Last Updated: September 2024 (Land O’Lakes, FL)
Hobby Barndollar Investigation Summary
Here’s what you need to know about Land O’Lakes, FL, stockbroker Hobby Barndollar:
- Name: Mr. Hugh O. Barndollar, III
- Current Employer: Purepath Wealth Management (RIA), Suspended by FINRA 12/2022-12/2024
- DBA: Barndollar Financial
- Previous Firms: Crown Capital Securities, Newport Coast Securities
- Function: Stock Broker/ Financial Advisor/ Registered Investment Advisor
- Aliases: “Hobby” Barndollar
- Primary Location: Land O’Lakes, Florida
- CRD 3027317
- Can Hobby Barndollar be sued in FINRA arbitration: Yes
- Sanctioned by FINRA: Yes
- Highest Settlement or Award: $160,000
- Pending Customer Disputes Seeks Damages totalling $70,000
Discuss your case with experienced investment fraud lawyer Bob Rex at (877) 224-3199 for a free consultation.
Did You Lose Money With Hobby Barndollar As Your Stockbroker?
In 2022 FINRA suspended Hobby Barndollar for 24 moths and fined him $10,000 to resolve allegations that he participated in private securities transactions (selling away) totaling $1.4 million. According to FINRA Barndollar had been placed on heightened supervision by Crown Capital Securities due to customer arbitrations alleging sales practice violations. The heightened supervision plan prohibited Barndollar from selling alternative investments through the firm however he participated in alternative investment sales of $742,058 after the heightened supervision plan was initiated. Barndollar falsely certified on multiple firm compliance questionnaires that he had not engaged in any private securities transactions.
Hobby Barndollar has 9 prior customer disputes, including:
- Customer of Crown Capital Securities paid $82,500 to resolve allegations Barndollar made unsuitable recommendation to invest in alternative investments and variable annuities
- Customer of Crown Capital paid $160,000 to resolve allegations Barndollar recommended alternative investments, including non publicly traded REITs, that underperformed.
Two customers of Crown Capital presently have pending FINRA arbitrations that allege unsuitable recommendations to invest in alternative investments and annuities.
Firms Have a Duty to Supervise their Financial Advisors (FINRA Rules 3110 & 2090)
Brokers and their firms have a duty to comply with the FINRA suitability rule which requires that they have a reasonable basis to believe that a recommendation is suitable for the customer. FINRA Rule 2111- suitability
Alternative Investments: These are assets that are not stocks, bonds or cash. Alternative investments generally fall within five categories: hedge funds, private capital, natural resources (oil and gas, energy), real estate (REITs) and infrastructure. They are typically less liquid that conventional investments, less regulated with higher fees and generally higher risk.
Allegations of Broker Misconduct Against Hobby Barndollar
Customers of Hobby Barndollar have alleged the following wrongdoing in connection with the handling of customer accounts:
- Unsuitable Investment Recommendation to invest in oil and gas and non-traded real estate alternative investments
- Inadequate due diligence
- Misrepresentations and omissions of material facts in regards to recommendation of variable annuities
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.
Recover Your Investment Losses Now With Rex Securities Law
If you have suffered investment losses in an account handled by Hobby Barndollar, contact us for a complimentary consultation with an experienced securities lawyer to learn how you may be able to recover damages through FINRA arbitration.
With offices in Boca Raton, FL and Austin, TX, stockbroker fraud attorney Bob Rex provides representation to investors nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers, financial advisors and broker dealers.
If you have questions about how your account has been handled, call (877) 224-3199 to speak with an experienced securities attorney at no cost to you.
Most cases are handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.
