FORREST ADDINGTON WESTER Investment Fraud Investigation

March, 2025 | Based in Midland, TX

Have you suffered financial losses while working with broker Forrest Addington Wester? Don’t navigate this challenging situation alone. call 800-950-6553 or complete our online form to schedule your no-obligation case evaluation.

Critical Information About Forrest Addington Wester

• Full Name: Forrest Addington Wester
• CRD Number: 2559502
• Current Location: Midland, TX
• Registration Status: Not currently registered
• Previous Employers:
  • Wells Fargo Clearing Services, LLC (01/2008 – 11/2023)
  • G. Edwards & Sons, Inc. (01/1995 – 01/2008)
• Disclosure Events:
  • 1 Regulatory Event
  • 3 Customer Disputes
  • 1 Employment Termination
• FINRA BrokerCheck: Permanently barred from the securities industry
• Ability to Recover Losses: Potential through FINRA arbitration

Disturbing Allegations: Misappropriation of Client Funds

Forrest Addington Wester, a former financial advisor based in Midland, Texas, is currently under intense scrutiny following shocking allegations of client fund misappropriation. On November 7, 2023, Wells Fargo Clearing Services, LLC discharged Wester after he allegedly admitted to transferring customer funds to an account he personally controlled elsewhere—a serious breach of fiduciary duty and a clear violation of industry regulations.

The severe nature of these allegations prompted immediate action from the Financial Industry Regulatory Authority (FINRA), which launched an investigation into Wester’s activities. Notably, when FINRA requested documentation and information regarding these concerning activities, Wester refused to comply—a decision that resulted in his permanent bar from the securities industry on November 30, 2023.

This regulatory action prevents Wester from associating with any FINRA member firms in any capacity, effectively ending his career in the securities industry. The permanent bar reflects the gravity with which regulatory authorities view both the alleged misconduct and Wester’s subsequent refusal to cooperate with investigators.

Pattern of Customer Complaints and Financial Misconduct

The FINRA BrokerCheck report reveals a troubling pattern of customer complaints against Wester during his tenure as a financial advisor. One particularly alarming complaint came to light in November 2023, when a customer alleged that Wester had stolen money directly from her account between June and November 2023. This complaint resulted in a substantial settlement of $57,077.61, with the firm covering the entire amount.

Another customer complaint lodged in April 2024 alleged that Wester took advantage of a long-term relationship, violated the client’s trust, made investments not in their best interest, and failed to properly manage investments. This complaint, covering activities from April 2005 through November 2023, resulted in a settlement of $10,500.

These settlements suggest that Wells Fargo Clearing Services recognized the validity of these claims and chose to compensate the affected clients rather than contest the allegations. Such settlements often indicate that internal reviews uncovered evidence supporting the customers’ claims.

The pattern of misconduct appears to have extended over multiple years, with an earlier complaint from September 2008 alleging unauthorized trades. While this earlier complaint was closed without action, the subsequent successful complaints and ultimate termination suggest an escalating pattern of problematic behavior that culminated in the alleged direct misappropriation of client funds.

Professional Background and Red Flags

Wester’s career in the securities industry spanned nearly three decades, beginning in January 1995 when he joined A.G. Edwards & Sons, Inc. He remained with this firm until January 2008, when he transitioned to Wells Fargo Clearing Services, LLC, where he worked until his termination in November 2023.

Throughout his career, Wester obtained several securities licenses, including three principal/supervisory exams and two general industry/product exams. These qualifications allowed him to serve in various capacities within the securities industry and gave him significant responsibility in managing client accounts and investments.

Despite these professional qualifications, the BrokerCheck report reveals concerning aspects of Wester’s conduct. The most significant red flag emerged in November 2023, when he was discharged from Wells Fargo after allegedly admitting to transferring customer funds to an account under his control. This admission suggests a deliberate misappropriation of client assets for personal gain—one of the most serious violations a financial advisor can commit.

Legal and Regulatory Framework: Violations and Consequences

Financial advisors operate under strict regulatory guidelines designed to protect investors and maintain the integrity of financial markets. Wester’s alleged actions appear to violate several fundamental regulatory principles and FINRA rules:

1. FINRA Rule 2010: Standards of Commercial Honor and Principles of Trade This bedrock rule requires brokers to observe high standards of commercial honor and just and equitable principles of trade. Misappropriating client funds represents a direct violation of this standard.
2. FINRA Rule 2150: Improper Use of Customers’ Securities or Funds This rule explicitly prohibits members or associated persons from making improper use of a customer’s securities or funds. Transferring customer funds to a personal account would constitute a clear violation.
3. SEC Act Section 10(b) and Rule 10b-5: Anti-Fraud Provisions These provisions prohibit fraudulent and deceptive practices in connection with the purchase or sale of securities. Misappropriation of client funds falls squarely within these prohibitions.
4. Breach of Fiduciary Duty As a financial advisor, Wester had a fiduciary obligation to act in his clients’ best interests. Using client funds for personal purposes represents a severe breach of this duty.

The consequences for such violations can be severe, as evidenced by FINRA’s permanent bar of Wester from the securities industry. This permanent bar is the most serious sanction available to FINRA and reflects the gravity of the alleged misconduct.

