On December 1, 2020, FINRA’s Department of Enforcement filed a three-cause complaint against Mr. Stevens. The first cause of action charged that Mr. Stevens willfully failed to disclose a judgment and three tax liens on his Uniform Application for Securities Industry Registration or Transfer (Form U4). The second cause of action alleged that Mr. Stevens falsely represented to his firm that he did not have any unreported liens. The third cause of action alleged that Mr. Stevens failed twice to appear and testify at an on-the-record interview.

Mr. Stevens then failed to appear at two-pear hearing conferences scheduled by the hearing officer. FINRA’s Department of Enforcement then requested a default decision, which the hearing officer granted.

Mr. Stevens has been associated with the following broker-dealers:

• D.H. Hill Securities, LLLP in St. Augustine, FL, from June 2006 to February 2020.
• NYLife Securities in St. Augustine, FL, from July 1987 to May 2006.
• Eagle Strategies Corp, from February 1995 to December 1996.

As discussed more fully below, Mr. Stevens has also been the subject of numerous customer disputes that have resulted in monetary settlements to customers.

If you have suffered financial losses investing with Mr. Stevens or suspect that Mr. Stevens did not have your best interest in mind when recommending an investment, account transactions, or annuities, contact New York securities arbitration law firm Iorio Altamirano LLP for a free and confidential review of your account or annuity contract.

Iorio Altamirano LLP represents investors that have disputes with their financial advisors or brokerage firms, such as Cetera Advisor Networks LLC and Summit Brokerage Services, Inc.

Financial Advisor Charles Thomas Stevens (CRD No. 1698058)

Mr. Stevens has 32 years of experience in the securities industry and has been associated with three brokerage firms.

According to his BrokerCheck report, Mr. Stevens has recently been the subject of three customer complaints concerning investment recommendations that he made related to real estate investment trusts (“REITs”), Business Development Companies (“BDCs”), and variable annuities.

• Customer Dispute (July 2019): In July 2019, a customer filed a securities arbitration complaint seeking $100,000 in damages and alleging that Mr. Stevens made an unsuitable recommendation related to REITs. The customer asserted the following causes of action: common law fraud, breach of fiduciary duty, negligence, breach of contract. The customer dispute is still pending.
• Customer Dispute (December 2017): In December 2017, a customer filed a securities arbitration complaint seeking $150,000 in damages and alleging that Mr. Stevens made an unsuitable recommendation related to REITs and BDCs. The customer asserted the following causes of action: unsuitable recommendations, breach of fiduciary duty, negligence, failure to supervise, and breach of contract. The dispute was settled by D.H. Hill Securities, LLLP, for $30,000.
• Customer Dispute (August 2017): In August 2017, a customer filed a securities arbitration complaint alleging that Mr. Stevens made an unsuitable recommendation related to REITs, BDCs, and a variable annuity. The customer asserted the following causes of action: unsuitable recommendations, breach of fiduciary duty, negligence, failure to supervise, and breach of contract. The dispute was settled by D.H. Hill Securities, LLLP, for $35,000.

D.H. Hill Securities, LLLP – Supervisory Duties

Brokerage firms like D.H. Hill Securities, LLLP must properly supervise financial advisors and customer accounts. Brokerage firms must also establish and maintain a reasonably designed system to oversee account activity to ensure compliance with securities laws and industry regulations. When a brokerage firm fails to sufficiently supervise its financial advisors or the investment account activity, it may be liable for investment losses sustained by customers.

How to Recover Financial Losses or Obtain a Free Consultation

Securities arbitration is a unique and complex practice area. Investors should seek out experienced counsel who understands the FINRA forum and can navigate the arbitration process to effectively advocate on their behalf.

If you or a loved one were a customer of Charles Stevens or D.H. Hill Securities and either sustained financial losses or suspect inappropriate activity in your investment or retirement accounts, contact New York securities arbitration attorney August Iorio of Iorio Altamirano LLP. August Iorio can be reached at august@ia-law.com or toll-free at (646) 330-4624 for a free and confidential evaluation of your account.

Iorio Altamirano LLP is a securities arbitration law firm based in New York, NY. Iorio Altamirano LLP pursues FINRA arbitration claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by stockbrokers and brokerage firms.

Iorio Altamirano LLP is a bilingual law firm, fluent in both English and Spanish.

This complaint is not the first securities arbitration claim filed against Robyn Simons and Berthel Fisher & Company Financial Services, Inc. arising out of Robyn Simons’ investment recommendations. In 2015, a customer filed a FINRA arbitration complaint alleging that investments made in her accounts between 2013 and 2015 were unsuitable. The customer also alleged that Robyn Simons misrepresented the securities to her at the time of purchase. Reportedly, the investments included a REIT, BDC, Unit Investment Trust (UIT), and equities. According to Robyn Simons’ BrokerCheck Report, Berthel Fisher & Company Financial Services, Inc. settled the matter with the aggrieved customer for $21,500.

