FINRA Fines, Suspends Securities Broker In Florida For Undisclosed Private Securities Transactions
Hugh Ordway Barndollar III (CRD #3027317) is a registered investment adviser (RIA). As of early February of 2023, he is suspended from the securities industry. From 2013 to 2021, Mr. Barndollar III was a registered representative of Crown Capital Securities in Land O’ Lakes, Florida. Spanning 2020 and 2021, eight customer complaints were filed against this broker.
Seven of the eight investor complaints have been settled. One is still listed as ‘pending.’ In November of 2022, the Financial Industry Regulatory Authority (FINRA) took enforcement action against Mr. Barndollar III for improper and undisclosed private securities transactions. Below, our Miami selling away investments attorney discusses the enforcement action taken by FINRA.
Background: Eight Investor Complaints (2020 and 2021)
From April of 2020 to April of 2022, FINRA lists eight different customer complaints that were filed against former Crown Capital Securities broker Hugh Ordway Barndollar III. Here is an overview of the investor claims:
- April 2020: Unsuitable investment claim settled for $37,500.00.
- May 2020: Dispute over alternative investments settled for $160,000.00.
- June 2020: Breach of fiduciary duty claim settled for $45,000.00.
- July 2020: Investor claim settled for $36,000.00.
- August 2020: Unsuitable investment claim settled for $36,000.00.
- August 2020: Investor complaint still listed as pending by FINRA.
- August 2020: Lack of suitability claim settled for $25,000.00.
- April 2021: Unsuitable investment claim settled for $35,000.00.
The disputes in questions are related to the same underlying investment strategies, a trading strategy related to alternative investments in the form of Real Estate Investments Trusts (REITs).
Suspended Broker: Hugh Ordway Barndollar III Formerly of Crown Capital Securities
FINRA initiated its own investigation into former Crown Capital Securities broker Hugh Ordway Barndollar III. Regulators determined that he sold more than $1.4 million in alternative investments away from his member firm. Without admitting or denying the allegations, Mr. Barndollar III consented to the penalties, including a $10,000 fine and a two year suspension from the industry.
What to Know About FINRA Rules on Selling Away
FINRA is the self-governing body that regulates securities brokers. It has a number of different rules designed to protect the rights and interests of investors, including regulations that limit a registered representative’s ability to “sell away” from their member firm. FINRA requires representatives to first obtain approval from their firm before engaging in such activity. If a member firm (broker dealer) does give its approval for an outside securities transaction, that firm becomes responsible for providing oversight to ensure that its customers are properly protected.
Schedule a Confidential Consultation With a Miami Selling Away Attorney Today
At Carlson & Associates, P.A., we are dedicated to protecting the rights and interests of investors through every step of the legal claims process. If you or someone you care about suffered financial harm due to a broker selling away from their member firm, we are here to help. Get in touch with us by phone or contact our Miami law office online for a confidential, no obligation consultation.
Source:
brokercheck.finra.org/individual/summary/3027317