FINRA recently announced that John Melton Hackbarth (a financial advisor that was formerly registered with Morgan Stanley Smith Barney in Birmingham, Alabama) has been barred from association with any FINRA member in any capacity. The sanction was based on findings that Hackbarth failed to respond to FINRA requests for information concerning its investigation of his financial arrangements with some customers. The findings further stated that the underlying investigation sought information regarding cash gifts, loans and possible conversion of funds.
The White Law Group is investigating the liability that Hackbarth’s employers may have for any potential securities violations. Obviously converting funds, if proven, is illegal. Additionally, brokerage firms generally prohibit financial advisors from accepting cash gifts or loans from clients. To the extent that a client lost money investing with Hackbarth and his employer failed to properly supervise him, that client may be able to recover their losses through a FINRA arbitration claim.
To speak with a securities attorney call The White Law Group at 312/238-9650 for a free consultation.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Boca Raton, Florida.
For more information on the firm, visit https://whitesecuritieslaw.com.Tags: Birmingham investment fraud attorney, Birmingham securities attorney, FINRA bar, FINRA regulatory announcement, John Melton Hackbarth Last modified: July 17, 2015