TWO PROPERTIES. THEY UNDERSTOOD FROM THEIR FINANCIAL ADVISOR THAT THE INVESTMENT WOULD EARN INTEREST AND FLUCTUATE VERY LITTLE. THE INVESTMENT HAS LOST $110,240 OR 27% OF ITS VALUE.

$110,240.00

ALLEGED DAMAGES OF $34,000 IN MUTUAL FUNDS, SPECIFICALLY ALLIANCE NORTH AMERICAN GOV'T INCOME TRUST.

$24,600.00

BARNETT SETTLED CASE JOINTLY WITH THE [CUSTOMERS] AND [OTHER CUSTOMER NAMED] FOR A TOTAL OF $24,600. I WAS NOT NAMED IN THE SETTLEMENT AND NO WRONG DOING WAS FOUND ON MY PART. [CUSTOMER] & [OTHER CUSTOMER NAMED] FILED A COMPALINT AFTER ALLIANCE NORTH AMERICAN GOV'T TRUST SUFFERED CURRENCY RELATED LOSSES IN JAN '95. LOSSES HAD NOTHING TO DO WITH ACTIVITIES ON MY PART, BUT SINCE I WAS THE REP. OF RECORD ON ACCOUNT, I WAS CALLED TO TESTIFY AT MEDIATION HEARING.

CUSTOMER ALLEGED THAT HE LOST $17,000 OUT OF A PORTFOLIO TOTAL OF $289,000. ROUGHLY ONE THIRD OF PORTFOLIO WAS INVESTED IN ALLIANCE NORTH AMERICAN GOVERNMENT TRUST, WHICH CLIENT CLAIMS WAS AN UNSUITABLE INVESTMENT. THE ALLIANCE FUND ACCOUNTED FOR THE ENTIRE LOSS; CLIENT MADE NO COMPLAINT ABOUT OTHER MUTUAL FUNDS IN THE PORTFOLIO.

$17,000.00

$10,000.00

BARNETT SETTLED WITH [CUSTOMER] FOR AN UNDISCLOSED AMOUNT -(I BELIEVE IN THE RANGE OF $10,000). THE SETTLEMENT DID NOT INVOLVE ME - I DID NOT CONTRIBUTE TO IT AND WAS NOT ASKED TO ADMIT ANY WRONGDOING. CUSTOMER WAS ALSO REQUIRED TO OPT OUT OF CLASS ACTION LAWSUIT AGAINST ALLIANCE FUND DISTRIBUTORS IN ORDER TO RECEIVE SETTLEMENT. CUSTOMERS LOSSES IN THE ALLIANCE NORTH AMERICAN GOVERNMENT FUND WERE RELATED TO THAT FUND`S PESO LOSSES IN LATE 1994. CUSTOMER FILED ARBITRATION AGAINST MY FORMER EMPLOYER, BARNETT SECURITIES, SINCE HE HAD PURCHASED THAT FUND FROM BARNETT.