Ameriprise Advisor Eric Dupre Accused of .8M Unauthorized Trading Scheme

Ameriprise Advisor Eric Dupre Accused of $2.8M Unauthorized Trading Scheme

Eric Anthony Dupre, previously associated with Ameriprise Financial Services, recently became the subject of considerable scrutiny within the financial industry after serious allegations of misconduct emerged. Trust is often cited as the essential cornerstone of relationships between financial advisors and their clients. Indeed, as renowned investor Warren Buffett famously said, “It takes 20 years to build a reputation and five minutes to ruin it.” Unfortunately, events such as these underscore the veracity and importance of Buffett’s cautionary words.

The case at hand

This week, the investment community was taken aback when FINRA (Financial Industry Regulatory Authority) disclosed serious charges implicating Eric Anthony Dupre—a financial advisor who built nearly two decades of career experience and held a trusted advisor role for many investors. According to the FINRA complaint, Dupre allegedly initiated unauthorized trading transactions between January 2023 and December 2024.

Over this period, the investigation documented approximately 147 unauthorized trades across at least 23 distinct client accounts. These unauthorized transactions predominantly involved speculative technology stocks and high-risk options trading, clearly departing from the stated conservative investment objectives and risk tolerance explicitly expressed by his clients. The estimated financial losses arising from Dupre’s reported misconduct exceeded a startling $2.8 million, leaving dozens of investors financially compromised and emotionally distressed.

The complaint further detailed accounts of individual impacts, including vulnerable populations such as retirees and those with conservative, retirement-focused investment strategies. One notably troubling instance featured a 68-year-old retired schoolteacher who experienced a sudden and devastating 42-percent decline in her previously stable retirement account because of Dupre’s unauthorized and aggressive approach. Such allegations resonate harshly with investors, underscoring that financial misconduct is not just a monetary issue but often a deeply personal betrayal of carefully built trust.

Notably, several additional client accounts exhibited concerning irregularities, with clients discovering unauthorized transactions only when reviewing their monthly statements—a discovery made even more troubling when multiple transactions seemed specifically timed for periods when investors were traveling, unreachable, or on vacation. This points towards a troublingly calculated misuse of trust inherent within investor-advisor relationships.

The accusations documented in the FINRA investigation include:

  • Unauthorized trading transactions undertaken without explicit client consent.
  • Breach of fiduciary duties, neglecting client financial interests.
  • Failure to observe explicit client investment objectives and risk tolerance parameters.
  • Systematic excessive trading, often termed “churning,” designed primarily to generate commissions rather than to serve client interests.

Professional background and history

Eric Anthony Dupre has been registered within the securities industry since 2004. According to FINRA’s BrokerCheck database (CRD# 4875309), Dupre’s professional timeline demonstrates longstanding positions at reputable financial institutions including:

  • Raymond James & Associates from 2004 until 2015
  • Ameriprise Financial Services from 2015 until the recent disclosures in 2024

Before this incident, Dupre’s professional track record revealed a relatively minor regulatory footprint, having accumulated only one customer dispute that was settled in 2012 for $45,000. However, it’s worth noting that disclosures—though indicative of potential problems—are not unusual in the industry. In fact, studies indicate approximately 7.3% of all financial advisors have some form of disclosure event recorded in official industry records (as described by research published in Investopedia).

Understanding the violations

The allegations against Dupre primarily revolve around violations of FINRA Rule 3260—a regulation explicitly prohibiting discretionary trades without a client’s expressed written authorization. Put plainly, financial advisors must first secure explicit client permission before initiating transactions within their accounts—a fundamental regulatory and ethical tenet designed to minimize deceptive or risky behaviors.

When financial advisors disregard their regulatory responsibilities and engage in actions such as unauthorized or excessive trading, these behaviors significantly harm investor confidence. Industry statistics suggest unauthorized trading infractions account for roughly 15% of all FINRA-reported violations annually, highlighting the severity and frequency of this troubling offense.

Beyond unauthorized trading, additional forms of investment fraud and unethical conduct—such as Ponzi schemes, high-cost unsuitable products, misleading sales tactics, and misrepresentation—plague the financial services industry. In fact, according to a comprehensive Bloomberg report, financial fraud and schemes cost investors billions of dollars each year globally, showcasing the wider-reaching impact misconduct can have on investor security and market confidence alike (Bloomberg).

Consequences and key takeaways

This situation involving Dupre is a stark illustration of the severe repercussions arising from advisor misconduct. Already, Ameriprise Financial Services has implemented internal reviews, strengthening oversight procedures in response to these allegations. There may be further severe consequences for Dupre depending on the outcome of FINRA’s ongoing investigation, potentially including:

  • Substantial monetary fines.
  • Suspension from participation in the securities industry.
  • A permanent bar from working within financial advisory roles.
  • Orders of restitution requiring repayment to affected clients.

For potential victims and concerned investors alike, there are available resources to report misconduct or confirm whether their advisor holds troubling disclosure events. Investors can visit specialized platforms such as FinancialAdvisorComplaints.com for assistance and education on identifying and addressing financial misconduct.

Consider these important lessons for safeguarding your investments:

  • Regularly review your account statements carefully for unexpected transactions or unusual activity.
  • Promptly question any unfamiliar or unauthorized trading you uncover.
  • Possess a solid understanding of your personal investment strategy, financial goals, and risk tolerance.
  • Maintain complete written documentation of all interactions, requests, discussions, and instructions you communicate to your advisor.

Did you know? Studies show that approximately $17 billion is lost annually to financial advisor misconduct within the United States alone. Such staggering figures underscore the need for consistent vigilance to safeguard financial interests and promote transparent advisor-client relationships.

This case involving Dupre serves as a critical reminder that transparency, professional accountability, and investor protection measures are essential to preserve trust in financial markets. While most advisors operate ethically and with integrity, investors must maintain an active role in monitoring their accounts’ activity for inconsistencies or signs of unethical conduct. Moving forward, financial industry experts widely predict heightened supervision efforts, stricter enforcement, and improved verification procedures as the market reacts to incidents like these.

In conclusion, your financial goals and wellbeing deserve comprehensive integrity and accountability. Staying informed, connected, and vigilant helps protect your financial future from unethical behavior. Never hesitate to question activities inconsistent with your strategies and risk expectations—in the complex world of investment, integrity and clarity should always remain at the forefront.

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