Did Former Dawson James Securities, Inc. Broker Kevin Barbalance Make Unsuitable Investment Recommendations?
Posted on Tuesday, May 19th, 2020 at 8:58 pm
There are options for clients of former Dawson James Securities, Inc. broker Kevin Barbalance (CRD# 4456476) who suffered investment losses due to unsuitable investment recommendations. Barbalance was registered with Corinthian Partners, L.L.C. in Middletown, New Jersey from 2015 to 2016 and previously with Dawson James Securities, Inc. in Columbia, Maryland from 2011 to 2015, when he was terminated regarding, “Failure to follow firm policies and procedures.”
In November 2016, FINRA sanctioned Barbalance to a $5,000 civil and administrative penalty and fine and suspended him from the securities industry for three months, after he “consented to the sanctions and to the entry of findings that he made unsuitable investments recommendations to a customer and exposed the customer to a risk of loss that was inconsistent with the customer’s financial needs and situation. The findings stated that specifically, Barbalace recommended and made trades in the customer’s IRA account and trades in the customer’s regular account. These trades resulted in an excessive concentration of low-priced stocks in the customer’s accounts. When the customer transferred the accounts from Barbalace’s member firm, the customer incurred more than $7,000 in net losses. The findings also stated that Barbalace accepted a check from that customer for an undisclosed outside business activity. Barbalace charged the customer $750 to complete online paperwork for the customer to open a limited liability company and to retain Barbalace for as-needed business consultation. This activity was outside the scope of Barbalace’s relationship with his firm. Further, Barbalace never disclosed this activity to the firm, nor did he disclose the activity in the annual disclosure of OBA and political contributions form he completed.”
In September 2015, the Maryland Division of Securities sanctioned Barbalance to a $7,661 civil monetary penalty.
Barbalance has been the subject of six customer complaints between 2015 and 2020, two of which were denied and one was closed without action, according to his CRD report:
January 2020. “Material misstatements and omissions. Unsuitable Recommendations.” The customer is seeking $100,000 in damages and the case is currently pending. The complaint was regarding direct investments and took place while Barbalance was registered with Dawson James Securities.
July 2019. “Claimants, through counsel, allege indirectly that Mr. Barbalace misrepresented, among other things, the risks associated with a high risk private placement.” The customer is seeking $200,000 in damages and the case is currently pending. The complaint took place while Barbalance was registered with Corinthian Partners LLC and was regarding private placements and selling away.
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, Dawson James Securities, Inc. may be liable for investment or other losses suffered by Barbalance’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.