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Investor Seeks $3.4 Million in Suitability Dispute with David Barnes

David Barnes (CRD #: 2181896), a broker registered with UBS Financial Services, allegedly recommended unsuitable investments, according to his BrokerCheck record, accessed on November 21, 2022. Keep reading if you have questions about his conduct as a broker.

Investor Disputes

On August 10, 2022, an investor alleged that David Barnes recommended an unsuitable portfolio concentration in energy, finance, and real estate investments and failed to reduce the leverage risk in the client’s accounts. The client seeks $3.4 million in damages in this pending dispute.

On August 4, 2020, an investor alleged that David Barnes gave unsuitable investment recommendations, including recommendations of loans. The client sought $500,000 in damages and received a settlement of $98,000.

FINRA Rule 2111

FINRA Rule 2111 requires brokers to take investors’ financial goals into account when recommending investments. Brokers must use the information described in an investor’s profile, such as their tax status, risk tolerance, and financial goals.

Recommendations of investment strategies are also subject to this rule. Overconcentration in a certain sector or stock can be unsuitable for an investor due to the level of risk involved.

Investors who feel their losses were caused by unsuitable investment recommendations may be able to recover their funds through FINRA arbitration.

Background Information

David Barnes has passed the following exams:

  • Series 65 – Uniform Investment Adviser Law Examination
  • Series 63 – Uniform Securities Agent State Law Examination
  • SIE – Securities Industry Essentials Examination
  • Series 3 – National Commodity Futures Examination
  • Series 7 – General Securities Representative Examination

David Barnes is a registered broker in 17 states and a registered investment adviser in Texas.

He has also worked for the following firms:

  • Credit Suisse Securities (USA) (CRD#:816)
  • UBS Financial Services (CRD#:8174)
  • Goldman, Sachs & Company (CRD#:361)

Kurta Law Can Help

If you worked with David Barnes and you have concerns about your investments, please contact us today at 877-600-0098 or for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.