Nazeeh I. Aranki, a broker formerly employed at Minneapolis, Minnesota-based Ameriprise Financial Services, Inc., submitted a Letter of Acceptance, Waiver and Consent in which he consented to the entry of the Financial Industry Regulatory Authority's (FINRA) findings that he shared in losses in his customers' accounts without his firm's prior written authorization. The findings stated that Mr. Aranki deposited personal and cashier's checks totaling $68,000 into some customers' accounts to reimburse the customers for half of the premiums paid on options hedge positions that expired worthless. Mr. Aranki, of Pasadena, California, was fined $7,500 and suspended from association with any FINRA member in any capacity for 15 business days. The suspension was in effect from July 15, 2013 through August 2, 2013.
Broker-dealers must establish and implement a reasonable supervisory system to protect customers from broker misconduct. If broker-dealers do not establish and implement these protective measures, they may be liable to investors for damages flowing from the misconduct. Therefore, investors who have suffered damages due to unauthorized activity by their broker can bring forth claims to recover losses against broker-dealers like Ameriprise Financial Services, Inc., which should consistently oversee its brokers' activities in order to prevent the above described prohibited conduct.
The most important of investors' rights is the right to be informed! This Investors' Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. Please see our Instablog profile (left column) for ways to contact us and get answers to any of your questions about this blog post and/or any related matter.