FINRA Fines and Suspends Angel Bardeche after Allegations of Unsuitable Mutual Fund Switches
According to a Letter of Acceptance, Waiver and Consent (AWC) on January 6, The Financial Industry Regulatory Authority has fined and suspended former Ameriprise Financial advisor Angel Bardeche, who allegedly generated $450,000 in commissions from unsuitable mutual fund switches.
Bardeche reportedly agreed to a nine-month suspension and $10,000 fine as well as $5,000 in disgorgement to resolve the allegations, according to the AWC.
FINRA said that between January 2017 and March 2019, Bardeche reportedly recommended 112 short-term ‘switches’ of Class A mutual funds in 32 customer accounts. Class A funds carry large up-front sales charges and are generally only suitable as long-term investments.
Bardeche also allegedly made costly back-to-back switches, including recommending one customer sell Class A shares after 10 months, incurring $3,100 in new sales charges. Eight months later, Bardeche purportedly recommended the customer sell those shares and buy other Class A shares that cost over $2,600 in commissions.
According to FINRA, Bardeche also allegedly made 109 trades in eight non-discretionary customer accounts without prior written authorization during the two-year period.
According to her FINRA BrokerCheck report, Bardeche was reportedly registered with Ameriprise in Cincinnati Ohio from 2012 until she was allegedly discharged in May 2019 for “company policy violations related to failing to obtain authorization from clients prior to placing trades and mutual fund trading.”
Bardeche reportedly has 4 settled customer complaints from 2019 on her broker record. Allegations include failure to explain surrender charges or annual fees associated with variable annuities.
Filing a Complaint against your Brokerage Firm
Brokerage firms are required to adequately supervise their advisors. They must ensure they are complying with FINRA rules.
When brokers abuse client accounts and conduct transactions that violate securities laws, 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.
If you are concerned about investments with Angel Bardeche and Ameriprise Financial Services, the securities attorneys at The White Law Group may be able to help you. For a free consultation with an attorney, please call (888) 637-5510.
The foregoing information, which is all publicly available, is being provided by The White Law Group.
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. For more information, please visit our website, www.whitesecuritieslaw.com.
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