[ by Melanie Gretchen ]

A former Wells Fargo broker was sentenced for defrauding more than a dozen clients.  Philip Horn, who worked in Los Angeles, last year pled guilty to 2 counts of wire fraud.

Federal Findings and Allegations.   For more than 2 years, Horn repeatedly executed and canceled trades in clients’ accounts, pocketing any profits.  Wells Fargo discovered Horn's scheme in the fall of 2011.  Since then, Horn has paid more than $1 million in restitution, which factored into Judge Gary Feess's sentencing.

Federal Sanctions.   Still, Horn was sentenced to 2 years in jail, longer than the 18 months the U.S. attorney's office had recommended.  Earlier this year, in January, The NYTimes used Horn's case to make a statement about problems with policing the brokerage industry in the wake of Bernie Madoff's Ponzi scheme.

For further details, go to [Dealbook, 3/5/13].