Monday, July 9, 2012

Some answers to questions asked by an independent investigator from Oyster consulting answered by George Hartzman on his Wells Fargo Whistleblower filing

"When did you file (dates) the two ethics complaints,
one regarding the secret loans and the other regarding Envision℠ with Wells Fargo?

Henry "Hank" Sanchez, Jr. Esq., 
Oyster Consulting,

If your attack is going too well, you have walked into an ambush.

Infantry Journal

Do you have copies of the complaints and responses, if any?

Please provide.

What is the exact date of the Whistleblower Complaint with the SEC?

Please provide a copy of any responses.

Regarding Complaints filed with FINRA, the State of NC and others,
on what dates were those filed?

Specifically, please provide a list of names/titles to who you filed the complaints.

Please provide copies.

Please provide copies of all responses received from the various places
where complaints were filed.

Please ask them.

I give you permission to retrieve all documentation
delivered and notes taken by any and all governmental regulators.

I will do so will full knowledge
that some of said information may be used against me.

I provide this release of information
because I believe I am acting in the best interests of the company I work for
 which I would like to fix, and those I work with,
as well as the country I live in, and hopefully, my family who I very much love
and of whom I would like not to create any more angst then I have already afflicted them with.

You indicated that you had refused the 4Front bonus
- can you provide documentation that shows that

(a) how the program was to work,


(b) that you met the goals set by the program,

I chose not to meet the program's "goals" to be paid a "retention bonus"
until Wells Fargo paid off TARP

and, (c) that you were offered the bonus and refused it?

Call XXXX XXXXXX and or anyone I work with who would know,
which I believe would be about a third of the office,
which I would think would also include about half of the Wells Fargo Advisors side of WFC.

The other evidence you can easily obtain from others,
would be the date the Envision plans were done,
and when what contracts were authorized.

Considering the amount of money spent on the retention package,
I would think those who have retained your services
have extremely detailed information.

In the CPA CE materials,
you note that TARP restricted executive compensation to $500,000
– from where did you get this figure?

I feel as though you should independently acquire said knowledge
in the form it originally came in
as to not have to rely on my visual interpretation of what I believe are facts.

People are usually more convinced by reasons they discovered themselves
than by those found by others.

Blaise Pascal

Can you please provide a copy of the document referencing this limit?

(I ask because the IRS Code limits allowable income tax deductions
for corporations receiving TARP funds to $500,000 for executive compensation, however,
TARP does not specify an income limit of $500,000 for executives.)

Same thing only different.

I don't recall ever decoratively stating these facts, [Hat Tip: Roch Smith] 
as I quoted others in Wells Fargo Securities filings, news stories etc...

If it ends up you may be attempting to discredit me for your client
with this line of questions with easily obtainable answers,
I could take offense, not that that means much at this point.

Regarding the Envision plan Target Zones,
you had indicated that if a plan is not within the Target Zone,
then it cannot be the plan of record for the client.

Call xxxx xxx xxxxxx

How did you reach this conclusion?

See links at bottom.

Is there anything in writing from the firm that supports your statement?

Please provide.

Call xxxx xxx xxxxxx

How do you define “Plan of record”?

I believe I have not and may never choose to define "Plan of record".

I also hold that I have quoted only Wells Fargo's definition.

What I believe to be a plan of record seems tertiary,
unless the answer could be used against me at some point.

I am not suggesting that is your intent Hank,
but I am not worried as much of your intent,
as of the motivations of others with much to lose,
some of whom may deserve what I hope will be the outcome of this process.

You also indicated that Wells found out that advisors were completing plans so fast
that it was clear that they were not meeting with clients.

Did some stabilize financial markets in the short term
to defend political legacies and financial interests,
regardless of long term consequences?

Did some economic and political leaders
bail themselves and their compatriots out of their own mistakes,
by pledging trillions of debt and newly created money,
knowing the consequences would be handed down to many who may be unaware
including the unborn of following generations?

Could many who believe the government should pledge their children’s future income
to prevent the failure of insolvent businesses and/or countries
be indirectly advocating a political system other than capitalistic democracy?

