Ameriprise Financial Services, Inc. has been fined $850,000 by the Financial
Industry Regulatory Authority (FINRA) after the company failed to detect
that one of its registered representatives converted over $370,000 from
five separate customer brokerage accounts.
According to FINRA, Ameriprise’s broker took the funds from the accounts
of his own family members, including his domestic partner, mother, grandparents,
and step-father between October of 2011 and September of 2013. Ameriprise
reportedly failed to follow up on any of the red flags raised by the funds
being transferred from customer accounts to the personal bank account
of one of its brokers. It also apparently failed to properly investigate
the flagged signature irregularities present on various wire request forms,
as well as nine wire requests flagged for separate reasons.
The Executive Vice President and Chief of Enforcement at FINRA Brad Bennett
commented on the fine, saying that:
“Ameriprise failed to exercise reasonable diligence in supervising
the transmittal of customer funds to third- party accounts. Firms need
to pay special attention when funds are wired from customer brokerage
accounts to accounts controlled by registered representatives, and will
be held responsible when their representatives use their insider status
to prey upon customers.”
Ameriprise consented to the entry of FINRA’s findings, and settled
the matter without admitting or denying any of the charges.
If you lost money due to broker misconduct, contact the
investment fraud attorneys at Meyer Wilson today. All of our cases are handled on a contingency fee
basis, so you won’t owe us any legal fees until we assist you in
recovering your losses. We can assist you in filing a claim to recover
your lost assets, so tell us more about your case by
filling out the form on our website for a private and confidential case consultation.