Did Troy Robert Baily Cause You Investment Losses?
Troy Robert Baily of Omaha, Nebraska submitted a Letter of Acceptance, Waiver and Consent to the Financial Industry Regulatory Authority in which he was fined $5,000 and suspended from association with any FINRA member in all capacities for a period of six months. The sanctions were based on findings that he engaged in undisclosed and unapproved private securities transactions in violation of FINRA Rules 3280 and 2010. The suspension is in effect from October 19, 2020, through April 18, 2021.
In November 2016, Troy Robert Baily joined SagePoint Financial, Inc. and was registered as an Investment Company and Variable Contracts Products Representative (“IR”). The firm later filed a Uniform Termination Notice (Form U5) disclosing that Baily had been terminated due to alleged misconduct. According to FINRA’s findings, Bailey allegedly solicited four investors to purchase securities in Future Income Payments, LLC (FIP) in the amount of $408,000 and promised a 7% to 8% rate of return. The findings state that Bailey received $8,900 in commission and never sought or obtained approval from his firm to participate in the private transactions. In addition to FINRA’s findings, FIP ceased business and owed $300 million in unpaid investor payments. Although Baily is not currently registered or associated with a FINRA member, he remains subject to FINRA’s jurisdiction.
FINRA Rule 3280(e) generally defines a private securities transaction as any securities transaction outside the regular scope of an associated person’s employment with a member. FINRA Rule 3280(b) states that “prior to participating in any private securities transaction, an associated person shall provide written notice to the member with which he is associated describing in detail the proposed transaction and the person’s proposed role therein and stating whether he has received or may receive selling compensation in connection with the transaction.” Rule 3280(c) states that when an associated person has received or may receive selling compensation, the member firm shall provide written approval or disapproval of the associated person’s participation in the proposed private securities transaction. A violation of Rule 3280 is also a violation of FINRA Rule 2010, which requires associated persons, in the conduct of their business, to observe high standards of commercial honor and just and equitable principles of trade.
Do You Need a Nebraska Attorney for an Unauthorized Investment?
Did your Nebraska stockbroker or investment advisor recommend an investment that turned out to be an investment that was never reviewed or approved by their stockbrokerage firm employer? The stockbrokers who stoop to that level are usually insolvent or uncollectible. And so, the investor’s only recourse is against the brokerage firm employer. But stockbrokerage firms always claim ignorance of the stockbroker’s activities and deny liability for the sale of unauthorized investments which they call Selling Away as if that was an absolute defense. Not so! You will definitely need an experienced attorney who knows the securities laws and how to hold the stockbrokerage firm responsible for their employees Selling Away under legal principles of actual authority, apparent authority, estoppel and failure to supervise. If your attorney knows where to look he/she can often find Red Flags of the alleged unauthorized sales that the firm did not look for, missed, or saw and just ignored.
Free Initial Consultation With Experienced Ponzi Scheme Lawyers Representing Omaha, Nebraska Residents in FINRA Arbitrations
At The Law Offices of Robert Wayne Pearce, P.A. we represent investors in all kinds of securities, commodities, and investment law disputes in FINRA, AAA and JAMS arbitration and mediation proceedings. Attorney Pearce and his staff represent investors throughout Nebraska, and across the United States on a CONTINGENCY FEE basis which means you pay nothing – NO FEES-NO COSTS – unless we put money in your pocket after receiving a settlement or FINRA arbitration award.
Se habla español For dedicated representation by Attorney Pearce with over 40 years of experience and success in all kinds of securities, commodities, and investment law disputes serving Nebraska citizens, contact the firm by phone at 561-338-0037, toll free at 800-732-2889 or via e-mail.