Madison Avenue Broker Barred For Hindering Investigation
David Lloyd Barber of San Diego California is a stockbroker formerly registered with Madison Avenue Securities LLC who has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon consenting to findings that he failed to provide documentation and information to FINRA in an investigation into allegations of his unauthorized trading in customer accounts. Letter of Acceptance Waiver and Consent No. 2017052696401 (Mar. 6 2018).
According to the AWC, Barber was fired by Madison Avenue after he became subject of two customer initiated investment related complaints; one of which resulted in a customer award in 2016. Apparently, an investigation was launched by FINRA in 2017 to identify if Barber executed trades in Madison Avenue customer accounts without authorization or violated FINRA rules otherwise.
The AWC stated that a letter was sent to Barber on December 18, 2017, which called upon him to provide documentation and information to FINRA no later than January 2, 2018. Evidently, no documentation and information was provided by the deadline. Apparently, Barber was provided an additional two weeks to cooperate with FINRA but failed to furnish the documentation and information by the second deadline. On January 29, 2018, FINRA was contacted by Barber’s counsel, in which FINRA was notified that Barber would not be cooperating in the investigation despite having received FINRA’s requests. FINRA concluded that Barber’s conduct was violative of FINRA Rules 2010 and 8210.
FINRA Public Disclosure reveals that Barber has been referenced in three customer initiated investment related disputes containing accusations of Barber’s misconduct while employed with Sutro & Co, Inc., Raymond James & Associates and Madison Avenue Securities, LLC.
Specifically, on August 6, 2001, a customer filed an investment related written complaint pertaining to Barber’s conduct where the customer requested $121,860.00 in damages supported by allegations that Barber effected over-the-counter equities trades in the customer’s account without procuring approval from the customer. Thereafter, on August 9, 2011, a customer filed an investment related written complaint regarding Barber’s activities, in which the customer sought $460,000.00 in damages based upon accusations that the customer’s assets had been misappropriated.
Thereafter, Barber was subject of a customer initiated investment related arbitration, in which he was ordered to pay $622,032.62 in compensatory damages and $622,032.62 in punitive damages founded on being found liable for breaching his fiduciary duties, effecting unsuitable and unauthorized transactions in the customer’s account, and churning the customer’s investments. FINRA Arbitration No. 16-01450 (Jan. 5, 2018). Madison Avenue Securities was also ordered to pay $211,808.55 in compensatory damages and $211,808.55 in punitive damages supported by findings that it failed to supervise Barber’s activities relating to the customer’s investments in Twitter, GoPro, BP Capital Twinline Energy Fund, Pacific Drilling SA Luxembourg, Westport Innovations Inc., and Chesapeake Energy.
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