The Financial Industry Regulatory Authority fined a former broker of Advisor Group’s SagePoint Financial $5,000 for using $210,000 of clients’ funds to make undisclosed and unapproved private securities transactions, according to FINRA.
Between February and May 2017, the rep, Troy R. Baily, solicited investors to purchase securities in Future Income Payments, according to FINRA.
FIP had been engaged in a multimillion-dollar sham pension scheme in which investors were encouraged by a network of brokers and advisors to buy into “structured cash flows” through FIP.
SagePoint parent Advisor Group and Robert W. Futhey, an attorney at law firm Fraser Stryker who represented Baily in his dispute with FINRA, did not immediately respond to requests for comment Tuesday.
Without admitting or denying FINRA’s findings, Baily submitted a letter of acceptance, waiver and consent to FINRA Oct. 13 in which he agreed to the fine, as well as a six-month suspension from association with any FINRA member firm in any capacity. FINRA accepted the letter Monday.
Baily is no longer registered as a broker or RIA, according to his report on FINRA’s BrokerCheck website.