Ameriprise Hit With $1.165 Million Arbitration Award for Selling Unsuitable Real Estate Investments

Online, May 6, 2014 (Newswire.com) - Ameriprise Financial Services, Inc. ("Ameriprise") joined the real estate party late, waiting until mid-late 2007 to begin marketing tenant-in-common investments ("TICs"). Albertus Niehuis, Jr., an 82 year old retired high school math teacher, and his wife, Andrea S. Niehuis, a retired elementary school teacher, visited an Ameriprise branch office in Palo Alto, California, for financial planning advice on their "negative cash flow" and became victims of Ameriprise's new product line. Their financial planner, Brett M. Macauley, recommended that they invest $1,034,000 in three TIC investments in early 2008. One of these investments went belly up and the other two have declined substantially in value. The Niehuises lost most of their life savings and Ameriprise and its financial advisor split $84,198.06 in commissions and other compensation.

A San Francisco, California, arbitration panel agreed last week with the Niehuis' claims that these real estate investments were unsuitable. The panel ordered Ameriprise to rescind two of the transactions and to pay $1,165,882 to the Niehuises. The award included $240,265 in attorneys' fees.

"The evidence showed that Ameriprise repeatedly failed to follow its supervisory procedures," says Kalju Nekvasil, Esq. of Goodman & Nekvasil, P.A., the Niehuis' Clearwater, Florida, attorney. His firm has seven other pending cases against Ameriprise or its affiliate, Ameriprise Advisor Services, Inc., f/k/a H&R Block Financial Advisors, Inc., concerning the sale of these products. Mr. Nekvasil pointed out that "Ameriprise spends what surely must be millions of dollars in television advertising promoting the message that investors can trust the firm with their retirement savings. Ameriprise's business slogan is 'we shape financial solutions for a lifetime.' It is truly unfortunate that when an investor is wronged, Ameriprise refused to voluntarily step up to the plate and do the right thing," says Mr. Nekvasil.

Important Telephone Numbers

Attorneys for Albertus Niehuis, Jr. and Andrea S. Niehuis
Kalju Nekvasil, Esq.
Goodman & Nekvasil, P.A.
14020 Roosevelt Blvd., Suite 808
P.O. Box 17709
Clearwater, FL 33762
727-524-8486
727-524-8786 (fax) - email address: [email protected]

Attorneys for Ameriprise Financial Services, Inc.
Bryan C. Keane, Esq.
Sydney H. Crowder, Esq.
Dorsey & Whitney, LLP
50 South Sixth Street, Suite 1500
Minneapolis, MN 55402-1498
Main: 612-340-2600
Direct: 612-492-6748 (Crowder)
Direct: 612-492-6638 (Keane)
[email protected]; [email protected]