Regulator charges Ameriprise with fraud
By Aaron Siegel
October 23, 2007


The New Hampshire Bureau of Securities Regulation has accused Ameriprise Financial of breaking state securities laws, forging and tampering with documents.

The complaint, which was posted on the regulator’s website, alleges that the brokerage company also failed to deliver nearly 500 financial plans, conducted unapproved sales contests and intentionally limited compliance oversight.

Additionally, the Minneapolis-based brokerage company was accused of failing to adequately release all fraudulent activities to the state of New Hampshire while it was under supervision by the state and by an independent consultant in 2005.

The regulator said that the company could face penalties and client restitution of up to $10 million.

In 2005 the company, formerly known as American Express Financial Advisors, settled with the state for $7.4 million on charges related to illegal incentives, conflicts of interest and lack of disclosure to clients.

As a result of the action, which was the largest in state history, the company has been under heightened supervision by the state and by an independent consultant.

Ameriprise maintains approximately 30 branch offices in New Hampshire.

http://www.investmentnews.com/apps/pbcs.dll/article?AID=/20071023/REG/71023002/-1/INDaily01