Securities Law Prof Blog

Editor: Eric C. Chaffee
Univ. of Toledo College of Law

A Member of the Law Professor Blogs Network

Tuesday, January 26, 2010

Massachusetts Securities Division Alleges Ameriprise Subsidiary Failed to Disclose Risks in Private Placements

The Massachusetts Securities Division brought an administrative action against Securities America, Inc., a subsidiary of Ameriprise Financial, alleging that from 2003-2008 the broker-dealer, acting as placement agent for Reg D offerings on behalf of Medical Capital Holdings Inc., failed to disclose material risks in connection with sales of approximately $697 million of promissory notes issued by SPCs owned by Medical Capital.  Since August 2008 Medical Capital has defaulted on all its outstanding note obligations.  The Division alleges that the firm's due diligence analyst specifically and repeatedly requested disclosure of the heightened risks.

http://lawprofessors.typepad.com/securities/2010/01/massachusetts-securities-division-alleges-ameriprise-subsidiary-failed-to-disclose-risks-in-private-.html

Other Regulatory Action | Permalink

TrackBack URL for this entry:

http://www.typepad.com/services/trackback/6a00d8341bfae553ef012877167aaa970c

Listed below are links to weblogs that reference Massachusetts Securities Division Alleges Ameriprise Subsidiary Failed to Disclose Risks in Private Placements:

Comments

Lack of supervision and failure to disclose important and vital information in an understandible format is rife in the finachial advisor industry, where hacks and frauds abound. Where is the Legal community as these sharks feed in the mass of retireing persons

Posted by: michael troddyn | Mar 15, 2011 5:03:59 PM

Post a comment