Post by jannikki on Dec 28, 2006 23:33:46 GMT -4
Ameriprise hit with $9.3 million fine
By Aaron Siegel
December 28, 2006
A NASD arbitration panel imposed a $9.3 million penalty on Ameriprise Financial Inc., stemming from a complaint that one of its stockbrokers mishandled three clients' savings by putting them in high-fee mutual funds, according to published reports.
The panel said in a decision issued last week that Securities America, the brokerage unit of Ameriprise, and broker Robert Gormly, are liable for $3.8 million in compensatory damages and $2.5 million in costs and attorneys' fees.
Securities America was also slapped with an additional $3 million in punitive damages.
The award includes interest on the $3.8 million in compensatory damages, starting on Jan. 1, and until the award is paid in full.
The three investors alleged negligence, common-law fraud and breach of fiduciary duty, among other acts of wrongdoing.
www.investmentnews.com/news.cms?newsId=3307
By Aaron Siegel
December 28, 2006
A NASD arbitration panel imposed a $9.3 million penalty on Ameriprise Financial Inc., stemming from a complaint that one of its stockbrokers mishandled three clients' savings by putting them in high-fee mutual funds, according to published reports.
The panel said in a decision issued last week that Securities America, the brokerage unit of Ameriprise, and broker Robert Gormly, are liable for $3.8 million in compensatory damages and $2.5 million in costs and attorneys' fees.
Securities America was also slapped with an additional $3 million in punitive damages.
The award includes interest on the $3.8 million in compensatory damages, starting on Jan. 1, and until the award is paid in full.
The three investors alleged negligence, common-law fraud and breach of fiduciary duty, among other acts of wrongdoing.
www.investmentnews.com/news.cms?newsId=3307