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You may have lost money in your investment portfolio,
due to mismanagement and not even know it.

Not even family members spared from this broker's fraud

Close proximity to money (lots of money), coupled with the sheer pull of greed, can certainly cloud a person's judgment and lead to adverse consequences, both for himself and others.

The world of investment advisers certainly provides strong evidence of that, with stories of broker wrongdoing recurrently featuring from coast to coast, replete with details that underscore the vulnerability of innocent investors and the sharp economic losses they can suffer when they are fleeced by bad-faith brokers.

The publication Investment News recently reported an incident that is, sadly, quite representative of broker behavior that often surfaces to undermine the reputation and standing of investment houses and agents working within them.

In that matter, an Ameriprise Financial Services broker unlawfully transferred funds from multiple customer accounts over a two-year period, depositing them into an Ameriprise company account and subsequently withdrawing them "to pay himself additional salary and commissions he had not earned."

Such a story is not without precedent in the investment world, but what does give it a singular twist in the Ameriprise matter is that the broker was bilking his own family members, misappropriating money from the accounts of his mother, grandparents and additional parties.

All told, he illegally transferred more than $370,000.

The Investment News report does not indicate whether criminal action was taken against that individual. The broker was barred from the profession following the investigation that revealed his fraud.

And Ameriprise was also called to account by the Financial Industry Regulatory Authority, with that regulatory body levying a fine of $850,000 on the company for lax supervision of its ex-employee.

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