Erez Law is investigating claims involving Ameriprise Financial Services, Inc. (CRD #6363, Minneapolis, Minnesota) and David Bradley Tysk (CRD #1782289, Eden Prairie, Minnesota). Ameriprise recently was censured and fined $100,000. Tysk recently was fined $50,000 and suspended from association with any FINRA member in any capacity for three months. Tysk has appealed this matter to the National Adjudicatory Council (NAC) and the sanctions imposed against him are not in effect pending review. The decision, as it relates to Ameriprise Financial Services, is final. See FINRA Case #2010022977801.
FINRA found that Tysk altered computer notes of customer contacts after the customer complained about the suitability of a recommendation. FINRA also found that Tysk knew or should have known the importance of customer-related notes in the event of complaints, and that Tysk’s concealed alterations of his notes failed to comply with the clear import of the document-retention policies in the firm’s code of conduct. Tysk failed to inform the firm of the alterations when he provided a copy of the notes to be produced in discovery during an arbitration proceeding, according to FINRA. FINRA found that the customer in the arbitration proceeding became suspicious of the notes and requested further discovery to determine whether the notes had been altered after he lodged his complaint with the firm, which the firm and Tysk opposed.
Tysk ultimately disclosed to the firm that he had altered the notes during a meeting to prepare for the arbitration hearing, according to FINRA. FINRA found that despite knowledge of Tysk’s alteration, the firm failed to tell the customer that a copy of computer notes of customer contacts produced during discovery had been altered. FINRA further found the firm asked Tysk to search his computer for evidence of the edits, but failed to take any additional steps to locate previous versions of the notes. FINRA found the firm also failed to produce an exception report during discovery as required. In particular, right before the arbitration hearing, the firm found an exception report relevant to the customer’s claim, which it should have provided months earlier, according to FINRA. At the conclusion of the arbitration hearing, the firm and Tysk were sanctioned for violating arbitration discovery rules.
If you were a client of Ameriprise Financial Services, Inc., or David Bradley Tysk, and have suffered investment losses or financial irregularities, please contact Erez Law to explore your legal options. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies. To learn more, please call us at 888-840-1571 or complete our “contact form.”