Troy Robert Baily of Omaha Nebraska a stockbroker formerly registered with SagePoint Financial has been fined $5,000.00 and suspended for six months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon findings that Baily took part in private sales of Future Income Payments (FIP) while registered with SagePoint Financial. Letter of Acceptance Waiver and Consent No. 2019063916701 (Oct. 19, 2020).
According to the AWC, between February and May of 2017, investors had been solicited by Baily to buy Future Income Payments which is reportedly a structured cash flow investment. FIP represented that it bought pensions and sold pension streams to customers. Investors were made to believe that FIP would pay between seven and eight percent on an annual basis. The company stopped doing business when it owed $300,000,000 in investor payments. FIP has since faced criminal charges of fraud.
FINRA found that four investors had been steered by Baily towards investing $210,000.00 in FIP. Three of the four customers maintained accounts at SagePoint Financial. Baily was required under the securities broker dealer’s policy to provide written notification of any private securities transaction and required to have written approval from SagePoint Financial prior to engaging in private transactions. The stockbroker failed to inform the securities broker dealer about his transactions. The stockbroker violated FINRA Rules 2010 and 3280 for this reason.
FINRA Public Disclosure confirms that Baily has been referenced in two customer initiated investment related disputes regarding allegations of his improper conduct during the time that he was employed by Next Financial Group and SagePoint Financial. Baily is the subject of a customer initiated investment related written complaint in which the customer requested $250,000.00 in damages supported by accusations that the Next Financial Group customer had been provided with bad investment recommendations relating to a limited partnership interest in addition to fixed and variable annuities.
On August 21, 2019, a customer filed an investment related arbitration claim concerning Baily’s conduct where the customer sought $135,000.00 in damages founded on allegations that the customer had been placed into bad structured cash flow investments between 2017 and 2018 because of the stockbroker. FINRA Arbitration No. 19-02290.
Baily’s registration with SagePoint Financial has been terminated as of March 8, 2018.