Kevin Lawrence Barbalace of Middletown New Jersey a stockbroker associated with Dawson James Securities is the subject of a customer initiated investment related arbitration claim in which the customer requested $100,000.00 in damages based upon allegations that investment recommendations were not suitable and that misrepresentations and omissions had been made about direct participation program interests or limited partnership interests. Financial Industry Regulatory Authority (FINRA) Arbitration No. 20-00269 (Jan. 23, 2020).

FINRA Public Disclosure reveals that Barbalace has been referenced in five more customer initiated investment related disputes concerning accusations of his improprieties when the stockbroker was associated with securities broker dealers including Dawson James Securities and Corinthian Partners. On December 21, 2016, a customer filed an investment related complaint in reference to Barbalace’s conduct where the customer sought $12,500.00 in damages based upon accusations that the Dawson James Securities customer’s investment instructions concerning restricted stock had been disregarded by Barbalace.

On June 4, 2019, another customer filed an investment related complaint involving Barbalace’s conduct in which the customer requested $4,952,610.00 in damages based upon allegations that misrepresentations had been made to the Dawson James Securities customer by Barbalace and that private placement, promissory note and equity transactions failed to be suitable for the customer. Barbalace is also referenced in a customer initiated investment related arbitration claim in which the customer requested $200,000.00 in damages supported by allegations that misrepresentations were made by the stockbroker about the risks of a private placement that he offered or sold to the customer outside the auspices of Corinthian Partners. FINRA Arbitration No. 19-01859 (July 8, 2019).

FINRA Public Disclosure confirms that Barbalace has been fined $5,000.00 and suspended from associating with any FINRA member in any capacity supported by findings that the stockbroker provided unsuitable investment recommendations to a customer of Dawson James Securities. Letter of Acceptance Waiver and Consent No. 2015047757701 (Nov. 17, 2016).

According to the AWC, the customer had been advised to make fifty-four low-priced securities trades. FINRA stated that one of the securities recommended by Barbalace lost more than eighty percent of its value in just two months after the customer purchased it. The customer’s account had been overconcentrated in low-priced stocks because of the stockbroker. FINRA determined that his advice was unsuitable and had caused the customer to incur unwarranted investment losses. Barbalace violated FINRA Rules 2010 and 2111 in this regard.

Public Disclosure also reveals that Barbalace was sanctioned by the Maryland Office of the Attorney General in October of 2015 based upon allegations of his bad advice and engagement in undisclosed outside business activities.

Barbalace was discharged by Dawson James Securities on May 13, 2015 supported by allegations that he neglected to comply with the securities broker dealer’s directives.

Tags: ,

Comments are closed.