In October, 2015, the Financial Industry Regulatory Authority (“FINRA”) announced that Barry Hartman of Missoula Montana, formerly with FSC Securities submitted a letter of Acceptance, Waiver and Consent in which he was barred from association with any FINRA member in any capacity.
Without admitting or denying the findings, Hartman consented to the sanction and to the entry of findings that he served on the board of directors of an unaffiliated privately held company without providing written notice to his member firm in the form the firm required. The findings stated that Barry Hartman participated in private securities transactions by personally investing approximately $450,000 in the undisclosed outside business. He also recommended that the firm’s customers invest in the undisclosed outside business and referred them directly to complete their investments. Hartman failed to provide written notice of these private securities transactions to the firm, and he failed to comply with firm procedures that required the firm’s pre-approval of such transactions.
Barry Hartman’s registration and disciplinary history
In order to lawfully sell investments to the public, one must either be registered or exempt from registration.
Barry Hartman was registered with:
According to FINRA’s CRD disclosure report, Barry Hartman has been the subject of eleven customer complaints and two regulatory investigations.
The Law Office of David Liebrader practices exclusively in the field of investment loss recovery and our securities attorneys have successfully resolved over 1000 investment loss cases over the past 20 years. Recoveries for clients top $40 million. The types of claims we have successfully handled include those involving unsuitable investments (suitability claims), excessive trading or “churning”, misrepresentations and omissions, unauthorized trading, over-concentration of illiquid or overly risky investments, pump and dump scams involving “penny stocks”, direct participation programs (private placements) involving real estate investment trusts (REITS), oil and gas exploration programs, leasing equipment deals and receivable financing, promissory notes whether sold through a broker dealer or as part of the outside business activities of a registered representative, ponzi scheme losses, failure on the part of the broker dealer to perform due diligence, state securities law (blue sky) violations and failure to supervise.
Investment losses can be recovered through a process known as FINRA arbitration. FINRA regulates broker dealers that sell investments, and provides an arbitration forum to resolve investor disputes. Investors can pursue claims against their brokerage firms in the FINRA arbitration forum. Common claims in the forum are those for suitability, breach of fiduciary duty, misrepresentations and omissions, negligence, violation of FINRA rules, state and federal securities laws violations, elder abuse, breach of contract and failure to supervise. On average, the recovery process takes approximately a year, from start to finish.
FINRA’s rules require that all investment recommendations made by licensed financial advisors be suitable in light of a customer’s needs, objectives and risk tolerance. In addition, all registered representatives are required to be properly supervised, with periodic inspections and reviews by qualified supervisors, whose job it is to vigorously investigate suspicions of wrongdoing (red flags).
If you have suffered investment losses please call The Law Office of David Liebrader at (702) 380-3131 for a free, confidential consultation