The Financial Industry Regulatory Authority (FINRA) recently charged Berthel Fisher with failure to supervise sales of unit investment trusts (UITs). A former broker, Jeffrey Dragon, also has claims against him. FINRA charged the firm with structuring sales of UITs to clients in order to avoid reaching levels at which breakpoint discounts would kick in. This tactic would increase the broker’s commissions and harm the clients at the same time. This occurred between 2013 and 2014. Dragon was terminated from Berthel Fisher in September, because the firm believed he did not adhere to a term of his previous heightened supervision agreement, which required him to run all business through the firm’s commission grid. Dragon allegedly recommended to clients that they liquidate UIT positions only held for a few months, and that they use the proceeds from that to purchase more UITs. Many of these investors were elderly and unsophisticated and the UIT investments were not suitable for them. These are against securities laws, as a broker has an obligation to only recommend those securities that are suitable for his clients, by taking into account their age, net worth, investment objectives and sophistication. If he does not, his firm can be held liable for investment losses.
Mr. Dragon was registered with John Hancock, GNA Securities, Citizens Investment Securities, Citigroup Global Markets, Merrill Lynch and Berthel Fisher in Burlington, Massachusetts from March 2007 until September 2016. He has one customer dispute against him and is currently not registered within the industry. Please call our securities law firm today at 312-332-4200 to find out how you may be able to bring a claim against Berthel Fisher for Jeffrey Dragon losses. The call to us is free with no obligation. Attorneys are standing by to take your call.
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