Geraldine Gordon, of Lexington, Kentucky, a stockbroker currently registered with Ameriprise Financial Services, has been fined $7,500.00 and suspended from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that she made unsuitable investment recommendations to a firm customer. Letter of Acceptance, Waiver and Consent, No. 2016049353501 (June 9, 2017).
According to the AWC, in June of 2013, customer WF received recommendations from Gordon to sell investments in the customer’s individual retirement account and brokerage account with Ameriprise, wherein the assets were estimated to be fifty percent of WF’s net worth. The AWC stated that an energy-sector master limited partnership was then recommended by Gordon to the customer; a product which contained substantial risk.
The AWC stated that $334,000.00 was contributed by the customer into the energy-sector master limited partnership due to Gordon’s recommendations, which led nearly half of the customer’s liquid net worth to be tied up in the speculative investment. FINRA stated that this recommendation for the energy-sector master limited partnership was unsuitable based upon the risks inherent in the product as well as the financial status that WF communicated to Gordon. As a result, FINRA found Gordon’s conduct to be violative of FINRA Rules 2010 and 2111.
Financial Industry Regulatory Authority (FINRA) Public Disclosure reveals that Gordon has been identified in seven customer initiated investment related disputes regarding allegations of her misconduct while employed with American Express Financial Advisors. Particularly, between June 26, 2002 and July 18, 2002, three customers filed investment related disputes regarding Gordon’s conduct, wherein the customers collectively sought $300,000.00 in damages based upon allegations of unsuitable mutual funds transactions having been effected by Gordon in their accounts.
Subsequently, on January 14, 2004, a customer initiated investment related arbitration claim regarding Gordon’s activities was resolved for $19,500.00 in damages based upon allegations against Gordon of misrepresentation, omission of commission and fees charged in customer accounts, breach of fiduciary duty, unauthorized transactions, and the mishandling of the customer’s portfolio. The customer additionally alleged that American Express Financial Advisors failed to supervise Gordon’s activities in the customer’s account.
Further, on January 28, 2004, a customer initiated investment related arbitration claim involving Gordon’s conduct was settled for $300,000.00 in damages based upon allegations that the Gordon failed to explain commissions charged in the customer’s account, and made unsuitable investment recommendations concerning mutual funds, life insurance and annuities.
Moreover, on April 1, 2017, a customer initiated investment related arbitration claim regarding Gordon’s conduct was resolved for $170,000.00 in damages based upon allegations that she made unsuitable investment recommendations to the customer concerning investments in Tekla World Healthcare Fund, Clearbridge American Energy Master Limited Partnership Fund, Neuberger Berman Master Limited Partnership Fund, Inc., Chamber Street Properties Real Estate Investment Trust, and CB Richard Ellis Realty Trust.
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