Articles Posted in Ameriprise Financial Services

Stoltmann Law Offices has been following the Justice Department’s case against former Ameriprise Financial advisor Yilin Hsu Lee, a/k/a Li Lin Hsu, since 2016 when she was barred by the Financial Industry Regulatory Authority (FINRA).  On Friday, January 31, 2020, the Justice Department announced that Hsu had been sentenced to 136 months in prison – more than 11 years – for swindling her clients out of almost $8.2 million dollars. Amongst her more than 20 victims were members of her family, an all too common fact in Ponzi scheme cases like this.  Although she has been ordered to pay over $5 million in restitution as part of her sentence, it is unlikely she will ever be able to repay even a fraction of what she owes to the victims.

According to the U.S. Department of Justice, Hsu’s scam ran from February 2014 to May 2018. During this time, it was alleged that she falsely represented to investors that she would invest their money safely.  Instead of investing the money conservatively as she represented, Hsu converted her clients’ money and used the funds to buy homes in Diamond Bar, California, a Tesla automobile, an expensive stay at the Peninsula in Paris, France, and spent thousands of dollars of her clients’ hard-earned money during shopping sprees at Hermes and Chanel.

Hsu gained the trust of her victims, mostly members of the Chinese American community in Southern California, by speaking to them in their native Chinese or Mandarin. This is called Affinity Fraud which is a specific type of scam where the schemer solicits his victims from a select community, usually one he is actually a part of. Affinity Fraud scams impact specific ethnic and religious groups. In Hsu’s case, she focused her fraudulent scheme on the Chinese American community.  Her ability to speak the same language and understand the customs of her victims made her even more dangerous, and even easier for her victims to fall for her fraudulent sales pitch.  As pointed out by the Securities and Exchange Commission, Affinity Fraudsters may not actually be members of the community they seek to victimize, they just pose as a member, in a true crime sense.

If you are interested in suing Ameriprise Financial in a class actions lawsuit, the attorneys at Stoltmann Law Offices may be able to help. Every year, Ameriprise gets sued dozens of times in class actions lawsuits, for various violations of state and federal securities laws. Ameriprise, like most other brokerage firms, has a binding arbitration clause in every new account agreement that means that for most claims, if you would like to sue Ameriprise, it must be done through the binding arbitration process, and not in the class action process. There are some avenues through which the brokerage firm can be sued in a class action lawsuit. For example, securities fraud issues where Ameriprise is the underwriter.  If you would like to file a class action lawsuit claim against Ameriprise, please call us at 312-332-4200 today.

CNBC
FOX Business
The Wall Street Journal
Bloomberg
CBS
FOX News Channel
USA Today
abc NEWS
DATELINE
npr
Contact Information