John Joseph Labarca, of Edison, New Jersey, a stockbroker for National Securities Corporation, was permanently barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity after consenting to findings that he had not cooperated in a FINRA investigation regarding a customer complaint lodged against him. Letter of Acceptance, Waiver and Consent, No. 2015045012301 (Feb. 16, 2016).
According to the AWC, in April 2015, at a time when Labarca was associated with National Securities Corporation, FINRA started to investigate allegations of Labarca’s misconduct per a customer’s Statement of Claim filed against him. The AWC stated that Labarca received FINRA’s February 1, 2016 request to provide information and documentation, pursuant to Rule 8210, by a February 16, 2016 deadline.
The AWC reported that Labarca’s counsel subsequently informed FINRA that Labarca had acknowledged that he received FINRA’s request to provide information and documentation but that he would not be cooperating with such request at any time. As a result, FINRA found Labarca to be in violation of Rule 8210 and 2010, leading to his permanent bar from acting as a broker or associating with securities firms.
Public disclosure records via FINRA’s BrokerCheck reveal that Labarca has been subject to six disclosure incidents. On September 29, 2006, Labarca had settled a customer dispute for $50,000.00 after a customer had alleged that on December 20, 2014, there were unauthorized Werner Holdings Company bond purchases made in the customer’s account.
On October 28, 2012, Labarca was subject to a bankruptcy discharge action. On May 27, 2013, Labarca became subject to a pending customer dispute, where the customer is requesting $800,000.00 in damages after alleging negligence, unauthorized trading, and breach of fiduciary duty. On September 5, 2014, Labarca settled a customer dispute for $28,750.00 after a customer alleged suitability violations.
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