Hugh Ordway Barndollar III (also known as Hobby Barndollar), of Land O’ Lakes, Florida, a stockbroker registered with Crown Capital Securities L.P., has been fined $10,000.0 and suspended for two years from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because Barndollar engaged in private securities transactions or selling away. Letter of Acceptance, Waiver, and Consent No. 2021071745801 (November 22, 2022).
According to the AWC, between November 2017 and December 2021, during the time that he was registered with Crown Capital Securities L.P., Barndollar took part in 28 unauthorized private securities transactions involving 18 investors. Barndollar participated in raising $1,418,108.00 from those investors against company policy, as Crown Capital Securities L.P.’s written supervisory procedures required Barndollar to provide it with prior written notice for any outside transactions. Barndollar never provided the securities broker dealer with prior written notice, and he falsely stated in annual compliance questionnaires that he had not engaged in any undisclosed private securities transactions. Therefore, Barndollar violated FINRA Rules 2010 and 3280.
FINRA Public Disclosure shows that Barndollar has been referenced in ten total customer-initiated investment-related disputes concerning Barndollar’s conduct while associated with securities broker dealers, including Crown Capital Securities LP. On March 19, 2021, a customer initiated investment related complaint involving Barndollar’s conduct was settled for $160,000.00 in damages based upon allegations that Barndollar recommended non-traded REITs and non-traded BDCs which poorly performed.
Barndollar was also referenced in a FINRA securities arbitration claim that was settled for $45,000.00 in damages based upon allegations that Barndollar failed to perform due diligence and breached his fiduciary duties in connection with the recommendation and sale of direct investments. FINRA Arbitration No. 20-01711 (June 16, 2021).
On July 30, 2021, a different FINRA securities arbitration claim involving Barndollar’s conduct was settled for $82,500.00 in damages based upon allegations that Barndollar made unsuitable recommendations, was negligent, and made omissions and misrepresentations of material fact in connection with the sale of variable annuities, direct investments, oil and gas securities, and non-traded REITs. FINRA Arbitration No. 20-2551.
Barndollar was also referenced in a FINRA securities arbitration claim that was settled for $25,000.00 in damages based upon allegations that Barndollar made unsuitable recommendations, was negligent, and made misrepresentations and omissions of material fact in connection with the sale of direct investments and non-traded REITs. FINRA Arbitration No. 20-02683 (September 3, 2021).
On December 14, 2021, another FINRA securities arbitration claim involving Barndollar’s conduct was settled for $35,000.00 in damages based upon allegations that Barndollar made unsuitable recommendations and failed to perform due diligence in connection with the sale of non-traded REITs and non-traded BDCs. FINRA Arbitration No. 21-00838.
Barndollar was also referenced in a FINRA securities arbitration claim that was settled for $36,000.00 in damages based upon allegations that Barndollar failed to perform due diligence, was negligent, and made misrepresentations and omissions of material fact in connection with the recommendation and sale of non-traded REITs. FINRA Arbitration No. 20-02107 (May 20, 2022).
Barndollar was associated with Crown Capital Securities L.P. in Land O’ Lakes, Florida, as a stockbroker from March of 2013 to December of 2021.
