Claimant alleges that in August 2013, Respondent recommended unsuitable investmenets in KBS REIT and Watermark Lodging REIT and seeks $65,000 in damages.

$65,000.00

$12,500.00

The client alleged two variable annuities purchased, one in April 2011 and the other in May 2011, were misrepresented.

$9,801.27

The clients alleged variable annuities sold to them in May 2013 and November 2014 were misrepresented.

$35,067.74

Ameriprise Financial

Permitted to Resign

Registered representative resigned while on suspension pending termination for violation of company policy related to selling away and disclosure of an outside activity.

The client alleged that the purchase of a variable annuity in August 2013 did not reflect her financial goals and she was never clearly advised of the restrictions on investment options.

$8,980.42

FINRA

Without admitting or denying the findings, Butler consented to the sanctions and to the entry of findings that he failed to reasonably supervise a registered representative from his member firm who was employed as a sales associate and office manager (the office manager). Because of his lack of adequate supervision, Butler failed to detect and prevent the office manager from converting money from a business organization belonging to Butler. The office manager handled the business's finances, including controlling the bank accounts, credit cards, and payroll processing. The office manager used this control to convert funds from the business in order to pay himself an additional salary and unauthorized commissions, as well as to otherwise take money to which he was not entitled. The findings stated that although the office manager's conversion initially was directed at the business, he also began converting funds from firm customers who were also his family members and domestic partner by depositing those funds into the business' bank account, from which he continued to make unauthorized withdrawals. The office manager converted more than $370,000 via wire request from customer brokerage accounts held at the firm. Unbeknownst to the customers, their funds were actually being used to further the office manager's conversion scheme, rather than for the intended purpose of making investments. The findings also stated that Butler failed to reasonably supervise the office manager's handling of the customer accounts, even though Butler was the broker of record for those accounts. Butler relied on the office manager to manage the customer relationships and failed to regularly review the customer accounts, leaving him unaware of the office manager's conversion of funds from the accounts for a period of more than three years.

Acceptance, Waiver & Consent(AWC)

Civil and Administrative Penalty(ies)/Fine(s)

$15,000.00

Suspension

Principal

four months

10/3/2016

2/2/2017

Fines paid in full on October 29, 2018.

THE CLIENT'S ATTORNEY ALLEGED FUNDS INTENDED FOR A REIT PURCHASE WERE NOT INVESTED ACCORDING TO THEIR UNDERSTANDING.

$23,000.00

$23,582.25

THE FIRM FOUND NO EVIDENCE OF MR. BUTLER'S INVOLVEMENT IN MAKING THE RECOMMENDATION ALLEGED AND FOUND NO EVIDENCE THAT MR. BUTLER COMMUNICATED WITH THE CLIENT ABOUT THE PURCHASE IN QUESTION. AS THE FUNDS WERE NOT INVESTED IN ACCORD WITH THE CLIENT'S WISH THE FIRM RETURNED THE FUNDS TO THE CLIENT.

THE CLIENT'S ATTORNEY ALLEGED FUNDS WERE LIQUIDATED FROM THE CLIENT'S TRANSAMERICA VARIABLE ANNUITY AND WERE NOT SUBSEQUENTLY INVESTED ACCORDING TO HER UNDERSTANDING.

$166,285.57

$172,996.22

THE FIRM FOUND NO EVIDENCE OF MR. BUTLER'S INVOLVEMENT IN MAKING THE RECOMMENDATION ALLEGED. AS THE PROCEEDS WERE NOT INVESTED IN ACCORD WITH THE CLIENT'S WISH THE FIRM RETURNED THE FUNDS TO THE CLIENT.

COMPLAINANT ALLEGES MISREPRESENTATION RELATING TO THE SALE OF A VARIABLE LIFE INSURANCE POLICY.