Troy R. Baily has settled with the Financial Industry Regulatory Authority (“FINRA”) after allegations of misconduct. In the FINRA settlement, Baily consented to the FINRA sanctions of a six-month suspension and a $5,000 fine.
Baily was a registered representative and broker for SagePoint Financial, Inc. from November 2016 through March 2018. According to FINRA, Baily had engaged in undisclosed and unapproved private securities transactions totaling $210,000. These transactions violated FINRA Rule 3280(e) because Baily acted outside of the regular scope of his employment and registration.
A violation of FINRA Rule 3280 is also a violation of FINRA Rule 2010, which requires associated persons, in the conduct of their business, to observe high standards of commercial honor and equitable principles of trade.
According to FINRA, Baily also solicited investors to purchase securities in Future Income Payments, LLC (FIP). FIP represented itself as a structured cash flow investment targeting retirees. However, FIP faced lawsuits nationwide after retired investors lost $100 million on a sham pension scheme. After FIP ceased business, FIP owed nearly $300 million in unpaid investor payments. As a result, the U.S. charged FIP with conspiracy to engage in mail and wire fraud.
Unfortunately, some brokers, bankers, and advisors dishonor the high standards imposed on them by FINRA. FINRA Rules also require brokerage firms to properly supervise their employees. According to FINRA Rule 3110, brokerage firms have a duty to properly and adequately supervise their financial advisors. SagePoint Financial, Inc. allegedly failed to properly supervise Troy R. Baily and is therefore liable for Baily’s misconduct.
FINRA broker-dealers are required to establish effective supervisory systems and procedures in order to oversee all activities of their financial advisors. When brokerage firms fail to adequately supervise their advisors and customers are harmed, customers may be able to recover damages through a FINRA arbitration.
Levin Law has recovered losses for investors because of brokerage firm’s failure to supervise their brokers. Levin Law founder Brian Levin has recovered tens of millions of dollars for customers who have suffered losses as a result of broker and brokerage firm misconduct.
About Levin Law
Levin Law is a premier national securities and class action law firm with significant experience. Brian Levin, Levin Law’s founding attorney, has helped recover over $100,000,000 through securities arbitration and litigation for individual and institutional investors throughout the country and the rest of the world. Levin Law represents retirees, individual investors, high-net-worth investors, ultra-high-net-worth investors, institutions, family offices, trusts, publicly held companies, and others. Visit us atwww.levinlawpa.com or call us (305) 402-9050 for a free case evaluation.