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Sagepoint Financial, Inc.

Background Information

Sagepoint Financial, Inc is a broker-dealer licensed in all 50 states with $45 billion total client assets under administration and 1,891 registered representatives across 890 branch offices. Its headquarters are in Phoenix, Arizona, and it has been registered with the SEC since 2005. Sagepoint Financial is owned by Advisor Group, which is a network of independent wealth management firms with more than 7,000 affiliated advisors. They sell a variety of securities products to their customers.

Regulatory Violations

Sagepoint Financial’s publicly-available FINRA BrokerCheck report lists 24 disclosures, including 13 regulatory events and 11 arbitrations.

Customer Awarded Compensatory Damages for Negligent Supervision

In March 2016, a FINRA arbitration panel awarded a Sagepoint customer $57,925 after she alleged that Sagepoint allowed her husband, an employee of the firm, to “trade in her account and transfer funds without her authorization.” She alleged fraud, conversion, unfair practices, unauthorized trading, breach of fiduciary duty, breach of contract, negligence, failure to supervise, violations of the 1933 Securities Act, and violations of FINRA Rules. Most of the money was in compensatory damages, along with $425 as reimbursement for the non-refundable filing fee.

Sagepoint Customer Awarded $1.46 Million

In April 2013, an investor sought relief of $4,592,832 in punitive damages, interest, and fees, from Sagepoint Financial and AIG Financial Advisors through FINRA dispute resolution. The complaint was made regarding investment in a tenant in common property. They alleged breach of fiduciary duty and constructive fraud, fraud and deceit, breach of contract, negligence and negligent misrepresentation, securities fraud, and unfair sales practices. In August 2014, they were awarded $1,462,000 by a FINRA arbitration panel.

Sagepoint and Broker Ordered to Pay for Investment Advice

In January 2013, a statement of claim was filed asserting fraudulent concealment, violation of the Illinois Consumer Fraud and Deceptive Practices Act, common law fraud and misrepresentation, violations of FINRA Rule 2010, breach of fiduciary duty, negligence and negligent supervision, conversion, and more. The claim was related to a broker’s recommendation of promissory notes that funded the broker’s insurance business while he was employed at Sagepoint. The claimant asserted that Sagepoint should have investigated his investment and insurance-related side business. The investor requested $13,250 in compensatory damages. The FINRA arbitrator decided that Sagepoint Financial was liable and had to pay that amount. The arbitrator also decided that the broker was liable and had to pay the claimant $29,557.72 in damages pursuant to the Illinois Fraud and Deceptive Practices Act. The broker in this case, Ronald Smith, was barred for failing to respond to a FINRA request for information.

In 2019, Silver Law Group filed claims against Sagepoint Financial for losses related to GPB Capital Holdings. Silver Law Group’s clients allege that Sagepoint failed to conduct adequate due diligence and overconcentrated their accounts in GPB Capital. Further claims allege that Sagepoint was motivated by high commissions and revenue.

Silver Law Group

Silver Law Group is a nationally recognized securities and investment fraud law firm with Martindale-Hubbell® Peer Review Ratings™ “AV” rated lawyers that handle all securities arbitration matters on a contingency fee basis. The Law Firm, at no cost to investors will review account activity and account statements to determine whether there was any misconduct, whether there are damages and the legal causes of action. We investigate all sales practice violations, while taking into consideration the investor’s age, investment background, and the relationship between the investor and the brokerage firm and its financial advisor. According to securities industry rules and regulations, unsuitable investment advice, securities concentration, fraudulent misrepresentations and omissions of material facts, breach of fiduciary duty, conflicts of interest, variable annuity switching are among the causes of action that may be available to investors in claims for damages against brokerage firms and their financial advisors in a securities arbitration claim filed with the Financial Industry Regulatory Authority (FINRA). We represent investors in FINRA arbitration claims on a contingency fee basis.

To learn more call us Toll Free at (800) 975-4345 or email us at ssilver@silverlaw.com

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