Client Due Diligence Can Help Protect Assets

By: Bryan Beatty | June 24, 2009 | Investor Information

Jeffrey Southard stole $1.83 million from clients. At the time he was working with Ameriprise then named American Express Financial Advisors where he was suspended and allowed to resign. If a prospective client checked the registration report on this broker they would have seen in September 13, 2003 that Ameriprise "settled in the field offered unregistered securities and commingled clients funds with my own". Yet once he registered with Gunn Allen, another broker dealer, he alledgedly repeated the behavior. If a prospective client was to pull the FINRA filing of that broker between 2003 and 2008, when he plead guilty to other additional charges, they would have had reason to consider not doing business with this individual. The report as of 09/13/2003 reflected this suspicious behavior. That is why the FINRA report exists.

Clients need to arm themselves with information. Do your due diligence! FINRA broker check is one way to check on a registered advisor’s history. Another safeguard is to check with the Better Business Bureau for general business complaints if they are registered.

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Another #Ponzi Scheme unearthed by the SEC. Advisor (Greenberg) placed elderly clients into hedge funds. Pretty sleazy http://ow.ly/2BVmS 2010/09/09

@PyreneesInvest It's so sad especially since more investors don't take the time to ask simple questions towards hiring the right advisor. 2010/09/08

RT @PJSacchetta: "First time I did laundry it took me 3 months: all my clothes were labeled wash separately." Byran Allen Babba Bing! 2010/09/08

RT @megasafemoney: Mixing Golf and Business the Perfect Combination http://bit.ly/chSHsv Never cheat while playing with a client. Not good! 2010/09/06

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Investor Watch Dog is a weblog designed to inform investors about hidden risks when they invest assets based on the recommendations of financial planners, financial advisors, money managers, insurance agents, and investment sales representatives. Some of Wall Street's biggest investment risks result from Ponzi Schemes, investment bubbles, conflicts of interest, bad advice in bear markets, lobbyist activities that promote industry interests, bad investment products, and anti-investor business practices. While some of these risks are worthy of front page headlines, millions of investors assets are much more frequently exposed to less newsworthy but exponentially more harmful investment scams, financial fraud, illegal investment products, bad financial advice, bad investment recommendations, misrepresentation, omission, abuse of trust, deceptive sales practices, and breach of fiduciary duties. The role of Investor Watch Dog is to shine a spotlight on legal and illegal business practices that undermine the financial interests of investors, retirees, business owners, professionals, executives, and other types of consumers who rely on Wall Street and its financial professionals for the advice and services they need to achieve their financial goals.