Investors Sue FSC Securities For Unauthorized Trading
Barry George Hartman of Missoula, Montana a stockbroker formerly employed by FSC Securities Corporation is referenced in a customer initiated investment related arbitration claim where the customer sought damages estimated to exceed $5,000.00 based upon allegations that Hartman executed unauthorized sales of securities to customers of the firm. Financial Industry Regulatory Authority (FINRA) Arbitration No. 18-03744 (Nov. 5, 2018).
FINRA Public Disclosure reveals that Hartman has been identified in twenty-one additional customer initiated investment related disputes pertaining to accusations of his violative conduct while employed with FSC Securities Corporation and Pruco Securities Corporation. FINRA Public Disclosure confirms that Hartman has been subject of ten customer disputes alone since FINRA barred him in all capacities for, inter alia: (1) engaging in outside business activities by serving on the board of directors of a company, IC, which was unaffiliated with FSC – conduct violative of FINRA Rules 2010 and 3270 and NASD Rules 2110 and 3030; and (2) engaging in private securities transactions without informing the firm about his activities and procuring the firm’s approval – conduct violative of FINRA Rules 2010 and NASD Rules 2110 and 3040. Letter of Acceptance Waiver and Consent No. 2015044671601 (Aug. 19, 2015).
For example, on May 31, 2016, a customer filed an investment related complaint involving Hartman’s conduct in which the customer requested $25,000.00 in damages supported by accusations that the financial services provided to the customer had been performed in a negligent fashion. Subsequently, a customer initiated investment related arbitration claim involving Hartman’s activities was resolved for $70,000.00 in damages founded on allegations that the customer’s account was handled in a negligent manner; misrepresentations had been made to the customer; fiduciary duties owed to the customer had been breached; and real estate security and equipment leasing transactions were executed in violation of the Montana Securities Act and FINRA Rules 2310; 2111; 2020 and 2010. FINRA Arbitration No. 16-00195 (Aug. 31, 2016).
On January 4, 2017, a customer filed an investment related arbitration claim regarding Hartman’s activities where the customer sought $184,750.00 in damages founded on accusations that equity trades effected in the customer’s account were not suitable for the customer; and there were duties that had been violated in regard to the customer’s stock transactions. FINRA Arbitration No. 16-03685 (Jan. 4, 2017). Another customer initiated investment related arbitration claim involving Hartman’s activities was resolved for $30,218.83 in damages supported by allegations including negligence; breach of contract; breach of fiduciary duty; misrepresentation; and violation of federal securities laws, Montana Securities Act and Montana Unfair Trade Practices and Consumer Protection Act. FINRA Arbitration No. 17-01505 (Mar. 26, 2017).
Moreover, a customer initiated investment related arbitration claim concerning Hartman’s conduct was settled for $95,557.53 in damages based upon accusations of the customer’s assets being negligently handled; fiduciary and contractual obligations to the customer being violated; and the investment transactions running afoul of federal and state securities laws. FINRA Arbitration No. 17-01768 (Mar. 26, 2018). Thereafter, a customer initiated investment related arbitration claim concerning Hartman’s conduct was settled for $70,000.00 in damages based upon allegations that fiduciary or contractual duties were violated in reference to the customer’s real estate investment trust transaction. FINRA Arbitration No. 16-03526 (Aug. 30, 2018).
Hartman’s registration with FSC Securities Corporation was terminated on March 5, 2015.