Former Berthel Fisher Stockbroker Mason Wayne Gann Suspended for Unsuitable Recommendations

Mason Wayne Gann of Dallas, Texas submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was fined and suspended for unsuitable recommendations in violation of FINRA Rule 2111 and 2010. From June 2012 until February 2018, Mason Wayne Gann was registered with Berthel Fisher as a General Securities Representative. According to the FINRA findings, Mr. Gann allegedly recommended and effected a risky options-trading strategy in the account of a senior customer. The FINRA findings stated that Mr. Gann knew the customer had limited income, modest retirement savings, and minimal investment knowledge and lacked a reasonable basis for believing that his recommendations were suitable. The findings also stated that Mr. Gann recommended the customer begin trading options to generate more income in his account which was valued at approximately $205,000. The customer began withdrawing $1500 each month and after two years, his account declined to approximately $120,000 with a loss of more than $12,500 as a direct result of the unsuitable options strategy because he did not produce enough income or gains to offset his withdrawals. In addition to these findings, the combined effect of investment losses and steady withdrawals reduced the customers account to below $20,000 over a 3-year period.

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Berthel Fisher Stockbroker Suspended for Private Transactions

John Huey Neely submitted a Letter of Acceptance Waiver and Consent (AWC) to the Financial Industry Regulatory Authority (FINRA) in which he was fined and suspended for allegedly exercising discretion in customers’ accounts violating NASD Conduct Rule 2510(b) and FINRA Rule 2010. From August 2009 until September 2018, Neely was registered with Berthel Fisher & Co. Financial Services (Berthel Fisher) as a General Securities Representative. The FINRA findings stated that between June 2014 and June 2015, Neely exercised discretion in effecting hundreds of transactions in two customers’ brokerage accounts without first obtaining written approval from the customers.  FINRA further stated that although the customers did give him verbal consent, he did not seek approval from his firm to accept the accounts as discretionary.

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Karen Lee Chafe Fined and Suspended by FINRA for Altering Variable Annuity Documents

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.

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