WEDBUSH SECURITIES STOCKBROKER MISCONDUCT

Wedbush Morgan is one of the largest brokerage houses based in Los Angeles; it employs more than 100 brokers and about a dozen investment bankers. Like some of the biggest national brokerage firms, Wedbush Morgan has paid millions in fines because it claimed to invest money conservatively, and then put clients’ money in highly speculative commission earning investments.
In 2006 alone, the Wedbush Morgan was ordered to pay more than $6.4 million in fines as the result of arbitrations with customers; most of whom alleged the firm had fraudulently marketed variable annuities and other securities.

The firm also employs Bambi Holzer, a Beverly Hills based broker who has appeared on the Today show, as well as magazines and newspapers. Holzer has also received 54 customer complaints since 1990, paying out $11.6 million in settlements. Many of her former clients alleged she too had misrepresented the terms of variable annuities, and would later reap hefty commissions from the sale.