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Ameriprise Whistleblower Sues, Saying Management Breaks Law Frequently

AmeripriseAmeriprise Whistleblower Sues, Saying Management Breaks Law Frequently

A former branch manager for Ameriprise Financial had sued the company, saying that he was fired for raising serious allegations about the firm’s supervision of brokers.

Michael Loscalso, who began his career at the forerunner of Ameriprise in 1989, alleged in the lawsuit that his repeated complaints to management “about fraud, forgery and other practices which violated SEC rules and regulations led to the retaliatory termination of his employment” by Ameriprise. Mr. Loscalso is seeking unspecified damages from Ameriprise. He earned $260,000 a year and supervised more than 50 registered representatives and 60 licensed and unlicensed staff members, according to the suit.

The “whistleblower” suit further alleges that Mr. Loscalso “engaged in the protected activity of reporting violations of Securities and Exchange Commission rules and regulations to management on numerous occasions throughout his employment and immediately prior to his termination” by Ameriprise. It went on, that Mr. Loscalso repeatedly reported violations of SEC regulations to his superiors. Those violations included incidents relating to forgery, fraud, unlicensed sales, unlicensed signing of documents, overcharging for financial planning services, under delivery of financial planning advice, and breaches of client privacy and data security.

An example is that Mr. Loscalso said he reported a broker’s assistant signed 30 annuity applications on the broker’s behalf. Ameriprise supervised by requiring a letter of caution and took no further action.

In another exapmle, that Mr. Loscalso says he complained about, a financial adviser allowed an unlicensed assistant to transact client business by processing and completing trades using the broker’s identification number, which is blatantly illegal.

In a letter, Ameriprise allegedly said that Mr. Loscalso was fired for cause due to a failure to supervise his advisers. To us, that sounds like quite a role reversal!

If you have losses in your account with Mr. Loscalso as your financial advisor, call (888) 986-7199 or write the investment recovery lawyers at StockBrokerLawyer.com for a free no-cost consultation. We can help recover your losses and seek other damages, too.

You can use the email form or chat on StockBrokerLawyer.com You may be entitled to recover your losses. We work on contingency: we are paid only when you are paid. Time is limited; delay is the favorite defense of the brokerage firms. Call 888-986-7199 now to speak to an attorney for a no cost evaluation.


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