Funny Business Alleged at Ameriprise

PHILADELPHIA (CN) - A former branch manager claims Ameriprise Financial fired him after failing to act on his "repeated complaints about fraud, forgery, and other practices which violated SEC rules."

In his federal complaint, Michael Loscalso says he was earning $260,000 a year when Ameriprise fired him in 2009, after 20 years with the company.

Loscalso says that in 2009 he discovered "incidents related to forgery, fraud, unlicensed sales, unlicensed signing, overcharging for financial planning services, underdelivery of financial planning services and breaches of client privacy and data security," and that he immediately reported them to his superiors.

But "instead of appropriately addressing the reports of wrongdoing," he says, Ameriprise executives "ignored Mr. Loscalso's complaints and delayed taking appropriate steps to address the violations reported."

He claims that Ameriprise "chose to protect successful financial advisors and the significant revenue they generated rather than meaningfully discipline those financial advisors who failed to follow the rules."

He adds that Ameriprise "failed to advise their clients of the improprieties" or rescind the fraudulent transactions. He claims he continued to "report various incidents of misconduct" throughout 2009 despite the company's inaction.

Loscalso says he was fired after making "several escalating complaints of violations of SEC rules and regulations," and telling his bosses he was considering "alerting outside regulatory agencies ... about his concerns."

Loscalso seeks damages for fraud, wrongful firing and breach of contract. He is represented by Jennifer Bell with Bell & Bell.

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