Posted in:
When people invest in brokerage firms, they’re putting their trust in everyone at that firm. Their time, their money, and confidential information are entrusted to professionals who are supposed to always be acting on the best interests of the client.
Considering the current financial climate, investors now know that is not always the case.
Last week a former sales assistant of Citigroup, Inc., Tamara Moon of Redwood City, California, was barred by FINRA for allegedly stealing more than $850,000 from 22 of her firm’s clients.
And as if that wasn’t disturbing enough—Moon also stole $30,000 from her own father’s account. The list of defrauded customers also included a U.S. diplomat, widows, and elderly couples.
FINRA said Moon did this over the course of eight years while working for Citigroup, forging customer signatures in order to transfer money to her private account. According to a Reuters article, she falsified her firm’s account records and then used the money to support her lavish lifestyle—which included a remodel of her home. Moon has accepted FINRA’ decision, but has not yet responded to the allegations.
As for Citigroup, they have agreed to repay the defrauded clients but have not yet made clear how Moon, a sales assistant, had full access to the confidential records for those clients. According to FINRA’s full disciplinary report on Moon, no inquiries or investigations were made into her activities until May of 2009.
“Firms have an obligation to supervise all of their personnel, including sales assistants who have access to confidential customer account information,” Susan L. Merrill, FINRA’s enforcement chief said in a statement released last week.
But where does that leave us, the investors?
Even if an investor has a broker they can trust, their entire savings could be at risk if their investment firm like Citigroup can’t properly supervise its own employees. As for FINRA, they have again proven they are only capable of putting a stop to investment fraud after the damage has already been done.
