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.

0
Comments

What do you think?

View comments

Recommended for you

Featured video

INTV

Where in the U.S. are RIAs growing the fastest?

InvestmentNews' deputy editor Robert Hordt talks to senior columnist Jeff Benjamin about his report on how registered investment advisers are faring in different regions of the country.

Latest news & opinion

10 predictions for financial advice in 2019

Deloitte expects these 10 changes will hit the financial advice business in 2019.

Midwestern magic? RIA assets soared nearly 30% there last year

Theories for what's driving the growth spurt abound, but it surpassed all other regions of the country.

8 apps advisers love for getting stuff done

We reached out to advisers to find out which apps they are using to run their business more efficiently.

10 tax moves to squeeze in before the year ends

Here are some tax moves clients can still make before year-end.

X

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 investmentnews.com? It'll help us continue to serve you.

Yes, show me how to whitelist investmentnews.com

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

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print