Former SagePoint rep fined $5,000 for unapproved private transactions
Troy Baily of Omaha, Nebraska, was also suspended for six months for selling $210,000 in Future Income Payments
The Financial Industry Regulatory Authority Inc. has fined former SagePoint representative Troy Baily $5,000 and suspended him for six months for the undisclosed and unapproved sale of private securities.
In 2017, Baily, of Omaha, Nebraska, initiated $210,000 in transactions in securities in Future Income Payments, which represented itself as a structured cash flow investment that purchased pensions at a discount from pensioners and then sold a portion of those pensions as a “pension stream” to investors, promising returns of 7% to 8%.
Three of the four investors who bought the securities from Baily were SagePoint customers, who initiated a Finra arbitration. In March 2018, SagePoint terminated Baily’s Finra registration and its association with him.
Future Income Payments ceased business in 2018, owing nearly $300 million in unpaid investor payments. In March 2019, the company and its owner, Scott A. Kohn, were charged with conspiracy to engage in mail and wire fraud.
[More: Finra bars broker who sold Future Income Payments Ponzi]
Learn more about reprints and licensing for this article.