FINRA said Wells was the dealer-manager and wholesaler for the public offering of Wells Timberland REIT, which invested in timber-producing land.
The regulator found that from May 2007 through September 2009, Wells reviewed, approved and distributed 116 advertising and sales materials containing misleading, unwarranted or exaggerated statements.
FINRA executive vice president and chief of enforcement Brad Bennett said by approving and distributing marketing materials with ambiguous and equivocal statements, Wells misled investors into thinking Wells Timberland was a REIT at a time when it was not a REIT.
"Firms need to be mindful that investors rely on marketing materials to disclose truthful, accurate and up-to-date information to help inform their investment decisions," added Bennett.
In concluding this settlement, Finra said Wells Investment neither admitted nor denied the charges, but consented to the entry of FINRA’s findings.
