Carol Lemoult: $625K Complaint Against Ex-Wells Fargo Advisor

Former Irvine, California financial advisor Carol Lemoult (CRD# 331681) allegedly over-concentrated investments in a customer’s account, according to a recent investor complaint. Financial Industry Regulatory Authority records indicate that the former Wells Fargo representative is currently not registered with any broker-dealer firm.

Ms. Lemoult’s BrokerCheck report discloses one investor complaint. Filed in January 2023, the complaint alleges that as a representative of Wells Fargo Clearing Services, she over-concentrated the customer’s account in unsuitable high-risk equity funds. The pending complaint alleges damages of $625,592.85.

For reference, failure to diversify, also known as over-concentration or concentration, describes a broker’s failure to invest a customer’s portfolio among a variety of assets. “A diversified portfolio,” FINRA explains in its investor resources, “tends to be harder to achieve than simply following the mantra: don’t put all your investment eggs in one basket.” To avoid risks of over-concentration, FINRA recommends that investors diversify their portfolios across and within major asset classes. Other best practices include rebalancing one’s portfolio on a routine basis, closely examining the underlying investments in mutual funds and/or exchange-traded funds, and keeping track of the liquidity of investments in the account.

According to the Financial Industry Regulatory Authority, Carol Lemoult holds 50 years of securities industry experience. Most recently based in Irvine, California, she was registered with Wells Fargo Clearing Services from 2011 until 2022. Her registration history includes Morgan Stanley Smith Barney (Laguna Niguel, California; 2009-2011), Citigroup Global Markets (Laguna Niguel, California; 1993-2009), Lehman Brothers (New York, New York; 1971-1993), Loeb Partners (1978-1980), Hornblower Weeks Noyes & Trask (1977-1978), and Hornblower & Weeks – Hemphill Noyes (1971-1977). Her credentials include the passage of eight securities industry qualifying exams: the General Securities Principal Examination, or Series 000; the Registered Representative Examination, or Series 1; the AMEX Put and Call Exam, or PC; the Interest Rate Options Examination, or Series 5; the Securities Industry Essentials Examination, or SIE; the General Securities Representative Examination, or Series 7TO; the Uniform Securities Agent State Law Examination, or Series 63; and the Uniform Investment Adviser Law Examination, or Series 65. She is not currently registered as a broker or an investment advisor with any state or firm. (Information current as of March 17, 2023.)

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