Written by The White Law Group• April 18, 2024• 9:11 am• Blog, Broker Investigations

Advisor Dusty Sternadel Allegedly Misappropriated Client Funds

Dusty Sternadel of Amerprise to be Sentenced for Fraud Scheme

A former Ameriprise Financial advisor in Wichita Falls, Texas, Dusty Sternadel, is reportedly awaiting sentencing after pleading guilty to wire fraud in a scheme where she allegedly took over $1.2 million from clients, according to Think Advisor this week. The alleged scheme ran from September 2019 to July 2022, during which Sternadel purportedly convinced clients into sending her funds under false pretenses.

Table of Contents

Sternadel purportedly used these funds for personal expenses, including buying a shotgun. Sternadel faces potential penalties of up to 20 years in prison, supervised release, fines, restitution, and forfeiture.

Dusty Sternadel Fired after Allegations of Investment Fraud

According to news reports on September 7, 2022, Sternadel was reportedly fired by Ameriprise Financial Services for “illegal activity.” Ameriprise reportedly released a statement after several former clients of Sternadel made allegations on social media of fraud and illegal activity.

According to a Letter of Acceptance Waiver and Consent posted on September 9, 2022, the regulator reportedly sent a request to Sternadel on August 26, 2022 for on-the-record testimony and production of documents concerning allegations of misappropriating client funds, but Sternadel purportedly refused. Consequently Sternadel was reportedly barred from associating with any FINRA member at any time.

According to her FINRA BrokerCheck report, Ameriprise reportedly terminated Sternadel in July 2022 for “violation of company policies related to misappropriation of client funds.”

Sternadel was a registered representative with the following firms during her career:

12/14/2018 – 08/22/2022, AMERIPRISE FINANCIAL SERVICES, LLC (CRD#:6363), Wichita Falls, TX,
11/23/2015 – 01/10/2019, MORGAN STANLEY (CRD#:149777), WICHITA FALLS, TX
01/24/2011 – 11/24/2015, EDWARD JONES (CRD#:250), WICHITA FALLS, TX

Potential Lawsuits to Recover Investment Losses

The White Law Group is investigating potential securities claims involving Ameriprise Financial advisor Dusty Sternadel and the liability her employers may have for failure to properly supervise her.

When brokers abuse client accounts or conduct transactions that violate securities laws, such as making unauthorized trades or making unsuitable investments, the brokerage firm they are working with may be liable for investment losses. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.

The brokerage firms can be held responsible for any losses in a FINRA arbitration claim if it is determined that they failed to properly supervise their agent.

Free consultation

If you are concerned about investments with Dusty Sternadel, the securities attorneys of The White Law Group may be able to help you. For a free consultation with a securities attorney, please call 888-637-5510.

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Seattle, Washington.