Michael S Barrows Suspended by FINRA

Michael S Barrows (Michael Scott Barrows) has been suspended by FINRA indefinitely with the start date of 3/27/2026.  The Regulator’s Statement was, “Pursuant to FINRA Rule 9553, Respondent Barrows' registration with FINRA is suspended on March 27, 2026, for failure to pay arbitration fees.” Barrows is registered as a broker with INNOVATION PARTNERS LLC of Charlotte, North Carolina, since 7/16/2024 and has been registered as an investment advisor with IP FINANCIAL ADVISORY SERVICES LLC of Irvine, California since 7/17/2024. He was previously registered as an investment advisor with M STEVENS WEALTH ADVISORS LLC of Irvine, California, from 04/04/2018 - 07/29/2024 and as a broker with M STEVENS SECURITIES LLC of Las Vegas, Nevada, from 06/09/2023 - 07/29/2024.

According to FINRA’s BrokerCheck, available to the public on FINRA’s website, Michael S Barrows has 24 years of experience in the securities industry and has been listed with 12 firms.  Barrows has 12 disclosures on his FINRA CRD report, 4 of the disclosures are “Customer Disputes,” 2 have been denied and 2 have settled.

A “Customer Dispute” dated 2/17/2026 filed against Michael S Barrows settled for $250,000.00. The allegations were, “Failure to supervise registered reps Michael Barrows and Eric Ludovico, who sold 1mm in GWG L bonds. Specific claims included: negligent supervision, failure to conduct reasonable diligence on GWG Holdings, misrepresentation of the investment, and unsuitability given investment objectives, risk tolerance and financial situation. KCP (then Chalice) was also alleged to have negligently assumed ACG customer accounts and advisors knowing of a pending FINRA disciplinary action against ACG.”

The settled dispute filed against Michael S Barrows dated 8/2/2022 had damages granted of $1,035,360.46.  The allegations were, “Michael Barrows was named in a customer complaint that asserted the following causes of action: violations of federal securities laws; violations of California securities laws; violations of California Unfair, Unlawful, and Fraudulent Business Practices; breach of contract; common law fraud; breach of fiduciary duty; and negligence and gross negligence. Client purchased GWG L-Bonds in October of 2018. Claimant stated that he was not suitable after receiving interest payments for three years shortly after GWG Holdings went into bankruptcy in April 2022.” Barrows denies the allegations in the Broker Comment on BrokerCheck.

GWG Holdings, Inc. filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court on April 20, 2022. For many years before bankruptcy, approximately 40 broker/dealers sold clients close to $1.6 billion in GWG L bonds. They were called L bonds because they were backed by life settlements. These bonds were sold in $1,000 units.

Many investors were allegedly misled into believing GWG L Bonds were low-risk, secure investments, when in fact GWG L Bonds were high-risk and considered unsuitable for many investors, many of whom were retirees and elderly investors. GWG L Bonds were speculative, high-risk, and illiquid securities sold as private placements.

Soreide Law Group has successfully brought dozens of cases before FINRA involving GWG L Bond sales.  If your broker/dealer or financial advisor recommended GWG L bonds and you’ve suffered significant investment losses, contact Soreide Law Group and speak to an experienced securities lawyer at no cost regarding the possible recovery of your financial losses at:  888-760-6552.

Soreide Law Group works on a contingency fee basis, no fee if no recovery, and represents our clients nationwide before FINRA.