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Ross Barish Embroiled in SEC Lawsuit

May 4, 2022 Unsuitable Investments

Ross Barish (CRD #: 3094364), a broker registered with Joseph Stone Capital, is being sued by the SEC, according to his BrokerCheck record, accessed on April 25, 2022. Read on to learn more about Ross Barish’s conduct as a broker.

Investor Dispute

In a dispute filed on January 12, 2022, an investor claims Ross Barish violated multiple state and federal securities laws, as well as conducting unsuitable and excessive trading. The client seeks $150,000 in damages in this pending suit.

Investigation and Suit by SEC

The Securities and Exchange Commission made a preliminary investigation into Ross Barish on March 4, 2020. The investigation recommended that regulatory action be taken against Ross Barish for alleged violations outlined below. 

On August 13, 2020, the SEC filed a still-pending civil suit alleging that Ross Barish defrauded 16 of his clients by conducting excessive trades in their accounts, causing losses of $814,509 while generating more than $400,000 in commissions and fees for himself.

The SEC further alleges that the excessive nature of these trades made them unsuitable for any investor and that many of these trades were made without proper authorization. The suit also alleges that Ross Barish misrepresented and omitted information about these trades when informing his clients. According to the SEC, “His ‘strategy’ amounted to a scheme to enrich himself while persuading customers that profits were just around the corner.” 

Lastly, the suit alleges that, through these actions, Ross Barish violated Section 17(a) and Section 10(b) of the Securities Exchange Act, and Rule 10b-5 thereunder.

FINRA Rules 2111 and 2020

FINRA Rule 2111 defines suitable investments as those that match an investor’s profile. Brokers must consult these profiles—which include information like an investor’s tax status, other investments, and financial goals—when making investment recommendations or trades.

Brokers must have a reasonable basis for their decisions, and investments must at least be suitable for a hypothetical investor. Excessive trading, also known as churning, violates this requirement by racking up fees and commissions which cut into an investment’s returns.

Misrepresentation and omission of information fall under FINRA Rule 2020, which bans the use of manipulation and deception to influence the purchase or sale of securities.

Background Information

Ross Barish has passed the following exams:

  • Series 63 - Uniform Securities Agent State Law Examination
  • SIE - Securities Industry Essentials Examination
  • Series 7 - General Securities Representative Examination

Ross Barish is a registered broker in 36 states.

In the past, he has also worked for the following firms:

  • First Midwest Securities (CRD#:21786)
  • J.P. Turner & Company (CRD#:43177)
  • Ladenburg Thalmann & Company (CRD#:505)
  • Broadwall Capital (CRD#:128800)
  • Ladenburg, Thalmann & Company (CRD#:505)
  • Ladenburg Capital Management (CRD#:14623)
  • Sands Brothers & Company (CRD#:26816)

Kurta Law Can Help

If you worked with Ross Barish 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.