A review of regulatory actions against Wedbush Securities reveals a consistent pattern of supervisory failures, unsuitable investment recommendations, misrepresentations, and misconduct. Key incidents include a FINRA censure and fine on September 18, 2024 for inadequate supervision of complex financial products, along with additional fines and sanctions related to off-channel communications, misrepresentations in customer statements, and alleged misconduct including a pump-and-dump scheme and elder abuse claims.

Wedbush Securities admitted to violations of CFTC recordkeeping and supervision obligations, resulting in a $6 million civil penalty, a cease and desist order, and mandatory remedial actions.

Wedbush Securities was fined $975,000 by FINRA after failing to adequately supervise its customers' trading activities over a period of at least seven years. The firm relied on third-party broker-dealers to monitor trading activity, resulting in significant gaps in oversight and risk management, which allowed for potential manipulative practices such as layering, spoofing, and wash sales to go undetected.

On June 11, 2014, the SEC charged Wedbush Securities with failing to maintain direct and exclusive control over risk settings on trading platforms, alleging violations of the Market Access Rule. The SEC’s order criticized the firm for allowing customers and third-party platforms to alter risk controls, thus compromising proper risk management.