If you were a client of Eyan M. Townsend or George J. Cairnes and suffered investment losses as a result of their or their firm’s actions, you should contact Iorio Law PLLC for a free consultation to review your legal rights to potentially recover damages.

FINRA Letter of Acceptance, Waiver, and Consent No. 2024082289401 (Eyan M. Townsend)

FINRA has suspended former Wells Fargo Clearing Services, LLC broker Eyan M. Townsend (CRD No. 5286707) for one year after finding that he engaged in conduct that violated FINRA rules.  

Between September 2023 and January 2024, while he was associated with Wells Fargo, Townsend violated FINRA Rules 4511 and 2010 by sending unauthorized, business-related text messages on his personal cell phone. Mr. Townsend did not disclose the use of personal texts to Wells Fargo or provide the firm with copies, thus causing Wells Fargo to violate its recordkeeping obligations.

Furthermore, during the subsequent firm investigation, Mr. Townsend actively impeded the review process by falsely stating to Wells Fargo that he did not send business-related text messages and deleted the messages from his cell phone in order to impede the firm’s investigation, thereby violating FINRA Rule 2010.

For these violations, FINRA imposed a fine of $10,000 and suspended him in all capacities for one year.

Read the full FINRA settlement here: FINRA AWC – Eyan Townsend

Eyan M. Townsend (CRD No. 5286707)

Mr. Townsend has been in the securities industry since 2013. He was previously registered with Edward Jones (2013-2018), Wells Fargo Clearing Services, LLC (2018-2024), and Park Avenue Securities, LLC (July 2024 – December 2024). Due to FINRA suspension, Mr. Townsend is currently not permitted to act as a broker.  

On April 26, 2024, Wells Fargo discharged Mr. Townsend after an internal review arising from his failure to conduct business through firm-approved communications technology.

Review his BrokerCheck record here: FINRA BrokerCheck – Eyan Townsend

FINRA Letter of Acceptance, Waiver, and Consent No. 2023079356701 (George J. Cairnes)

FINRA investigated another broker, George J. Cairnes (CRD No. 4068906), previously associated with Wells Fargo. FINRA found that Mr. Cairnes engaged in Outside Business Activity (OBA) with a firm customer for approximately eight years, from August 2015 to August 2023. Mr. Cairnes partnered with the firm customer to buy, manage, and sell real estate, even incorporating an LLC for the partnership. Mr. Cairnes received compensation for this activity, which he failed to disclose in writing to Wells Fargo. Additionally, Mr. Cairnes affirmatively attested on multiple brokerage firm compliance forms that he was not participating in any undisclosed OBAs. Due to this misconduct, Mr. Cairnes was found to have violated FINRA Rules 3270 and 2010.

FINRA imposed a four-month suspension from associating with any FINRA member in all capacities and a $2,500 fine.

Read the full FINRA settlement here: FINRA AWC – George Cairnes

George J. Cairnes (CRD No. 4068906)

Mr. Caines is a veteran of the securities industry with over twenty years of experience. He previously worked for Merrill Lynch, Pierce, Fenner & Smith Inc. (2000-2008), Stanford Group Co. (2008-2009), Wells Fargo Investments, LLC (2009-2011), Wells Fargo Clearing Services, LLC (2011-2023), and Chelsea Financial Services (July 2023 – November 2023). He is not currently registered with any state or self-regulatory organization.

In addition to the recent October 2025 OBA regulatory disclosure as discussed above, his record shows additional actions and customer disputes.

• In 2024, the Texas State Securities Board also investigated and imposed sanctions for Mr. Cairnes’ impermissible, undisclosed real estate arrangement in which he received at least $175,000 from the client. The sanctions prevent him from registering for a license in Texas for a period of two years.
• In 2023, Wells Fargo Clearing Services discharged Mr. Cairnes from employment due to allegations that he facilitated a loan between clients, as well as loans and other transactions between a client and individuals associated with the financial advisor.
• The prior customer complaints include a settled matter from 2009 alleging an unsuitable mortgage recommendation and a pending allegation regarding an unpaid line of credit extended by a customer to Mr. Cairnes, his family members, and friends.

