FINRA Suspends Angel W. Bardeche Over Allegations of Unsuitable Mutual Fund Trading

Bardeche is suspended for a period of nine months and ordered to pay a fine of $10,000.

The Sonn Law Group is investigating allegations that Angel Bardeche made unsuitable trades. If you or a family member has suffered losses investing, we want to discuss your case. Please contact us today for a free review of your case.

Angel Wynette Bardeche (CRD#: 4698117) was previously employed as a broker with Ameriprise Financial Services from 2012 until 2019. Bardeche signed an Acceptance, Waiver & Consent consenting to FINRA’s sanctions in the form of a nine-month suspension, a $10,000 fine, and disgorgement of ill-gotten gains in the form of $5,000.

Bardeche also consented to FINRA’s findings that she recommended and effected an unsuitable strategy in recommending that her customers effect a pattern of switching of Class A mutual fund shares, including short-term liquidations.

The findings stated that Bardeche recommended that customers purchase Class A mutual fund shares, later sell those funds, and then use the proceeds to buy more Class A mutual fund shares. In many instances, she recommended that the customer purchase Class A shares and later sell them after only a short period (and use the proceeds to buy more Class A shares).

In some instances, the customer sold the first Class A mutual fund within 18 months of purchasing it, and in some instances the customer sold the first Class A mutual fund within a year of its purchase. The customers paid a total of about $450,000 in sales charges on the switches. 

Bardeche also recommended costly back-to-back, short-term switches. For example, Bardeche recommended that a senior customer sell Class A shares that the customer had held for only 10 months and use the proceeds to buy new Class A shares that included over $3,100 in new sales charges. About eight months later, however, Bardeche recommended that the customer sell again and use the proceeds in a switch to buy other Class A shares that carried over $2,600 in new sales charges.

Bardeche did not have a reasonable basis to believe that this recommended pattern of switching and short-term liquidations of mutual fund Class A shares was suitable for her customers. FINRA also stated that Bardeche exercised discretion by effecting trades in non-discretionary customer accounts, without prior written authorization from the customers and without prior written approval by her member firm.

Bardeche has five other disclosures on her BrokerCheck report.

August 2019 Customer Dispute

• Status: Settled
• Allegations: The client alleged her former advisor did not disclose the surrender charge or annual fees associated with the variable annuity purchased in 2015.
• Damage Amount Requested: $9,993.05
• Settlement Amount: $51,545.16

August 2019 Customer Dispute

• Status: Settled
• Allegations: The client alleged her former advisor did not explain there was a surrender charge associated with the variable annuity purchased in 2013.
• Damage Amount Requested: $8,000.00
• Settlement Amount: $122,000.00

August 2019 Customer Dispute

• Status: Settled
• Allegations: The client alleged his former advisor did not disclose that the variable annuity purchased in 2014 had a 10-year surrender period and associated surrender charges.
• Damage Amount Requested: $14,455.00
• Settlement Amount: $138,277.65

April 2019 Employment Separation After Allegations

• Firm Name: Ameriprise Financial
• Termination Type: Discharged
• Allegations: The registered representative was terminated for company policy violations related to failing to obtain authorization from clients prior to placing trades and mutual fund trading activity.
• Broker Comment: My discharge was unjustified. I strongly dispute the assertion that I failed to obtain client authorization prior to making trades; I have always discussed every transaction with every client, prior to that execution. And I dispute the assertion that I violated company policy concerning mutual fund trading activity; I thoroughly discussed every mutual fund transaction made on behalf of a client, and completed firm documentation reflecting the purposes of each transaction.

April 2019 Customer Dispute

• Status: Settled
• Allegations: The client alleged their former advisor did not disclose the front-end sales charges associated with recommended mutual fund purchases.
• Damage Amount Requested: $108,874.80
• Settlement Amount: $68,500.00

Contact Us Today

The Sonn Law Group is currently investigating allegations that Angel Bardeche made unsuitable trades. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.