Did you suffer investment losses with Sagepoint Financial (CRD# 133763) (SEC# 801-64721, 8-66771)?
Galvin Legal, PLLC is launching an investigation on behalf of investors who may have suffered losses investing with Sagepoint Financial. If you suffered losses investing with Sagepoint Financial, then Galvin Legal, PLLC may be able to help you recover your losses in a Financial Industry Regulatory Authority (“FINRA“) arbitration claim.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
As of September 4, 2020, Sagepoint Financial’s FINRA BrokerCheck Report contains the following:
14 Regulatory Event Disclosures
See FINRA Letters of Waiver, Acceptance and Consent Nos. 2018056858101, 2016047636601, 2017054229301, 20160449751001, 2007010991902, 2005000977001, 2005001296901, and 2006003910901
11 Arbitration Disclosures
UPDATE 9/4/2020: According to FINRA’s August 2020 Disciplinary Actions: “SagePoint Financial, Inc. (CRD #133763, Phoenix, Arizona) June 10, 2020 – An AWC was issued in which the firm was censured, fined $300,000, and ordered to pay $1,315,373.01, plus interest, in restitution to customers. Without admitting or denying the findings, the firm consented to the sanctions and to the entry of findings that it failed to establish and maintain a supervisory system and failed to establish, maintain and enforce WSPs that were reasonably designed to supervise the suitability of representatives’ recommendations to customers for early rollovers of Unit Investment Trusts (UITs). The findings stated that the firm’s WSPs did not discuss early rollovers or series-to-series early rollovers or otherwise provide guidance to its supervisors about how to monitor for potentially unsuitable patterns of early rollovers or series-to-series early rollovers. Further, the firm did not use automated reports, alerts, or similar tools to supervise for potentially unsuitable patterns of early UIT rollovers. Similarly, the firm’s review of UIT transactions through its order entry system was not focused on suitability concerns related to early UIT rollovers. As a result, the firm did not identify that firm representatives recommended potentially unsuitable early rollovers, including series-to-series early rollovers, which caused customers to incur $1,315,373.01 in sales charges that they would not have incurred had they held the UITs until their maturity dates. (FINRA Case #2018056858101)
UPDATE 5/11/2020: According to the Letter of Acceptance, Waiver and Consent (“AWC”) the Sagepoint Financial entered into with FINRA on June 10, 2020, the following sanctions were imposed on the firm:
- a censure;
- a fine of $300,000; and
- restitution to the customers in the total amount of $1,315,373.01, plus interest.
According to the AWC, from January 2013 through December 2017, Sagepoint Financial failed to establish and maintain a supervisory system and failed to establish, maintain, and enforce written supervisory procedures (“WSPs”) that were reasonably designed to supervise the suitability of its representatives’ recommendations to customers for early rollovers of Unit Investment Trusts (“UITs”).
During the Relevant Period, SagePoint Financial executed more than $895 million in UIT transactions that generated more than $17.2 million in sales charges. The $895 million in UIT transactions included more than $203.7 million in proceeds from transactions in which UITs were sold more than 100 days before their maturity dates and some or all of the proceeds were used to purchase one or more new UITs (early rollovers). Approximately $65.8 million of the proceeds were for transactions in which customers sold UITs more than 100 days prior to their maturity dates and used some or all of the proceeds to purchase a subsequent series of the same UIT, which, as noted above, had, in many cases, the same or similar investment objectives and strategies as the prior series (series-to-series early rollovers).
SagePoint Financial’s WSPs did not discuss early rollovers or series-to-series early rollovers or otherwise provide guidance to firm supervisors about how to monitor for potentially unsuitable patterns of early rollovers or series-to-series early rollovers. Further, SagePoint Financial did not use automated reports, alerts, or similar tools to supervise for potentially unsuitable patterns of early UIT rollovers. Similarly, the firm’s review of UIT transactions through its order entry system was not focused on suitability concerns related to early UIT rollovers. As a result, SagePoint Financial did not identify that firm representatives recommended potentially unsuitable early rollovers, including series-to-series early rollovers, which caused customers to incur $1,315,373.01 in sales charges that they would not have incurred had they held the UITs until their maturity dates.
