FINRA has suspended stockbroker Troy R. Baily (CRD #4458930) for six months from the securities industry and ordered him to pay a $5,000 fine. These sanctions arose from Mr. Baily’s solicitation of Future Income Payments, LLC. This blog has previously written about Future Income Payments, LLC.
FINRA alleged that between February and May 2017, Troy Baily participated in private securities transactions totaling $210,000, without prior disclosure and approval from his employer at the time, Sagepoint Financial, Inc. Specifically, FINRA alleged:
- Between February and May 2017, Mr. Baily solicited investors to purchase $210,000 in securities of Future Income Payments, LLC.
- Future Income Payments, LLC represented itself as a structured cash flow investment that purchased pensions at a discount from pensioners and then sold a portion of those pensions as a “pension stream to investors.”
- Future Income Payments, LLC reportedly promised investors a 7% to 8% rate of return.
- Baily received a total of $8,900 in commissions associated with his sales of Future Income Payments, LLC.
- Sagepoint Financial, Inc. prohibited its financial advisors from participating in private securities transactions without prior written approval from the firm.
- Baily did not provide notice to Sagepoint Financial, Inc. before soliciting investors to purchase securities of Future Income Payments, LLC.
In April 2018, Future Income Payments, LLC ceased business, owing nearly $300 million in unpaid investor payments to over 2,600 individuals. In March 2019, Future Income Payments, LLC and its owner, Scott A. Kohn, were indicted by a Federal Grand Jury alleging a conspiracy to engage in mail and wire fraud. According to the indictment, Future Income Payments, LLC operated a Ponzi scheme.
Mr. Baily was a financial advisor at Sagepoint Financial, Inc. in Omaha, Nebraska, from April 2014 to September 2014, and then again from November 2016 through March 2018.
Brokerage firms like Sagepoint Financial, Inc., must properly supervise financial advisors and customer accounts. Brokerage firms must also establish and maintain a reasonably designed system to oversee account activity, such as private securities transactions, to ensure compliance with securities laws and industry regulations. When a brokerage firm fails to sufficiently supervise its financial advisors or the investment account activity, it may be liable for investment losses sustained by customers.
According to public records, at least one customer has already filed a FINRA arbitration complaint against Mr. Baily and Sagepoint Financial, Inc. related to the solicitation of Future Income Payments, LLC.
If you have lost money because you invested in Future Income Payments, LLC, contact New York securities arbitration lawyer August Iorio of Iorio Altamirano LLP. August Iorio can be reached at firstname.lastname@example.org or toll-free at (855) 430-4010 for a free and confidential evaluation of your account.
Iorio Altamirano LLP is a boutique law firm located in the heart of New York City. Iorio Altamirano LLP represents investors nationwide who have suffered investment losses due to securities fraud.