A former independent broker affiliated with Ameriprise Financial was the subject of disciplinary action after being indicted on illegal gambling charges, according to AdvisorHub.
Elias C. Gerodemos, who worked with Ameriprise in Crown Point, Indiana, was discharged from the firm in May following the indictment the previous month in federal court for the Northern District of Indiana.
The Financial Industry Regulatory Authority has now barred Gerodemos for refusing to provide information and documents requested in its investigation into the pending felony criminal charges against him, according to FINRA’s settlement letter.
Without admitting or denying FINRA’s allegations, Gerodemos consented to the industry bar for his rule violations.
FINRA Rule 8210(a)(1) requires a “member, person associated with a member, or any other person subject to FINRA’s jurisdiction to provide information orally, in writing, or electronically . . . with respect to any matter involved in [a FINRA] investigation, complaint, examination, or proceeding.”
FINRA Rule 8210(c) provides that no member shall fail to provide information or testimony or to permit an inspection and copying of books, records, or accounts pursuant to the rule.
A violation of FINRA Rule 8210 is also a violation of FINRA Rule 2010, which requires member firms to observe high standards of commercial honor and just and equitable principles of trade in the conduct of their business.
FINRA began its investigation after Ameriprise’s Form U5 termination filing detailing Gerodemos’s discharge for violating the firm’s code of conduct.
Gerodemos and 21 others were named in an 87-page indictment accusing them of operating an illegal gambling business, conspiracy to commit money laundering and transmitting wagering information.
Federal prosecutors said that over a five-year period, the defendants allegedly operated out of two Indiana restaurants, using websites, text messages and phone calls to facilitate sports bets. Bettors were allegedly given lines of credit to place wagers without putting up cash upfront, while members of the group used money from losing bettors to pay winners.
The alleged operation, which generated millions of dollars, used a network of bookmakers and agents to collect money and pay winnings, moving funds through cash, checks, wire transfers and apps such as Zelle while tracking balances through coded messages.
The indictment also states that members of the organization also made threats of violence to collect gambling debts, including allegedly threatening bettors’ relatives.
An Ameriprise spokesperson said Gerodemos was “a former associate financial advisor of an independent practice who is no longer affiliated with the firm.”
“Ameriprise Financial has zero tolerance for illegal behavior,” the spokesperson wrote in a statement. “Upon learning of the associate advisor’s reported conduct, Ameriprise and the independent practice moved quickly to suspend and terminate him.”
Gerodemos’ lawyer, Kenneth Yeadon of Hinshaw & Culbertson in Chicago, declined to comment. Gerodemos did not respond to a request for comment sent through social media, AdvisorHub reported.
Gerodemos and the other defendants pleaded not guilty on May 14 in federal court in Hammond, Indiana.
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