Articles Tagged with Berthel Fisher

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Berthel, Fisher & Co. Financial Services, Inc. (Berthel Fisher) and one of its brokers, Jeffrey Dragon, were named in a Financial Industry Regulatory Authority (FINRA) complaint alleging that the firm and Mr. Dragon profited at customers’ expense due to unsuitable short-term trading of unit investment trusts (UITs).

According to the complaint, while registered with the Burlington, Massachusetts office of Berthel Fisher, Jeffrey Dragon recommended to numerous customers – many who were seniors and/or unsophisticated investors – that they liquidate UIT positions held for just a few months (allegedly purchased upon Mr. Dragon’s recommendations), and use the proceeds to buy other UITs.  Further, the complaint goes on to allege that Mr. Dragon’s recommendations were unsuitable because his recommendations prevented his customers from qualifying for sales-charge discounts.  This strategy increased profits for both Mr. Dragon and Berthel Fisher. Continue reading →

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The Financial Industry Regulatory Authority (FINRA) has fined and suspended Karen Lee Chafe, a former Berthel, Fisher & Co. Financial Services, Inc. (Berthel Fisher) registered representative in its Melbourne Beach, Florida offices, for admitting to altering customers’ variable annuity withdrawal forms and IRA distribution/withdrawal request forms. According to FINRA, Karen Chafe, a/k/a Karen Lee Linscott, modified and resubmitted withdrawal request forms at least 61 times on behalf of 14 customers.

According to FINRA’s Default Judgment, Karen Chafe reused old customer forms, whited out or obscured existing information, added new information, and then submitted the altered forms as originals to Berthel Fisher over a period of six years. Although Karen Chafe was authorized to make the withdrawals and distributions, she did not have the customers’ authorization to submit altered forms. Karen Chafe has been assessed a deferred fine of $5,000.00 and suspended from associating with any FINRA member in any capacity for a year. The suspension is in effect from June 16, 2014 through June 15, 2015. Continue reading →