Peter Butler, a former Ameriprise broker, was terminated by the firm in January of this year over claims alleging selling away and violation of company policy related to disclosure of an outside activity. The Financial Industry Regulatory Authority (FINRA) found that Butler reasonably failed to supervise a broker who was employed as a sales associate and office manager. FINRA also found that he failed to detect and prevent the office manager from converting money from a business organization belonging to Butler. FINRA claimed that the office manager “used this control to convert funds from the business in order to pay himself an additional salary and unauthorized commissions, as well as to otherwise take money to which he was not entitled. In addition, funds were converted from firm customers who were also his family members and domestic partner by depositing those funds into the business’ bank account, from which he continued to make unauthorized withdrawals.”
“Selling away” is a term used when a financial advisor solicits investments in companies, promissory notes, or other securities that are not pre-approved by the broker’s affiliated firm. FINRA rules dictate that the firm is obligated to reasonably supervise its brokers, and selling away misconduct typically occurs when brokerage firms either fail to put in place a reasonable supervisory system or fail to actually implement that system. Supervisory failures allow brokers to engaged in unsupervised misconduct that can include all manner improper conduct, including selling away.
Mr. Butler was previously registered with The Prudential Insurance Company of America, Pruco Securities Corp, New England Securities, Metropolitan Life Insurance Company, MetLife Securities, Signator Investors and Ameriprise Financial Services in Cambridge, Ohio from March 2010 until February 2017. He has five customer disputes against him, one of which is currently pending. These alleged misrepresentation of variable annuities, and other things. He is currently not registered within the industry, according to his online public records with FINRA.
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