FINRA Fines Ameriprise $850K For Supervisory Failures

Posted on September 22nd, 2016 at 9:05 AM
FINRA Fines Ameriprise $850K For Supervisory Failures

From the Desk of Jim Eccleston at Eccleston Law LLC:

Ameriprise was fined $850,000 by FINRA because it failed to supervise one of its registered representatives.  The Ameriprise representative served as a sales assistant and office manager when he or she converted $370,000 in client funds for personal use.  FINRA did not name the registered representative in its disciplinary action against Ameriprise. 

The employee converted the funds from accounts belonging to five Ameriprise clients who happen to also be family members. In 2014, the registered representative was barred by FINRA.

According to FINRA, the registered representative was caught in 2013 when a different Ameriprise employee discovered evidence in a trash can that demonstrated the unnamed representative forging the signature of a family member. 

FINRA fined Ameriprise because of its failure to adequately follow-up on red flags as well as investigate possible signature irregularities. 

The attorneys of Eccleston Law LLC represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

Tags: Eccleston, Eccleston Law, James Eccleston, Eccleston Law LLC, Ameriprise, FINRA, forging singnature

Return to Archive

TESTIMONIALS

Previous
Next

Thank You from the bottom of our hearts for all you have done for us. When we realized this was a very bad investment - we did not know where to turn for help. Then we received your name. When we called you - you were so kind to us and then agreed to help us. For this we are so very grateful. The world would be a much nicer place if there were more people like the two of you in it. We will always remember all the help and kindness you have shown us. Thank you so very very much for everything.

Wayne and Judy S.

LATEST NEWS AND ARTICLES

October 26, 2021
Former Advisor Fails To Reverse Bar After Alleged $1 Million Theft From RBC

A former RBC Wealth Management advisor lost his bid to reverse an industry bar, according to an appellate decision issued by the Financial Industry Regulatory Authority (FINRA).

October 25, 2021
Firms Walk Thin Regulatory Line In Referring Self-Directed Clients To Advisors

While online trading platforms have surged in popularity during the pandemic, brokerage firms view self-directed investors as a source of new clients.

October 22, 2021
TIAA Sues Former Advisors For Allegedly Soliciting Clients

Teachers Insurance and Annuity Association of America (TIAA) filed suit against three of its former Connecticut advisors for allegedly soliciting TIAA clients to join them at their new firm.