Ameriprise Financial Services Fined Another $4.5 Million For Supervisory Failures
We are investigating allegations made by the Securities and Exchange Commission (SEC) against Ameriprise Financial Services. Ameriprise was fined $4,500,000 for failing to supervise and detect theft or conversion by five of its registered representatives. Those representatives include Justin Weseloh, Barbara Stark, Susan Walker, Jeffrey S. Davis, and Jennifer Johnson.
The SEC alleged that Ameriprise failed to detect Justin Weseloh’s theft of $676,000 from client accounts, which was done through wire transfers. The SEC further alleged that Ameriprise’s lacked a reasonable supervisory system to detect wire disbursements from client accounts.
Ameriprise was also previously the subject of an action by FINRA (the Financial Industry Regulatory Authority). In 2016, FINRA fined Ameriprise $850,000 for failing to detect the conversion of $370,000 from firm customers.
Justin Weseloh was a representative of Ameriprise from March 2010 to October 2013. He worked at a branch office in Independence, Ohio. Weseloh was also previously barred by FINRA.
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; Ann Arbor, Michigan; and Seattle, Washington. We represent investors in FINRA arbitration proceedings in all 50 states, including investors in Ohio. Our attorneys have represented over one thousand investors against many brokerage firms in the past, including Ameriprise Financial Services, and many others.
Click to view: 201877676840 Ameriprise SEC Order
If you lost money with Ameriprise Financial Services, please CONTACT US at 720-599-3505 for a free evaluation of your case.
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.