Our securities fraud lawyers at Meyer Wilson are currently investigating
allegations against broker David Tysk (CRD# 1782289)
The Financial Industry Regulatory Authority (FINRA) has fined Ameriprise
Financial Services broker David Tysk $50,000 and suspended him for one
year for altering and backdating notes to document his recommendations
to a client.
According to a
publicly available document filed on May 16, Tysk’s 78-year-old customer sent a complaint to
Ameriprise, voicing concerns over his $2 million investment in variable
annuities. Following his customer’s complaint, Tysk reportedly accessed
the note taking software on his computer and made 54 new entries and 13
new entries between May 13 and May 27, 2008. He backdated the edits to
make them appear as if they were entered at the same time as the original
notes, some as far back as three years before.
Tysk’s customer filed an 11-count FINRA arbitration complaint against
him on November 21, 2008, alleging that, “Tysk and Ameriprise recommended
and sold more than $2 million in "unsuitable" variable annuities
using funds from a fixed-income account and charged excessive fees in
connection with the management of his portfolio.” This followed
a demand letter sent to Ameriprise on April 2, 2008 complaining about
Tysk’s recommendations, and requested that Ameriprise close his
accounts, waive any surrender charges, and return his invested funds.
In his arbitration complaint, Tysk’s customer further alleged that:
“Tysk sold two annuities contracts to [the customer], a financially
secure 77-year old, knowing that these annuities were unsuitable, carried
heavy surrender fees for 10 years, and would generate income taxed at
a rate nearly double that of other more prudent investment choices.”
During the arbitration case, Tysk reportedly produced the revised version
of his notes, but failed to include his edit history or inform his customer’s
counsel that they were altered. The hearing panel found that Tysk was
in violation of NASD Rule 2110 and FINRA Rule 2010.
During FINRA’s enforcement case, Tysk argued that he made the alterations
because it was not “reasonably foreseeable” that his client
would file an arbitration claim. He claimed that he altered the notes
“to preserve details of his personal and business relationship with
[his customer] that had not been recorded.”
The hearing panel on the enforcement case did not find Tysk’s arguments
credible, which ultimately led to Tysk’s current fine and suspension.
If you invested and lost money with Ameriprise broker David Tysk, call
our attorneys at Meyer Wilson for a free consultation so we can discuss
your potential claim. All of our cases are handled on a contingency fee basis.