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Former Ameriprise Stockbroker Suspended for Failing to Follow Firm’s Policies

Robert Rushby Humberston of Longmeadow, Massachusetts submitted a Letter of Acceptance, Waiver and Consent (AWC) in which he was assessed a deferred fine of $5,000 and suspended by the Financial Industry Regulatory Authority (FINRA) for a period of three months.

In September 2014, Robert Humberston joined Ameriprise Financial Services as a General Securities Representative. FINRA stated that from September 2016 through January 2018, Humberston violated FINRA Rule 2010 in which he failed to comply with his firms’ policies and procedures requiring him to disclose that one of his customers had designated him as a beneficiary of her estate. According to FINRA, when Humberston found out that the elderly customer had died and left him 10 percent of her estate, he failed to notify his firm or seek revocation of the bequest. FINRA also stated that Humberston notified his firm after receiving the funds totaling $96,662, but only after he deposited them directly in his personal bank account. Humberston allegedly declined to return the funds and instead resigned.

Without admitting or denying FINRA’s findings, Robert Humberston has been suspended from association with any FINRA member in all capacities for three months. The suspension was in effect from August 6, 2018, through November 5, 2018.

Stockbrokers have been known to engage in many practices that may violate industry and firm rules, practices, and procedures. In order to protect investors from stockbroker misconduct, FINRA rules require brokerage firms to establish and implement a supervisory system. The implementation of these industry rules requires supervisors to monitor their employees to ensure compliance with federal and state securities laws, securities industry rules and regulations, and the brokerage firm’s own policies and procedures. If broker-dealers and/or their supervisors fail to establish and implement these protective measures, they may be liable to investors for damages which flow from the broker’s misconduct. Therefore, investors who have suffered losses stemming from private transactions and/or other misconduct by their broker can file claims to recover damages against broker-dealers, like Ameriprise Financial Services, which should consistently oversee its brokers’ activities in order to prevent the above-described misconduct.

Have you suffered losses in your Ameriprise Financial Services account due to private transactions by your broker? Was Robert Humberston your stockbroker? 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 Ameriprise Financial Services stockbrokers who may have engaged in broker misconduct and caused investors’ losses.

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 35 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 visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at pearce@rwpearce.com for answers to any of your questions about this blog post and/or any related matter.