From Clark Howard.com:
Ameriprise and Prudential under the scope
Clark gets very upset when innocent, hard-working people save money for their futures, only to see it sifted off by huge financial companies. Back-to-back stories were published today regarding this kind of thing happening at Prudential and at a former division of American Express, known as Ameriprise. In the case of Prudential, the company has pled guilty to criminal charges for helping key insiders do what’s called “after-market trading” in their mutual funds. Basically, it allowed preferred customers to scarf up all the profits while money was taken away from regular customers. The company is now paying $600 million to avoid criminal prosecution. With Ameriprise, the former financial advisor for American Express, one of the top brokers wiped out tons of bank accounts by putting people in bad accounts. The broker focused most of his energy on retirees from Exxon, who had large retirement accounts. American Express is trying to distance itself from the news and will not be penalized. But it is clear the two were affiliated. Granted, many commissioned financial salespeople are above board. But if you trust a commissioned salesperson with your money and something goes wrong, you are out of luck. Low or no-commission accounts are the smartest way to save. Get more info with Clark’s Investment Guide.
Send stock manipulators to: enforcement@sec.gov-and to jail.
