Ameriprise Financial Services Fined $850,000 For Supervisory Failures
We are investigating allegations made by FINRA (the Financial Industry Regulatory Authority) against Ameriprise Financial Services. In a recent regulatory action, FINRA fined Ameriprise $850,000 for failing to detect the conversion of $370,000 from firm customers.
In the action, FINRA alleged that from October 2011 to September 2013, a representative of Ameriprise Financial Services named Justin Weseloh converted $370,000 from five firm customers, which included his family members. The representative was the office manager of the Partners’ Financial Group, which is a group of financial advisors in Independence, Ohio that are licensed through Ameriprise to trade securities. It was alleged that Weseloh submitted wire request forms through Ameriprise to Partners’ Financial Group’s account. He then transferred the funds from that account to his own personal account to convert or steal the funds.
FINRA alleged that Ameriprise flagged four of the wire transfers between May and July 2013 for possible signature discrepancies. Despite these red flags, the wire transfers were all approved. Besides paying the $850,000 fine, Ameriprise also paid restitution to the victims of $563,161, which equaled the amount of money taken by the representative in the Ameriprise accounts, as well as from other sources.
In a related action, FINRA also fined Peter F. Butler $15,000 and suspended him for four months in a supervisory capacity. Butler was alleged to have failed to adequately supervise Weseloh.
We currently represent investors who have been victimized by the acts of another Ameriprise advisor from the Kansas City area.
Brokerage firms like Ameriprise Financial Services have a responsibility to adequately supervise all representatives who are registered through their firm. Brokerage firms also must take steps to ensure that their financial advisors follow all securities rules and regulations, as well as internal firm policies. When brokerage firms fail to adequately supervise their registered representatives, they may be liable for investment losses sustained by customers.
Israels & Neuman PLC is a securities and investment fraud law firm with offices in Denver, Colorado and the Seattle area. We represent investors in FINRA arbitration proceedings in all 50 states, including investors in Ohio, Kansas, and Missouri. Our attorneys have represented over one thousand investors against many brokerage firms in the past, including Ameriprise Financial Services, and many others.
Our office handles all of our arbitration cases on a contingent fee basis, meaning you do not pay unless we recover money for you.
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Israels & Neuman, PLC is a private law firm and is not affiliated with any government or law enforcement agency. Any investigation referenced in this blog is independent in nature and is being conducted by our law firm privately, not in conjunction with any government or law enforcement agency. All information contained in this blog should be deemed statements of opinion derived from the author’s review of public records, not statements of fact. This blog is advertising material and does not create an attorney client relationship, nor does it constitute legal advice. Everyone’s situation is different and the question of whether or not you have a claim will vary on a case-by-case basis. In contingent representation, clients may still be liable for costs.