Ameriprise~ Another high-fee MF case.

[mickeyd]

$9,300,000 seems like a high penalty for mishandling only 3 clients.

Quote:

NASD arbitration panel imposed a $9.3 million penalty on Ameriprise Financial Inc., stemming from a complaint that one of its stockbrokers mishandled three clients' savings by putting them in high-fee mutual funds, according to published reports.

http://www.investmentnews.com/news.cms?newsId=3307

[Brat]

Those may have been cases that were examples of a pattern of behavior.

[jazz4cash]

What gets me about these cases is who is REALLY paying the fine??........isn't all the other clients?

[FinanceDude]

Quote:

Originally Posted by jazz4cash What gets me about these cases is who is REALLY paying the fine??........isn't all the other clients?

Same folks who pay higher insurance premiums when we have a big hurrican season........the consumer..........

[2B]

There's another thread about some poor gal screwed by Ameriprise. I'll bet she doesn't get any of this. I just hope she escapes with the "family jewels."

[JJac]

Where do the fines go, really? Ameriprise pays them to whom?

In cases like Microsoft paying the EU close to 1 billion dollars... who actually gets it? When the SEC fines Enron for something, does the SEC have a huge office party? Or does it go to those that were actually harmed? The lawyers certainly get theirs...

[grumpy]

Quote:

Originally Posted by JJac Where do the fines go, really? When the SEC fines Enron for something, does the SEC have a huge office party? Or does it go to those that were actually harmed? The lawyers certainly get theirs...

My guess is that the $ goes to the US Treasury. When I was with NASA we negotiated a $25M settlement with the company that made the flawed mirror for the Hubble Space Telescope. It looked like the $ would just go to the Treasury but I was able to find some Comptroller General decisions that gave me a case to retain the $25M in NASA's account for HST. The best thing was that NASA Hq never seemed to realize that we (the HST Project at Goddard Space Flight Center) got those funds. I was expecting them to reduce our total budget by that amount but they never did. The $25M became a windfall for the project. We were able to use it to improve the capabilities of the follow-on instruments.

Grumpy

[mickeyd]

Quote:

I was able to find some Comptroller General decisions that gave me a case to retain the $25M in NASA's account

I sure hope that you were working on a commission basis on that particular NASA project Grumpy.

[jazz4cash]

And here's a low-fee MF case...........

On July 20, 2005, the Independent Trustees of the Fidelity Funds ("Funds") authorized an independent review with the objective of... an .....independent assessment of whether.....the Funds may have been impacted as a result of the acceptance by some traders employed on Fidelity's equity trading desk of travel, entertainment, gifts and gratuities ("TEGG") in violation of Fidelity policies.

Judge Martin then relied on elements of the statistical analysis as well as other considerations to recommend that Fidelity pay the affected Funds $40.7 million, plus interest and expenses of the investigation.

http://personal.fidelity.com/global/....cvsr?refhp=cp

[grumpy]

Quote:

Originally Posted by mickeyd I sure hope that you were working on a commission basis on that particular NASA project Grumpy.

Nope, I just got the satisfaction of knowing I outsmarted the US Treasury and the HASA Hq bureaucrats.

Grumpy

[Nords]

Quote:

Originally Posted by grumpy Nope, I just got the satisfaction of knowing I outsmarted the US Treasury and the HASA Hq bureaucrats.

Ha!! Two thoughts:
1. Is that a challenge?
2. What's the statute of limitations for mentioning it on a discussion board?!?

I know how you feel. Every time we saved the Navy's money we regretted it.