Byron Bert Barkley of Salt Lake City Utah the Head of Trading for Wilson Davis Co. Inc. is the subject of a Financial Industry Regulatory Authority (FINRA) investigation which led FINRA to conclude that disciplinary action should be taken against Barkley for potentially failing to supervise stockbrokers of the firm who may have defrauded investors. FINRA Investigation No. 20160488374 (Aug. 22, 2018).
According to FINRA Public Disclosure, FINRA concluded – at least from a preliminary standpoint – that Barkley may have failed to supervise the activities of the firm to ensure that stockbrokers had complied with federal securities fraud laws. FINRA indicated that Barkley’s supervisory failures could have caused stockbrokers to have engaged in market manipulation activities while associated with the firm.
Consequently, FINRA stated that the Department of Enforcement should consider taking action against Barkley for engaging in conduct violative of Securities Exchange Act of 1934 Section 10(b), Securities Exchange Commission (SEC) Rule 10b-5 and FINRA Rules 2010, 3110(a) and 3110(b).
This is not the first time that Barkley has been subject of a FINRA action concerning his misconduct in the securities industry. Particularly, Barkley was subject of an Order issued by SEC which resulted in Barkley being fined $50,000.00, disgorged of $67,710.20 in illicit gains, and required to cease and desist from engaging in federal securities laws violations regarding short sales. In the Matter of Byron B. Barkley Administrative Proceeding File No. 3-17731 (Dec. 16, 2016).
Thereafter, Barkley was fined $115,000.00 and suspended from associating with any FINRA member in any capacity according to an Extended Hearing Panel Decision containing findings that Barkley failed to supervise stockbrokers’ inappropriate and risky trades relating to four low priced securities while associated with Wilson Davis, and allowed for violative market making activities to take place. Department of Enforcement v. Wilson Davis Co. et al. Disciplinary Proceeding No. 2012032731802 (Feb. 27, 2018). FINRA found Barkley’s conduct violative of FINRA Rules 2010 and 3310 as well as National Association of Securities Dealers (NASD) Rules 3010.
Barkley has been employed by Wilson Davis Co. Inc. since September 24, 1969.
