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