New Jersey's Attorney General, Peter C. Harvey , has reached an agreement with American Express Financial Advisors (AEFA) over allegations that the company failed to reasonably supervise its financial advisers. The case involved a New Jersey broker named Arthur Davidson, who stole over $400,000 from at least 22 clients. Davidson has pleaded guilty to charges of theft by deception.
"In investigating and prosecuting this individual, we identified a larger issue of inadequate supervision of the company's financial advisers," Harvey said. "To its credit, American Express has worked cooperatively with our office to address deficiencies in its oversight of financial advisers. Our shared goal is to ensure that investors who rely on the American Express brand are treated fairly and that American Express supervises its agents so that investors' dollars are protected."