id You Incur Losses From Purchasing GPB Funds From Crown Capital’s Hobby Barndollar? (AKA Hugh Barndollar)
Soreide Law Group is advancing investor claims against Hugh Barndollar III (“Hobby Barndollar”) (CRD#: 3027317, Land O’ Lakes, Florida). Namely, the Financial Industry Regulatory Authority (“FINRA”) reports through BrokerCheck that at least two of Barndollar’s clients have come forward with disputes about his sales practices. These investors’ disputes suggest that Barndollar, who currently works for Crown Capital Services and who also heads Florida-based Barndollar Financial and Barndollar Advisory Services Inc., negligently handled investments and gave bad advice about investments possibly including GPB Funds.
Crown Capital Investor’s Arbitration Claim Indicates Hobby Barndollar Breached Fiduciary Duty
Recently, one of Hobby Barndollar’s clients at Crown Capital Securities brought FINRA Arbitration #: 19-01972. In this Statement of Claim dated July 16, 2019, the client makes allegations of negligence, unsuitable recommendations, and breach of fiduciary duty. Allegedly, Barndollar negligently handled his client’s investment account. Not only that, but the client claimed that Barndollar was negligent in his recommendations of investments. It appears that Barndollar failed to conduct due diligence on direct investments including LP interests and DPPs. The client indicated that Barndollar put his own interests before the client’s interests. Also, Crown Capital allegedly failed to supervise Hugh Barndollar which caused the client’s losses. For this reason, the client demanded $100,000 in compensation in this ongoing matter.
J.P. Turner, Newport Client Alleges Barndollar Misrepresented Investments
Evidently, another client who disputed Hobby Barndollar’s sales practices held accounts at J.P. Turner and Newport Coast Securities. Namely, the client alleged in FINRA Arbitration #: 10-03911 that Barndollar misrepresented information in connection with his sales of oil and gas investments and a variable annuity. As also alleged in the other dispute, this client alleged that Barndollar breached a fiduciary duty and was negligent through his recommendations and sales of unsuitable investments. Supposedly, Barndollar acted deceptively or otherwise sold the client sham investments. For this reason, the client received payment of $47,500 to settle the matter.
Hobby Barndollar Possibly Recommended Or Sold GPB Funds
The aforementioned disputes do not specify the exact “private placement” or “direct investments” that Hobby Barndollar sold or recommended, but publicly available sources suggest that Barndollar recommended or sold GPB Capital Holdings Funds.
GPB Capital, which has accumulated $1.8 billion+ largely through the sale of private placements, has struggled financially in 2019. Specifically, GPB Holdings II declined by approximately 13% in value; GPB Automotive Portfolio dropped 25%; and its smaller funds saw declines in value of up to 73%, the company indicated. Moreover, GPB is under FBI, SEC and FINRA investigations concerning, among other things, the veracity of its disclosures to investors about fund performance and capital distributions. What is more, Michael Cohn (GPB Chief Compliance Officer) has been charged with obstructing an SEC investigation.
Brokers’ Responsibility To Conduct Due Diligence On GPB Capital Funds Before Making Recommendations
Securities brokers such as Hobby Barndollar are responsible for ensuring that private placements they recommend are suitable for investors. Not only that, but the securities brokers must conduct due diligence on investments before making recommendations. It is possible that Barndollar gave bad advice to a number of investors about GPB Capital Holdings notes.
Did You Suffer Losses By Investing in GPB Capital Holdings Because Of Hobby Barndollar?
Have you experienced losses by investing in GPB Capital Holdings or other investments because of Hobby Barndollar? If so, contact Soreide Law Group at (888) 760-6552 and speak with experienced counsel about a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The firm has recovered millions of dollars for investors who have suffered losses due to misconduct of brokers and brokerage firms.