Articles Tagged with Ameriprise Financial Services

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. Continue Reading

Ameriprise Financial Services, Inc. (Ameriprise) submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) for alleged supervisory failures in connection with wire transfers from customer brokerage accounts and the resulting conversion of over $370,000 by one of its registered representatives.

Ameriprise is headquartered in Minneapolis, Minnesota and employs nearly 14,000 registered representatives in approximately 3,800 branch offices.  FINRA found that from October 2011 to September 2013, a registered representative, working as an office manager, converted more than $370,000 from five Ameriprise customers.  The customers happened to also be the registered representative’s family members, including his mother, step-father, grandparents and domestic partner.  FINRA’s findings state that the Ameriprise employee’s conversion, which occurred via nine wire transfers, went undetected for two years by Ameriprise.  Continue Reading

Jim Seol of Lake Forest, California was named a respondent in a Financial Industry Regulatory Authority (FINRA) complaint that alleges he engaged in outside business activities and participated in private securities transactions without providing notice or receiving approval from his associated firm.  Mr. Seol entered the securities industry in 1997 and was registered as a General Securities Representative (GSR) for Ameriprise Financial Services, Inc. (Ameriprise) until his termination in May 2014.

The FINRA complaint alleges that from September 21, 2011 through June 4, 2014, Mr, Seol engaged in outside business activities and participated in private securities transactions without providing prior written notice or receiving written approval by his member firm. While still associated with Ameriprise, Mr. Seol formed Western Regional Center, Inc. (WRCI), a California corporation, as President and CEO. Through WRCI, Seol solicited investments in California Energy Investment Fund I, LP (CEIFI), a limited partnership formed by Seol, through WRCI.

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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.

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John Joseph Kilinofsky Jr., a broker with the Plano, Texas branch of Ameriprise Financial Services, Inc. (Ameriprise), submitted a Letter of Acceptance, Waiver, and Consent (AWC) in which he consented to, but did not admit to or deny, the Financial Industry Regulatory Authority’s (FINRA) findings that he failed to reasonably supervise a registered representative’s outside business activities.

According to FINRA, John Kolinofsky, the branch manager and supervisory principal of the Plano, Texas Ameriprise office, failed to supervise a broker’s participation in private securities transactions and outside business activities in compliance with his firm’s written supervisory policies and procedures. FINRA found that a registered representative, whom Mr. Kolinofsky had a duty to supervise, was allegedly involved in the sale of nearly $1.72 million of preferred shares issued by the biopharmaceutical company BioChemics Inc. FINRA further found that Mr. Kolinofsky knew that the registered representative was engaging in outside business activity with BioChemics and approved the disclosure forms which failed to note the unauthorized securities activity as required by FINRA Rule 2010. Moreover, FINRA found that Mr. Kolinofsky personally invested $10,000 in BioChemics without giving the required written notice to Ameriprise. Continue Reading

Bart Ellis of Chicago, Illinois was barred from association with any FINRA member in any capacity for making trades without a customer’s permission, falsifying customer documents and for failing to provide testimony by the Department of Enforcement of the Financial Industry Regulatory Authority (FINRA). After entering the securities industry in 2001, Ellis was a representative for Ameriprise Financial Services, Inc. from November 2007 until his termination in October 2012 for violating company policy.

FINRA alleged that Ellis completed several trades in a customer’s account without discussing he trades prior to their execution. Specifically between 2009 and August 2012 Ellis allegedly made routine trades in the clients’ accounts without ever discussing the activities. While the customer allowed him access to his accounts due to trust, she never put in writing that Ellis could freely make trades in her account without any notice. FINRA found that these actions did not demonstrate high standards of commercial honor and were therefore in violation of NASD Rule 2510 and FINRA Rule 2010. Continue Reading

David Harari and his wife Sian Harari of San Antonio, Texas were accused by the Department of Enforcement of the Financial Regulatory Authority (FINRA) to have provided false information to a FINRA member firm, falsely obtain customer funds and to have failed to disclose tax liens on a Form U4.

David Harari entered the securities industry in 1999 when he joined Ameriprise Financial Services, Inc. Much of his services at Ameriprise as a registered investment advisor included providing clients with financial planning services for which he charged a flat fee. He also received commissions for the sale of other investment products. In July 2002, David’s wife Sian began working for him as an unregistered assistant. Continue Reading