Publicly available records provided by the Financial Industry Regulatory Authority (FINRA) indicate that broker-dealer, Berthel, Fisher & Co. Financial Services, Inc. (CRD # 13609) was recently sanctioned by FINRA’s Department of Enforcement after an investigation into its failure to perform due diligence.
The Law Office of Kevin J. Deloatch, Esq. is interested in speaking to investors who have complaints regarding Berthel, Fisher & Co. Financial Services, Inc.
Registration Background for Berthel Fisher
Berthel Fisher has been a member firm of FINRA since 1983. It is headquartered in Cedar Rapids, IA. It has 253 registered representatives and 168 branch offices. It conducts a business of full-service retail brokerage.
FINRA’s Allegations Against Berthel Fisher
According to FINRA Letter of Acceptance, Waiver and Consent (AWC) dated April 26, 2022 (No. 2018057425202), Berthel Fisher consented to, without either admitting to or denying, the following findings by FINRA’s Department of Enforcement:
- “In August 2015, when reviewing a customer’s request for approval to trade options in his brokerage account, Berthel Fisher failed to exercise due diligence to ascertain the customer’s investment experience and knowledge”;
- “Between August 2015 and February 2018, Berthel Fisher, through Broker A, recommended options transactions to the same customer without having reasonable grounds for believing that the transactions were suitable for that customer”;
- “During the same period, Berthel Fisher failed to establish and maintain a supervisory system, including written procedures, reasonably designed to achieve compliance with FINRA’s rules pertaining to the suitability of options trading in customer accounts”;
- “Berthel Fisher also failed to enforce multiple provisions of its written supervisory procedures pertaining to options trading”; and
- By virtue of its actions, Berthel Fisher violated FINRA Rule 2360(b)(20)(A) regarding supervision of accounts, FINRA Rule 3110(a) regarding supervisory systems, FINRA Rule 3110(b) regarding supervisory written procedures and FINRA Rule 2010, regarding standards of commercial honor and principles of trade.
FINRA Sanctions Berthel Fisher
As a result of such violations and in addition to the above-described findings and conclusions, FINRA’s April 26, 2022 AWC also indicates that Berthel Fisher consented to the following sanction(s):
- A censure;
- A fine in the amount of $10,000.00; and
- Written certification that it has implemented supervisory systems and written supervisory procedures reasonably designed to address the deficiencies identified in the AWC.
Berthel Fisher Has A History of Customer Complaints
In addition to Berthel, Fisher & Co. Financial Services, Inc. being sanctioned by FINRA after an investigation into its failure to perform due diligence, FINRA BrokerCheck for Berthel Fisher reveals it has a prior history of customer-initiated complaints and/or arbitrations, including but not necessarily limited to the following:
- On July 3, 2003 a customer-initiated arbitration was commenced naming Berthel Fisher as a respondent. The customer’s allegations included breach of fiduciary duty, suitability and negligence. The customer further alleged damages in the amount of $800,000.00. On February 10, 2005, the arbitrator(s) issued an award in favor of the customer and against Berthel Fisher in the amount of $548,361.01.
- On May 11, 2004 a customer-initiated arbitration was commenced naming Berthel Fisher as a respondent. The customer’s allegations included misrepresentation and negligence. The customer further alleged damages in the amount of $203,846.17. On April 22, 2005, the arbitrator(s) issued an award in favor of the customer and against Berthel Fisher in the amount of $30,300.00.
- On July 29, 2011 a customer-initiated arbitration was commenced naming Berthel Fisher as a respondent. The customer’s allegations included breach of fiduciary duty, misrepresentation, suitability, breach of contract, failure to supervise and negligence. The customer further alleged damages in the amount of $1,524,750.00. On June 3. 2014, the arbitrator(s) issued an award in favor of the customer and against Berthel Fisher in the amount of $285,00.01.
If you or someone you know has or had a brokerage account with Berthel, Fisher & Co. Financial Services, Inc. and have concerns regarding losses in your investments or possible sales practice violations including fraud, you may be entitled to recover lost funds. The Law Office of Kevin J. Deloatch, Esq. has an extensive securities law practice and over 30 years of experience on Wall Street. Call today at (646) 792-2156 for a free consultation. The time to file your claim may be limited so you should call today to avoid delay.