10.0David P Neuman
(720) 599-3505

SagePoint Financial Sold Unsuitable UITs to Customers & Pays $1.6M

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11
Jun

SagePoint Financial Sold Unsuitable UITs to Customers & Pays $1.6M

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SagePoint Financial Sold Unsuitable UITs to Customers & Pays $1.6M

SagePoint Financial Ordered by FINRA to Pay $1.6 Million Regarding UIT Sales

Have you lost money investing in Unit Investment Trusts (UITs) with SagePoint Financial, the Phoenix, Arizona-based brokerage firm?  SagePoint was under an investigation by FINRA, the Financial Industry Regulatory Authority.  FINRA alleged that SagePoint failed to adequately supervise the sales and switching of Unit Investment Trusts. 

UITs are not designed for short-term trading because of their commissions and costs of trading.  Between January 2013 to December 2017, SagePoint representatives recommended on hundreds of occasions that their customers sell their UITs and then purchase new, different UITs.  FINRA alleged this to be unsuitable in view of the frequency and costs of trading, which can be as high as 3.95%.  FINRA alleged that these switches costed customers over $1.3 million in charges that they would not have incurred if the UITs were held to maturity.  To settle these allegations, SagePoint was ordered to disgorge the $1.3 million in extra fees and also had to pay a fine of $300,00.

Brokerage firms like SagePoint have a responsibility to adequately supervise all representatives who are registered through their firm.  Brokerage firms also must take steps to ensure that their financial advisors follow all securities rules and regulations, as well as internal firm policies.  When brokerage firms fail to adequately supervise their registered representatives, they may be liable for investment losses sustained by customers. 

Israels & Neuman PLC is a securities and investment fraud law firm with offices in Denver, Colorado; Ann Arbor, Michigan; Seattle, Washington; and Phoenix Arizona.  We represent investors in FINRA arbitration in all 50 states.  Our attorneys have represented over one thousand investors against many firm, including against SagePoint.

IF YOU LOST MONEY WITH SAGEPOINT FINANCIAL OR IN UNIT INVESTMENT TRUSTS, PLEASE CONTACT US AT 720-599-3505 FOR A FREE EVALUATION OF YOUR CASE.

Israels & Neuman, PLC is a private law firm and is not affiliated with any government or law enforcement agency. Any investigation referenced in this blog is independent in nature and is being conducted by our law firm privately, not in conjunction with any government or law enforcement agency. All information contained in this blog should be deemed statements of opinion derived from the author’s review of public records, not statements of fact. This blog is advertising material and does not create an attorney client relationship, nor does it constitute legal advice. Everyone’s situation is different and the question of whether or not you have a claim will vary on a case-by-case basis. In contingent representation, clients may still be liable for costs.
10.0David P Neuman

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