Soreide Law Group Files FINRA Arbitration Against AMERIPRISE FINANCIAL SERVICES, INC

Soreide Law Group has filed a FINRA arbitration, on behalf of our client (Claimant), against:
AMERIPRISE FINANCIAL SERVICES, INC. (Respondent)
The Claimants, a widow in her eighties living in New Jersey and her now deceased husband, were extremely conservative investors who invested primarily in tax free municipal bonds.  While at AMERIPRISE, they were with broker, Nicholas Modesto Disesso (“Disesso”), CRD# 502153, who was an employee and registered representative of AMERIPRISE FINANCIAL SERVICES. Disesso is no longer employed in the securities industry, nor is he named in this lawsuit.
The lawsuit states that broker Disesso purchased over $1.2 million worth of Puerto Rican bonds for the Claimants which now have losses of over $400,000. The Claimants, being dissatisfied with the recommendations at AMERIPRISE FINANCIAL SERVICES transferred the account to another firm. The Claimants continued to liquidate the large Puerto Rican bond concentration at the successor firm.
The lawsuit alleges that while at AMERIPRISE, broker Disesso concentrated over 20% of the Claimants investable assets into high risk Puerto Rican bonds, and even more troubling than the concentration of Puerto Rican bonds sold to the Claimants is the fact that AMERIPRISE sold uninsured bonds when there was an insured alternative being offered for the same issue. The yields and maturities were approximately the same, so there was no legitimate reason to select the uninsured option.
Allegedly, Ameriprise conducted no due diligence and/or sold the Puerto Rican bonds knowing the dire financial condition of Puerto Rico. Since 2006, Puerto Rico has been in a recession. In 2016, Puerto Rico ran out of money and stopped paying their debt. Due to $123 billion in debt and pension obligations Puerto Rico sought bankruptcy relief in federal court. On top of the debt crisis, in 2017 Puerto Rico was hit with two major hurricanes which completely devastated the island.
The lawsuit alleges that Puerto Rico’s problems were not hidden to the public and certainly were known or should have been known by AMERIPRISE who actively recommended Puerto Rico’s debt to their clients including the Claimants.
Puerto Rico’s problems were not hidden to the public and certainly were known or should have been known by AMERIPRISE who allegedly recommended Puerto Rico’s debt to their clients including the Claimants.
The lawsuit alleges: negligence, breach of fiduciary duty, negligent supervision, and breach of contract.
According to FINRA’s BrokerCheck, Nicholas Disesso has racked up 5 reportable events on his CRD, three reported customer complaints on his U4, and one termination after “borrowing money from a client”. The significance of Disesso’s customer complaints is underscored in FINRA NOTICE to MEMBERS 03-49. In 2003, FINRA conducted a review of the CRD’s of all 663,000 registered representatives, only 2,751 (.41%) had been the subject of (3) or more customer complaints. In other words Disesso’s customer complaints rank him in the top one-hundredth percent of all registered representatives for customer complaints. 
This lawsuit alleges that AMERIPRISE FINANCIAL SERVICES and their representative’s actions have caused Claimants out of pocket damages of approximately $500,000.00.
If you experienced losses due to AMERIPRISE FINANCIAL SERVICES, Inc. and/or broker Nicholas Disesso’s actions or recommendations, contact Soreide Law Group and speak to an experienced lawyer regarding the possible recovery of your financial losses through a FINRA arbitration at:  888-760-6552.
Soreide Law Group represents clients nationwide before FINRA.  We operate on a contingency fee basis—no fee to you if no recovery.