Ameriprise Financial Services and its affiliated clearing firm, American Enterprise Investment Services, Inc. agreed to pay a civil fine of $750,000 to FINRA for not having adequate systems in place to monitor wire transfers.
The case involved a broker who was moving money from client accounts into outside accounts controlled by the broker Jennifer Guelinas. Guelinas pleaded guilty to wire fraud and is awaiting sentencing.
To avoid detection, disbursements were small ($1,000 to $10,000) and spread over a period of four years. A total of $790,000 was taken by Guelinas who forged her client's signatures on 85 wire requests, according to FINRA.
FINRA alleged that Ameriprise failed to heed numerous red flags in not detecting the transfers over a four year period.
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