The FINRA Statement of Claim, filed on August 13, 2009, stated that Ms. Amilowski, recommended a RiverSource variable annuity as an initial investment to a 77 year old investor at the time of purchase, thus ineligible for a guaranteed death benefit. This investment was too risky for someone of this age.
The Claim alleges that Ameriprise Financial violated Florida securities laws, FINRA rules and caused avoidable losses to the client’s estate relating to the Ameriprise’s failure to disclose risks associated with the RiverSource Variable Annuity.
Accordingly, Ameriprise Financial violated Fla. Stat. §517, when the Advisor made unsuitable recommendations. Ms. Amilowski and Ameriprise knew or should have known that the RiverSource variable annuity purchase was not appropriate for a senior client. They violated FINRA rules 3010 and 2310, regarding the supervision of transactions by ignoring obvious indicators such as age, investment objectives; made inappropriate product recommendations, with higher commissions to the Advisor and caused unnecessary expenses to the investor.
As part of his estate planning, the Senior Investor instructed the Ameriprise Advisor to name a Revocable Trust as the beneficiary of the Annuity and received confirmation of completion. However, when the family notified Ameriprise about the client’s death, the company stated that the beneficiary designation had not been changed. This caused a needless delay, which resulted in additional loss of the value to the trust in an already unsuitable investment. The annuity value swung from a profit to a loss during the period of delay.
Marc S. Dobin, Esq., Director of Financial Services, LaBovick & LaBovick, P.A., stated the following, “Ameriprise Financial had the perfect opportunity to fix the problem, but compounded the error through their negligence and failure to act in the best interest of the client. Brokerage firms and their advisors must act with their client’s best interests first. It is not acceptable for a firm to take advantage of Senior investors for profit.”
Since 1992, LaBovick & LaBovick, PA (http://www.LaBovick.com) has represented clients throughout the state of Florida. The firm handles issues regarding Securities Fraud, Securities Arbitration, Employment Law, Personal Injury, and Qui tam. The firm has assisted investors in matters regarding unsuitable investments including mismanagement of funds, securities fraud, securities arbitration and negligence on behalf of the Financial Advisor and or Financial Securities firm.
CONTACT:
Marc S Dobin, Esq - Director - Financial Services Division
LaBovick & LaBovick, PA
1.877-679-3838
Mdobin@LaBovick.com
