Ameriprise paid $4.5 million for failing to safeguard client assets from representative theft
Company: Ameriprise Financial, Inc.
Summary
The SEC charged Ameriprise Financial Services with failing to adopt and implement policies and procedures reasonably designed to protect retail client assets from misappropriation by its representatives. The SEC found that five Ameriprise representatives committed numerous fraudulent acts, including forging client documents, and stole more than $1 million from retail clients over a four-year period. The representatives were located in Minnesota, Ohio and Virginia. Three had previously pleaded guilty to criminal charges, and all five were terminated by Ameriprise for misappropriating client funds. The SEC found that Ameriprise's safeguarding policies and procedures were inadequate to prevent or detect the misconduct. Ameriprise agreed to pay a $4.5 million civil penalty to settle the charges. Primary source: SEC — Ameriprise Financial Services Charged for Failing to Safeguard Client Assets: https://www.sec.gov/newsroom/press-releases/2018-154