Kevin David Barton of Vista California a stockbroker currently registered with Crown Capital Securities LP has been fined $17,500.00 and suspended for four months from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity based upon findings that he took part in outside business activities and had executed unauthorized trades in customer accounts. Letter of Acceptance Waiver and Consent No. 2018059856601 (Apr. 27, 2021).
According to the AWC, in December of 2016, Barton made arrangements with a California company to be an employee of the firm. The stockbroker’s activities with this company included marketing financial services and products. FINRA indicated that between 2017 and 2019, Barton received approximately $60,000.00 in compensation for his efforts.
During the period that Barton was associated with Crown Capital Securities, he was required to disclose any outside activities. Barton failed to timely disclose his involvement with the California company. It was not until nearly 22 months after he commenced employment with the securities broker dealer that they found out. Barton violated FINRA Rules 2010 and 3270.
The regulator also referenced that Barton made trades without getting written permission from customers. Between June of 2016 and May of 2019, Barton effected discretionary trades in four customer accounts. Two of those accounts were held by elderly investors. FINRA indicated that Barton did not obtain written permission from the customers to warrant these trades. Barton also failed to get pre-trade confirmation from customers before effecting trades in their accounts.
Barton was forbidden by Crown Capital Securities from making discretionary trades unless he received written authorization from the customers and the securities broker dealer. There was no point in which he sought or obtained any firm authorization. Barton violated FINRA Rules 2010 and 3260 and National Association of Securities Dealers (NASD) Rule 2510(b).
The AWC also contains findings of Barton mismarking order tickets. Between June of 2016 and May of 2019, 80 trades had been marked by Barton as being unsolicited. The trades were actually solicited according to FINRA. The stockbroker violated FINRA Rules 2010 and 4511 for this reason.
Barton has been registered as a stockbroker of Crown Capital Securities since December 20, 2000 and registered as an investment adviser representative with the firm since June 26, 2002.