A UIT is an SEC-registered investment company that offers investors shares or “units” in a fixed portfolio of securities in a one-time public offering. A UIT terminates on a specified maturity date, often after 15 or 24 months, at which point the underlying securities are sold and the resulting proceeds are paid to the investors. Generally, a UIT’s portfolio is not actively managed between the trust’s inception and its maturity date. UIT sponsors typically offer UIT product lines in successive “series,” with the offering periods for new series usually coinciding with the maturity date of prior series. Successive series of UITs often have the same or similar investment objectives and investment strategies as the prior series, even if the portfolio of securities held by the UIT changes from series to series.
UITs impose a variety of upfront sales charges. For example, a typical 24-month UIT contained three separate charges: (1) an initial sales charge, which was generally 1% of the purchase price; (2) a deferred sales charge, which was generally up to 2.5% of the offering price; and (3) a creation and development fee (C&D fee), which generally was 0.5% of the offering price. If the proceeds from the sale of a UIT were “rolled over” to fund the purchase of a new UIT, UIT sponsors often waived the initial sales charge, but still applied the deferred sales charge and C&D fee.
A registered representative who recommended the sale of a customer’s UIT before its maturity date and used the sale proceeds to purchase a new UIT would cause the customer to incur greater sales charges than if the customer had held the UIT until maturity. For example, a hypothetical customer who purchased a 24-month UIT and held it until maturity would have paid a sales charge of about 3.95%. However, if after six months, the customer rolled over the UIT into a new UIT, he or she would have paid an additional 2.95% in sales charges. And, if the customer repeatedly rolled over the existing UIT into a new UIT every six months, he or she would have paid total sales charges of approximately 12.8% over a two-year period.
Because of the long-term nature of UITs, their structure, and their costs, short-term trading of UITs may be unsuitable.
UPDATE 4/6/2020: Sagepoint Financial is listed as a sales compensation recipient for GPB Capital Holdings private placements. Bad news continues to pile up for investors of GPB Capital Holdings private placements. If you are concerned about investment losses in a GPB Capital Holdings private placement with Sagepoint Financial and would like a Free Consultation, then please contact us today.
Main Office Location
20 E THOMAS RD
SUITE 2000
PHOENIX, AZ 85012
USA
Mailing Address
20 E THOMAS RD
SUITE 2000
PHOENIX, AZ 85012
USA
Business Telephone Number
800-552-3319
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Sagepoint Financial’s Direct Owners and Executive Officers
ADVISOR GROUP, INC., SHAREHOLDER
AULD, JEFFREY MICHAEL (CRD#:857528), DIRECTOR, CHIEF EXECUTIVE OFFICER, PRESIDENT
GULDNER, ROBERT JOHN (CRD#:2283980), CHIEF COMPLIANCE OFFICER, INVESTMENT ADVISORY
HAMEL, CYNTHIA ANN (CRD#:3014361), CHIEF OPERATIONS OFFICER, EVP
PRICE, JAMES DALE (CRD#:1243224), CHAIRMAN, DIRECTOR
SCHLEGEL, STEVEN DAVID (CRD#:2210096), VICE PRESIDENT, CHIEF COMPLIANCE OFFICER
SCHLUETER, MATTHEW ADAM (CRD#:2627931), DIRECTOR, EVP
SCHMIDT, DAVID MARTIN (CRD#:5675524), PRINCIPAL FINANCIAL OFFICER, PRINCIPAL OPERATIONS OFFICER, TREASURER AND FNOP
SIDLO, THOMAS BLAKE (CRD#:1012276), MUNICIPAL PRINCIPAL
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Due Diligence Requirement
FINRA requires broker-dealers to conduct due diligence on investments and to conduct a suitability analysis when recommending securities to a customer that takes into account the customer’s knowledge and experience. FINRA Rule 2111(a) states that “a member or an associated person must have a reasonable basis to believe that a recommended transaction or investment strategy involving a security or securities is suitable for the customer, based on the information obtained through the reasonable diligence of the member or associated person to ascertain the customer’s investment profile. A customer’s investment profile includes, but is not limited to, the customer’s age, other investments, financial situation and needs, tax status, investment objectives, investment experience, investment time horizon, liquidity needs, risk tolerance, and any other information the customer may disclose to the member or associated person in connection with such recommendation.”
