The former head of a Wells Fargo investment management office was sentenced to two years in prison on Monday for a fraudulent stock-trading scheme that cost investors more than $900,000.
Philip Horn was a licensed securities broker and managing director at the Westwood Village branch office of Wells Fargo Advisors, a unit of San Francisco bank Wells Fargo & Co. that provides retail investment services. He is a resident of Tarzana.
In September, he admitted performing a series of trades that were executed in the accounts of clients, and, if the trades proved to be profitable, were later “corrected” to move to Horn’s account. Trades with losses were left in client accounts.
Horn executed the fraudulent orders between April 2009 and October 2011, when he was terminated by Wells Fargo Advisors.
The bank has conducted a forensic analysis of all accounts tampered with by Horn and has repaid money improperly taken from customer accounts, according to court filings. The FBI also conducted an investigation.
Horn has already paid more than $1 million in restitution. He will begin serving his sentence on a formal charge of wire fraud on April 12.