Ameriprise Financial on Monday sued a former broker of the firm in a federal court in St. Louis, Missouri, claiming he had yet to pay more than $747,555 that was awarded to it on March 13 by a Federal Industry Regulatory Authority arbitration panel.
The firm alleged that the broker, Matthew M. Beaver, failed to repay promissory notes when he was terminated in 2018. The broker alleged he was wrongfully terminated.
In a lawsuit filed in the U.S. District Court for the Eastern District of Missouri, Eastern Division, Ameriprise requested that the court confirm the three-person FINRA arbitration panel award and enter a judgment against Beaver.
Beaver joined Ameriprise in 2015 after leaving Edward Jones, according to FINRA’s BrokerCheck website. Ameriprise terminated him on or around Jan. 3, 2018, it said in the suit. A reason for the termination was not cited.
Asked on Thursday why the firm terminated Beaver, Ameriprise only provided a statement, saying: “We believe this case speaks for itself. FINRA sided with Ameriprise and awarded the full outstanding loan balance. Additionally, a FINRA arbitration panel denied the claims of wrongful termination.”
Beaver did not immediately respond to a request for comment Thursday.
In a Statement of Claim in the FINRA arbitration dispute, Ameriprise claimed Beaver executed two promissory notes, dated July 8, 2015 and March 23, 2016, that became immediately due and payable when his employment with the firm ended.
Firms frequently file FINRA arbitration complaints over promissory notes former brokers have yet to pay.