UPDATE MAY 2017-Former FSC Securities broker Barry Hartman discloses two additional pending customer disputes:
- In FINRA case #16-3685 a customer of FSC Securities alleges damages of $184,750 for unsuitable investment recommendations.
- In FINRA case 16-3526 a customer of FSC Securities alleges damages in an unstated amount for violations of fiduciary duty in connection with the recommendation to invest in a real estate investment trust (REIT).
ORIGINAL POST-July 2016
The FINRA records of Barry G. Hartman , a currently unlicensed stockbroker who last worked for FSC Securities , disclose 2 prior regulatory events, 4 pending customer disputes, 12 prior customer disputes and a termination.
The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.
According to FINRA Disciplinary Proceeding 2015044671601, in August 2015, Hartman was permanently barred from the securities industry to resolve allegations that he participated in private securities transactions by personally investing $450,000 in undisclosed outside businesses and by recommending that customers of his member firm also invest in those outside businesses without complying with firm procedures.
Nine of the prior customer disputes were resolved by payment of cash settlements, including:
- FINRA Case 15-02025 brought by a customer of FSC Securities alleging negligence in connection with an investment in Invizeon. That case was settled for $52,500.
- FINRA Case 15-0932 brought by a customer of FSC Securities alleging breach of fiduciary duty, negligence and fraud. That case was settled for $27,500.
- FINRA Case 15-1064 brought by a customer of FSC Securities alleging that Hartman made unsuitable recommendations in the accounts of two customers. That case was settled for $135,000.
- FINRA Case 15-0760 brought by a customer of FSC Securities alleging breach of fiduciary duty, negligence and fraud in connection with Invizeon. That case was settled for $80,000.
The currently pending cases include:
- FINRA Case 16-195 in which a customer of FSC Securities alleges damages of $150,000 for negligence and misrepresentation in connection with investments in equipment leasing and real estate securities.
- A customer alleging damages of $250,000 for breach of fiduciary duty, negligence and fraud in connection with an investment in a variable annuity.
Barry G. Hartman was employed by FSC Securities from 2/2002-3/2015. He was discharged by FSC Securities in March 2015. FSC made the following allegation on his FINRA records: “registered representative terminated for violation of firm policies, to include, Mr. Hartman’s participation in an undisclosed outside business activity and an undisclosed private securities transaction.”
Harman discloses a business affiliation with Rocky Mountain Financial.
Investors who have questions about how their account has been handled by Barry G. Hartman should call to learn how you may be entitled to collect damages through FINRA arbitration.
Rex Securities Law , with offices in Boca Raton, FL, and Austin, TX, provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.
Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
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