Michigan Broker Fined and Suspended by FINRA

Soreide Law Group, (888) 760-6552, has obtained the following information on FINRA’s website under “Disciplinary and Other FINRA Actions, July, 2013.”

Richard Allen Barnett (CRD #2347495, Registered Representative, Grand Blanc, Michigan)

was fined $15,000 and suspended from association with any FINRA member in any capacity for one year and three months. Without admitting or denying the findings, Barnett consented to the described sanctions and to the entry of findings that he participated in private securities transactions through the sale of approximately $712,000 in membership interests in limited liability companies, to members of the public, some of whom were his firm’s securities customers.

FINRA's findings stated that Barnett failed to give the firm written notice of his intention to engage in the sales of membership interests in the entities, and failed to receive the firm’s written approval, prior to engaging in these private securities transactions, for compensation. The findings also included that Barnett was required to be registered as a general securities representative (Series 7) in order to participate in the sales of the membership interests in the entities; however, he was only registered as an investment company/variable contracts products representative (Series 6) at the time.

Additionally, FINRA received a written complaint from an individual who, based upon Barnett’s recommendation, had invested $30,000 in one of his entities. The individual was requesting a refund of her investment. Barnett and the individual entered into a purchase agreement, wherein Barnett purchased her membership interests in the entity for $30,000. Barnett then had her execute a release agreement that contained an improper confidentiality provision that obligated her not to file any complaints relating to her purchase of the membership interest with FINRA, the SEC and other institutions.
She declined to cooperate with FINRA’s investigation after the execution of the release agreement.
The suspension is in effect from June 17, 2013, through September 16, 2014.
(FINRA Case #2009019241101)

Richard Allen Barnett, according to FINRA's BrokerCheck, was previously registered with FINRA at the following brokerage firms:

PROFESSIONAL ASSET MANAGEMENT, INC.
CRD# 21125
GRAND BLANC, MI
08/2009 - 06/2011

FOUNDERS FINANCIAL SECURITIES LLC
CRD# 137945
GRAND BLANC, MI
04/2008 - 08/2009

CFD INVESTMENTS, INC.
CRD# 25427
GRAND BLANC, MI
02/1994 - 04/2008

This ends the information obtained on FINRA’s website.

Call Soreide Law Group for a free consultation with an attorney on how to potentially recover your investment losses: 888-760-6552.