Articles Tagged with Sagepoint Financial

Stoltmann Law Offices, a Chicago-based securities and investor rights law firm continues to investigate claims by investors who were sold investments in the fraudulent note scheme Future Income Payments. Investors have rights and if you were solicited to invest in Future Income Payments by your financial advisor, you may have a claim to pursue for negligence or fraud. According to an article that appeared on ThinkAdvisor, former SagePoint financial advisor Troy Baily solicited several clients to invest in securities offered by Future Income Payments (“FIP”).  FIP turned out to be a multi-million dollar pension scam with investors losing everything.  According to the article, Baily submitted to what is called an “Acceptance, Waiver, and Consent” with the Financial Industry Regulatory Authority as a result of these ill-fated solicitations.

An AWC  is essentially the formal settlement of a regulatory investigation conducted by FINRA of a licensed financial advisor. In this instance, Baily accepted FINRA’s conclusion that he solicited four SagePoint clients to invest a total of $210,000 in securities offered by Future Income Payments.  In so doing, he violated FINRA Rule 3280 and FINRA Rule 2010. As punishment for his violations, Baily accepted a six-month suspension and a fine in the amount of $5,000.  Although an AWC is technically not an admission of fault or guilt, the facts alleged by FINRA are clear and do not require interpretation – Baily sold FIP investments to his SagePoint clients.

The best bet for victims, especially those who were Baily’s clients, is to pursue his broker-dealer, SagePoint through FINRA Arbitration. As we have said in the past, brokerage firms are ultimately responsible and liable for the misconduct of their agents. Here, there are two separate routes investors can take to recover against SagePoint. The first is through the legal theory of apparent agency, or Respondeat Superior. This is an age-old legal concept that the principal is responsible for the conduct of its agent, so long as the conduct is performed in the course and scope of that agency relationship. Here, Baily sold securities, provided investment and financial advice, to clients to invest money in FIP. That is clearly within the scope of his agency relationship with SagePoint.

The news continues to get worse for the thousands of retail investors with money locked-up in various GPB Capital Funds. Those funds include the GPB Automotive Fund, GPB Waste Management Fund, and GPB Fund II, amongst others. Stoltmann Law Offices has been investigating these funds for several months. We have filed roughly two dozen FINRA Arbitration claims on behalf of our clients to recover their losses in these funds from the brokerage firms responsible for soliciting them to invest in these ill-fated private placements.

On November 22, 2019, GPB sent a letter to their “partners” informing them of some really bad news.  The recent indictment of GPB Capital’s Chief Compliance Officer by the United States Attorney for the Eastern District of New York for obstruction of justice, amongst other claims, has caused the auditing process to fall off the rails. All of those promises by GPB to investors, all of those promises repeated by financial advisors to their clients, that GPB was well on its way to finally providing restated, audited financial statements, have officially been broken. The letter states that GPB’s auditor has “decided to suspend work on outstanding financial statement audits. In addition, the Audit Committee has elected to resign effective ups the earlier of the completion of the Rosenberg Investigation or by November 27, 2019.” The “Rosenberg investigation” is the self-implemented third party investigation into how the company’s CCO obstructed justice, and what GPB knew and when it knew it. Well, according to the indictment, detailed on this blog last month, GPB hired the CCO with knowledge that he had confidential information obtained from his participation in the SEC’s investigation of GPB. They knew he had  obtained information from the SEC in the course of its investigation, it would seem, and GPB made him their chief compliance officer.

The November 22, 2019 notice also eviscerates another false narrative promoted by GPB and passed along to clients by financial advisors, who are scrambling at this point to come up with excuses.  Despite operating in a red-hot economy where car sales are through the roof, the GPB Automotive Fund has managed to lose over $200 million and GPB Holdings II has lost roughly $125 million.  To add insult to injury to the investors stuck holding this rapidly depreciating asset, GPB is not allowing investors to unload their units on secondary markets.  Unfortunately for investors, this is what a Ponzi scheme looks like when it is no longer able to attract new investor money.

We are investigating James J. Albright, Jr., and Sagepoint Financial, Inc. f/k/a AIG Financial Advisors, with an office in Manitowoc, Wisconsin and additional activities in Racine, Wisconsin for sales of non-traded REITs. The investigation is based off of Mr. Albright’s recommendation to purchase high risk and illiquid non-traded real estate investment trusts (“REITs”) for the accounts of clients. If you are a client of Mr. Albright or Sagepoint Financial, please contact us for a no obligation consultation on recovering losses in the non-traded REITs.

