Berthel Fisher & Company Financial Services, Inc. (“Berthel Fisher“) has faced numerous customer disputes, complaints, lawsuits, and regulatory actions over its financial planning services over the years. As an investor, it’s important to be aware of these issues and understand how they might impact your relationship with the firm. In this article, we’ll explore some of the key events and concerns surrounding Berthel Fisher’s history with customer disputes and regulatory actions over retirement planning alone.
At the end of 2022, Berthel Fisher & Co. Financial Services Inc. disclosed a significant increase in open claims by investors against the firm for investment products, totaling $32.1 million. This figure represents an almost eightfold increase compared to the previous year, according to the firm’s annual audited financial statement filed with the Securities and Exchange Commission (SEC).
Berthel Fisher, based in Cedar Rapids, Iowa, and having nearly 250 independent contractor representatives, reported a drastic rise in interest in potential claims against the firm in 2021. Their audited financial statement, known as a Focus Report, revealed “open claims” with unspecified damages ranging from $1.1 million to $4.9 million if paid in aggregate.
The Focus Reports for the past two years do not specify the various investment portfolios or investments, causing the firm’s auditors to continue to warn of escalating potential legal claims against Berthel Fisher. The firm is known to sell various alternative investments, which can be costly and volatile. If things go wrong, in practice, it may result in numerous investor complaints against a broker-dealer.
If you have concerns about your investments with financial professionals at Berthel Fisher, contact Haselkorn & Thibaut for a free consultation at 1-800-856-3352 or email us at [email protected]. With our no-recovery, no-fee policy, you can trust that we guarantee we’ll fight tirelessly to protect your financial interests.
FINRA Fines
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In one instance, the Financial Industry Regulatory Authority (FINRA) fined Berthel Fisher $100,000 for unsuitably recommending options trading to a 71-year-old retired investor. This fine resulted from an investigation that began after a customer complaint about put and call options on an index fund, QQQ.
SEC Actions and Fines
A Securities and Exchange Commission (SEC) investigation into its mutual funds, fund marketing fees and costs related to investor lawsuits has also impacted Berthel Fisher. The potential costs of these actions and their implications on the firm management’s finances are still being assessed.
Customer Complaints and Lawsuits
Berthel Fisher has faced multiple customer complaints and lawsuits. For example, bankruptcy filings show one financial advisor previously employed by Berthel Fisher, Alvery Anthony Bartlett Jr., had three prior and one currently pending customer dispute. Another former Berthel Fisher advisor, McCutchen, was the subject of 41 customer complaints between 2000 and 2019.
Barred Advisors and Financial Advisor Complaints
Some advisors with a history at Berthel Fisher have faced barred status and complaints from clients. For example, in the case of investment adviser, McCutchen, former clients won a FINRA arbitration award for $1.2 million for REIT losses.
FINRA and Filing a Complaint Against Berthel Fisher Using an Investment Fraud Lawyer
FINRA, the Financial Industry Regulatory Authority, is a self-regulatory organization that oversees brokerage firms and their registered representatives in the United States. They enforce industry rules and protect investors from fraud and misconduct. If you have concerns about the actions of Berthel Fisher or one of their financial advisors, you can file a complaint with FINRA. However, to maximize the chances of a favorable outcome, working with an investment fraud lawyer who can guide you through the process is beneficial.
Benefits of Hiring an Investment Fraud Lawyer
Expertise in state securities laws and regulations: Investment fraud lawyers have in-depth knowledge of the laws and regulations governing financial advisors and brokerage firms. This expertise enables them to identify potential violations and build a strong case on your business’ behalf.
Representation during arbitration or civil litigation: Many disputes involving financial advisors and brokerage firms are resolved through FINRA arbitration. An investment fraud lawyer can represent you during arbitration, ensuring that your best interests are are protected and that you have the best possible chance of a successful outcome. If the case proceeds to litigation, your lawyer can also represent you in court.
Guidance throughout the process: Filing a complaint with FINRA and navigating the arbitration or litigation process with other individuals or businesses involved can be complex and confusing. An investment fraud lawyer can provide valuable guidance throughout the process, helping you understand your rights and options at each stage.
Maximizing your loss and potential recovery: Working with an experienced investment fraud lawyer increases the likelihood of recovering your losses. They can help you gather evidence, build a strong case, and negotiate settlements or awards on your behalf.
Steps to File a Complaint with FINRA
Consult an investment fraud lawyer: Before filing a complaint with FINRA, it’s essential to consult with an investment fraud lawyer who can assess your situation and determine whether you have a valid claim. They can also advise you on the best course of action based on your circumstances and risk taking.
Gather evidence: Work with your lawyer to gather all relevant documentation, such as account statements, financial plans, emails, or other communications with your financial advisor or Berthel Fisher. This evidence will help support your claim and demonstrate any wrongdoing.
File a complaint with FINRA: Your lawyer will help you prepare and file a formal complaint with FINRA. This complaint will outline the alleged misconduct, provide supporting evidence, and request specific remedies or actions from FINRA.
Participate in the arbitration process: If your case goes to arbitration, agree that your lawyer or adviser will represent you during the proceedings, presenting your case and advocating for your interests.
Follow up on the outcome: After the start of the arbitration process is complete, your lawyer will help you understand the outcome and guide you through any necessary follow-up actions, such as appealing the decision or enforcing an award.
Finding Help with Investment Disputes
Haselkorn & Thibaut, InvestmentFraudLawyers.com, is a leading investment fraud law firm specializing nationwide in fighting for investors. With over 50 years of experience and a 98% success rate, our team is well-equipped to handle disputes involving financial advisors, investment advisers, and management, and brokerage firms like Berthel Fisher. We have offices in Florida, New York, North Carolina, Arizona, and Texas, ensuring that we can provide comprehensive legal support to investors nationwide.
Berthel Fisher’s history of customer disputes, complaints, lawsuits, and regulatory actions highlights the importance of staying informed about the companies, institutions, insurance products, and advisors managing your investments. By understanding these issues and seeking legal advice and guidance when necessary, you can better protect your financial interests and make informed investment decisions.
If you have concerns about your investments or need assistance with an investment dispute, contact Haselkorn & Thibaut for a free consultation at 1-800-856-3352 or email us at [email protected]. With our no-recovery, no-fee policy for investing client first, you can trust that we’ll fight tirelessly to protect your financial interests.
