On October 19, 2020, the Financial Industry Regulatory Authority fined and suspended former broker of SagePoint Financial, Troy Robert Baily, for engaging in four undisclosed and unapproved private securities transactions totaling $210,000. From November 2016 through March 2018, Baily was registered with FINRA as an investment company and variable contracts products representative, and associated with SagePoint Financial.
FINRA found that, between February and May 2017, Baily solicited investors to purchase securities in Future Income Payments, LLC (“FIP”). FIP represented itself as a structured cash flow investment, claiming to purchase pensions at a discount from pensioners and then selling a portion of those pensions as a “pension stream” to investors. FIP generally promised investors a 7% to 8% rate of return on their investment.
During the Relevant Period, Baily sold $210,000 in FIP purchase agreements to four investors, including three who were customers of SagePoint Financial. Baily received a total of $8,900 in commissions in connection with these transactions.
At all times during the stated period, SagePoint Financial prohibited its registered representatives from participating in private securities transactions without written approval from the firm. Baily did not provide written notice prior to participating in the FIP transactions, nor did he obtain written approval from the firm.
In April 2018, FIP ceased business, owing nearly $300 million in unpaid investor payments. In a March 12, 2019 indictment, the United States charged FIP and its owner, Scott Kohn, with conspiracy to engage in mail and wire fraud related to FIP’s operations.
In March 2018, SagePoint terminated Baily’s association with the firm and registration with FINRA. A customer dispute is currently pending regarding allegations of improper recommendations of structured cash flow products in 2017 and 2018 with damages claimed in the amount of $135,000.
If you lost money as a result of improper recommendations by Troy Baily, or suffered losses as a result of FIP investments, please call the Frankowski Firm at 888.741.7503 or fill out this contact form.