Fraud Alert: Ameriprise Financial Fined $850K for Failure to Supervise

A September 14, 2016 News Release reports that The Financial Industry Regulatory Authority (FINRA) fined Ameriprise Financial Services, Inc. $850,000 for failure to supervise.

FINRA found a failure to supervise the transmission of funds from Ameriprise’s customer brokerage accounts.  FINRA found that a Registered Representative of Ameriprise, who worked as both a sales assistant and office manager, converted more than $370,000 from five customer brokerage accounts without detection for two years.  The conversion began in October 2011 and continued undetected until September 2013.

A simple two step process allowed the representative to covert funds of his own family members.  These family member included his mother, stepfather, grandparents and domestic partner.  The lack of an established supervisory system and failure to supervise by Ameriprise led to inadequately investigating red flags associated with nine third-party wire request that would have uncovered the misconduct.

“Ameriprise neither admitted or denied the charges, but consented to the entry of FINRA’s findings” and paid restitution, plus interest and related fees, to the customers.  Click HERE to read the entire FINRA release.

 

Protect your Investments

If you believe you that you or a loved one has been the victim of Investment Fraud, contact Bingham Law today at 480.832.1922 for a consultation. You may be able to recover your losses. We encourage you to avoid delay since time to file your claim may be limited.

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Financial Industry Regulatory Authority, Inc. (FINRA) is an independent, non-governmental regulator who oversees the people and firms that sell stocks, bonds, mutual funds and other securities to the public in the United States. They are authorized by Congress to protect investors. They do this by making sure the securities industry operates fairly and honestly with the public.