Martin Barth Suspended by FINRA for Alleged Misrepresentations

Martin Barth (CRD #: 1030462), a broker formerly registered with Ni Advisors, has been suspended by FINRA, according to his BrokerCheck record, accessed on May 1, 2025. Read on if you want to know more about his alleged conduct as a broker.

FINRA Suspension

On March 21, 2025, Martin Barth consented to the entry of findings that he allegedly made material misrepresentations and omissions with regard to private placement offerings he marketed to other brokers at his firm and recommended to his clients.

According to a Letter of Acceptance, Waiver & Consent (AWC), Martin Barth allegedly acted as part of a team involved in sourcing and managing private placement offerings for which his firm, SW Financial, served as dealer-manager.

Between September 2018 and September 2019, Martin Barth and his team allegedly sourced and managed two private placement offerings issued by two investment funds (“the Funds”) for the purpose of raising capital to invest in a real estate investment trust (REIT).

Martin Barth allegedly recommended these private placements to prospective investors and encouraged other brokers at SW Financial to recommend them as well.

Alleged Misrepresentations and Omissions

The AWC alleged that Martin Barth failed to disclose to prospective investors and his fellow brokers that the REIT’s management company had formed and controlled the Funds. The offering documents allegedly did not disclose that the Funds and the REIT had a relationship.

Further, Martin Barth allegedly failed to disclose that the REIT’s management company had negative cashflow and had unsuccessfully pursued a public listing for the REIT for several years up to the relevant period.

He allegedly also knew, or was negligent in not knowing, that both offering documents were materially misleading with regard to the company’s financial situation and the likelihood of an upcoming liquidity event.

The offering documents for these private placements allegedly disclosed that a selling representative would receive a 5% commission and that SW Financial would receive a 3% fee as dealer-manager.

However, these documents allegedly did not disclose that Martin Barth was entitled to additional selling compensation via his association with an affiliate of the REIT’s management company. Martin Barth allegedly also failed to disclose this information to prospective investors and his fellow selling representatives.

SW Financial allegedly sold these private placement offerings to 21 investors, who invested a total principal amount of approximately $1.6 million. Two of Martin Barth’s clients allegedly invested a total of $55,000 in these offerings based on his recommendations.

The AWC alleged that Martin Barth received over $30,000 related to his marketing and recommendations of the offerings, including more than $23,000 in undisclosed compensation.

Pandemic Unemployment Assistance Allegations

According to the AWC, Martin Barth allegedly submitted 70 certifications to the New York State Department of Labor claiming Pandemic Unemployment Assistance (PUA) benefits between May 2020 and September 2021, despite failing to qualify for assistance.

During this time, he allegedly worked for SW Financial and was engaged in an outside business activity. He allegedly received approximately $50,000 in income from these activities and an additional $37,000 in PUA benefits during this time.

The AWC concluded that these allegations constituted violations of FINRA Rule 2010 and Sections 17(a)(2) and (3) of the Securities Act of 1933.

FINRA Rule 2010

FINRA Rule 2010 holds brokers to high standards of commercial honor and just and equitable principles of trade.

Securities Act of 1933

Sections 17(a)(2) and (3) of the Securities Act of 1933 prohibit the use of untrue statements or omissions of fact to defraud or mislead customers participating in interstate securities transactions, as well as any other deceptive or fraudulent business practices.

Sanctions

Martin Barth consented to a 16-month suspension from associating with FINRA members. His suspension began on April 21, 2025, and will end on August 20, 2026.

You can read a copy of the AWC here.

Other business activities

Martin Barth’s detailed BrokerCheck record discloses one outside business activity: he works as a Fulfillment Associate for an Amazon fulfillment center warehouse.

Background Information

Martin Barth has passed the following exams:

• Securities Industry Essentials Examination – SIE
• General Securities Representative Examination – Series 7
• Uniform Combined State Law Examination – Series 66

He previously worked for the following firms:

• Ni Advisors (CRD#:134502)
• SW Financial (CRD#:145012)
• Joseph Stone Capital (CRD#:159744)
• Windsor Street Capital (CRD#:34171)
• Trident Partners (CRD#:41258)
• Meyers Associates, L.P. (CRD#:34171)
• AXA Advisors (CRD#:6627)
• Capitol Securities Management (CRD#:14169)
• Wells Fargo Advisors (CRD#:19616)
• Merrill Lynch, Pierce, Fenner & Smith (CRD#:7691)

Kurta Law Can Help

If you worked with Martin Barth 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 that 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.