Timothy Payne, a former registered broker with Wilbanks Securities, recently entered into a Letter of Acceptance, Waiver and Consent (AWC) with the Financial Industry Regulatory Authority (FINRA). Payne was accused of engaging in dishonest and unethical practices in the securities, investment and/or insurance business by the State of Missouri. He was ordered to pay $17,750 in restitution ($10,000 of which is suspended provided he complies with the terms of the Consent Order and the Missouri Securities Act) and a $20,000 civil penalty, which was also suspended. For this, Payne was barred from the industry. Payne was registered with MML Investors Services, Wilbanks Securities in Oklahoma City, Oklahoma from August 1999 until March 2008, Sagepoint Financial, Wilbanks Securities in Oklahoma City from June 2009 until February 2014, Investors Capital and Adirondack Trading Group. He is not currently registered with any member firm and has one customer dispute against him. He is not licensed within the industry. Please call our law offices today to speak to an attorney about your options of suing Wilbanks Securities in the FINRA arbitration forum. The firm may be responsible for investment losses because it did not properly supervise Payne and allowed him to make transgressions. The call to us is free. 312-332-4200.

toltmann Law Offices is investigating Ricky Moore, a registered representative with SagePoint Financial in Angleton, Texas. He was accused of participating in an undisclosed outside business activity constituting the facilitation of a church bond offering for a church. Mr. Moore “engaged in the undisclosed outside business activities by acting as the president and director of the church and by facilitating the church bond offering for the church and independently failed to observe high standards of commercial honor and just and equitable principles of trade when he engaged in activities with the church beyond those previously disclosed and without getting prior written consent, as the firm required in its letter approving his role as a minister.” On a separate occasion, Moore advised a client to invest in an unapproved product, while he was employed at Commonwealth Financial Network. He also allegedly recommended a portfolio overly concentrated in variable annuities and real estate investment trusts (REITs). These are all against securities rules and regulations.

According to his online public FINRA BrokerCheck report, Moore was registered with AG Edwards & Sons in St. Louis, Missouri from March 1995 until May 2002, LPL Financial in Angleton, Texas from May 2002 until February 2009, Commonwealth Financial Network in Angleton from February 2009 until October 2013 and Securities America in Angleton from October 2013 until December 2013. He is currently registered with SagePoint Financial in Angleton and has been since December 2013. He has three customer disputes against him, one of which is currently pending.

According to publicly available records published by the Financial Industry Regulatory Authority (FINRA), former Sagepoint Financial broker Timothy Dufresne was permanently barred from associating with firms that sell securities to the public. Allegedly, Dufresne, while associated with SagePoint, misrepresented material facts related to a variable annuity. He also converted at least $400,000 from customers by improperly obtaining distributions of funds from the customers’ variable annuities, depositing the funds in his business account, and using the funds for his own benefit. For this, he was permanently barred from acting as a broker or otherwise associating with firms that sell securities to the public.

Timothy Dufresne was registered with Franklin Financial Services Corp in Houston, Texas from September 1999 until October 2002, American General Securities in West Bend, Wisconsin from October 2002 until October 2008 and SagePoint Financial in Bamberg, South Carolina from October 2008 until March 2016. He has two customer disputes against him, one of which is currently pending. He is not licensed within the industry and FINRA has permanently barred him.


Did you suffer investment losses with Timothy Francis Dufresne, formerly with SagePoint Financial? If so, please call our law offices based in Chicago at 312-332-4200 for a free consultation with an attorney. His former firm, SagePoint, may be responsible for financial losses incurred. We sue firms such as SagePoint in the Financial Industry Regulatory Authority (FINRA) arbitration forum on a contingency fee basis, so we don’t get paid unless you recover money. Please call today as time is of the essence.

Timothy Francis Dufresne entered into a Letter of Acceptance, Waiver and Consent (AWC) with FINRA in connection with allegations that he engaged in misconduct with customers’ funds. He was accused of converting $400,000 from a minimum of three customers. Dufresne solicited customers to distribute funds from their variable annuities, the proceeds of which he deposited into his own business account without the knowledge of the customers. He then allegedly used the money for his own personal benefit. He was barred from the industry because of it.

