The Financial Industry Regulatory Authority has barred a former broker for Ameriprise Financial who allegedly took unauthorized loans from two clients, Advisor Hub reports.
The case involving Eric A. Dupre from San Antonio, Texas, was detailed in FINRA’s letter of acceptance, waiver and consent. The alleged actions took place between September 2022 and February 2023, at a time when Dupre was said to have been experiencing financial difficulties.
FINRA said Dupre allegedly borrowed more than $2.1 million through several transactions from a 77-year-old customer, saying he would pay back the principal of the loan plus an additional amount. The customer borrowed funds for the loan on margin from his Ameriprise account, which incurred substantial margin debt.
“Given his financial circumstances at the time he borrowed the money from the customer, Dupre did not have a reasonable expectation of repaying the loans,” according to FINRA, which added he has yet to repay the customer.
Also in September 2022, Dupre allegedly borrowed $65,000 from a married couple, which he repaid in December 2022. In each case, Dupre did not seek or obtain permission from Ameriprise before taking the loans. He was fired from Ameriprise in December 2024 over allegations of violating company policy related to borrowing from clients.
“Mr. Dupre violated firm policy and was terminated,” an Ameriprise spokesperson said in a statement. “He circumvented our controls by conducting his activity away from the firm, and his actions were wholly inconsistent with our code of conduct and strict compliance standards.”
Dupre was found to have violated FINRA Rule 3240, which prohibits a registered person from borrowing from or lending money to his or her customer unless: (1) the member has written procedures allowing the borrowing and lending of money between such registered persons and customers of the member and (2) the borrowing or lending arrangement meets at least one of five conditions specified in the rule.
A violation of FINRA Rule 3240 is also a violation of FINRA Rule 2010, which requires members and their associated persons to “observe high standards of commercial honor and just and equitable principles of trade” in the conduct of their business.
Jonathan A. Scobie with Stevens & Lee in Princeton, New Jersey, who represented Dupre in the settlement, did not respond to a request for comment. Dupre could not be reached for comment.
According to BrokerCheck, Dupre began his career with Rauscher Pierce Refsnes in 1994 and worked at firms including UBS and Raymond James & Associates before moving to Ameriprise in 2020.
He has a pending customer complaint from May 24 that seeks $3 million for a claim alleging that he recommended that customers “invest in a “cryptocurrency opportunity.” The complaint alleges that he instead misappropriated the funds, stealing more than $2.6 million.
Hyman Cotter PC routinely represents investors harmed when financial professionals and their firms engaged in misconduct that caused their clients investment losses. Our team includes lawyers who have worked for large financial institutions, including Morgan Stanley and UBS Financial Services, and regulatory bodies such as the SEC. If you think your financial professional or firm engaged in misconduct that caused you investment losses, contact Hyman Cotter PC at 312-291-4600 or through our online contact form for a no-cost evaluation of your matter.
