Ameriprise Financial Services, Inc.

Permitted to Resign

Registered Representative resigned while under review for violation of company policy related to a beneficiary relationship with a client.

AFTER A CLIENT OF APPROXIMATELY TWENTY-FIVE YEARS WHO I HAD BUILT A CLOSE FRIENDSHIP WITH PASSED AWAY, I WAS INFORMED THAT THE CLIENT HAD NAMED ME AS A BENEFICIARY AND SECOND SUCCESSOR TRUSTEE IN THE CLIENT'S TRUST. NEITHER THE CLIENT, NOR ANYONE ELSE, HAD EVER ADVISED ME THAT I HAD BEEN NAMED IN THE CLIENT'S TRUST, AND I ONLY LEARNED OF THIS FACT AFTER THE CLIENT'S DEATH. I DISCLOSED THIS INFORMATION TO MY BRANCH OFFICE MANAGER AS SOON AS POSSIBLE. IT IS MY UNDERSTANDING THAT I DID NOT VIOLATE, NOR COULD I HAVE KNOWINGLY VIOLATED, ANY AMERIPRISE FIRM POLICY. AMERIPRISE INSISTED THAT I DISCLAIM MY BENEFICIARY STATUS AS A CONDITION OF REMAINING REGISTERED WITH THE FIRM. WHEN I DECLINED TO DO SO, I WAS ADVISED THAT I WOULD NEED TO RESIGN FROM AMERIPRISE, AND DID SO. I NEVER EXPECTED THAT THE CLIENT WOULD NAME ME AS A BENEFICIARY IN THE CLIENT'S TRUST, NOR DID I ENCOURAGE THE CLIENT TO DO SO. IT IS MY UNDERSTANDING THAT THE DECEDENT ALSO LEFT: (1) OVER A MILLION DOLLARS IN CASH TO THE DECEDENT'S EX-SPOUSE, DESPITE HAVING BEEN DIVORCED FOR MANY YEARS; (2) LAND ADJACENT TO THE DECEDENT'S FORMER BUSINESS TO THE PERSON WHO HAD PURCHASED THAT BUSINESS MANY YEARS PRIOR; AND (3) A LAKE HOUSE TO THE DECEDENT'S DENTIST.

The current trustee alleged that the advisor used undue influence to become successor trustee and beneficiary on a deceased client's trust.

$900,000.00