Madison Avenue Securities Accused Of Excessive Trading
David Lloyd Barber of San Diego California a stockbroker formerly registered with Madison Avenue Securities LLC is referenced in a customer initiated investment related written complaint which was settled on August 1, 2018 for $22,500.00 in damages founded on allegations that (1) trades were executed in the customer’s account in an excessive manner and (2) transactions were effected without the customer’s written authorization while Barber was associated with Madison Avenue Securities.
Financial Industry Regulatory Authority (FINRA) Public Disclosure confirms that Barber is referenced in six more customer initiated investment related disputes containing accusations of his violative conduct while employed with First Midwest Securities and Madison Avenue Securities. In fact, Barber is subject of a customer initiated investment related arbitration claim in which the customer was awarded $622,032.62 in compensatory damages and $622,032.62 in punitive damages based on Barber being found liable on the customer’s claims which included that Barber breached his fiduciary duties; executed unsuitable Twitter, GoPro, Pacific Drilling SA Luxembourg, Chesapeake Energy, BP Capital Twinline Energy Fund, and Westport Innovations Inc. transactions in the customer’s account; effected unauthorized trades; and excessively traded and churned the customer’s investment portfolio. FINRA Arbitration No. 16-01450 (Jan. 5, 2018).
On January 5, 2018, another customer initiated investment related complaint regarding Barber’s conduct was resolved for $10,000.00 in damages based upon allegations that unauthorized stock trades were effected in the customer’s account. Barber is also the subject of a customer initiated investment related arbitration claim which was settled for $650,000.00 in damages founded on accusations that Barber committed fraud; violated his fiduciary duty to the customer; and Madison Avenue Securities or First Midwest Securities neglected to supervise Barber’s activities resulting in the customer’s funds having been misappropriated. FINRA Arbitration No. 18-01413 (Jan. 25, 2019).
Another customer filed an investment related arbitration claim concerning Barber’s conduct which was resolved for $340,000.00 in damages based upon allegations that between March of 2015 and January of 2018, inappropriate equities trades were placed in the customer’s account causing the customer to sustain unwarranted losses. FINRA Arbitration No. 08-02346 (Jan 28, 2019).
FINRA Public Disclosure additionally reveals that Barber has been barred from associating with any FINRA member in any capacity founded on findings that Barber failed to comply with FINRA during the period that he was investigated for effecting unapproved trades in customer accounts. Letter of Acceptance Waiver and Consent No. 2017052696401 (Mar. 6, 2018).
According to the AWC, Barber’s activities were examined by FINRA to determine if he excessively traded in Madison Avenue customers’ accounts; and whether he executed trades on a discretionary basis without having permission in writing from the customers or the firm. The AWC stated that a letter was sent to Barber from FINRA in regard to its investigation, and that letter instructed Barber to provide documents and information to the regulator no later than January 2, 2018. The AWC stated that Barber failed to comply with FINRA’s request in this regard. In fact, after having obtained an extension from FINRA, Barber reportedly failed to comply. Barber’s legal counsel subsequently reported to FINRA that Barber would not be handing over any documents or information relating to its investigation. FINRA found Barber’s conduct violative of FINRA Rules 2010 and 8210.
Barber’s employment with Madison Avenue Securities has been terminated as of January 12, 2018.