A Finra arbitration panel ordered Ameriprise Financial Services Inc. to pay two elderly California investors $1.17 million for putting them in real estate investments that tanked.
On May 1, a Finra arbitration panel in San Francisco ruled that Ameriprise had inappropriately advised two retired schoolteachers to sink a total of $1.03 million into three risky tenant-in-common investments in office complexes and hotels in early 2008.
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One of them failed and two of the others declined in value substantially, according to a statement by the investors' attorney, who said that the couple lost most of their life savings.
“The evidence shows that Ameriprise repeatedly failed to follow its supervisory procedures,” Kalju Nekvasil, an attorney with Goodman & Nekvasil, said in a statement. Mr. Nekvasil represented Albertus Niehuis Jr., 82, a retired math teacher, and his wife, Andrea S. Niehuis, a retired elementary schoolteacher.
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“It is truly unfortunate that when an investor is wronged, Ameriprise refused to voluntarily step up to the plate and do the right thing,” Mr. Nekvasil added.
In a case summary, Ameriprise denied the allegations, but was not immediately available to comment on Finra's findings.
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