Founded in 1970, SagePoint Financial, Inc. (“SagePoint”) is a broker-dealer and registered investment adviser (RIA) headquartered in Phoenix, Arizona. As of December 31, 2021, the firm, which is a subsidiary of Advisor Group, Inc., had $56.9B in total client assets under administration and 1,284 financial professionals making it one of the largest independent broker-dealers in the nation.
SagePoint offers a variety of investments, including:
SagePoint’s brokers are licensed in all 50 states as well as the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.
Financial Misconduct at Sagepoint Financial
SagePoint is licensed by the Financial Industry Regulatory Authority (FINRA), and as such is legally obligated to ensure its brokers are acting lawfully in the interest of their investors. If a client suffers losses as a result of negligent behavior or misconduct from a broker, then the firm may be held legally responsible to repay the damages.
SagePoint and brokers backed by SagePoint have a long history of misconduct. Per FINRA’s BrokerCheck report, the firm has 31 disclosures (20 regulatory events and 11 arbitrations).
In January 2023, FINRA initiated a claim against SagePoint finding that the firm failed to establish and maintain a supervisory system that would reasonably ensure that all eligible customers received applicable sales charge waivers or special share classes regarding rolling over 529 plans from one state plan to another.
The firm left it up to its registered representatives to decide whether Class A sales charge waivers or Class AR sales for 529 plan rollovers were available. However, SagePoint also failed to provide any training to these representatives. This resulted in the firm’s failure to apply sales charge waivers or purchase Class AR shares in more than half of all 529 plan rollover transactions, impacting approximately 260 accounts and causing $160,000 in unnecessary sales charges and fees.
SagePoint was censured and ordered to pay $156,903.93, plus interest in restitution to affected customers.
Only a month prior, SagePoint paid a $60,000 fine, and $325,475.66, plus interest, in partial restitution to customers after FINRA found that the firm negligently failed to tell investors in GPB Capital Holdings private placements that GPB had not filed its audited financial statements on time with the SEC.
Wondering If You Have a Claim? Contact Our Firm Now!
Meyer Wilson reclaimed $350 million for the victims of investment fraud or misconduct. Our attorneys are experienced in going up against the largest investment firms, such as SagePoint Financial, and our track record affirms our resources and expertise. Meyer Wilson has represented clients nationwide and internationally, in state and federal courts, and in securities arbitration. As an investor, you have a right to recover investments lost through unethical behavior or decisions made against your interests.