Broker’s securities industry career is tainted with allegations, suspensions, and sanctions.
For a second time in his 25-year securities industry career, Bailey has been suspended from acting as a broker or otherwise associating with firms that sell securities to the public. This most recent suspension in November 2015 is due to Bailey’s failure to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance. According to FINRA records, Bailey was employed by Next Financial until 2008.
Bailey’s first FINRA suspension took place in September 2010 and involved allegations that Bailey made fraudulent and unsuitable mutual fund and variable annuity switch recommendations to retired and unsophisticated customers with little or no economic benefit to the customers. It was also alleged that Bailey failed to disclose key facts about investment choices, made investment trades without consulting his clients, and failed to disclose potential sales charges that ultimately cost his customers over $90,000.00 in unnecessary costs. At the same time, Bailey derived approximately $105,000.00 in commissions from these transactions.
For his actions, FINRA sanctioned Bailey almost $200,000.00 and suspended him from the securities industry for two years.
In his career, customer disputes and FINRA findings regarding Bailey’s misconduct include:
- Exercising discretionary authority over accounts without prior authorization
- Engaging in unsuitable transactions
- Churning
- Unsuitable recommendation and misrepresentation
- Charging excessive fees
Damages granted to customers as a result of these complaints against Bailey exceed $680,000.00.
If you are concerned that your broker may be involved in any wrongdoings as it relates to your relationship with him/her, or if you have lost money as a result of dealing with your broker, it’s recommended that you seek the services of an experienced securities attorney.
The attorneys at Silver Law Group are industry leaders in the field of FINRA and securities arbitration, representing individual and institutional investors across the United States who have lost money at the hands of trusted financial advisors. Our services are on a contingency-fee basis, which means we are only compensated if there is a recovery of losses. Contact us today for a complimentary consultation.