Investigation into Kim Dee Isaacson of Ameriprise Financial Services

Sonn Law Group is investigating claims related to broker Kim Dee Isaacson (CRD#855618). Isaacson is currently employed by Ameriprise Financial Services, Inc. in Midvale, Utah. Prior to Ameriprise, Isaacson was employed by Morgan Stanley from December 2008 until his resignation in February 2014.

A month after Isaacson left Morgan Stanley, a Financial Industry Regulatory Authority (“FINRA”) arbitration claim was filed against both Isaacson and Morgan Stanley with allegations based on Isaacson’s misrepresentations to one of the claimants concerning all of the claimants’ account balances. The claimant had known Isaacson for almost 20 years and relied on Isaacson’s verbal reports of his account balances over the course of time. Sadly, the claimant was unaware that Isaacson was intentionally misrepresenting his account balances. At some point prior to the arbitration hearing, the claimant actually managed to record Isaacson confessing his wrongdoings.  

A three arbitrator FINRA arbitration Panel (“the Panel”) heard the matter and found that Isaacson lied to the claimant about his clients’ investments and account balances. The Panel granted an award against both Morgan Stanley and Isaacson finding them both jointly and individually liable for failure to supervise, negligent supervision, breach of fiduciary duty, unsuitable investments and fraud.  Moreover, the Panel acknowledged that Isaacson lied to his client about the balances in the clients’ portfolio knowing that the client relied on Isaacson’s oral representations. The Panel held that Morgan Stanley perpetrated the fraud by failing to supervise and monitor the ongoing fraud for a period of 4 years. Claimants were awarded 3.6 million dollars which represents the disgorgement of fees and commissions paid plus the difference between the reported account value and the actual account balance.

FINRA Investigation

There is a related pending FINRA investigation for Isaacson’s potential violations of the FINRA Rule 2010; making verbal misrepresentations to a firm customer about the customer’s account values and performance.

Customer Complaints

In addition to the aforementioned FINRA arbitration claim and related FINRA investigation, Isaacson has been involved in 3 other customer disputes.

  1. A complaint with alleged damages of $5,000 based on allegations that Isaacson failed to execute a purchase request made by his client. This complaint was filed with FINRA on December 19, 2008 and was denied on March 29, 2009;
  2. A complaint with alleged damages in the amount of $2,003,000 based on allegations of unauthorized account activity filed with FINRA on January 2005 and denied on December 1, 2005; and
  3. A complaint with unspecified damages based on allegations of unsuitability and misrepresentation with respect to equity investments in the client’s account and providing inaccurate information about the accounts performance filed with FINRA on February 1, 2016 and currently pending.

Unusual Resignation from Morgan Stanley

Isaacson’s CRD reflects that he voluntarily resigned on February 6, 2014 after allegations were lodged that Isaacson verbally provided a client with inaccurate information about the client’s account performance.

A voluntary resignation is considered an event requiring disclosure where there has been an accusation of “1) violating investment-related statutes, rules, regulations or industry standards of conduct; 2) fraud or the wrongful taking of property; or 3) failure to supervise in connection with investment-related statutes, regulations, rules, or industry standards of conduct.”

Supervision

The Financial Industry Regulatory Authority (“FINRA”) bars brokerage firms from presenting misleading information to get you to buy or sell an investment. FINRA member firms are responsible for the supervision of a broker’s activities while the broker is registered with their firm. Therefore, Morgan Stanley and Ameriprise may be liable for investment or other losses suffered by Isaacson’s other customers due to Isaacson’s possible misrepresentation of his clients account balances, amongst other things.

If you were a client of Morgan Stanley, Ameriprise or Kim Dee Isaacson and have experienced losses in your investment accounts, please call Sonn Law Group at 844-689-5754 or click here to access our contact form. Sonn Law Group is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies.

Rate this post:

1 Star2 Stars3 Stars4 Stars5 Stars
(No Ratings Yet)
Loading...