Do you have any documentation that can show this?

If you have not been given the authority to independently verify this,
with any number of Wells Fargo financial advisors from across the 15,000 or so working for the firm,
either you could have been restricted by some of your "clients" to investigate independently,
of which some may be looking to for a way to get rid of me using my own actions,
or you are stupid.

I am pretty sure you are not stupid.

I also believe you are relatively honorable as far as I know
as also based on your Securities Industry experience.

If an opponent’s position can be used against them
and the pinnacle of vulnerability is the moment of assault,
should attack commence from defended positions?

Do you have any documentation
that would evidence that it was communicated by Wells to advisors
to not complete plans so quickly?

In politics, nothing happens by accident.

If it happens, you can bet it was planned that way.

Franklin D. Roosevelt

When did this communication take place- date?

Call xxxx xxx xxxxxx

Everybody sooner or later sits down to a banquet of consequences.

Robert Louis Stevenson

How was it communicated?

First they ignore you, then they laugh at you,
then they fight you, then you win.

Mohandas Karamchand Gandhi

From: Envision POR Compliance
Sent: Saturday, July 07, 2012 4:25 PM
To: Hartzman, George
Subject: July 2012 Status Report - Envision Plan of Record Policy

Attached is your monthly Envision Plan of Record (POR) Policy Status Report
that will help you determine which PORs need your attention.

The report will identify the policy criteria as well as the de-selection date
if no action is taken for your PORs.

...for a plan to maintain POR status:

A client presentation must have been generated and presented to the client
within the past 12 months
and The POR Plan Result may not score lower than the Target Zone (<75) for 12 consecutive months.

If a plan is not brought into compliance within 14 months,
based on last presentation date or the last date the plan had a score in the Target Zone,
the Firm will deselect the plan as a POR.

Please note that the Envision plan will remain in the system,
but the POR designation will be removed.

How could deselecting a POR impact my clients?

When a plan is deselected as a POR (by the Firm, Financial Advisor, or Qualified Supervisor),
a letter will be sent to the client notifying them their plan is no longer being monitored as a POR.

...if you would like to read the enhanced POR compliance policy
as well as FAQs and other supporting resources
please visit story name PLAN OF RECORD on InfoMAX.

Envision Plan of Record (POR) Policy Status Report
Plan Status As Of June 30, 2012

...FAs should be mindful that this report should NOT be used
as a guide to determine household eligibility for any compensation programs
related to Envision.

If big print can give what fine print takes,
can winning the wrong game lose the right one?

"What is an Adhesion Contract?

adhesion contract (contract of adhesion) n.

a contract (often a signed form)
so imbalanced in favor of one party over the other
that there is a strong implication it was not freely bargained.

Example: a rich landlord dealing with a poor tenant
who has no choice and must accept all terms of a lease,
no matter how restrictive or burdensome,
since the tenant cannot afford to move.

An adhesion contract can give the little guy the opportunity
to claim in court that the contract with the big shot is invalid.

This doctrine should be used and applied more often,
but the same big guy-little guy inequity may apply
in the ability to afford a trial or find and pay a resourceful lawyer.

A type of contract, a legally binding agreement between two parties to do a certain thing,
in which one side has all the bargaining power
and uses it to write the contract primarily to his or her advantage.

An example of an adhesion contract is a standardized contract form
that offers goods or services to consumers on essentially a "take it or leave it" basis
without giving consumers realistic opportunities
to negotiate terms that would benefit their interests.

When this occurs, the consumer cannot obtain the desired product or service
unless he or she acquiesces to the form contract.

...Insurance contracts and residential leases are other kinds of adhesion contracts.

This does not mean, however, that all adhesion contracts are valid.

Many adhesion contracts are Unconscionable;
they are so unfair to the weaker party that a court will refuse to enforce them.

An example would be severe penalty provisions
...that are physically hidden by small print
located in the middle of an obscure paragraph of a lengthy ...agreement.

In such a case a court can find
that there is no meeting of the minds of the parties to the contract
and that the weaker party has not accepted the terms of the contract.

West's Encyclopedia of American Law, edition 2."

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