Hugh Barndollar Suspended by FINRA Over Alleged Unapproved Private Securities Transactions
Hugh Barndollar (CRD #: 3027317), a broker formerly registered with Crown Capital Securities, has been suspended by FINRA, according to his BrokerCheck record, accessed on January 6, 2023. If you want to know more about his alleged conduct as a broker, read on.
FINRA Suspension
On November 22, 2022, Hugh Barndollar consented to the entry of findings that he allegedly participated in 28 unapproved private securities transactions totaling $1,418,108.
According to a Letter of Acceptance, Waiver & Consent (AWC), Hugh Barndollar served as both a broker and a representative for a registered investment adviser (RIA) during the relevant period between November 2017 and December 2021. Hugh Barndollar allegedly recommended and/or facilitated investments in more than 10 private securities offerings of alternative investments offered by the RIA.
Hugh Barndollar allegedly participated in a total of 28 securities transactions involving 18 investors, twelve of whom were also clients of Crown Capital. He allegedly discussed these investments with investors and assisted them with documentation.
The AWC alleged Hugh Barndollar disclosed his activity as an investment adviser representative to Crown Capital as an outside business activity. However, he allegedly failed to provide prior written notice of his participation in the sale of alternative investments through the RIA, and therefore did not receive approval from Crown Capital, in violation of the firm’s Written Supervisory Procedures (WSPs).
Lastly, the AWC alleged that Hugh Barndollar falsely certified on Crown Capital’s annual compliance questionnaires for 2018-2021 that he had not engaged in any undisclosed or unapproved private securities transactions.
The AWC concluded that these allegations constituted violations of FINRA Rules 3280 and 2010.
FINRA Rule 3280
FINRA Rule 3280 requires brokers to seek approval from their firm before engaging in private securities transactions.
FINRA Rule 2010
FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.
Sanctions
Hugh Barndollar consented to the following sanctions:
- $10,000 fine
- 2-year suspension
His suspension began on December 5, 2022, and will end on December 4, 2024.
You can read a copy of the AWC here.
Investor Disputes
On August 11, 2020, an investor alleged that Hugh Barndollar acted negligently and made misrepresentations and omissions with regard to transactions involving alternative investments and variable annuities. The investor also alleged these transactions were unsuitable. This dispute is currently pending.
In a dispute filed on May 13, 2020, several investors alleged the underperformance of alternative investments sold to them by Hugh Barndollar. This dispute was settled for $160,000.
There are ten other disputes on Hugh Barndollar’s record.
FINRA Rule 2020
FINRA Rule 2020 bans the use of fraudulent tactics, like deception or manipulation, as they relate to the purchase and sale of securities.
FINRA Rule 2111
FINRA Rule 2111 defines suitable investments as securities that fit an investor’s profile, which includes information about their risk tolerance, financial goals, and age.
Background Information
Hugh Barndollar 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 7 – General Securities Representative Examination
- Series 31 – Futures Managed Funds Examination
- Series 24 – General Securities Principal Examination
He has also worked for the following firms:
- Crown Capital Securities (CRD#:6312)
- Newport Coast Securities (CRD#:16944)
- J.P. Turner & Company (CRD#:43177)
- Calton & Associates (CRD#:20999)
- Brookstreet Securities Corporation (CRD#:14667)
- Dean Witter Reynolds (CRD#:7556)
Kurta Law Can Help
If you worked with Hugh Barndollar and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com 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.
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