Berthel, Fisher & Company Financial Services

Berthel, Fisher & Company Financial Services (CRD #: 13609) is a full-service independent broker-dealer with headquarters in Cedar Rapids, Iowa. This firm is a dually registered brokerage firm and investment advisory firm. It employs brokers who have misconduct allegations on their records. Berthel, Fisher & Company Financial Services has its own regulatory actions as well.

Investors who have lost money after working with Berthel, Fisher & Company broker should consider contacting a securities attorney. Our attorneys work with clients who suffered losses following unsuitable recommendations. FINRA has alleged BFC brokers offered unsuitable investment recommendations in 2022 and 2018.

Berthel, Fisher & Company Financial Services also does business or has done business under the following names:

• MorAmerica Financial Services
• Berthel, Fisher & Fleischman Financial Services

Berthel, Fisher & Company Regulatory Actions

The following are regulatory actions on Berthel, Fisher & Company’s record. Keep reading if you have any questions regarding this company’s alleged conduct.

These are only the most recent allegations – there are a total of 42 disclosures on the firm’s FINRA BrokerCheck profile. For a complete list, consult the firm’s detailed BrokerCheck record.

Alleged Failure to Perform Due Diligence Regarding Options Trading

On April 26, 2022, Berthel, Fisher & Company Financial Services entered into an Acceptance, Waiver, and Consent agreement (AWC) in which the broker consented to the findings that the firm failed to perform its due diligence before approving a customer’s account for options trading. (An AWC allows a firm to settle with FINRA without admitting or denying the findings.) Options trading is risky and speculative, and only experienced investors should be approved. A broker allegedly submitted a form indicating that the broker had good knowledge of options and had moderate experience when the customer had little or no knowledge of and zero experience with options investing.

According to the AWC, the customer suffered a $31,000 loss following unsuitable options trading. The firm consented to a fine of $100,000.

$235,000 SEC Fine Following Mutual Fund and Money Market Account Allegations

On September 16, 2021, the SEC alleged that Berthel, Fisher & Company representatives breached their fiduciary duties when they recommended (or purchased money market mutual funds. Representatives allegedly recommended investments that offered ongoing payments to the firm instead of investments that would have been cheaper for their clients. The firm allegedly did not adequately disclose the conflict of interest the fees attached to those investments posed.

As part of the settlement with the SEC, in addition to the $235,000 fine, the SEC also ordered the firm to pay pre-judgment interest.

$250,000 Fine by New Hampshire Following UIT Allegations

On February 6, 2018, the New Hampshire Bureau of Securities Regulation fined Berthel, Fisher & Company following allegations that one of their representatives violated New Hampshire securities laws by making unsuitable investment recommendations of Unit Investment Trusts (UITs). The broker was allegedly able to engage in this conduct due to the firm’s lack of supervision.

The firm agreed to pay $250,000 as an administrative fine and $115,407.25 in restitution to customers.

$225,000 FINRA Fine Following Allegations Concerning Short-Term Trading of UITs

A representative allegedly generated $421,000 in concessions for himself and the firm by recommending unsuitable short-term trading patterns for Unit Investment Trusts. UITs are not designed for short-term trading, in part because of their substantial sales charges.

As part of the Decision & Order Offer of Settlement dated February 5, 2018, the firm consented to pay a fine of $225,000 and was also ordered to repay $117,315.41.

Brokerage Firm Fees and Disclosures

Investors are charged fees regardless of whether they lose money on their investments. You may be charged brokerage fees or investment advisory fees, depending on what type of account you have. For a closer look at Berthel, Fisher & Company fees, see their Customer Relationship Summary (Form CRS).

• Brokerage transactions come with commissions or another fee for each transaction. The firm has an incentive to encourage you to buy and sell more frequently and in larger amounts.
• When the firm buys fixed-income securities from you or sells them to you, they make money off the markup or markdown.
• Certain investment products have sponsors. These sponsors may provide Berthel, Fisher & Company representatives with travel expense reimbursement, gifts, entertainment, and meals to encourage brokers to make these recommendations.
• The firm receives compensation, payments, and other benefits from certain sponsors if you invest based on a BFC representative’s referral. Make sure to ask your broker about potential conflicts of interest.

Broker Misconduct at Berthel Fisher

The Form CRS reveals that certain Berthel Fisher representatives have disciplinary records. Here are just a few examples.

• One Berthel Fisher broker has two investor disputes on his record. One settled for $190,000.
• Another broker settled a six-figure dispute in 2022 and faced an investor dispute in 2021 involving speculative, non-traded REITs.
• Kurta Law knows of a Berthel Fisher broker who is facing allegations of misrepresentation and overconcentration in high-risk investments.

Our Securities Attorneys Can Help

If you believe you suffered losses as a result of a Berthel, Fisher & Company representative’s misconduct, reach out to our securities attorneys for a free case evaluation. Our attorneys work on contingency, meaning we only collect a fee if we win your case. Call (877) 600-0098 or call info@kurtalawfirm.com.