National investment fraud lawyers KlaymanToskes is investigating Edric McSween, who is a former Ameriprise Financial Services broker, in light of his recent bar from the securities industry.
According to FINRA BrokerCheck, McSween resigned from Ameriprise Financial Services in February 2021. The allegations on BrokerCheck state that “the registered representative resigned while under investigation for compliance policy violations related to undisclosed outside business activities and business relationships with clients.”
According to a FINRA AWC, McSween refused to produce documents or information to FINRA in response to a request from FINRA following his resignation from Ameriprise. By refusing to produce information and documents to FINRA, McSween violated FINRA Rules. He agreed to a bar from associating with any FINRA member in all capacities.
Securities licensed financial advisors are required to disclose “outside business activities” to their financial brokerage firms which is recorded on the Financial Industry Regulatory Authority (FINRA) financial advisor “broker check” database. Outside business activities include any business activity from which the financial advisor expects to be compensated. Financial advisors are required to receive prior-approval from their brokerage firm for any “outside business activities” and you can check your financial advisor FINRA disclosures. If there is no “outside business activities” disclosed on the financial advisor’s “broker check” record related to a solicitation, this means that the brokerage firm is unaware of the activity and the business activity is most likely not approved.
Brokerage firms are responsible for all of their financial advisors’ business activities whether disclosed or not and are required to take affirmative action to monitor and uncover any unapproved outside business activities, including activities related to private securities transactions. Many brokerage firms audit their financial advisors’ personal and business bank accounts to determine all sources of income which may related to outside business activities and private securities transactions. Brokerage firms conduct these audits because of the responsibilities they have to supervise the activities of financial advisors registered with the firm. Most brokerage firms terminate licensed financial advisors who “sell away” from the brokerage firm securities that are not approved. This is because of the potential liability brokerage firms face as documented by a long history of adverse FINRA arbitration awards for member firms, as a result of this failure to supervise. Investment losses from “selling away” transactions have occurred in many private securities transactions, including the following:
McSween is not currently registered or associated with any FINRA member firm. McSween was most recently registered as a broker with Ameriprise Financial Services. He worked with the firm from 1993 to 2021 in Naples, Florida. McSween was registered with IDS Life Insurance Company in Minneapolis, Minnesota from 1993 to 2006. From 1990 to 1992, McSween was with Metlife Securities Inc. and Metropolitan Life Insurance Company. According to FINRA BrokerCheck, McSween earned his Series 65, Series 63, SIE, Series 7 and Series 6 licenses.
Former customers of Edric McSween at Ameriprise Financial Services who suffered investment losses in excess of $100,000, and those with information relating to the handling of their accounts, are encouraged to contact securities attorney Lawrence L. Klayman, Esq. at +1 (888) 997-9956.