Timothy Francis Dufresne, of Bamberg, South Carolina, a stockbroker with SagePoint Financial, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member firm in any capacity after consenting to findings that he converted customer funds. Letter of Acceptance, Waiver and Consent, No. 2016049412601 (Apr. 8, 2016).
According to the AWC, between October of 2014 through February of 2016, Dufresne stole a minimum of $400,000.00 from three of the firm’s customers. The AWC stated that Dufresne had received the funds via improper distributions by way of the clients’ variable annuity accounts. Dufresne reportedly placed such funds in an account set up for his business, utilizing the proceeds for his private use, and without receiving any authorization from the three customers.
The AWC stated that Dufresne received in excess of $400,000.00 via nine checks that were generated by the processing of the firm’s variable annuity distribution forms. Apparently, the checks were all endorsed via Dufresne prior to the customers’ funds being placed into his account.
FINRA found that Dufresne converted funds in violation of Rule 2150(a), as he acted intentionally, and without authorization, to take ownership of funds that did not belong to him. As a consequence of violating FINRA Rule 2150(a), FINRA found that Dufresne also violated FINRA Rule 2010, leading to his permanent bar.
Public disclosure records reveal that Dufresne has been subject to four disclosure incidents. On February 27, 2013, he was named in a customer complaint, where the customer alleged to be unaware of investing in a variable annuity and had not been apprised of the variable annuity’s tax consequences. On March 23, 2016, SagePoint Financial Inc. discharged Dufresne amid allegations that a client’s representative contacted the firm to indicate that unauthorized withdrawals were taken from the client’s account.
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