Martin Allan Barth (also known as Martin Allen Barth), of Melville, New York, a stockbroker registered with SW Financial LLC, has been suspended for 16 months by Financial Industry Regulatory Authority (FINRA) because Barth made material misrepresentations and omissions in connection with private placement offerings. Case No. 2020066757803 (March 21, 2025).
According to the AWC, this action stems from FINRA’s investigation into private placement offerings marketed by SW Financial, where Barth played a main role between September 2018 and September 2019.
During this period, he participated in managing and sourcing two private placement offerings designed to raise capital for investment in a real estate investment trust (REIT). Barth was responsible for recommending these offerings to investors and encouraging his colleagues to do the same. He reviewed and shared offering documents that stated SW Financial and its stockbrokers would receive compensation.
However, Barth failed to disclose that he was also entitled to additional selling compensation directly from an affiliate of the REIT’s management company. This compensation arrangement was not disclosed in the offering materials provided to investors.
FINRA also stated that Barth omitted information regarding the relationship between the issuer and the REIT. The REIT’s management company controlled the funds, but this affiliation was not disclosed. He also failed to inform potential investors that the REIT’s management had unsuccessfully attempted to go public for several years and was experiencing negative cash flow. These omissions made the offering documents misleading.
Ultimately, 21 investors purchased the offerings, totaling about $1,600,000.00. Two of Barth’s customers invested $55,000. Barth personally received over $30,000.00 from these offerings, with $23,000.00 coming from undisclosed sources.
Barth’s conduct was found to be in violation of Sections 17(a)(2) and (3) of the Securities Act of 1933 and FINRA Rule 2010.
According to FINRA Public Disclosure, on October 12, 2015, a customer initiated investment related FINRA securities arbitration claim involving Barth’s conduct was settled for $75,000.00 in damages based upon allegations that Barth made the unsuitable investment recommendation of mutual funds when Barth was associated with Wells Fargo Advisors LLC. FINRA Arbitration No. 13-00071.
Barth was associated with SW Financial in Melville, New York from September 20, 2018 to March 23, 2022.
Barth has been associated with NI Advisors in Milpitas, California since March 23, 2022.
