Investment Loss Options for Clients of Ameriprise Financial Services, Inc. Broker Angel Bardeche
Posted on Tuesday, February 16th, 2021 at 5:33 pm
Were you the victim of Ameriprise Financial Services, Inc. broker Angel Bardeche (CRD# 4698117)? Bardeche has been registered with Ameriprise Financial Services, Inc. in Cincinnati, Ohio from 2012 to 2019, when he was terminated regarding, “The registered representative was terminated for company policy violations related to failing to obtain authorization from clients prior to placing trades and mutual fund trading activity.”
In January 2021, Bardeche was sanctioned to a $10,000 civil and administrative penalty and fine, $5,000 in disgorgement, and a 9-month suspension after he, “consented to the sanctions and to the entry of findings that she recommended and effected an unsuitable strategy in recommending that her customers effect a pattern of switching of Class A mutual fund shares, including short-term liquidations. The findings stated that Bardeche recommended that customers purchase Class A mutual fund shares, later sell those funds, and then use the proceeds to buy more Class A mutual fund shares. In many instances, she recommended that the customer purchase Class A shares and later sell them after only a short period (and use the proceeds to buy more Class A shares). In some instances, the customer sold the first Class A mutual fund within 18 months of purchasing it, and in some instances the customer sold the first Class A mutual fund within a year of its purchase. The customers paid a total of about $450,000 in sales charges on the switches. Bardeche also recommended costly back-to-back, short-term switches. For example, Bardeche recommended that a senior customer sell Class A shares that the customer had held for only 10 months and use the proceeds to buy new Class A shares that included over $3,100 in new sales charges. About eight months later, however, Bardeche recommended that the customer sell again and use the proceeds in a switch to buy other Class A shares that carried over $2,600 in new sales charges. Bardeche did not have a reasonable basis to believe that this recommended pattern of switching and short-term liquidations of mutual fund Class A shares was suitable for her customers. The findings also stated that Bardeche exercised discretion by effecting trades in non-discretionary customer accounts, without prior written authorization from the customers and without prior written approval by her member firm.”
Bardeche has been the subject of four customer complaints in 2019, according to her CRD report:
August 2019. “The client alleged her former advisor did not disclose the surrender charge or annual fees associated with the variable annuity purchased in 2015.” The customer sought $9,993.05 in damages and the case was settled for $51,545.16. The complaint was regarding variable annuities.
August 2019. “The client alleged her former advisor did not explain there was a surrender charge associated with the variable annuity purchased in 2013.” The customer sought $8,000 in damages and the case was settled for $122,000. The complaint was regarding variable annuities.
May 2019. “The client alleged his former advisor did not disclose that the variable annuity purchased in 2014 had a 10-year surrender period and associated surrender charges.” The customer sought $14,455 in damages and the case was settled for $138,277.65. The complaint was regarding variable annuities.
April 2019. “The clients alleged their former advisor did not disclose the front-end sales charges associated with recommended mutual fund purchases.” The customer sought $108,874.80 in damages and the case was settled for $68,500. The complaint was regarding mutual funds.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Ameriprise Financial Services, Inc. may be liable for investment or other losses suffered by Bardeche’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.