Troy Robert Baily of Omaha, Nebraska, a stockbroker formerly registered with Sagepoint Financial Inc., was the subject of a customer initiated investment related complaint that was settled on March 3, 2021 for $80,000.00 in damages based upon allegations that Baily engaged in fraud in connection with the recommendation and sale of Future Income Payments LLC during the period Baily was associated with Sagepoint Financial Inc.
This is not the first time that Baily has been referenced in a customer initiated investment related dispute concerning Baily’s conduct in the securities industry. Financial Industry Regulatory Authority (FINRA) Public Disclosure shows that on May 2, 2008, a customer filed an investment related complaint involving Baily’s conduct in which the customer requested $250,000.00 in damages based upon allegations that Baily made unsuitable recommendations with regard to the sale of fixed annuities, variable annuities, and direct investments when Baily was associated with Next Financial Group Inc. This claim was denied by Next Financial Group Inc.
However, Baily was been fined $5,000.00 and suspended from associating with any FINRA member in any capacity for six months based upon allegations that Baily engaged in “selling away” or private securities transactions in connection with the recommendation and sale of Future Income Payments LLC. FINRA Enforcement (AWC) No. 2019063916701 (Oct. 19, 2020).
According to the AWC, from February through May 2017, during the time that he was associated with SagePoint Financial Inc., Bailey was involved in four undisclosed and unapproved private securities transactions totaling $210,000.00. Specifically, Bailey solicited investors to buy securities in Future Income Payments LLC. The security operated by purchasing pensions at a discount from pensioners and then selling a portion of those pensions as a pension stream to investors. Investors were typically promised a 7-8% return on their investment. Bailey sold $210,000.00 in Future Income Payments purchase agreements to three SagePoint customers. Bailey was paid $8,900.00 in commissions in connection with the transactions. At no time did Bailey obtain written approval from SagePoint, nor did he provide written notice that he was engaging in the private securities transactions. As a result, Bailey violated FINRA Rules 2010 and 3280.
Troy Baily was associated with Sagepoint Financial Inc. from November 8, 2016 to March 8, 2018.
