Finra panel awards investor $1.67 million in churning case

Broker David Lloyd Barber and Madison Avenue Securities to pay all fees, costs

Jan 8, 2018 @ 4:36 pm

By InvestmentNews

An all-public Finra arbitration panel has awarded a San Diego, Calif., investor the entire amount of her claim — $1.67 million in compensatory and punitive damages — against broker David Lloyd Barber and his firm, Madison Avenue Securities.

Mr. Barber was ordered to pay Donna Gambee $1.2 million of the compensatory and punitive damages, while Madison Avenue Securities was ordered to pay the remainder, the Financial Industry Regulatory Authority Inc. said in an award notice. In addition, the panel awarded Ms. Gambee attorneys' fees of almost $868,000 and costs of more than $44,000, to be paid jointly by Mr. Barber and his firm, which is based in San Diego.

The panel found the defendants liable for churning, unauthorized trading, unsuitable trading, breach of fiduciary duty and failure to supervise.

In 2013, Finra suspended Mr. Barber for four months and fined him $25,000 for improperly receiving five loans totaling $867,000 from several of his clients when he was affiliated with Raymond James. He concealed the loans from Raymond James by routing them through an outside business he owned. Raymond James terminated him in 2011.

Mr. Barber then worked at First Midwest Securities and moved to Madison Avenue Securities in 2015. He began his career in 1986 at Birr Wilson and worked at Sutro, Crowell Weedon and Dain Rauscher before joining Raymond James in 2007.


What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video


Top questions surrounding future of DOL fiduciary rule

Reporter Greg Iacurci and managing editor Christina Nelson discuss the biggest uncertainties springing from the Fifth Circuit Court of Appeals' decision to vacate the regulation.

Latest news & opinion

Higher estate-tax exemption level could mean less work for advisers

With fewer taxpayers affected by the federal estate tax, the demand for estate planning is diminished.

Stocks plunge, advisers tell clients to hang tight

Though planners encourage calm, some are preparing investors for a correction.

Lightyear Capital's Donald Marron said to be in the hunt for Cetera Financial Group

The veteran brokerage executive, who bought Advisor Group in 2016, owned Cetera once before.

What to watch for next with the DOL fiduciary rule

Much hinges on whether the Labor Department appeals the 5th Circuit decision by April 30.

Social Security benefits losing buying power

Low inflation combined with rising Medicare costs threaten the adequacy of seniors' income.


Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting It'll help us continue to serve you.

Yes, show me how to whitelist

Ad blocker detected. Please whitelist us or give premium a try.


Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print