Barry Hartman, of Missoula, Montana, a stockbroker registered with FSC Securities Corporation, became subject to a pending customer dispute on October 19, 2015, in which a customer requested $45,000.00 in damages after alleging that Hartman engaged in unauthorized transactions in the customer’s account and selected investments which were not suitable. On the same day, Hartman disclosed a pending customer dispute in which the customer requested $50,000.00 in damages in connection with allegations against Hartman of committing breach of his fiduciary duty to the customer, negligence, and fraud.
FINRA BrokerCheck reveals that Hartman has been subject to a substantial number of misconduct incidents, including 21 customer complaints or arbitration claims. On September 23, 2002, Hartman was subject to a customer dispute, in which the customer requested $18,691.15 in damages after alleging that Hartman made misrepresentations to the customer concerning a paid up variable life insurance policy. On March 30, 2004, Hartman was fined $2,000.00 and suspended by the National Association of Securities Dealers (NASD) after consenting to findings that he impersonated another individual in the course of discussing a variable annuity transaction, without the individual’s knowledge or consent, in violation of NASD Rule 2110. Letter of Acceptance, Waiver and Consent, No. C3B040009.
On March 17, 2010, Hartman was named in a customer dispute where the customer requested $150,000.00 in damage after alleging that Hartman made unsuitable recommendations in illiquid real estate investment trusts investments.
On December 24, 2014, Hartman became subject to a pending customer dispute, in which the customer requested $250,000.00 in damages after alleging that Hartman committed breach of fiduciary duty, acted negligently, and committed fraud. On March 5, 2015, FSC Securities Corporation terminated Hartman, alleging that he had violated the firm’s policies, which included the engagement in unauthorized private securities transactions and outside business activities.
On March 16, 2016, Hartman settled a customer dispute for $31,000.00, after the customer alleged that Hartman acted negligently, breached his fiduciary duty to the customer, and engaged in fraud. Hartman settled two additional complaints between April 13, 2015 and April 30, 2015, in which he provided customers with $107,500.00 in the aggregate after being subject to fraud allegations.
On March 13, 2015, Hartman settled a customer dispute for $135,000.00 after customers alleged that Hartman made unsuitable investment recommendations in the customer’s accounts. Another customer lodged a dispute against Hartman on May 14, 2015, which Hartman settled for $17,500.00 in damages after the customer alleged breach of fiduciary duty, negligence, and fraud.
On July 2, 2015, Hartman settled a customer dispute for $10,000.00 after he was alleged to have made unsuitable investment recommendations, effected unauthorized trades in the customer’s account, and committed securities fraud in violation of Securities Exchange Commission Rule 10b-5. From July 22, 2015 through August 11, 2015, Hartman settled two additional customers’ disputes for a combined $14,917.00 in damages after customers alleged that Hartman breached his fiduciary duty, acted negligently, and committed fraud. Hartman settled a customer dispute on August 17, 2015, for $52,500.00 after he was alleged to have acted negligently.
On August 19, 2015, Hartman was permanently barred from Financial Industry Regulatory Authority after consenting to findings that he engaged in unauthorized private securities transactions and outside business activities. Letter of Acceptance, Waiver and Consent, No. 2015044671601 (Aug. 9, 2016). Apparently, FINRA found that Hartman’s outside business activities, which were never disclosed or approved by his firm, involved him working from 2004 through 2015 as a director of a private entity, IC. Hartman was found to have violated FINRA Rules 3270, 2010, as well as NASD Rules 2110 and 3030.
Regarding the aforementioned FINRA action, Hartman was also found to have invested an estimated $450,000.00 in IC, and facilitated thirteen additional investors’ purchases in IC. Apparently, Hartman’s conduct, which included never notifying his firm for approval prior to engaging in the transactions, was conduct violative of FINRA Rules 2010, as well as NASD Rule 2110 and 3040.
Guiliano Law Group
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