Ameriprise has settled with the SEC over allegedly failing to protect its retail investors’ assets from its own representatives, the regulator says in a press release.

Five Ameriprise representatives the SEC doesn’t name allegedly stole over $1 million in retail client funds during four years, in the process resorting to various fraudulent acts including forging client documents, the regulator says. Ameriprise, meanwhile, allegedly failed to have adequate policies and procedures to safeguard client assets from misappropriation, according to the SEC.

Ameriprise terminated all of the representatives, who were based in Michigan, Ohio and Virginia, for misappropriating the funds, the SEC says. Three of the representatives have already pled guilty to criminal charges, according to the regulator. And the company has already reimbursed all the affected clients and devised a new system to protect client funds, according to the SEC.


Ameriprise, which neither admitted nor denied the SEC’s findings, agreed to pay a penalty of $4.5 million, the regulator says.