• August 27, 2024
• Berthel Fisher & Co.

Vincent Roland Bailey (CRD#:1845517) is a registered broker with Berthel, Fisher & Company Financial Services, Inc. in Batavia, IL and previously registered investment advisor.

Broker’s History

He entered the securities industry in 1992 and previously worked with Consolidated Financial Investments, Inc.; Aegon USA Securities Inc.; Continental Capital Investment Services, Inc.; and Berthel Fisher & Company Financial Services, Inc.

Current and Past Allegations of Conduct Leading to Investment Loss

According to publicly available records released by the Financial Industry Regulatory Authority (FINRA), in July of 2024, Vincent Bailey became the subject of a customer complaint alleging, “that the Firm and representative failed to make a suitable recommendation and over-concentrated claimants accounts in alternative investments and private placements from 2013 to 2015. Claimant further allege that the Firm and representative misrepresented the investments and induced the client to retain the investment causing the client to suffer a loss.” The damage amount requested is $180,000 and the customer dispute is still pending.

In addition, Vincent Bailey has been the subject of three other disclosures:
• May 2022—“The claimants allege the investments purchased in 2010-2015 were overconcentrated, unsuitable, and misrepresented to them by the representative. Additionally, the claimants allege the firm failed to conduct due diligence of the investments and failed to supervise the activities of the representative.” The customer dispute settled for $42,619.05.
• July 2019—“ The claimants allege that the investments purchased between 2007-2008 were unsuitable and misrepresented to them by the representative. The Claimants also allege that the firm failed to supervise the actions of the representative.” The customer dispute settled for $50,000.
• May 2009— “ The Illinois Division of Insurance alleged the representative made misleading misrepresentations and failed to properly identify himself on advertisements sent to insurance clients.” The State of Illinois Department of Financial & Professional Regulation Division of Insurance sanctioned civil and administrative penalties/fines in the amount of $5,000.

We Help Investors Recover Investment Losses

Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.

Reasonable basis suitability requires that a recommended investment or investment strategy be suitable or appropriate for at least some investors. Reasonable basis suitability requires an advisor to conduct adequate due diligence so that he or she can determine the risks and rewards of the investment or investment strategy.
Customer-specific suitability requires that a member or associated person have a reasonable basis to believe that the recommendation is suitable for a particular customer based on that customer’s investment profile. Among the criteria that a financial advisor must evaluate to satisfy his or her customer-specific suitability obligations include the investor’s age, tax status, time horizon, liquidity needs, and risk tolerance; a client’s other investments, financial situation and needs, investment objectives, and any other information disclosed by the customer should also be considered.

Excessive trading often occurs when a Financial Advisor puts his or her interests ahead of the clients and makes transactions solely for the purpose of generating commissions. Financial Advisors have a regulatory duty to recommend suitable investment strategies. One of the components of the suitability analysis is quantitative suitability.

Quantitative suitability requires a brokerage firm or financial advisor with actual or de facto control over a customer’s account to have a reasonable basis for believing that a series of recommended transactions – even if suitable when viewed in isolation – is not excessive and unsuitable for the customer when taken together in light of the customer’s investment profile. No single test defines excessive activity, but factors such as the turnover rate, the cost-equity ratio, and the use of in-and-out trading in a customer’s account may provide a basis for a finding that a member or associated person has violated the quantitative suitability obligation. Financial advisors have a legal and regulatory obligation to recommend only suitable investments that are appropriate for their clients’ needs and objectives. Their employing brokerage firm has a legal and regulatory obligation to supervise the Financial Advisors’ sales practices and dealings with clients. To the extent any of these duties are breached, the customer may be entitled to a recovery of his or her investment losses.

The Wolper Law Firm represents investors nationwide in securities litigation and arbitration on a contingency fee basis. Matt Wolper, the Managing Principal of the Wolper Law Firm, is a trial lawyer who has handled hundreds of securities cases during his career involving a wide range of products, strategies and securities. Prior to representing investors, he was a partner with a national law firm, where he represented some of the largest banks and brokerage firms in the world in securities matters. We can be reached at (800) 931-8452 or by email at mwolper@wolperlawfirm.com.