Berthel Fisher Sued Again by FINRA for Failing to Supervise Sales

Posted on May 26th, 2017 at 11:11 AM
Berthel Fisher Sued Again by FINRA for Failing to Supervise Sales

From the Desk of Jim Eccleston at Eccleston Law LLC:

FINRA Enforcement has recently filed a claim against Berthel Fisher & Co., a mid-sized independent broker-dealer, for failing to supervise the sale of unit investment trusts (UITs). According to FINRA, a former broker at Berthel Fisher allegedly structured sales from 2013 to 2014 of UITs to clients in order to avoid reaching levels at which breakpoint discounts would kick in, harming clients, but boosting the broker's commissions.

More specifically, the broker recommended to 12 clients that they liquidate short term UIT positions, and then use the proceeds to purchase other UITs carrying sales charges totaling 3.95% before available discounts. The broker generated more than $421,000 worth of commissions for himself and the firm.

This FINRA complaint comes three years after Berthel Fisher was fined $775,000 for a variety of failures to supervise sales of nontraded REITS and leveraged ETFs from 2008-2012.

The attorneys of Eccleston Law LLC represent investors and advisors nationwide in securities and employment matters. The securities lawyers at Eccleston Law also practice a variety of other areas of practice for financial advisors including Broker Litigation & Arbitration, Strategic Consulting Services, Regulatory  Matters, Transition Contract Review, and much more. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services. If you are in need of legal services, contact us to schedule a one-on-one consultation today.

Related Attorneys: James J. Eccleston

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Jim, Stephany and the whole team were a God send.  We felt like we were put into a situation where we had no advocate. Jim’s team came in with a strong, well laid out strategy on how to get our story heard. Where our outside compliance company had no ability to help, our Broker Dealer was impenitent, and the regulators were aggressive pursuing vague rules, Jim came like a barricade against an assault we did not understand. Though you pay member dues to be affiliated with FINRA and a B/D, you have no voice. The only thing that is truly heard in this un-level playing field is a bulldog’s bark like Jim’s. I would encourage anyone to call Jim and his team to find a real ally in the tough and complicated world of securities regulation. They are truly the best.

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