Robyn Simons was registered with Berthel Fisher & Company Financial Services, Inc. in Layton, Utah, from February 2008 until September 2017.

If you have suffered financial losses investing with Robyn D. Simons or Berthel Fisher & Company Financial Services, Inc., or suspect that Robyn Simons did not have your best interest in mind when recommending investments, including REITs and BDCs, contact New York securities arbitration law firm Iorio Altamirano LLP for a free and confidential review of your account or annuity contract.

Iorio Altamirano LLP represents investors that have disputes with their financial advisors or brokerage firms, such as Berthel Fisher & Company Financial Services, Inc.

Real Estate Investment Trusts (REITs)

A real estate investment trust (REIT) is an investment vehicle that allows investors to invest in income-producing real estate. REITs may own a wide range of real estate assets such as apartments, offices, commercial buildings, warehouses, etc. REITs let investors pool their money with other investors to invest in real estate without owning real estate assets individually. Instead, an investor owns shares in a REIT, and in doing so, they add the individual real estate assets owned by the REIT to the investor’s portfolio. Among other things, REITs are attractive to income-seeking investors for their regular dividend payments and higher-than-average yields. REITs may also provide an investor with diversification in their portfolio. But even with these apparent benefits, investors should understand the inherent risks of REITs and how to manage them. To read more about REITs, click here.

Business Development Companies (BDCs)

Business development companies (BDCs) are organized to invest in two types of businesses: 1) small- and medium-sized companies in their initial development stages and 2) distressed companies looking to balance their finances. BDCs are similar to closed-end investment funds in that their shares are registered with the U.S. Securities and Exchange Commission (SEC). Registration provides some investor protections such as disclosure about the BDC’s investments and certain restrictions on the use of leverage. BDCs may be publicly-traded, non-traded, or structured as private BDCs.

Typically, a BDC must invest at least 70% of its assets in U.S. non-financial sector operating companies that are not listed (i.e., private companies) or public companies with a market cap of less than $250 million.

Though BDCs may be attractive to investors due to their high dividend yields, they are often considered high-risk investments with high sales commissions and unfavorable fee structures. In particular, FINRA has previously cautioned investors about the risks of non-traded or unlisted BDCs, which may be illiquid and offer investors limited opportunities to exit (i.e., periodic share repurchases at high discounts). They are considered high-risk, speculative investments for elderly customers.

Berthel Fisher & Company Financial Services, Inc.: Repeated Supervisory Violations

Financial institutions, like Berthel Fisher & Company Financial Services, Inc., must properly supervise financial advisors and customer accounts. Brokerage firms are required to establish and maintain a reasonably designed system to oversee account activity, such as its suitability review of transactions in REITs, BDCs, and Unit Investment Trusts, to ensure compliance with securities laws and industry regulations. When a brokerage firm fails to supervise its financial advisors or the investment account activity sufficiently, it may be liable for investment losses sustained by customers.

Since 2014, Berthel Fisher & Company Financial Services, Inc. has twice been sanctioned for supervisory failures related to its suitability review of transactions in REITs, Unit Investment Trusts, and other alternative investments. In total, Berthel Fisher & Company Financial Services, Inc. has paid over $1.33 million in monetary fines, restitution, and disgorgement of gains. Below is a summary of Berthel Fisher & Company Financial Services, Inc.’s recent relevant disciplinary history:

Disciplinary Proceeding No. 2014039169601: On February 5, 2018, FINRA accepted Berthel Fisher’s Offer of Settlement in a disciplinary matter involving, among other things, inadequate supervisory systems and written procedures, including those concerning its suitability review of transactions in short-term trading of unit investment trusts (UITs) and mutual fund switches. Berthel Fisher’s customers paid excessive sale charges of approximately $667,000. Berthel Fisher directly profited from its supervisory failures.

Berthel Fisher accepted and consented to the imposition of a censure, fine of $225,000, payment of restitution to customers in the total amount of $117,315, and disgorgement of $299,472.

Disciplinary Proceeding No. 2012032541401: On February 24, 2014, FINRA accepted a Letter of Acceptance, Waiver, and Consent from Berthel Fisher in a disciplinary matter involving, among other things, inadequate supervisory systems and written procedures, including those concerning its suitability review of transactions in non-traded REITs, non-traditional ETFs, and other alternative investments.

Berthel Fisher accepted and consented to the imposition of a censure, fine of $675,000, and payment of restitution to customers in the total amount of $13,292.

How to Recover Financial Losses or Obtain a Free Consultation

If you have lost money with financial advisor Robyn D. Simons or Berthel Fisher & Company Financial Services, Inc., contact New York securities arbitration attorney August Iorio of Iorio Altamirano LLP. August Iorio can be reached at august@ia-law.com or toll-free at (646) 330-4624 for a free and confidential evaluation of your account.

Iorio Altamirano LLP is a securities arbitration law firm based in New York, NY. Iorio Altamirano LLP pursues FINRA arbitration claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by stockbrokers and brokerage firms.