In a recent development, a client has alleged that Richard Miller, an advisor at Ameriprise Financial Services, LLC, sold all positions from his Ameriprise One account without his authorization. The incident, which took place on February 4, 2024, has been settled, according to the disclosure filed with FINRA.
Details of the Allegation
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The client’s complaint specifically stated that Richard Miller liquidated all holdings in the client’s Ameriprise One account without obtaining proper consent. The disputed products included direct investment, DPP & LP interests equity, and OTC equity listed (common & preferred stock).
Advisor’s Response and Settlement
In response to the allegation, Richard Miller denied any wrongdoing, claiming that the client had requested a liquidation of certain holdings, and the account in question was mistakenly included in the liquidation process. Despite the advisor’s stance, the matter was eventually settled between the parties involved.
Regulatory Disclosure and Advisor’s Background
The disclosure of this incident can be found in Richard Miller‘s FINRA BrokerCheck report, which is maintained by the Financial Industry Regulatory Authority (FINRA). Richard Miller has been registered with Ameriprise Financial Services, LLC (CRD #6363) as a broker and investment advisor since September 21, 1994, in the state of Connecticut.
Understanding FINRA Rules and Unauthorized Trading
FINRA Rule 2010 requires that brokers and advisors observe high standards of commercial honor and just and equitable principles of trade. Engaging in unauthorized trading, which is the practice of buying or selling securities in a client’s account without obtaining prior consent, is a clear violation of this rule. Unauthorized trading is a form of investment fraud that can have severe consequences for investors.
The Importance of Proper Authorization
Advisors are obligated to follow their clients’ instructions and obtain proper authorization before executing any trades on their behalf. This ensures that the client maintains control over their investments and that their investment objectives and risk tolerance are respected.
Consequences of Unauthorized Trading
Unauthorized trading can lead to significant financial losses for investors, as well as a breach of trust between the client and their advisor. In cases where unauthorized trading is proven, advisors may face disciplinary action from regulatory bodies like FINRA, and clients may be entitled to recover their losses through FINRA arbitration.
The Significance of Unauthorized Trading for Investors
Unauthorized trading is a serious issue that can have severe consequences for investors. When an advisor executes trades without the client’s consent, it can result in financial losses, a misalignment of investment goals, and a violation of the client’s trust.
Protecting Your Investments
To safeguard their investments, it is crucial for investors to regularly review their account statements and question any unfamiliar or unauthorized transactions. Maintaining open communication with your advisor and clearly expressing your investment objectives and risk tolerance can help prevent unauthorized trading from occurring.
Seeking Legal Assistance
If you suspect that your advisor has engaged in unauthorized trading or other forms of misconduct, it is essential to seek legal guidance from experienced professionals. Haselkorn & Thibaut, a national investment fraud law firm, is currently investigating Richard Miller and Ameriprise Financial Services, LLC in relation to this alleged unauthorized trading incident.
Red Flags for Financial Advisor Malpractice
Investors should be aware of several warning signs that may indicate financial advisor malpractice, including:
- Unauthorized trades or transactions in your account
- Inconsistencies between your investment objectives and the products recommended by your advisor
- Excessive trading or churning of your account to generate commissions
- Failure to disclose material information about investments or conflicts of interest
Recovering Losses Through FINRA Arbitration
If you have suffered investment losses due to unauthorized trading or other forms of advisor misconduct, you may be able to recover your losses through FINRA arbitration. This process allows investors to seek compensation from their advisors or brokerage firms in a private, court-like setting.
How Haselkorn & Thibaut Can Help
Haselkorn & Thibaut, with offices in Florida, New York, North Carolina, Arizona, and Texas, has over 50 years of combined experience in representing investors in securities arbitration cases. With a 98% success rate and a “No Recovery, No Fee” policy, they have a proven track record of helping investors recover their losses.
For a free consultation, contact Haselkorn & Thibaut at 1-888-885-7162 .
