If you were a customer of SagePoint Financial, you might have a claim to recover your losses if you have been affected by the excessive trading practices that led to significant financial losses for many investors. Recently, Osaic Services, the successor to SagePoint Financial, was fined $250,000 by the Financial Industry Regulatory Authority (FINRA) for failing to supervise brokers who engaged in excessive and unsuitable trading.
What Happened?
According to FINRA, SagePoint Financial allowed brokers to override automated supervisory alerts and trading restrictions, even when they lacked sufficient knowledge, training, and experience with options trading. This lack of supervision led to substantial financial losses for customers. For instance, one broker’s actions resulted in two customers paying over $60,000 in commissions and incurring over $1.2 million in losses.
How Were Investors Affected?
The excessive trading practices at SagePoint Financial had severe consequences for many investors. In one case, a customer was exposed to a risk of more than $4.5 million in losses, which was more than 22 times her liquid net worth. Another customer lost the entirety of her account value and paid nearly $42,000 in commissions and costs. (See Advisor Hub Article) These examples highlight the devastating impact of unsupervised and excessive trading on individual investors. Those affected may have a valid claim to recover their losses.
What Can You Do?
If you believe you were a victim of excessive trading by SagePoint Financial, you have legal rights and potential paths to recovery. Our law firm specializes in cases involving broker misconduct and supervisory failures. We can help you understand your options and pursue compensation for your losses. You can see examples of other cases here, Representative Past Cases
Contact Us
Don’t let the actions of unscrupulous brokers go unchallenged. Contact our experienced legal team today for a free consultation. We are committed to helping you recover your financial losses and hold those responsible accountable.