Former broker Troy Baily, a previously registered Investment Company and Variable Contracts Products Representative of SagePoint Financial in Omaha, NE, has been suspended and fined by the Financial Industry Regulatory Authority (FINRA) on allegations of engaging in private securities transactions by allegedly selling securities in Future Income Payments, LLC in the total amount of $210,000.
An investigation started in March 2018 when SagePoint reportedly filed a Form U5 terminating Baily’s association with the firm and registration with FINRA. In September 2019, SagePoint filed an amended Form U5 disclosing that Baily was the subject of a customer-initiated FINRA arbitration connection with an investment contract, according to an investigation by attorney Alan Rosca.
Securities lawyer Alan Rosca of the Rosca Scarlato LLC law firm is investigating alleged participation of Troy Robert Baily in selling securities in Future Income Payments scheme. Investors who believe they may have lost money invested in Future Income Payments as a result of Troy Baily’s alleged solicitation are encouraged to contact attorney Alan Rosca with any useful information or for a free, no obligation discussion about their options. Call 888-998-0530, email at arosca@rscounsel.law, or through the contact form on this page.
Concerned about investments with
Troy Baily’s Alleged Participation in Future Income Payments Ponzi Scheme
Ex broker Troy Baily conducted undisclosed and unapproved private transactions by allegedly soliciting his Sagepoint clients to invest in Future Income Payments. According to a press release by the United States Attorney’s Office for the District of South Carolina, FIP operated a Ponzi scheme by actively recruiting pension holders who were desperate for money, including many veteran of the United States Armed Forces. Allegedly, the pensioners made monthly payments to FIP in exchange for a lump sum payment or loan, the adjusted annual percentage rate on these transactions often exceeded 100%.
As part of the scheme, FIP solicited investors to purchase “structured cash flows,” which were the pensioners’ monthly pension payments, according to the press release. FIP generally promised investors a rate of return between 6.5% and 8% and they diverted new investor funds flowing into the business to fund payments to earlier investors in order to keep the scheme operational. In early 2018, FIP ceased doing business and investors were owed approximately $300 million. The FIP Ponzi scheme alleged in an Indictment that the victimization of over 2,600 individuals. Scott A. Kohn fully owned and controlled Future Income Payments, LLC and was charged in the Indictment alleging a conspiracy to engage in mail and wire fraud.
Troy Baily Was Suspended and Fined by FINRA for Selling Investments in an Alleged Ponzi Scheme Operation
Troy Robert Baily allegedly participated in four private securities transactions between February 2017 and May 2017 without prior written notice or approval of his firm, SagePoint Financial, according to his FINRA Brokercheck page.
According to the AWC, allegedly, Baily solicited investors to purchase securities in Future Income Payments, LLC, and sold $210,000 in FIP purchase agreements to four investors, including three who were customers of SagePoint Financial, as disclosed on his Brokercheck page. Former SagePoint broker Troy Baily allegedly received a total commission of $8,900 in connection with these transactions.
According to publicly released documents, SagePoint Financial prohibited registered representatives from participating in private securities transactions without prior written approval from the firm. Repordetly, Troy Baily did not provide prior written notice nor did he obtain written approval from the firm. On October 19, 2020, Baily agreed to and signed the Acceptance Waiver and Consent order issued by FINRA which suspended him in all capacities for six months. In addition to the suspension, he was also issued civil and administrative penalties to the tune of $5,000. The suspension will continue until April 18, 2021.
The team of investment loss lawyers at Rosca Scarlato LLC, led by securities lawyer Alan Rosca, is investigating the alleged scheme involving former SagePoint broker Troy Baily. Investors are encouraged to call 888-998-0530, send an email to rosca@lawgap.com, or use the contact form on this page for a free, no obligation discussion about their case.
Concerned about investments with
Troy Baily is the Subject of a Customer Dispute
According to a customer dispute filed with FINRA in August 2019 in connection with former SagePoint broker Troy Baily, the customer alleged improper recommendations of structured cash flow products in 2017 and 2018, according to Baily’s Brokercheck page. The customer is seeking $135,000 for the alleged damages.
Finally, it is important to note that, as of the date of this article, there has not been a finding of liability as to the complaints or allegations mentioned in this article, unless otherwise indicated. Any reader should also read the original sources hyperlinked in this blog for accuracy, including any BrokerCheck report and/or record of any disciplinary or regulatory action. Those sources are incorporated by reference into the text of this blog, and are the governing materials in case of any inconsistencies or typos in this blog.
Lost Money With Troy Baily? Securities Lawyers Might Be Able To Help
The Rosca Scarlato LLC law firm represents investors who lose money as a result of investment-related fraud or misconduct and is currently investigating conduct related to former SagePoint broker Troy Baily’s alleged participation in undisclosed and unapproved private securities transactions.
The firm takes cases of this type on a contingency fee basis; no fees or costs, if no recovery; firm advances costs and investor is required to pay only if there is a recovery. Attorney Alan Rosca, a securities lawyer and adjunct professor of securities regulation, has represented thousands of victimized investors across the country and around the world in similar cases.
Investors who believe they lost money as a result of Troy Baily’s alleged participation in undisclosed and unapproved private securities transactions related to the Future Income Payments alleged Ponzi scheme may contact Alan Rosca for a free, no obligation evaluation of their recovery options, at 888-998-0530, via email at arosca@rscounsel.law, or through the contact form on this webpage.
