John Barnes Suspended by FINRA Over Alleged Unauthorized Trading
John Barnes (CRD #: 862738), a broker registered with Wilmington Capital Securities, allegedly executed unauthorized trades, according to his BrokerCheck record, accessed on December 14, 2022. Keep reading to learn more about his alleged conduct as a broker.
FINRA Suspension
On September 1, 2022, John Barnes consented to the entry of findings that he allegedly executed discretionary trades in client accounts without their written authorization RBC Markets allegedly had not accepted these accounts as discretionary.
A Letter of Acceptance, Waiver & Consent (AWC) alleges that, from May 2016 to March 2019, John Barnes executed 432 discretionary trades in the accounts of nine clients. Each of these clients allegedly gave him “express or implied authorization” to exercise his discretion in their accounts, but had not provided written authorization at the time of these transactions.
The AWC further alleges that RBC Capital Markets had not approved the accounts for discretionary trading.
The AWC concludes that these allegations constitute violations of NASD Rule 2510(b) and FINRA Rule 2010.
FINRA Rule 3260
FINRA 3260(b) requires discretionary accounts to receive approval from both the client and firm before brokers can exercise their trading discretion.
FINRA Rule 2010
FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.
Sanctions
John Barnes consented to the following sanctions:
- $5,000 fine
- 1-month suspension
His suspension began on October 3, 2022, and ended on November 2, 2022.
You can read the full AWC here.
Termination from RBC Capital Markets
On April 8, 2019, John Barnes was fired from RBC Capital Markets for allegedly violating the firm’s Order Execution Policy.
Background Information
John 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 7 – General Securities Representative Examination
John Barnes is a registered broker in 17 states and a registered investment adviser in Florida and New York.
He has also worked for the following firms:
- RBC Capital Markets (CRD#:31194)
- Tucker Anthony (CRD#:837)
- Gabriele, Hueglin & Cashman (CRD#:8059)
- Merrill Lynch, Pierce, Fenner & Smith (CRD#:7691)
Kurta Law Can Help
If you worked with John Barnes 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.