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Former Apprentice Advisor Sentenced to Prison for Client Theft

Posted on July 12th, 2024 at 11:11 AM
Former Apprentice Advisor Sentenced to Prison for Client Theft

From the desk of Jim Eccleston at Eccleston Law

Dusty Sternadel, a former advisor with Ameriprise, has been sentenced to five years for defrauding clients of over $1.2 million. The Justice Department revealed that Sternadel pleaded guilty to wire fraud earlier this year.

As reported by WealthManagement, Sternadel entered the financial industry in 2011 with Edward Jones before joining Morgan Stanley in 2015 and eventually moving to Ameriprise in 2018. However, between September 2019 and the subsequent three years, Sternadel engaged in fraudulent activities targeting Ameriprise clients in Wichita Falls, Texas.

Sternadel deceived clients into sending her funds or checks, which she deposited into her personal accounts. For instance, she orchestrated a $26,916 wire transfer from a client's brokerage account into their personal checking account without their knowledge. Subsequently, Sternadel convinced the client to write her a check for the same amount under the guise of rectifying an alleged error by Ameriprise.

The majority of Sternadel's victims were elderly, with some experiencing cognitive decline. Although Ameriprise refunded most of the stolen amounts, Sternadel's actions resulted in significant financial losses for her clients.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

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