Louisiana federal judge has upheld a $22 million award to 32 former Exxon Mobil Corp. workers who said a broker put their retirement money into inappropriate, risky investments.
The broker's former employer, Securities America Inc., may appeal U.S. District Judge Jay Zainey's order that it pay $8.2 million in attorney's fees and punitive damages as part of the award, said Paul Johnson, a spokesman for Securities America's parent, Ameriprise Financial Inc.
In a related proceeding, brokerage regulator NASD on Thursday fined Securities America an additional $2.5 million for failing to supervise the former broker, David McFadden, and ordered it to pay $13.8 million that had been part of the May arbitration settlement in restitution to the former Exxon workers.
According to the NASD, McFadden would lure Exxon workers, typically ages 50 to 60, into moving retirement money into investments he recommended, with "unreasonable and exaggerated promises of high returns."
Ameriprise Settlement
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