Former Ameriprise Broker Ordered to Pay $2.2 Million for Elder Exploitation
From the Desk of Jim Eccleston at ÍøÆسԹÏ
A Financial Industry Regulatory Authority (FINRA) arbitration panel has ordered Eric A. Dupre to pay nearly $2.2 million in damages to his former firm and two customers following allegations of theft and elder exploitation.
According to the FINRA award, Dupre must pay $1.1 million to Ameriprise and nearly $1.1 million to the customers, Albert and Kathleen Vale. As reported by AdvisorHub, the Vales alleged that Dupre placed the “vast majority” of their funds into unsuitable and underperforming investments, resulting in significant losses. They also claimed Ameriprise “failed to take any meaningful actions” to prevent or remedy Dupre’s misconduct.
The Vales had initially sought over $3 million in compensatory damages, along with unspecified exemplary damages, attorneys’ fees, and costs. The arbitration panel held Ameriprise responsible for all FINRA fees and costs associated with the matter.
AdvisorHub reports that, an Ameriprise spokesperson stated that the firm was pleased to have resolved the case, adding, “Mr. Dupre violated firm policy and was terminated. He circumvented our controls by conducting his activity away from the firm, and his actions were wholly inconsistent with our code of conduct and strict compliance standards.”
Dupre was barred by FINRA in July 2024 after investigators found that he borrowed more than $2.2 million from three customers without firm approval between September 2022 and February 2023. Most of the borrowed funds came from a 77-year-old client, while an additional $65,000 was borrowed from a married couple. Dupre repaid the smaller loan in December 2022 but left the elderly client with significant margin debt after encouraging him to borrow from his Ameriprise account.
AdvisorHub’s review of Dupre’s BrokerCheck record shows two settled customer complaints, including one related to the Vale arbitration. Another complaint, from 2011, settled for $75,000 over allegations of misrepresentation.
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