Securities Lawyers Blog
The law offices of Gana Weinstein LLP are currently investigating claims that Broker Cathie Joughin (Joughin) has been accused by investors of engaging in fraudulent misappropriation of their funds. According to records kept by The Financial Industry Regulatory Authority (FINRA), it appears that Joughin was employed by Ameriprise Financial Services, LLC at the time of the activity. If you have been a victim of Joughin’s alleged misconduct our firm may be able to assist you in recovering funds.
FINRA BrokerCheck shows a settled customer complaint on March 30, 2023.
Claimant alleges that on or about late 2019 and early 2020, his father fell victim to elder abuse and misappropriation by his Financial Advisor (FA).
FINRA BrokerCheck shows a final customer complaint on November 28, 2022.
Without admitting or denying the findings, Joughin consented to the sanction and to the entry of findings that she refused to provide information and documents requested by FINRA in connection with its investigation of a Form U5 filed by her member firm that stated that she had resigned while under review for compliance policy violations related to a fiduciary relationship.
We specialize in representing victims of fraud when financial advisors take loans from clients or facilitate securities transactions through OBAs. Engaging in the sale of unapproved investment products, fake investments that conceal misappropriated funds, and other fraudulent activities is referred to as “selling away” in the industry—a severe violation of securities regulations. The industry defines “selling away” as a practice where a financial advisor offers investments in securities, companies, or promissory notes that have not been authorized by their brokerage firm. Some of these investments may appear legitimate, but they often lead to Ponzi schemes or advisors engaging in fund misappropriation.
However, federal securities laws and the FINRA rules require firms to monitor and supervise its employees in order to detect and prevent brokers from offering investments in this fashion. Each firm is obligated to enforce measures that oversee brokers by monitoring advisors’ conduct and their interactions with clients. Selling away misconduct often occurs where brokerage firms either fail to put in place a reasonable supervisory system or fail to actually implement that system. Supervisory failures allow brokers to engage in unsupervised misconduct that can include all manner improper conduct including selling away.
In cases of selling away the investor is unaware that the advisor’s investments are improper. In many of these cases the investor will not learn that the broker’s activities were wrongful until after the investment scheme is publicized, the broker is fired or charged by law enforcement, or stops returning client calls altogether.
Joughin has been in the securities industry for more than 39 years. Joughin has been registered as a Broker with Ameriprise Financial Services, LLC since 2019.
Investors who have suffered losses are encouraged to contact us at (800) 810-4262 for consultation. At Gana Weinstein LLP, our attorneys are experienced representing investors who have suffered securities losses due to the mishandling of their accounts. Claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.