Montana Auditor James Brown Joins $4.4M Multistate Settlement With Wells Fargo, Merrill Lynch After Firms Caught Charging Unreasonable Commissions 

HELENA, Mont. — Montana Auditor James Brown joined securities regulators from several other states in securing a $4.4 million settlement agreement in principle with Wells Fargo and Merrill Lynch after the firms were caught charging unreasonable commissions to retail customers.

The State Auditor’s Office participated in a multistate investigation that determined Wells Fargo and Merrill Lynch charged unreasonable commissions on more than 256,000 equity transactions and trades over the past five years.

The investigation was spearheaded by Massachusetts and supported by Montana, Alabama, Iowa, Missouri, New Jersey, Texas, Washington, and the North American Securities Administrators Association (NASAA).

From September 30, 2020, to October 1, 2025, Wells Fargo charged unreasonable commissions on approximately 228,243 transactions, totaling nearly $3.9 million. In the same timeframe, Merrill Lynch charged unreasonable commissions on approximately 28,162 small-dollar transactions, totaling nearly $549,000 in excessive commissions.
Impacted customers in the participating states, including those in Montana, will receive restitution plus interest. Wells Fargo and Merrill Lynch must also pay administrative fines and costs associated with the investigation.

“I’m proud to have worked with securities regulators across the country to stand up for Americans who had their hard-earned money unduly taken by these firms,” Auditor Brown said. “That money will now be returned to where it belongs: with Montana families.”

Without admitting or denying the findings of the investigation, Wells Fargo and Merrill Lynch agreed to the following terms:

Restitution – Affected Montanans will receive restitution equal to the amount of commission charged in excess of 5% of the principal trade amount, plus 6% interest, for the relevant period in each settlement, with certain limited exclusions.

Fines – Wells Fargo has agreed to pay an administrative fine of $2,014,000; Merrill Lynch will pay $397,500.

Policy Changes – Each firm must update its policies, procedures, and compliance systems to ensure commissions on equity transactions do not exceed 5% of the principal amount and that all transactions are monitored for excessive commission charges.

Cease and Desist & Censure – The firms agreed to receive a censure, and they must permanently cease and desist from charging unreasonable commissions and from failing to supervise the application of minimum commission charges.

In 2025, Auditor Brown successfully negotiated and secured similar settlement agreements with TD Ameritrade (formerly Charles Schwab), Edward Jones, LPL Financial, RBC Capital Markets, and Stifel, Nicolaus & Co. As a result of the settlement agreements, over the past two years Auditor Brown has secured significant fines, millions of dollars in restitution for investors, and corrective actions from firms to ensure Montana consumers are not taken advantage of in the future.

“I’m not afraid to take on the largest Wall Street financial firms when their conduct harms everyday Montanans. Thanks to my team’s hard work, thousands of Montanans will receive restitution checks in the near future,” Auditor Brown added. “This is just another step in keeping life affordable for my fellow Montanans.”

As Montana’s chief securities regulator, Auditor Brown is committed to protecting Montanans against illegal practices in the industry and pursuing accountability for wrongdoing. For more information on Auditor Brown’s work, visit the agency website at csimt.gov.

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