A former Baton Rouge securities broker has been charged by the U.S. Attorney’s office in New Orleans with a felony by allegedly conspiring to defraud Exxon retirees out of their retirement. According to a court filing, David McFadden “put himself in the position to sell high-commission variable annuities and mutual funds to clients, made material misrepresentations and omissions related to his qualifications, the diversification of stocks, and the investment returns he would achieve.”
McFadden worked as a broker for Securities America, which is owned by Ameriprise Financial. In 2006, arbitration panel ruled that 32 former Exxon workers in the Baton Rouge area should get $22 million from Ameriprise after McFadden invested their retirement money in risky stocks in order to collect hefty profits on commissions. McFadden, who gave up his securities license in 2006, told clients he was a certified public accountant, even though he had not been a licensed CPA since 1987.
