Kevin Barbalace, a former registered representative with Dawson James Securities, Inc. (Dawson James) submitted a Letter of Acceptance, Waiver and Consent (AWC) in which he was suspended and assessed a deferred fine of $5,000 by the Financial Industry Regulatory Authority (FINRA) for making unsuitable investment recommendations which resulted in more than $7,000 in net losses to his customer.
According to FINRA, Kevin Lawrence Barbalace, of Baltimore, Maryland, recommended and made 46 trades in his customer’s IRA account and 8 trades in the same customer’s regular account which resulted in an excessive concentration of low-priced stocks which were highly volatile and unsuitable for his customer in light of the customer’s financial needs and risk tolerance. FINRA stated that one of the securities transactions made by Mr. Barbalace lost more than half its value in one month, and another lost nearly 80% of its value in less than two months. When Mr. Barbalace’s customer transferred the accounts from Dawson James, a loss of more than $7,000 was incurred as a result of the unsuitable recommendations and trades made by Mr. Barbalace.
Without admitting or denying FINRA’s findings, Mr. Barbalace was assessed a deferred fine of $5,000 and suspended from association with any FINRA member for three months. The suspension is in effect from November 21, 2016 through February 20, 2017.
Stockbrokers have been known to engage in many practices that may be in violation of industry and firm rules, practices, and procedures. In order to protect investors from stockbroker misconduct, FINRA rules require brokerage firms to establish and implement a supervisory system. The implementation of these industry rules require supervisors to monitor their employees to ensure compliance with federal and state securities laws, securities industry rules and regulations, and the brokerage firm’s own policies and procedures. If broker-dealers and/or their supervisors fail to establish and implement these protective measures, they may be liable to investors for damages which flow from the broker’s misconduct. Therefore, investors who have suffered losses stemming from unsuitable recommendations, unsuitable trades and/or other misconduct by their broker can bring forth claims to recover damages against broker-dealers, like Dawson James, which should consistently oversee its brokers’ activities in order to prevent the above-described misconduct.
Have you suffered losses in your Dawson James account due to unsuitable trades and/or unsuitable recommendations by your broker? If so, call Robert Pearce at the Law Offices of Robert Wayne Pearce, P.A. for a free consultation. Mr. Pearce is accepting clients with valid claims against Dawson James stockbrokers who may have engaged in broker misconduct and caused investors’ losses.
The most important of investors’ rights is the right to be informed! This Investors’ Rights blog post is by the Law Offices of Robert Wayne Pearce, P.A., located in Boca Raton, Florida. For over 40 years, Attorney Pearce has tried, arbitrated, and mediated hundreds of disputes involving complex securities, commodities and investment law issues. The lawyers at our law firm are devoted to protecting investors’ rights throughout the United States and internationally! Please visit our website, www.secatty.com, post a comment, call (800) 732-2889, or email Mr. Pearce at firstname.lastname@example.org for answers to any of your questions about this blog post and/or any related matter.