Additionally, such misconduct can lead to civil litigation, including FINRA arbitration claims, through which affected investors may seek to recover their losses. In cases involving substantial financial harm, criminal charges for fraud, theft, or conversion of funds may also be pursued by law enforcement authorities.

Warning Signs for Investors

The Wester case highlights several warning signs that investors should watch for in their relationships with financial advisors:

1. Unauthorized Transactions Review your account statements regularly for any transactions you did not authorize. The 2008 complaint against Wester alleged unauthorized trades, which might have been an early warning sign of problematic behavior.
2. Unexplained Account Withdrawals or Transfers Be vigilant about any withdrawals or transfers from your account that you did not authorize or that cannot be adequately explained by your advisor.
3. Lack of Transparency If your financial advisor is reluctant to provide clear explanations about your investments or account activities, this could be a red flag.
4. Investments Not Aligned with Your Goals As alleged in one of the complaints against Wester, investments that don’t align with your financial goals or risk tolerance may indicate that your advisor is not acting in your best interest.
5. Excessive Trading (Churning) Frequent trading that generates commissions for the advisor but doesn’t benefit you could be a sign of misconduct.
6. Pressure to Make Quick Decisions Financial advisors who pressure you to make immediate decisions without adequate time for consideration may not have your best interests at heart.
7. Promises of Guaranteed Returns Be wary of any advisor who guarantees investment returns, as legitimate investments always involve some level of risk.

Legal Options for Affected Investors

If you believe you’ve been victimized by Forrest Addington Wester or any financial advisor engaging in misconduct, several legal avenues are available:

1. FINRA Arbitration FINRA provides an arbitration forum for resolving disputes between investors and brokers. This process is generally faster and less formal than court litigation. The fact that Wells Fargo has already settled claims related to Wester’s conduct suggests they may recognize liability in these matters.

2. Securities Arbitration Recovery Investors who have suffered losses due to broker misconduct may be eligible to recover those losses through securities arbitration. Recoverable damages may include:

• Direct financial losses
• Interest on lost funds
• In some cases, attorneys’ fees and costs

3. Claims Against the Brokerage Firm Brokerage firms have a duty to supervise their advisors. Wells Fargo Clearing Services, LLC may bear responsibility for failing to detect and prevent Wester’s alleged misconduct earlier. This concept, known as “failure to supervise,” is a common basis for recovery in securities arbitration.

4. Statute of Limitations Considerations It’s important to act promptly if you believe you’ve been harmed. FINRA arbitration claims typically must be filed within six years of the event giving rise to the claim. However, this timeline can be complicated by when the investor discovered or should have discovered the misconduct.

Protecting Yourself from Investment Fraud

The Wester case provides valuable lessons for all investors on how to protect themselves from potential investment fraud:

1. Verify Advisor Credentials Always check an advisor’s registration status, employment history, and disciplinary record through FINRA’s BrokerCheck or the SEC’s Investment Adviser Public Disclosure database.
2. Review Account Statements Thoroughly Carefully review all account statements and trade confirmations to ensure they reflect your authorized transactions and match your investment objectives.
3. Maintain Written Records Keep written records of all communications with your financial advisor, including investment recommendations and instructions.
4. Ask Questions Don’t hesitate to ask detailed questions about recommended investments, fees, and any transactions you don’t understand.
5. Diversify Financial Relationships Consider maintaining relationships with multiple financial institutions to create additional safeguards and perspectives on your financial situation.
6. Report Suspicious Activity Promptly If you suspect misconduct, report it immediately to the firm’s compliance department, FINRA, and state securities regulators.

How Our Investment Fraud Attorneys Can Help

Our experienced investment fraud attorneys specialize in representing investors who have suffered financial losses due to broker misconduct. We understand the complex regulations governing the securities industry and have a proven track record of recovering funds for victimized investors.

When you work with our firm, we will:

1. Conduct a Comprehensive Case Evaluation We’ll thoroughly review your account statements, communications with your advisor, and other relevant documents to assess the strength of your case.
2. Perform a Forensic Analysis Our team will analyze trading patterns and account activities to identify potential misconduct and quantify your losses.
3. Develop a Strategic Recovery Plan Based on our analysis, we’ll recommend the most effective strategy for recovering your losses, whether through FINRA arbitration or other legal means.
4. Represent You Through the Recovery Process Our attorneys will handle all aspects of your case, from filing the initial claim to negotiating a settlement or presenting your case before arbitrators.
5. Work on a Contingency Fee Basis We typically work on a contingency fee basis, meaning we only get paid if we recover money for you.

Don’t delay seeking the justice and financial recovery you deserve. If you’ve experienced losses while working with Forrest Addington Wester or have concerns about your investments, reach out today for a confidential consultation. Our experienced securities fraud attorneys can help you understand your options and pursue the compensation you deserve. call 800-950-6553 or now or fill out our secure online form to take the first step toward financial recovery.

Chetan Patil

Chetan Patil is the founder and Managing Partner of the Patil Law. He brings over 15 years of extensive experience in diverse complex disputes and transactions, across the country. Mr. Patil specializes in litigations, trials, arbitrations, and appeals of complex securities, FINRA, financial and business disputes, with an emphasis in securities, financial services, and financial regulatory law.