John Joseph Labarca of Edison New Jersey a stockbroker formerly registered with National Securities Corporation is the subject of a customer initiated investment related arbitration claim in which the customer requested $80,000.00 in damages supported by allegations that (1) misrepresentations had been made about investments (2) the customer’s account was handled in a negligent manner and (3) unsuitable over-the-counter equities transactions had been effected by the stockbroker during the period in which he was associated with National Securities Corp. Financial Industry Regulatory Authority (FINRA) No. 19-01533 (May 31, 2019).
FINRA Public Disclosure reveals that Labarca has been identified in three more customer initiated investment related disputes pertaining to accusations of his misconduct during the time that he was employed by National Securities Corp and Ryan Beck & Co. Specifically, a customer filed an investment related complaint concerning Labarca’s conduct where the customer sought $50,000.00 in damages founded on allegations that purchases of corporate debt investments were executed without the customer’s knowledge or consent when the stockbroker was associated with Ryan Beck Co. Another customer initiated investment related complaint involving Labarca’s activities was settled for $28,750.00 in damages based upon accusations that during the period in which Labarca was employed by National Securities Corporation, over-the-counter equities trades placed in the customer’s account were unsuitable and inappropriate for the customer.
Also, Labarca is referenced in a customer initiated investment related arbitration claim in which the customer was awarded $345,143.00 in damages based on Labarca being found liable on the customer’s claims including unjust enrichment; breach of fiduciary duty; breach of contract; failure to supervise; negligence; violation of Tex. Bus. And Comm. Code Section 27.01; churning; unauthorized trading; fraud; and violation of Securities Exchange Act of 1934 Section 10(b), SEC Rule 10b-5 and Texas Securities Act Art. 581-33 in reference to Labarca’s trading of investments including Monster Beverage, Cree Corp and SalesForce.com. FINRA Arbitration No. 15-00737 (Jul. 25, 2016).
FINRA Public Disclosure additionally confirms that Labarca has been barred from associating with any FINRA member in any capacity founded on findings that he failed to cooperate with the regulator during an investigation into a customer initiated investment related complaint alleging his misconduct. Letter of Acceptance Waiver and Consent No. 2015045012301 (Feb. 16, 2016). According to the AWC, Labarca was instructed by FINRA to furnish information and documentation to the regulator in regard to the customer complaint. Labarca’s counsel confirmed with FINRA that Labarca would not comply with its investigative requests. FINRA determined Labarca’s failure to cooperate as being violative of FINRA Rules 2010 and 8210.
