Berthel Fisher Sued By Investors For REIT Fraud

Joshua Eugene Stroud of Springfield Oregon a stockbroker formerly employed by Berthel Fisher Company Financial Services Inc. is the subject of a customer initiated investment related arbitration claim which was resolved for $22,500.00 in damages supported by allegations that (1) Stroud made misrepresentations to the customer concerning business development company and real estate security investments (2) Stroud executed unsuitable purchases of those investments and (3) Berthel Fisher Company Financial Services and LPL Financial Corporation failed to supervise Stroud’s activities in the customer’s accounts. Financial Industry Regulatory Authority (FINRA) Arbitration No. 16-02080 (Oct. 2, 2017).

FINRA Public Disclosure confirms that Stroud is referenced in four more customer initiated investment related disputes pertaining to accusations of his violative conduct during the time that he was associated with Berthel Fisher Company Financial Services. Particularly, on April 14, 2015, a customer filed an investment related complaint regarding Stroud’s activities where the customer sought damages estimated to exceed $5,000.00 based upon allegations that the customer’s account had been negligently handled by way of the account containing excess concentrations of illiquid, non-traded real estate investment trust products in the customer’s investment portfolio.

On April 16, 2015, another customer filed an investment related complaint concerning Stroud’s conduct in which the customer requested more than $5,000.00 in damages founded on accusations that Stroud over-concentrated the customers’ assets in non-traded real estate investment trust products, which was inappropriate for the customer given the income generated by the real estate investment trust, and the risks of those investments failing to conform to the customer’s tolerance for risk.

Then, on August 31, 2015, a customer filed an investment related complaint involving Stroud’s activities where the customer sought damages estimated to exceed $5,000.00 supported by allegations that the customer was not provided a contract for a variable annuity, and that it was not suitable for the customer’s assets to have been liquidated from a former annuity and placed in an annuity issued by JNL.

Subsequently, a customer initiated investment related arbitration claim regarding Stroud’s activities was settled for $8,750.00 in damages based upon accusations that misrepresentations had been made to the customer; unsuitable business development company, real estate security and managed accounts were purchased for the customer; and Berthel Fisher Company Financial Services. Inc. failed to supervise the transactions Stroud placed in the customer’s account. FINRA Arbitration No. 16-00414 (Sept. 8, 2016).

FINRA Public Disclosure additionally reveals that Berthel Fisher Company Financial Services Inc. discharged Stroud on August 21, 2015 founded on allegations that a withdrawal had been effected from a customer’s account by Stroud despite there being no authorization being provided to Stroud by the customer. Between March 9, 2016 and March 30, 2016, Stroud was associated with Liberty Partners Financial Services.