More than a Dozen Investors File Disputes Against Tony Barouti
Tony Barouti (CRD #: 3031995), a broker formerly registered with First Heartland Capital, is facing more than a dozen investor disputes, according to his BrokerCheck page, accessed on November 1, 2024. Read on to learn more about his alleged conduct as a broker.
2024 Investor Disputes
Six disputes filed in 2024 allege that Tony Barouti violated the suitability rule, misrepresented and/or omitted material facts, violated Regulation Best Interest and acted negligently. These disputes seek $1.338 million in damages.
Five disputes filed in 2024 name Tony Barouti in allegations of fraud, negligence, violation of California securities laws, violation of federal securities laws. The largest settlement sought by one of these disputes is $360,000.
On September 11, 2024, an investor filed a dispute alleging Tony Barouti misrepresented an unsuitable security. The client seeks $100,000.
In a dispute filed on September 9, 2024, an investor named Tony Barouti in allegations of common law fraud, negligence, and gross negligence. They seek $75,000 in damages.
Another dispute, filed on June 4, 2024, alleges that Tony Barouti made unsuitable investment recommendations. The investor seeks $300,000 in damages.
FINRA Rule 2111
FINRA Rule 2111 requires brokers to evaluate whether an investment fits their investor’s financial goals. Brokers must take into account the information described in an investor’s profile, such as their investing experience, tax status, and age.
FINRA Rule 2020
FINRA Rule 2020 prohibits the misrepresentation of investments and omission of material facts. Material facts include information about an investment’s potential returns, as well as charges, expenses, and fees.
Regulation Best Interest
Regulation Best Interest expands on the requirements of FINRA Rule 2111, which defines suitable investment recommendations. In addition to limiting their recommendations to investments that suit their investors’ needs, brokerage firms must also uphold other obligations involving disclosure of conflicts of interest and other information.
What is broker negligence?
Many types of broker misconduct may qualify as negligence, from omissions of material fact to excessive or unauthorized trading.
Investors who believe their losses are the result of broker negligence may be able to recover their funds by pursuing FINRA arbitration.
Settled Investor Disputes
Twenty-one disputes, filed fromMarch 27, 2022, to February 20, 2024, name Tony Barouti in connection with various allegations, including:
- Negligence
- Breach of contract
- Misrepresentations and omissions
- Unjust enrichment
- Violation of state and federal securities laws
The largest settlement in these disputes was $442,476.34.
On August 9, 2022, an investor alleged that Tony Barouti gave unsuitable and misleading investment recommendations, made misrepresentations and omissions of material facts, and acted negligently between November 2018 and August 2020. This dispute was settled for $275,000.
On July 1, 2022, an investor alleged that Tony Barouti violated the suitability rule and made misrepresentations and omissions between August 2017 and February 2020. This dispute was settled for $117,391.31.
In a dispute filed on March 4, 2022, an investor alleged that Tony Barouti failed to fully disclose the risks and speculative nature of an investment. This dispute was settled for $510,642.23.
Background Information
Tony Barouti has passed the following exams:
- Series 63 – Uniform Securities Agent State Law Examination
- SIE – Securities Industry Essentials Examination
- Series 7 – General Securities Representative Examination
- Series 6 – Investment Company Products/Variable Contracts Representative Examination
- Series 26 – Investment Company Products/Variable Contracts Principal Examination
He is a registered broker in Arizona, California, Georgia, and Kansas.
Tony Barouti has worked with the following firms:
- First Heartland Capital (CRD #: 32460)
- LPL Financial (CRD #: 6413)
- Newport Coast Securities (CRD #: 16944)
- Commonwealth Financial Network (CRD #: 8032)
- Brookstreet Securities Corporation (CRD #: 14667)
- Jefferson Pilot Securities Corporation (CRD #: 3870)
- Linsco/ Private Ledger (CRD #: 6413)
- World Group Securities (CRD #: 114473)
- WMA Securities (CRD #: 32625)
Do You Know How to Recover L Bond Losses?
If you want to sue your stockbroker to recover your losses, you may discover a pre-dispute arbitration clause in your brokerage firm agreement. Many firms require you to settle disputes through FINRA Arbitration. If you think you may have a claim, speak with a securities attorney and find out what steps to take next to recover your losses.