Silver Law Group is investigation former Sagepoint Financial, Inc. (CRD# 133763) broker James L. Carpenter (CRD# 2199138) after FINRA barred the broker and because of variable annuity misconduct allegations.
According to Carpenter’s FINRA BrokerCheck report, Carpenter was permanently barred from acting as a broker or otherwise associating with firms that sell securities to the public by FINRA in May 2016 after he failed to respond to a FINRA request for information.
In less than two years, according to the BrokerCheck report, Carpenter had three FINRA arbitrations filed against him, both alleging misconduct relating to the sale of variable annuities (VAs). One of those FINRA arbitrations settled in June 2015 for over $50,000. One FINRA arbitration alleging $3 million in damages is currently pending.
Among those BrokerCheck disclosures, Carpenter has 16 judgment/liens reported on his BrokerCheck report, all classified as delinquent tax payments. Carpenter’s highest delinquent tax is over $240,000, and the aggregate of all 16 clearly surpass $500,000.
Tax liens and other financial problems may motivate a broker to engage in transactions to generate more fees or commissions. Additionally, it may be an indicator as to how well a broker can handle his or her own money – or even yours.
Carpenter’s earliest FINRA arbitration was filed in December 2003. It alleged Carpenter gave poor service to the customer regarding the sale of an insurance policy, potentially a variable annuity. Allegedly, the client sought to exercise a provision that allowed him or her to get his money back and surrender the policy within 30 days. The full amount of $38,994 was returned to the customer.
A variable annuity is a contract between an individual and an insurance company under which the insurance company agrees to make periodic payments to the individual either immediately or at some future date.
Variable annuities are frequently peddled to senior investors, and sales pitches for these products are often meant to scare or confuse investors, such as claiming a variable annuity will protect seniors from lawsuits or seizures of their assets. Variable annuities are regulated by FINRA, the SEC, and the National Association of Insurance Commissioners (NAIC) in an attempt to stop any sort of broker misconduct or fraud.
Both FINRA and the SEC have either a page or a notice dedicated to guidance on variable annuities. Click the regulatory bodies’ hyperlinks in this paragraph for more information.
If you have invested with James L. Carpenter and Sagepoint Financial, Inc. and have lost money doing so, you may be able to recover some or all of your losses. Our lawyers are experienced in recovering investor losses due to broker and brokerage firm misconduct through FINRA arbitration.
Silver Law Group represents the interests of investors who have been the victims of investment fraud. If you have questions about your legal rights, please contact Scott Silver of the Silver Law Group for a free consultation at ssilver@silverlaw.com or toll free at (800) 975-4345.