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Sagepoint Financial fines in 2010

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Sagepoint Financial was fined $215,000 by regulators and order to pay $203,000 in restitution to customers when Sagepoint Financial failed to reasonably supervise its stockbroker. These substantial fines are a sign of substantial failures in supervision, which is an important duty of the stockbrokerage firm. (May 2010).

Sagepoint Financial was fined $85,000 by regulators and ordered to pay $290,000 in restitution to five Sagepoint Financial customers for failure to supervise a registered representative who sold unregistered securities in Nevada. Unregistered securities are particularly risky investments, because they are private investments. Major stockbrokerage firms have added duties if recommending a private investment, and many private investments are far too risky for ordinary investors. (March, 2010).

Sagepoint Financial lost an arbitration award for $123,000 based on complaints that alleged that Sagepoint Financial breached its fiduciary duty, omitted material facts, made unsuitable investment recommendations, and failed to supervise its brokers. (June 2010).


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