Ex AZ Investment Advisor, Schmerman, Indicted for Fraud

Posted on Apr 26, 2017

Arizona grand jury has indicted former investment adviser Richard Schmerman for allegedly misappropriating more than $800k of his clients’ funds.  According to the indictment, Schmerman impersonated clients to gain access to their investment accounts to pay personal...

VALIC Fined $1.75M by FINRA

Posted on Mar 8, 2017

A recent FINRA News Release found that Houston-based VALIC Financial Advisors, Inc. (VFA) created a conflict of interest by providing registered representatives a financial incentive to recommend that customers move funds, while failing to maintain systems and procedures of monitoring and...

FINRA Permanently Bars LPL Financial’s Dominic DeBruin

Posted on Feb 17, 2017

Dominic T. DeBruin has been permanently barred by FINRA from acting as a broker or otherwise associating with firms that sell securities to the public.  DeBruin allegedly placed client funds into a bank account that he controlled and reportedly did not disclosed the activity to LPL Financial LLC....

Ameriprise Financial Services, Inc. Fined $850K

Posted on Feb 10, 2017

FINRA fined Ameriprise Financial Services, Inc. $850K for failing to supervise the transmission of funds from their customer brokerage accounts.  A Registered Representative converted more than $370K without detection for two years.  The lack of an established supervisory system by Ameriprise led to missed red flags that would have uncovered the misconduct.

FINRA Proposal Protects Elderly

Posted on Jan 25, 2017

FINRA filed a proposed rule with the SEC in an effort to protect elderly investors from financial exploitation.  The proposed rules would 1) require Firms to make a reasonable effort to obtain the name and contact information of a trusted member of an elderly client’s family before authorizing a suspected trade; and 2) permit Firms to place a temporary hold on funds or securities where there’s a reasonable belief of exploitation or fraud.  Read More.  ...

Churning & Unsuitable Trading Results in FINRA Suspension of Donald Bartelt

Posted on Jan 18, 2017

Donald Andrew Bartelt, Cave Creek, Arizona, was suspended by FINRA from November 21, 2016 thru February 20, 2017 for unsuitable trading in customer accounts.  Bartelt was found to be trading for his own benefit, completing excessive and inconsistent trading activity, churning, and disregarding client investment objectives.  See Page...