According to his online FINRA BrokerCheck profile, Dufresne was registered with Franklin Financial Services, American General Securities and SagePoint Financial in Bamberg, South Carolina from October 2008 until March 2016. He has one customer dispute against him and one Judgment/Lien. He is not licensed within the industry and FINRA permanently barred him.

Stoltmann Law Offices is investigating Willbanks Securities and two of its registered representatives, Timothy N. Payne and Michael Inderlied. According to a Missouri Securities Division settlement, Inderlied and Payne recommended that an elderly, widowed investor client purchase annuities and then prematurely liquidate them. They also allegedly sold the same client an unsuitable bond fund, and they told her to sell her home to make additional investments. In August 2010, Payne and Inderlied met with the client a day before her husband’s funeral and had her sign three Prudential variable annuity applications. Allegedly, 15 months later, they recommended that she liquidate the annuities to invest in additional annuities, which caused the client to pay significant surrender charges. Payne and Inderlied were each required to pay $17,500 in restitution and pay civil penalties of $20,000 because of this.

Timothy N. Payne was registered with MML Investors Services in Springfield, Massachusetts from March 1996 until July 1999, Wilbanks Securities in Oklahoma City, Oklahoma from August 1999 until March 2008, SagePoint Financial in Oklahoma City from March 2008 until June 2009, Wilbanks Securities in Oklahoma City from June 2009 until February 2014 and Investors Capital Corp in Oklahoma City form January 2014 until March 2015. He is currently registered with Adirondack Trading Group in Woodstock, New York and has been since April 2015. He has one customer dispute against him.

Michael Inderlied was registered with the following firms: The Prudential Insurance Company of America, Pruco Securities Corp, Carillon Investments, G.R. Phelps & Co., MML Investors Services, MIMLIC Sales Corporation, Wilbanks Securities in Oklahoma City, Oklahoma from July 1999 until March 2008, Sagepoint Financial, and Investors Capital Corp. He is currently registered with Adirondack Trading Group in New Woodstock, New York and has been since April 2015. He has two customer disputes against him.

Stoltmann Law Offices is investigating Jeffrey B. Pierce because of allegations that he violated securities industry rules by making annuity switches in customer accounts. Pierce allegedly circumvented his firm’s procedures in order to conceal annuity switches involving seven customers. He also provided false documentation to his firm, MidAmerica Financial, regarding the switches. The switches in seven customer accounts were unsuitable for the customers, whose ages ranged from 66 to 74, and Pierce made intentional material misrepresentations to them and his firm. He also fraudulently and willfully failed to inform four customers of material facts pertaining to surrender charges, tax liabilities and exchanges to defer taxes. Annuity switches are contracts where, in return for an investment of a lump sum of money, and insurance company promises to make periodic payments to an investor, at a future time and they can have fixed or variable rates of return. These rates vary with stock, bond and money market sub-accounts. They are intended to be long-term investments, typically ranging from five to eight years.

Jeffrey Pierce took many actions to conceal the annuity switches from his firm. He allegedly had the annuities paid by check and mailed to MidAmerica, rather than depositing the proceeds into customer accounts, so the firm would not make the connection between the liquidation of the old annuities and the purchase of the new. He also provided false information on Annuity Reporting Sheets as to the funding source for the new annuity purchases in the seven customer accounts, and he also failed to complete a Firm Replacement Switch Disclosure Form, which is required when a client replaces an annuity. For these, Pierce was fined $25,000 and suspended from the industry for one year.

Pierce was registered with BankBoston Investor Services in Boston, Massachusetts, from March 1999 until April 2000, FIS Securities in Boston from April 2000 until September 2000, IFMG Securities in Boston from October 2000 until May 2008, Investors Capital Corp in Quincy, Massachusetts, from June 2008 until September 2008, SagePoint Financial in Quincy from February 2009 until June 2009 and MidAmerica Financial Services in Quincy, from September 2009 until December 2013. He has five customer disputes against him, and is not currently with any member firm. He has been permanently barred from the industry by the Financial Industry Regulatory Authority (FINRA). Jeffrey Pierce’s former firm, MidAmerica Financial, can be held liable if you lost money with Pierce. They had a duty to reasonably supervise him while he was employed with them. If you invested money with him or his former firm, please call our law offices at 312-332-4200 to speak to an attorney. The call is free and we sue firms such as MidAmerica to help investors recover their financial losses.

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