Barry Eisenberg Barred As Supervisor By SEC

Alexander Capital's Barry Eisenberg Sanctioned By SEC, Involved In Disputes Alleging Failure To Supervise

Investors have come forward to dispute the sales practices of securities broker Barry Todd Eisenberg (CRD#: 2313107, New York, New York). Specifically, FINRA shows that two investors – clients of JP Turner and Alexander Capital – filed disputes. Secondly, United States Securities and Exchange Commission (“ SEC”) barred Eisenberg from taking on supervisory roles for failing to reasonably supervise one of his securities brokers who inappropriately traded in client accounts and caused losses. Let’s take a closer look at these disclosures, including what you could do if you suffered losses by investing with him.

Alexander Capital Client Alleges Failure To Supervise In Dispute About Barry Eisenberg

In a May 2020 FINRA Arbitration Claim, the client solely alleges that Barry Eisenberg failed to supervise. It appears that a securities broker who Eisenberg was responsible for supervising had traded inappropriately, causing the client to experience losses on stocks or other equities. For this reason, the client asked for $606,046 in damages to resolve this ongoing matter.

SEC Bars Eisenberg As Supervisor, Fines Him In A June 2018 Order

Notably, SEC issued an Order barring Barry Eisenberg (for at least five years) from being a supervisor for securities brokers in the US. In the June 2018 Order, SEC primarily alleges that Eisenberg did not reasonably supervise a securities broker at Alexander Capital. Supposedly, Eisenberg did not try to prevent or detect the broker’s violations of securities laws. It appears that the unsupervised securities broker made unsuitable recommendations to clients. Not only that, but SEC alleges that the broker churned the client’s account.
Among other things, SEC said that the Alexander Capital securities broker under Barry Eisenberg’s watch did not have a reason to believe that in-and-out trading and high-cost trading was suitable. Supposedly, the trades caused high turnover rates and cost-to-equity ratios which reflected excessive trading. It appears that clients lost more than $271,000 because of following that securities broker’s advice.
Also, SEC contended that the Alexander Capital broker’s trading went against a customer’s risk tolerance, investment objectives and circumstances. The Order indicates that the stockbroker churned that customer’s account too. SEC noted that Eisenberg did not reasonably review or otherwise properly act on the alerts which showed the problematic trades.
In addition to the bar, SEC had Barry Eisenberg pay a $15,000 fine.

Prior Client Dispute Alleges Barry Eisenberg’s Failure To Supervise

Barry Eisenberg worked for JP Turner before joining Alexander Capital. Evidently, a client of JP Turner brought a lawsuit alleging Eisenberg’s failure to supervise. Supposedly, he failed to supervise the customer’s stock trades. It seems that the client incurred losses because of this. Consequently, JP Turner settled this matter through making a $635,000 payment to the client.

Did You Lose Money By Investing Through Eisenberg?

Did broker Barry Eisenberg cause you to suffer losses? If so, call Soreide Law Group at (888) 760-6552 and speak with an experienced securities lawyer about a potential recovery of your losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The firm has recovered millions of dollars for those who have suffered losses because of their financial advisors and securities brokers. Please note: Barry Eisenberg denies all allegations of his sales practice violations.
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