By Kenneth Corbin
An arbitration panel has ordered Wells Fargo Clearing Services to pay $3 million to a former broker who accused the firm of dismissing him in retaliation for having flagged instances of fraud. Thomas Ratliff accused Wells Fargo of defamation, libel, and interference with business relationships, among other allegations.
In the same ruling, the arbitration panel, convened by brokerage industry self-regulator Finra, awarded about $1 million in damages to Wells Fargo, which in a counterclaim had accused Ratliff of breach of contract relating to a balance that came due on promissory notes when his employment ended.
"While we appreciate the panel's decision to hold Mr. Ratliff accountable for his loan, we disagree with other findings and are considering our options," Wells Fargo says.
Ratliff's lawyer didn't immediately respond to a request for comment.
Ratliff alleged that Wells Fargo terminated him "on a pretextual basis" after he identified and reported the mishandling of client accounts and accused his former partner, Thomas Brandstater, of violating the terms of their succession-planning arrangement.
Brandstater was named as a respondent in the dispute and ordered to pay Ratliff just over $38,000 in compensatory damages. He didn't immediately respond to a request for comment.
Wells Fargo dismissed Ratliff in January 2024 "after a firm review found he submitted a referral without speaking with the client and sent email without the required disclosures," according to his record in the online database BrokerCheck. Wells Fargo said at the time that it hadn't identified any consumer harm.
Ratliff hasn't registered with another firm since then. His response to the allegations reads:
"Months after reporting instances of fraud and theft to Wells Fargo Advisors in October 2022 regarding a partner's actions, I was subjected to an independent internal review for baseless violations unrelated to sales practices, without any harm inflicted on customers or any customer complaints. Despite providing evidence refuting the accusations, I was terminated. My concerns about the theft and fraud remain unaddressed."
The Finra panel called for the reason for Ratliff's termination listed in his public record to be changed to "other" and that Wells Fargo's comment describing the allegations be deleted.
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(END) Dow Jones Newswires
June 18, 2026 13:16 ET (17:16 GMT)
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