Former Madison Avenue Securities, LLC Financial Advisor David Barber Barred by FINRA
Posted on Saturday, September 22nd, 2018 at 9:41 am
Erez Law is interested in speaking with investors who may have suffered losses due to investments with former Madison Avenue Securities, LLC financial advisor David Barber (CRD# 1165082). Barber was registered with Madison Avenue Securities, LLC in San Diego, California from March 2015 to January 2018. Previously, he was registered with First Midwest Securities, Inc. in Newport Beach, California from 2011 to 2015, and with Raymond James & Associates, Inc. in Newport Beach, California from 2007 to 2011, when he was terminated regarding, “Financial advisor was terminated after an internal investigation was conducted following the receipt of a client complaint alleging misappropriated funds. The firm concluded the financial advisor violated firm policies relating to outside business activities as well as violated firm policies and industry regulations as they relate to selling away. The firm lost confidence in the financial advisor’s ability to perform his duties when he failed to cooperate during an internal investigation.”
In March 2018, FINRA barred Barber after he consented to the sanction and to the entry of findings that he failed to produce information and documents request by FINRA during the course of an ongoing examination to determine whether he engaged in unauthorized trading in the accounts of customers of his member firm, exercised discretion in customer accounts without written authorization, or otherwise acted in violation of FINRA rules.
In March 2013, FINRA suspended Barber for four months and sanctioned him to civil and administrative penalties and fines of $25,000 following an investigation that he improperly received five loans totaling $867,000 from three customer of his member firm. “The three customers were Barber’s personal friends before they established securities accounts with him at his firm. The customers provided the loans to Barber by transferring their monies via wire from their brokerage accounts at the firm to a checking account in the name of a business entity owned by Barber that had not been disclosed to his firm. In doing so, Barber concealed the five loans from the firm. Barber then moved the customers’ monies via electronic funds transfers to his personal checking account and used the monies to pay personal expenses. Barber repaid the customers’ loans. Barber failed to provide prompt written notice to his firm of his involvement in his company, an undisclosed outside business activity.”
Barber has been the subject of five customer complaints between 2001 and 2018, according to his CRD report. Recent complaints are regarding:
July 2018. “Claimants allege from the period of approximately March 2015 through January 2018 that they sustained monetary losses related to the purchase and sales of equity securities.” The customer is seeking $430,000 in damages and the case is currently pending.
April 2018. “Client alleges four causes of action. Client alleges breach of fiduciary duty, fraud against barber, negligence failure to supervise against firm, vicarious liability for alleged conduct related equity securities and misappropriation of funds.” The customer is seeking $900,000 in damages and the case is currently pending.
May 2016. “Excessive trading, unauthorized trading, unsuitable trading, breach of fiduciary duty and failure to supervise from March 2015 through February 2016.” The customer sought $300,000 in damages and the customer was awarded $2,186,492.30. The causes of action included excessive trading and churning (control, excessive activity, scienter); unauthorized trading; unsuitable trading; breach of fiduciary duty; and failure to supervise. The FINRA arbitration hearing was conducted in San Diego, California.
The causes of action relate to claimant’s investments in the following investments, among others:
- Chesapeake Energy
- Westport Innovations Inc.
- Pacific Drilling SA Luxembourg
- BP Capital Twinline Energy Fund
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, Madison Avenue Securities, LLC may be liable for investment or other losses suffered by Barber’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.