FINRA Reportedly Suspends Hugh “Hobby” Barndollar for Two Years after allegations of unapproved securities transactions
According to public records posted on FINRA’s website today, the Financial Industry Regulatory Authority has reportedly suspended registered investment advisor and broker Hugh “Hobby” Barndollar (CRD#: 3027317) for two years and fined him $10,000.
Between November 2017 and December 2021, while registered through Crown Capital, Barndollar allegedly participated in 28 unapproved private securities transactions totaling $1,418,108, according to FINRA’s findings. Barndollar’s alleged conduct violated FINRA Rules 3280 and 2010.
Barndollar reportedly worked as a registered representative of Crown Capital, as well as provided asset management services as a registered investment advisor. From November 2017 to December 2021, Barndollar allegedly recommended and/or facilitated investments in more than 10 private securities offerings of alternative investments through the RIA. Barndollar allegedly participated in a total of 28 securities transactions through the RIA that raised $1,418,108 from 18 investors.
Twelve of those 18 investors were purportedly Crown Capital customers, according to FINRA’s findings. Barndollar allegedly participated in the transactions by recommending and/or facilitating the investments, including by meeting with the investors to discuss the investments and assisting them with documentation. Barndollar’s RIA clients reportedly paid advisory fees to the RIA on the assets held in their advisory accounts, including the alternative investments that Barndollar recommended and/or facilitated.
While Crown Capital reportedly approved of Barndollar’s outside business activity with the RIA, his alleged participation in the sale of alternative investments through the RIA was reportedly not approved.
According to his broker record, Barndollar was affiliated with the following FINRA firms during his career:
03/19/2013 – 12/31/2021, CROWN CAPITAL SECURITIES, L.P. (CRD#:6312), LAND O’ LAKES, FL,
B, 07/31/2008 – 04/10/2013, NEWPORT COAST SECURITIES, INC. (CRD#:16944) FINRA expelled the firm on 06/25/2018, ODESSA, FL
B, 07/18/2007 – 08/29/2008, J.P. TURNER & COMPANY, L.L.C. (CRD#:43177), NEW PORT RICHEY, FL
The White Law Group is investigating the liability that Barndollar’s former employer may have for his actions in regard to his outside business activities.
When a FINRA registered representative conducts business outside the scope of the brokerage firm where they are registered, the act can be considered “selling away.” Some brokers, looking to supplement their income, will go outside the traditional market, trying to find other products to push.
If a registered broker “sells away” from their firm, the brokerage firm may still be liable for negligent supervision of their broker representative and may be responsible for investment losses in a FINRA dispute resolution claim.
To learn more see Financial Advisor Fraud | Unapproved Securities “Selling Away”
Potential Lawsuits to Recover Investment Losses
The White Law Group is investigating potential securities fraud claims regarding the liability that Hugh “Hobby” Barndollar’s employers may have for failure to properly supervise him.
When brokers violate securities laws, such as making unauthorized transactions or unsuitable investments, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.
The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington.
We represent investors in FINRA arbitration claims in all 50 states including Florida. Our attorneys have recovered millions of dollars from many brokerage firms in the past.
If you are concerned about your investments with Hugh “Hobby” Barndollar and Crown Capital, please call the securities fraud attorneys at The White Law Group at 888-637-5510 for a free consultation.
For more information on The White Law Group, and its representation of investors, please visit www.WhiteSecuritiesLaw.com.
Tags: broker Hugh "Hobby" Barndollar, Crown Capital Securities, FINRA arbitration, Hugh "Hobby" Barndollar, Hugh "Hobby" Barndollar complaints, Hugh "Hobby" Barndollar financial advisor, Hugh "Hobby" Barndollar FINRA, Hugh "Hobby" Barndollar investigation, Hugh "Hobby" Barndollar lawsuit, Hugh Barndollar III, securities fraud attorney Last modified: November 23, 2022