Former Berthel Fisher rep suspended for 21 months

Jeffrey Dragon also fined $50,000 over unsuitable recommendations.
FEB 06, 2018

The Financial Industry Regulatory Authority Inc. has suspended former Berthel Fisher & Co. broker Jeffrey Dragon for 21 months and fined him $50,000 for unsuitable unit investment trust recommendations he made to clients. Mr. Dragon was fired by Berthel Fisher in 2016. Finra said that in 2013 and 2014, Mr. Dragon recommended to 12 customers — many of them seniors, unsophisticated investors, or both — that they liquidate positions in unit investment trusts that they had owned for only a few months and which they had purchased on his recommendation. Mr. Dragon then recommended that they use the proceeds to purchase other UITs. Because each of those purchases carried a new sales load, and because UITs are not designed to be actively traded, Finra said that Mr. Dragon's recommendations were excessive and unsuitable. The regulator also said that Berthel Fisher not only allowed this activity to occur but profited from it as a direct result of its inadequate system for supervising UIT trading.

Latest News

Retirement plan defaults leave key participant decisions unresolved
Retirement plan defaults leave key participant decisions unresolved

New Allspring research finds 401(k) participants want guidance on income and rollovers, not just portfolio automation.

Global equity release market set to triple, with US leading growth
Global equity release market set to triple, with US leading growth

Aging homeowners hold record housing wealth - but most advisors still aren't bringing it into retirement plans

Retiree alleges advisor withheld $600K through real estate LLC web
Retiree alleges advisor withheld $600K through real estate LLC web

$1.7M invested from an inheritance. Then the phone went dead.

SEC accuses Linqto chiefs of 'Wizard of Oz' investor deception
SEC accuses Linqto chiefs of 'Wizard of Oz' investor deception

The pre-IPO platform sold $430M in units while allegedly rigging prices behind the scenes.

GLP-1 users are trading retirement savings for their prescriptions
GLP-1 users are trading retirement savings for their prescriptions

A Nationwide survey finds 47% of GLP-1 users have never discussed the drugs’ financial impact with an advisor, even as many dip into savings.

SPONSORED Built on insurance experience to deliver on long-term promises

Knighthead Life entered the market with a competitive MYGA. A strong launch earned advisor confidence and paved the way for FIAs.

SPONSORED In the Age of AI, Trust Becomes the Advisor's Greatest Asset

As AI makes financial information more accessible than ever, Lana Hock explains why human judgment, trust, and empathy remain the qualities clients value most in a financial advisor