Conflict of Interest Causes $250,000 Fine for Wells Fargo

Steve Lombardi

Attorney
(866) 735-1102 Ext 335

0 CommentsPrint ArticleSubscribe

The National Association of Securities Dealers discovered that an analyst who was seeking a job with Cadence Design Systems Inc. was writing a series of reports for the company. NASD said this was a conflict of interest and fined Wells Fargo Securities LLC $250,000 for not disclosing the information.

NASD also issued Douglas van Dorsten, former research director for Wells Fargo Securities, a $40,000 fine. A complaint against the analyst, Jennifer Jordan, was issued as well. NASD said that Jordan should have disclosed the fact that she was pursuing a job with Cadence in her research reports in early 2005. Jennifer Jordan accepted a job with Cadence as vice president of investor relations in 2005 after writing three reports for the company. She was to receive a salary of $300,000, including a $1 million interest free loan and 15,000 Cadence shares.