Frederic O’Hara Allegedly Misled Client About VUL

Frederic O’Hara (CRD #: 351490), a broker formerly registered with Sagepoint Financial, is involved in an investor dispute, according to his BrokerCheck record, accessed on May 14, 2025. Read on if you have questions about his alleged conduct as a broker.

Investor Dispute

On February 26, 2025, a trustee filed a dispute alleging that Frederic O’Hara misled a client with regard to a Variable Universal Life insurance (VUL) policy purchased in February 1999. This dispute was settled for an undisclosed amount.

FINRA Rule 2020

FINRA Rule 2020 prohibits the use of manipulation, deception, and other fraudulent methods to influence the purchase and sale of securities. Misrepresenting or omitting facts about an investment’s limitations, tax implications, fees, or other features violates this rule.

Suspension by FINRA

On March 16, 2020, Frederic O’Hara consented to the entry of findings that he allegedly engaged in an undisclosed outside business activity and undisclosed private securities transactions.

According to a Letter of Acceptance, Waiver & Consent (AWC), Frederic O’Hara allegedly served as an outside director of private company Company 1 between October 2009 and May 2012. He allegedly participated in five private securities transactions involving shares in Company 1 between February 2010 and 2015. Four of these transactions allegedly involved his clients.

As part of these client transactions, Frederic O’Hara allegedly discussed the investment opportunity with prospective investors and facilitated disbursements so clients could pay for Company 1 securities. The five private securities transactions allegedly totaled $63,000, including his own $10,000 purchase.

He allegedly failed to provide his employing broker-dealers with prior written notice of his role as outside director of Company 1 and of the five transactions.

Other Allegations

In 2017, SagePoint Financial compliance allegedly sent Frederic O’Hara a letter requesting information about his role as director of Company 1. In his response, Frederic O’Hara allegedly falsely claimed that he had never discussed Company 1 with his firm clients.

Frederic O’Hara allegedly provided one client involved in a private securities transaction with promotional DVDs providing information about Company 1’s operations and business strategy. These communications allegedly did not identify the risks associated with investing in the company.

Further, Frederic O’Hara’s pension administration firm allegedly sent that same client a spreadsheet listing the value of that client’s assets, including their Company 1 securities holdings. However, the valuations in the spreadsheet allegedly did not contain any source or explanatory text, depriving the client of a reasonable basis by which to evaluate them.

The AWC concluded that these allegations constituted violations of NASD Rules 3030, 3040, 2210(d)(1)(A), and FINRA Rules 3270, 2010, and 2210(d)(1)(A).

FINRA Rule 3270

FINRA Rule 3270 requires brokers to seek and receive approval from their firm for any outside business activities they engage in.

FINRA Rule 3280

FINRA Rule 3280 requires brokers to provide written notice to their firm before engaging in private securities transactions.

FINRA Rule 2210

FINRA Rule 2210 defines how firms and brokers are permitted to communicate with the public (e.g., in advertising). This rule requires all communications with the public to be fair and balanced and free from any false or misleading statements.

Sanctions

Frederic O’Hara consented to the following sanctions:

• Nine-month suspension from associating with FINRA members
• $10,000 fine

His suspension ran from March 16 to December 15, 2020. You can read a copy of the AWC here.

Background Information

Frederic O’Hara has passed the following exams:

• Securities Industry Essentials Examination – SIE
• Registered Representative Examination – Series 1
• Uniform Combined State Law Examination – Series 66
• Uniform Securities Agent State Law Examination – Series 63

He previously worked for the following firms:

• SagePoint Financial (CRD#:133763)
• Berthel, Fisher & Company Financial Services (CRD#:13609)
• Next Financial Group (CRD#:46214)
• Woodbury Financial Services (CRD#:421)
• Ogilvie Security Advisors Corporation (CRD#:10105)
• NYLIFE Securities (CRD#:5167)
• Green Hill Financial Service Corporation (CRD#:4882)

Kurta Law Can Help

If you worked with Frederic O’Hara and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm that exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.