Rule 2111 is composed of three main obligations: reasonable-basis suitability, customer-specific suitability, and quantitative suitability. Broker-Dealers that fail to conduct adequate due diligence on investments they recommend or that make unsuitable recommendations can be held responsible for the customer’s losses in a FINRA arbitration claim.
If you suffered losses and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
Request a Free Consultation with a Securities Attorney
If you suffered losses investing with Sagepoint Financial and would like a free consultation with a securities attorney, then please call Galvin Legal, PLLC at 1-800-405-5117.
This information is all publicly available and is being provided to you by Galvin Legal, PLLC.
Galvin Legal, PLLC is a national securities arbitration, securities mediation, securities litigation, securities fraud, securities regulation and compliance, and investor protection law practice. For more information on Galvin Legal, PLLC and its representation of investors, please visit www.galvinlegal.com or call 1-800-405-5117.
Formerly Known As, Aliases, and Affiliates
1ST PALMETTO ADVISORS, A. M. HOERR FINANCIAL, A. RANDALL FINANCIAL, AD ASTRA FINANCIAL GROUP, ADVENT FINANCIAL SERVICES, AIG FINANCIAL ADVISORS, INC., ALL-WEATHER WEALTH MANAGEMENT, ALLIED WEALTH MANAGEMENT LLC, ALPHA ADVISING, ALPHA RISING WEALTH MANAGEMENT, AMERICAN FINANCIAL ASSOCIATES, AMERIFLEX, AMERIFLEX FINANCIAL SERVICES, AMS FINANCIAL GROUP, ANCHOR WEALTH MANAGEMENT INC., ANGELA MARTIN FINANCIAL, ARUCA FINANCIAL, ASSET PLANNING & MANAGEMENT, ASSET WEALTH MANAGEMENT SERVICES, INC., ASTOR FINANCIAL GROUP, B.E.S. FINANCIAL, BAKER STREET FINANCIAL SERVICES, LLC, BALTHAZOR & STRUBE FINANCIAL & INSURANCE SERVICES, BAUMOEL & GOODMAN FINANCIAL STRATEGIES, BAXTER & ASSOCIATES, INC., BCF WEALTH STRATEGIES, BETANCOURT FINANCIAL SERVICES, BGA FINANCIAL, BGA RETIREMENT ADVISORS, BICE WEALTH MANAGEMENT, BRAZIER HINZ & ASSOCIATES, CAMPER FINANCIAL GROUP, CATAMOUNT WEALTH ADVISORY, CFS ADVISOR TEAM, CODA FINANCIAL GROUP, INC., COFFMAN WEALTH MANAGEMENT, COLE FINANCIAL, COMMON INTERESTS, COMPREHENSIVE FINANCIAL SERVICES, CURRENT FINANCIAL, CURTIN WEALTH MANAGEMENT, DAKOTA LEGACY FINANCIAL, DAVIS FINANCIAL GROUP, DICOLA FINANCIAL SERVICES MKT NAME, DOMINION EAGLE ADVISOR GROUP, DORAL ASSET MANAGERS INC., EAGLE RETIREMENT GROUP, EMERALD FINANCIAL ADVISORS, ESTATE & FINANCIAL CONSULTANTS, EVERGREEN WEALTH MANAGEMENT, EXCELSIOR WEALTH PARTNERS, FIDUCIARY FIRST,FINANCIAL FREEDOM GROUP, FINANCIAL POINTE, FISCHER