Baris Cabalar Facing Allegations of Misconduct at PHX Financial

Financial Industry Regulatory Authority (FINRA) BrokerCheck reveals disclosures about securities broker Baris Cabalar (also known as Barry Calabar) [CRD: 4749342, Fort Lauderdale, Florida].

Baris Cabalar has worked for five firms in his 17-year career. Evidently, he is employed at PHX Financial, Inc. since December 18, 2015. Recent disclosures reveal concerns about Cabalar’s conduct, including allegations of unsuitable recommendations, excessive trading, and violations of SEC regulations.

SEC Files Civil Complaint Alleging Misrepresentation and High-Volume Trading Violations

On October 16, 2024, the U.S. Securities and Exchange Commission (SEC) filed a civil complaint in the U.S. District Court for the Eastern District of New York. The complaint alleges that from January 2019 through October 2021, Cabalar recommended a short-term, high-volume trading strategy to without a reasonable basis for profitability. The SEC claims these recommendations caused clients to lose over $1,000,000 while generating $400,000 in commissions for PHX Financial and Cabalar. This matter remains pending.

SEC Investigation into Alleged Violations of Securities Laws

The SEC initiated an investigation into Baris Cabalar on June 20, 2024, citing potential violations of Section 17(a)(1) and (3) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934, and associated rules. Cabalar denies the allegations and states his intention to vigorously defend himself if enforcement actions proceed.

PHX Financial Client Files Arbitration Claim Alleging Excessive Trading

On February 27, 2019, a client of PHX Financial, Inc. filed an arbitration claim alleging excessive trading and commissions between November 5, 2018, and February 27, 2019. The client requested damages of $330,000. On April 10, 2019, PHX Financial resolved the matter by paying the client $185,000. Baris Cabalar denied wrongdoing, asserting that the clients were experienced investors who authorized all transactions.

Legend Securities Client Files Arbitration for Unsuitability and Churning

On March 8, 2016, a client of Legend Securities, Inc. filed an arbitration claim alleging unsuitability, breach of fiduciary duty, breach of contract, and churning during 2015. The client sought $100,000 in damages. The case settled on March 14, 2016, for $5,000. Cabalar maintained his innocence, stating the settlement was a cost-saving measure.

John Thomas Financial Client Files Arbitration for Churning and Unsuitable Recommendations

On February 23, 2015, a client of John Thomas Financial filed an arbitration claim alleging churning, unsuitable recommendations, breach of contract, and fiduciary duty violations between 2011 and 2012. The client claimed $43,669.46 in damages. On December 16, 2015, the matter was resolved through a settlement of $14,500. Cabalar did not admit to any wrongdoing.

Contact Soreide Law About Baris Cabalar Today

Looking for more information about Baris Cabalar? If so, reach out to Soreide Law Group online or at (888) 760-6552 to speak with a securities attorney. Soreide Law Group takes cases on a contingency basis, advances all costs upfront, and helps investors nationwide recover losses from sales practice violations, though outcomes cannot be guaranteed. Cabalar and the firms he worked for deny accusations of sales practice violations.