Jeffrey Paul Dragon of Burlington, Massachusetts, a stockbroker formerly registered with Berthel, Fisher & Company Financial Services, Inc., has been charged by Financial Industry Regulatory Authority (FINRA) in a Complaint alleging that he effected unsuitable unit investment trust transactions in customer accounts. Department of Enforcement v. Jeffrey Paul Dragon, et al., No. 2014039169601 (Mar. 20, 2017).
According to the Complaint, between January of 2013 and December of 2014, at a time that Dragon was a stockbroker with Berthel, Fisher & Company Financial Services, Inc., he made investment recommendations to elderly customers that lacked investment experience in order to trade unit investment trust positions within the customers’ investment portfolios. Apparently, the unit investment trusts, which FINRA indicated were not meant to be traded actively, were sold from customer accounts in favor of buying other unit investment trust positions for them; transactions which allowed Dragon to accumulate concessions estimated at $421,000.00 for him as well as the firm.
The Complaint also alleged that the affected customers were deprived of discounts on sales charge discounts due to Dragon’s unsuitable recommendations. FINRA alleged that Dragon lacked an adequate basis to conclude that the structured transactions were appropriate; conduct violative of FINRA Rules 2010 and 2111.
Dragon was fired by Berthel Fisher & Company Financial Services, Inc. on September 23, 2016, based upon allegations that he committed violations of company policy while on heightened supervision.
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