CHRISTOFF BARTMESS ADVISORS, FLATHERS WEALTH MANAGEMENT, FOCAL POINT FINANCIAL, FOCUS POINT PLANNING, FOREST HILLS WEALTH, GIGUERE FINANCIAL SERVICES, GLOBAL CAPITAL MANAGEMENT, GMBP WEALTH MANAGEMENT, GREENVILLE FINANCIAL GROUP, GRUCZ FINANCIAL, GUARDIAN ROCK WEALTH, HALE FINANCIAL PLANNING GROUP, HARMAN WEALTH MANAGEMENT INC, HARMONY FINANCIAL SERVICES, HAVEN FINANCIAL GROUP, HEDBERG WEALTH MANAGEMENT, HEIGHTS FINANCIAL, HERITAGE INVESTMENTS HINDE ASSET MANAGEMENT, HEYMAN INVESTMENT INC, HIGH POINT CAPITAL GROUP, HIGH POINT CAPITAL PARTNERS, HILL & ASSOCIATES, HOMANS WEALTH MANAGEMENT, ICM HOLISTIC WEALTH SERVICES, INCOME AND WEALTH ADVISORS AND ASSOCIATES, INKROTT FINANCIAL GROUP, INKROTT FINANCIAL SERVICES, INTEGRATED FINANCIAL CONCEPTS, INTEGRATED RETIREMENT CONCEPTS, INVESTMENT CONCEPTS, INC., IQON WEALTH MANAGEMENT, ISYS FINANCIAL MANAGEMENT, JAMES C. PROTIGAL, JSTEPHENS WEALTH MANAGEMENT, KARP FINANCIAL STRATEGIES, KND FINANCIAL, KRAUSE INVESTMENT ADVISORY GROUP, LLC – PAUL R. KRAUSE, LACHICOTTE, INC., LAWRENCE WEALTH MANAGEMENT, LEGACY FINANCIAL ADVISORS, LEGACY FINANCIAL ADVISORS, INC., LEGACY FINANCIAL PLANNING, LEWIS AND PALMER FINANCIAL SOLUTIONS GROUP, LIBERTY FINANCIAL ASSOCIATES, LIFECRAFT FINANCIAL GROUP, LIFELONG FINANCIAL PLANNING, LIVING TREE FINANCIAL CONSULTING, LUCERO FINANCIAL PLANNING, LUTZ WEALTH ADVISORS, M.R. MILLER FINANCIAL, MAIN STREET ADVISORS, MARK S LALIN AND ASSOCIATES, MONARCH WEALTH & RETIREMENT STRATEGIES, MONARCH WEALTH AND RETIREMENT STRATEGIES, MOSAIC WEALTH SOLUTIONS, MY WEALTH DOCTOR, MYERS & INKROTT FINANCIAL GROUP, NACCARATO FINANCIAL GROUP, NAVIGATOR FINANCIAL GROUP, NBS FINANCIAL GROUP, NEST FINANCIAL, NORLAKES FINANCIAL SERVICES, NORTH MAIN FINANCIAL GROUP, NORTHSTAR ASSOCIATES, OAK FINANCIAL ADVISORS, OAKLEAF CAPITAL PARTNERS, PANTO WEALTH STRATEGIES, PARK AVENUE INVESTMENTS, WEALTH STRATEGIES, PARKE AVENUE INVESTMENTS, PEGASUS FINANCIAL GROUP,PETER GOODWIN PERSONAL WEALTH MANAGEMENT, PILLAR FINANCIAL GROUP,PK FINANCIAL GROUP, PLAN ONE FINANCIAL GROUP, PRESTIGE WEALTH MANAGEMENT, PRIME RETIREMENT ASSET MANAGEMENT, PROGRESSIVE FINANCIAL CONCEPTS, PURSUIT WEALTH PLANNING,PWM INSURANCE SERVICES, REAL TIME FINANCIAL SOLUTIONS, REHBINE FINANCIAL GROUP, RENAISSANCE WEALTH MANAGEMENT GROUP OF TEXAS, REPAK FINANCIAL SERVICES, RESSLER FINANCIAL SERVICES, RETIRE GUIDES, RETIREMENT VISIONS, RETIREMENT WISDOM GROUP, SAGE FINANCIAL ADVISORS, SAGEPOINT FINANCIAL, INC., SCOTT ADVISORY GROUP, SENTINEL FINANCIAL GROUP, SHUSTERMAN WEALTH MANAGEMENT, SIGNATURE WEALTH MANAGEMENT
