Former Securities America broker pleads guilty to fraud

A former Baton Rouge securities broker has pleaded guilty in federal court in New Orleans to conspiring to commit securities fraud. A plea agreement calls for David Lester McFadden, 62, of Orange Beach, Ala., to face a minimum sentence of 18 months in prison and a maximum of two years in prison for conspiring to defraud Exxon retirees out of their retirement. Federal prosecutors say McFadden promoted himself as a certified public accountant and financial planner but failed to tell clients that he hadn’t been a licensed CPA since 1987. McFadden also was accused of falsely representing the nature of investments that he was making for clients. 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. His sentencing by U.S. District Judge Carl Barbier is set for Aug. 19.