The SEC recently announced that an Administrative Law Judge issued an Initial Decision in Frederick J. Barton (Barton), Admin. Proc. 3-13548 (Sept. 24, 2009), in which she found that Barton and companies he controlled had been enjoined from any future violations of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 (Exchange Act), Exchange Act Rules 10b-5 and 10b-9, and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940.
Barton was found to have made fraudulent transfers from the account of a client suffering from Alzheimer’s disease that caused the account to go from $1.3 million to $95. Barton was ordered to: (1) disgorge $3,170,000, of which about $1.7 million is joint and several with companies Barton controlled; (2) pay prejudgment interest of $945,111, of which about $373,000 is joint and several with companies Barton controlled; and (3) pay a civil penalty of $120,000. The court found that Barton did not have the ability to pay a fine and cost of incarceration.
In a criminal action based on the same facts, Barton was sentenced to seventy-eight months incarceration and ordered to pay $878,100 in restitution to twelve people and to serve three years of supervised release. The State of Georgia ordered Barton to cease and desist all offers for sale and sales of securities in violation of the Georgia Securities Act of 1973, as amended, and permanently barred him from associating with a registered dealer, limited dealer, or investment adviser in Georgia.
Based on these findings, the Administrative Law Judge, barred Barton from association with any broker, dealer, or investment adviser. (Initial Decision No. 388; File No. 3-13548).
Prior to working at Enterprise Equities, Inc., Barton was a financial advisor with Dean Witter Reynolds.
If you have questions about investments you made with Frederick Barton or Enterprise Equities, or if you believe that you have been the victim of a securities fraud, The White Law Group may be able to help. To speak to a securities attorney, please call our Chicago office at 312-238-9650 for a free consultation.
The White Law Group is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.
For more information on The White Law Group, visit https://whitesecuritieslaw.com.
Tags: Alexandria, Annapolis, Baltimore, Bethesda, Bethesday, broker fraud, Columbia, D.C., Enterprise Equities, FINRA, Frederick Barton, investment losses, investor protection, Maryland, NASD, securities arbitration, Securities Attorney, Securities Lawyer, Washington Last modified: December 1, 2022
