Wedbush Securities is a Los Angeles-based financial services firm with more than 70 branch offices and over 500 registered representatives. The firm has a long regulatory history, including significant actions by the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC) involving supervision and compliance issues.
With more than 100 regulatory events on record, many investors review their accounts after experiencing losses to see whether similar problems may have affected their portfolios. Clients who suffered losses may be able to file a brokerage firm investment loss claim against Wedbush Securities.
Wedbush Securities Misconduct
Wedbush Securities has faced ongoing scrutiny from regulators for compliance failures, supervisory lapses, and allegations of misconduct, warranting numerous complaints, expensive penalties, and occasions where investors pursued legal action to recover losses.
Failure to Monitor Employee Communications
In 2023, the SEC fined Wedbush Securities $10 million as part of a larger $289 million settlement with multiple firms.
Wedbush Securities had not properly monitored employees and executives who used unauthorized platforms, such as WhatsApp, for business communications. The company also failed to keep records of these communications, as required by federal law, raising serious transparency and compliance issues.
Trading Violations and Failed-to-Deliver Positions
Wedbush Securities’ failure to ensure timely trade execution and compliance resulted in costly penalties and mounting investor dissatisfaction. In 2022, FINRA fined the firm $900,000 for issues related to “failed-to-deliver positions,” where securities were not delivered to buyers on time.
Bond Transaction Pricing Violations
In 2025, FINRA penalized Wedbush Securities for its failure to disclose mark-ups and mark-downs on municipal and corporate bond trades. The firm had to pay a fine of $150,000.
Between 2018 and 2022, the firm issued hundreds of trade confirmations to retail customers without providing required pricing information, such as mark-ups expressed as a dollar amount and percentage of the market price.
Such violations hurt the firm’s transparency and left customers paying more than expected for their bonds.
Supervisory Failures in Trade Monitoring
In 2023, FINRA fined Wedbush Securities $975,000 for failing to supervise trades executed by third-party broker-dealers.
Regulators reported that Wedbush incorrectly relied on the executing broker-dealers to handle oversight. Potential manipulation, such as layering and spoofing, was able to go by undetected due to poor monitoring.
Prior Violations and Historical Misconduct
Wedbush Securities’ history of regulatory violations is extensive. The financial service firm faced a $2.44 million SEC fine in 2014 for failing to implement adequate risk controls for overseas customers.
In 2015, the firm was fined $1.8 million by FINRA, Nasdaq, and the NYSE for similar issues. Additional penalties include a $1 million fine in 2019 for failing to detect potentially manipulative trades.
With over 100 regulatory events on its BrokerCheck report and repeated allegations of misconduct, the firm’s ongoing compliance challenges have left many investors questioning its practices.
History of Wedbush Securities
Wedbush Securities was founded in 1955 by Edward Wedbush and Robert Werner in Los Angeles, California. Initially established as a two-person brokerage firm, Wedbush Securities quickly expanded its services and client base.
Over the decades, the firm diversified its offerings to include brokerage, wealth management, clearing services, and investment banking. Edward Wedbush, who led the firm for many years, played a significant role in shaping its growth and reputation.
Under his leadership, Wedbush Securities focused on expanding its branch network across the United States and offering clients greater access to financial services and products.
How to Recover Your Losses After Wedbush Securities Misconduct
Wedbush Securities complaints range from undisclosed fees on bond transactions to the inability to detect manipulative trading practices and inadequate communication with clients.
For those who believe they have been impacted by improper practices, consulting with a securities fraud lawyer can help. An attorney can file a Wedbush Securities lawsuit to recover losses.
Call Us for Help After Suffering Losses Due to Wedbush Securities Violations
With a history of fines, supervisory failures, and allegations of misconduct, Wedbush Securities has left many investors questioning their accounts and seeking a review of their losses.
Scammers often use apps or social media platforms to promote fraudulent or nonexistent investment opportunities designed to steal money. In these cases, we can assist only when a financial advisor or broker played a part in placing you into the scheme.
If you’ve been impacted by Wedbush Securities’ actions, we can explain your options and take steps toward recovering your losses. Contact Meyer Wilson Werning today for a free consultation.
Situations involving standalone social-media scammers without broker or financial advisor involvement are not eligible for representation.
