Background Of Troy R. Baily (CRD No. 4458930)
Baily first became registered with FINRA in December 2001, as an Investment Company
and Variable Contracts Products Representative (“IR”) of a member of FINRA. From
November 2016 through March 2018, Baily was registered with FINRA as an IR and
associated with SagePoint Financial, Inc. On March 8, 2018, SagePoint filed a Form US
terminating Baily’s association with the firm and registration with FINRA. On September
13, 2019, SagePoint filed an amended Form US disclosing that Baily was the subject of a
customer-initiated FINRA arbitration in connection with an investment contract.
Although Baily is not currently registered or associated with a FINRA member, he
remains subject to FINRA’ s jurisdiction pursuant to Article V, Section 4 of FINRA’ s ByLaws. Respondent does not have any relevant disciplinary history.
Activity(s) Reported – Troy R. Baily
FINRA Rule 3280(e) generally defines a private securities transaction as any securities
transaction outside the regular scope of an associated person’s employment with a
member. FINRA Rule 3280(b) states that “[p]rior to participating in any private securities
transaction, an associated person shall provide written notice to the member with which
he is associated describing in detail the proposed transaction and the person’s proposed
role therein and stating whether he has received or may receive selling compensation in
connection with the transaction.” Rule 3280(c) states that when an associated person has
received or may receive selling compensation, the member firm shall provide written
approval or disapproval of the associated person’s participation in the proposed private
securities transaction. A violation of Rule 3280 is also a violation of FINRA Rule 2010,
which requires associated persons, in the conduct of their business, to observe high
standards of commercial honor and just and equitable principles of trade.
Between February and May 2017, Baily solicited investors to purchase securities in
Future Income Payments, LLC. FIP represented itself as a structured cash flow
investment, claiming to purchase pensions at a discount from pensioners and then selling
a portion of those pensions as a “pension stream” to investors. FIP generally promised
investors a 7% to 8% rate of return on their investment. During the Relevant Period,
Respondent sold $210,000 in FIP purchase agreements to four investors, including three
who were customers of Respondent’s employer member firm. Respondent received a
total of $8,900 in commissions in connection with these transactions.
At all times during the stated period, Respondent’s employer member firm prohibited its
registered representatives from participating in private securities transactions without
prior written approval from the firm. Respondent did not provide written notice to his
firm prior to participating in the transactions involving FIP, nor did he obtain written
approval from the firm.
In April 2018, FIP ceased business, owing nearly $300 million in unpaid investor
payments. In a March 12, 2019 indictment, the United States charged FIP and its owner,
Scott A. Kohn, with conspiracy to engage in mail and wire fraud related to FIP’s
Therefore, Respondent violated FINRA Rules 3280 and 2010.
Penalties And Sanctions
A six-month suspension from association with any FINRA member in any capacity; and A $5,000 fine
The fine shall be due and payable either immediately upon reassociation with a member
firm or prior to any application or request for relief from any statutory disqualification
resulting from this or any other event or proceeding, whichever is earlier.
Respondent specifically and voluntarily waives any right to claim an inability to pay, now
or at any time after the execution of this AWC, the monetary sanction imposed in this
Respondent understands that if he is barred or suspended from associating with any
FINRA member, he becomes subject to a statutory disqualification as that term is defined
in Article III, Section 4 of FINRA’s By-Laws, incorporating Section 3(a)(39) of the
Securities Exchange Act of 1934. Accordingly, he may not be associated with any
FINRA member in any capacity, including clerical or ministerial functions, during the
period of the bar or suspension. See FINRA Rules 8310 and 8311.
Recent Activity(s)Of The Individual/Firm
From February through May 2017, Baily engaged in four undisclosed and unapproved
private securities transactions in the total amount of $210,000. Baily’s conduct violated
FINRA Rules 3280 and 2010.
How To Spot A Fraud Finance Advisor (Infographic)
Help For Victims Of Troy R. Baily
If you have lost funds because of misrepresentation, unsuitable investment, or unsuitable investment strategy from Troy R. Baily. Then you can take legal action and get justice. Fraud, Malpractice & dereliction of duty should not be taken lightly, especially in this industry. We highly suggest that you notify authorities or seek legal action if your financial advisor or brokerage firm fails to abide by FINRA’s rules are regulations.
Financial advisors are regulatory & legally obligated to suggest (recommend) the most suitable investments/investment strategies to their clients. Their suggestions should have their client’s best interests and should be appropriate for their client’s goals and needs. Similarly, the brokerage firm which hires financial advisors also has a regulatory & legal obligation to keep a close watch and supervise their Financial Advisors’ practices & behavior. They need to make sure that the financial advisor is not being manipulative or having an unreasonable bias towards certain investments. If the financial advisor and/or the brokerage firm breaches these duties, then the client/customer may be entitled to a full or partial recovery of their losses.
Financial advisors need to have the interest of their clients when giving suggestions related to investments and investment strategies. Reasonable basis suitability requires the advisor to do their best to analyze & identify the risks and rewards associated with their suggested investment and/or investment strategy.
Troy R. Baily has been involved in fraudulent activities and is an unsafe professional entity. We strongly recommend you avoid any association with such a shady figure.
- Shady Activity
- Swindling Activity Reported By Clients
- Under Govt. Organization's Radar
- High Risk of Fraud