Principal Stockbroker Barred In Unauthorized Trading Investigation
Robert Barnard of Las Cruces New Mexico a stockbroker formerly registered with Principal Securities Inc. has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity founded on findings that Barnard did not comply with FINRA’s instructions when he was under investigation for effecting unauthorized transactions while associated with Principal Securities. Letter of Acceptance Waiver and Consent No. 2018059643701 (Sept. 30, 2020).
According to the AWC, on September 11, 2020, Barnard was asked by FINRA to testify for FINRA personnel in regard to allegations of his possible misconduct as referenced in a customer initiated investment related complaint. FINRA tried to determine if Barnard engaged in private securities transactions or had borrowed funds from customers.
On September 15, 2020, Barnard contacted FINRA to relay that he received its request for testimony and to confirm that he would not be cooperating with the regulator’s request at any point. The stockbroker never testified which precluded FINRA from completing its investigation. Barnard’s conduct was violative of FINRA Rules 2010 and 8210.
Barnard has been identified in four customer initiated investment related disputes regarding accusations of his misconduct while he was employed by Principal Securities. FINRA Public Disclosure confirms that a customer initiated investment related complaint regarding Barnard’s conduct was settled to resolve allegations of a bad transfer of funds relating to mutual funds and annuities.
On September 3, 2019, another customer initiated investment related complaint concerning Barnard’s conduct was settled for $116,096.27 in damages based upon accusations of Barnard engaging in inappropriate personal financial dealings with the customer causing the customer to experience losses on mutual funds or equities. Barnard is also the subject of a customer initiated investment related civil action which was resolved for $75,000.00 in damages on February 17, 2020 supported by allegations that a fiduciary duty that was owed to the customer had been breached concerning insurance products. Case No. D-101-PQ-2016-0007.
Barnard is referenced in another customer initiated investment related arbitration claim which was settled for $15,000.00 in damages founded on accusations that outside investments had been sold by Barnard and that he received a loan from the customer during the time that he was associated with Principal Securities. FINRA Arbitration No. 19-01068 (Apr. 20, 2020).
Barnard was employed by Principal Securities between April 23, 2008 and August 23, 2018. He was discharged based upon allegations of his inappropriate personal financial dealings with the customer.