Karen Tautges-Parisian of Minnetonka, Minnesota submitted a Letter of Acceptance, Waiver and Consent (AWC) to Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) for allegedly making unstable investment recommendations to a customer. Ms. Tautges-Parisian first became associated with FINRA in July 2001 for Ameriprise Financial Services, Inc. (Ameriprise). In December 2013, Ms. Tautges-Parisian voluntarily resigned from Ameriprise.
FINRA found that in May and November 2009, Ms. Tautges-Parisian made unsuitable investment recommendations to a Ameriprise customer involving penny stocks. In May 2009 Ms. Tautges-Parisian recommended a customer to invest $14,904 in 8,000 shares of Oceanfreight, Inc. (OCNF) at $1.83 per share. The client was a 50 year old who annually made $20,000 and had no investment experience. By November 2009, the price of OCNF shares dropped to $.99 per share. In an attempt to increase the price per share, Ms. Tautges-Parisian recommended the customer to invest another $7,000 in OCNF shares. In June 2010 the client sold his shares for a total loss of $16,032.52.
FINRA found that Ms. Tautges-Parisian did not have reasonable grounds to believe OCNF was a suitable investment. Additionally, FINRA alleged that Ms. Tautges-Parisian did not make a suitable recommendation based on the customer’s financial condition and investment objectives. Without admitting or denying the FINRA findings, Ms. Tautges-Parisian agreed to the FINRA sanctions and was suspended from association with any FINRA member for nine months as well as ordered to pay a $5,000 fine.
Stockbrokers have been known to engage in many types of practices which violate industry and firm rules, practices, and procedures. In order to protect customers from stockbroker misconduct, FINRA rules require broker-dealers such as Ameriprise Financial Services to establish and implement a reasonable supervisory system. The implementation of the rules require supervisors to monitor employees to ensure they comply with federal and state securities laws, securities industry rules and regulations, and the firm, such as Ameriprise Financial Services own policies and procedures. If broker dealers and/or their supervisors do not establish and implement these protective measures, they may be liable to investors for damages which flow from the misconduct. As a result, investors who have suffered losses because of their stockbroker’s unlawful or prohibited conduct can file a claim to recover damages against broker dealers like Ameriprise Financial Services, which should consistently oversee its employees in order to prevent stockbroker misconduct.
Have you suffered losses in your Ameriprise Financial Services investment account due to your stockbroker’s misconduct? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is accepting clients with valid claims against stockbrokers for unsuitable recommendations, misrepresentations, and/or other unauthorized and prohibited conduct.
The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 40 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities, and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please post a comment, call (800) 732-2889, send Mr. Pearce an email at firstname.lastname@example.org, and/or visit our website at www.secatty.com for answers to any of your questions about this blog post and/or any related matter.