Review his BrokerCheck record here: FINRA BrokerCheck – George Cairnes

Wells Fargo – A Duty to Supervise

Every brokerage firm, including Wells Fargo Clearing Services, has a fundamental duty to diligently supervise its financial advisors and associated persons, including their communications with customers and outside business activities.

Brokerage firms must establish and maintain a reasonably designed system to oversee account activity, client communications, and outside business activities to ensure compliance with securities laws and industry regulations. This supervision is critical to prevent misconduct, ensure compliance with firm and regulatory rules, and protect investors. Failure to monitor communications or failure to enforce rules regarding outside business activities may lead a brokerage firm to have breached its supervisory duty and therefore be responsible for the resulting harm to investors.

How to Recover Investment Losses or Obtain a Free Consultation

When an investor suffers investment losses due to misconduct by a financial advisor or broker-dealer, the investor can file a securities arbitration claim against their financial advisor and/or broker-dealer in an effort to be compensated.

Iorio Law PLLC is a securities arbitration law firm located in New York, NY. We represent investors nationwide and vigorously pursue FINRA arbitration claims on behalf of investors to recover investment losses.

If you have suffered investment losses related to the conduct of Eyan M. Townsend, George J. Cairnes, or Wells Fargo, contact Iorio Law PLLC for a free and confidential evaluation of your claim.

📞 Call: (646) 330-4624
📧 Email: info@iorio.law
📍 Location: One World Trade Center, 85th Floor, New York, NY 10007 (nationwide representation)
🖊️ Free Case Review: Contact Form

Free & confidential case evaluation. No recovery, no fee.

According to the settlement, from at least June 2019 to November 2024, Wells Fargo had hundreds of municipal entity customers who transacted in both municipal and non-municipal securities through firm accounts. Despite these relationships, the firm was not registered as a municipal advisor — a designation required under Section 15B(a)(1)(B) of the Securities Exchange Act of 1934 when providing certain types of advice to municipal entities.

Lack of Supervisory Procedures and Guidance

FINRA found that Wells Fargo’s written supervisory procedures (WSPs) prohibited its brokers from advising municipal entities on investing proceeds from municipal securities issuances. However, the firm failed to:

• Provide clear guidance on what constitutes prohibited “advice” to municipal entities.
• Define other activities that might trigger municipal advisor registration.
• Implement a process to identify whether municipal entity deposits were proceeds from municipal securities issuances.
• Put in place effective controls to prevent or detect improper advice-giving.

Instead, Wells Fargo relied on provisions buried in client account agreements and annual account statement disclosures to discourage the deposit of such proceeds — measures that FINRA deemed insufficient and “not prominent.”

Regulatory Rules Cited

The enforcement action found violations of:

• MSRB Rule G-27 – Supervisory system requirements for municipal securities activities.
• FINRA Rule 3110(a) and (b) – Supervisory system and WSP requirements.
• FINRA Rule 2010 – Standards of commercial honor and just and equitable principles of trade.

The failures amounted to an inability to reasonably ensure compliance with federal and municipal securities laws governing municipal advisor registration.

Broader Regulatory Context

Municipal advisor registration rules, implemented after the Dodd-Frank Act, are designed to protect municipal entities from receiving conflicted or unqualified investment advice regarding the proceeds of bond issuances and other municipal securities transactions. Firms engaging in such advisory activities without registration may face enforcement action from FINRA, the Municipal Securities Rulemaking Board (MSRB), or the Securities and Exchange Commission (SEC).

Sanctions

As part of the settlement, Wells Fargo agreed to:

• Censure – A formal disciplinary action.
• $275,000 Fine – Payable to FINRA.

The firm neither admitted nor denied the findings but consented to the sanctions to resolve the matter.

Implications for Broker-Dealers

The case serves as a reminder to broker-dealers — especially those with municipal clients — to review and strengthen their supervisory systems and WSPs to ensure compliance with municipal advisor registration requirements. Firms must also provide clear, practical guidance to associated persons on what constitutes municipal advisory activity and implement proactive controls to detect and prevent violations.

Full details of the settlement are available in FINRA’s published disciplinary action here.