{"id":9067,"date":"2020-05-29T16:23:42","date_gmt":"2020-05-29T20:23:42","guid":{"rendered":"https:\/\/www.silverlaw.com\/blog\/?p=9067"},"modified":"2023-03-29T15:50:53","modified_gmt":"2023-03-29T19:50:53","slug":"client-alleges-unsuitability-in-alternative-investments-from-broker-hugh-barndollar","status":"publish","type":"post","link":"https:\/\/www.silverlaw.com\/blog\/client-alleges-unsuitability-in-alternative-investments-from-broker-hugh-barndollar\/","title":{"rendered":"FINRA Suspends Broker Hugh Barndollar For Two Years"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"alignleft wp-image-10205 size-full\" src=\"https:\/\/www.silverlaw.com\/blog\/wp-content\/uploads\/2021\/10\/FiverrLossesSmall.jpg\" alt=\"Hugh Barndollar (Hugh Ordway Barndollar III, CRD #3027317, aka \u201cHobby Barndollar\u201d) is a former registered broker and currently registered investment advisor last employed by Crown Capital Securities, L.P. (CRD#: 6312) of Land O\u2019Lakes, FL. Barndollar was employed with Crown Capital until he voluntarily resigned on December 31, 2021.  His previous employers include Newport Coast Securities, Inc. (CRD# 16944, expelled by FINRA, 6\/25\/2018) of Odessa, FL, J.P. Turner &amp; Company, L.L.C. (CRD# 43177) of New Port Richey, FL, and Calton &amp; Associates, INC. (CRD# 20999) of Ocala, FL. He has been in the industry since 1998. While at Crown Capital, Barndollar also served as an investment advisor representative (IAR) through a registered investment advisory firm (RIA) providing asset management services. In this capacity he recommended and facilitated investments in ten private offerings for alternative investments.  He participated in 28 unapproved private securities transactions for 18 clients totaling $1,418,108.00. Of the 18, 12 were also customers of Crown Capital.  Although Barndollar notified Crown Capital of his outside business activity, he did not notify the firm with prior written notice of the alternative investment private placements. He also failed to obtain the firm\u2019s written authorization to participate in accordance with Crown Capital\u2019s written policy.  Barndollar also falsely claimed on his yearly compliance questionnaires from 2018 through 2021 that he had not participated in any private security transactions without notifying the firm and receiving authorization. In May of 2020, Crown Capital put Barndollar on heightened supervision, which included a prohibition on selling alternative investments. He sold them anyway, participating in 13 transactions worth $742,048.  Barndollar\u2019s Unhappy Customers From 2010 through 2021, eight of his customers initiated new customer disputes leading to multiple FINRA arbitrations against Barndollar.  1.\tIn a claim filed on 4\/14\/2021, a client alleged that Barndollar exhibited a \u201clack of suitability and failure to conduct proper due diligence in regards to the purchase of alternative investments.\u201d This claim was settled for $35,000.   2.\tA claim filed on 8\/28\/2020 had similar allegations of \u201clack of suitability, negligence, misrepresentations and omissions of material facts in regards to transactions in nontraditional, alternative and\/or non-traded REIT investments.\u201d This claim was settled for $25,000.  3.\tA claim filed on 8\/11\/2020 included complaints of \u201clack [of] suitability, negligence and misrepresentations and omissions of material facts in regards to transactions in alternative and variable annuity investments.\u201d This claim is \u201cpending,\u201d and no financial damages are listed. Barndollar indicates a personal relationship with the now-deceased client, and that the decedent\u2019s children have filed the dispute.    4.\tA second claim filed on 8\/11\/2020 had the same allegations as the above but was settled for $82,500. No additional information is available.   5.\tThe next dispute, filed on 7\/23\/2020, alleges \u201clack adequate due diligence, negligence and misrepresentations and omissions of material facts in regards to transactions in a non-traded REIT.\u201d This claim was settled for $36,000.   6.\tA dispute filed on 6\/9\/2020 included allegations of \u201clack of due proper due diligence, breach of fiduciary duty and suitability obligations as it relates to the purchase of illiquid alternative investments.\u201d  The client requested damages of $125,000, and the claim was settled for $45,000, with Barndollar commenting that the firm settled to avoid litigation.   7.\tA client filed a dispute on 5\/13\/2020 alleging that they were sold alternative investments that underperformed, and the claim was settled for $160,000.   8.\tA client dispute filed on 4\/9\/2020 included allegations of unsuitability, lack of proper due diligence, and breach of contract regarding two alternative investments that the client purchased in April of 2018. The client requests damages in the amount of $100,100.00. Barndollar refutes the claim, stating that he acted only in a supervisory position. The claim was settled for $37,500 and is now closed.   9.\tIn a prior dispute filed on 7\/18\/2019, a client alleged negligence in supervision by Crown Capital and failing to do adequate due diligence, negligence in account handling and recommendation of investments and breach of fiduciary duty. The client requested damages of $100,000, and the claim was settled for $30,000.   10.\tSimilar allegations were listed in a third disclosure from 2010 while Barndollar was employed with Newport Coast Securities before it was expelled by FINRA. In it, Barndollar was one of four respondents who were involved in the claim regarding the sale of unregistered securities, which resulted in a FINRA arbitration hearing. The clients requested damages in the amount of $124,800.00, and were awarded $47,500.00. Our attorneys are currently arbitrating claims relating to GPB and other illiquid investments for claims relating to unsuitability, overconcentration, and failure to disclose the risks of these types of investments. Many clients allege that they didn\u2019t understand the risk of these complex illiquid investments and are stuck holding these products. These types of investments can have substantial upfront fees or costs and investors may not be fairly compensated for the risk of holding these types of products. Have You Invested With Hugh Barndollar? Scott Silver and the securities and investment fraud lawyers at Silver Law Group represents investors in The Villages and surrounding areas on a regular basis. We can meet with you at your home, online or by phone to discuss the specific facts of your case. We appreciate the unique circumstances of many investors in the Villages area and understand that many investors are retired and were seeking safe investments that provided for income. Silver Law Group represents investors in securities and investment fraud cases. Our lawyers are admitted to practice in New York and Florida and represent investors nationwide to help recover investment losses due to stockbroker misconduct. If you have any questions about how your account has been handled, call to speak with an experienced securities attorney. Most cases are handled on a contingent fee basis, meaning that you won\u2019t owe us until we recover your money for you. Contact us today and let us know how we can help.\" width=\"300\" height=\"200\" srcset=\"https:\/\/www.silverlaw.com\/blog\/wp-content\/uploads\/2021\/10\/FiverrLossesSmall.jpg 300w, https:\/\/www.silverlaw.com\/blog\/wp-content\/uploads\/2021\/10\/FiverrLossesSmall-180x120.jpg 180w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/p>\n<p>Hugh Barndollar (Hugh Ordway Barndollar III,\u00a0<a href=\"https:\/\/brokercheck.finra.org\/individual\/summary\/3027317\" target=\"_blank\"><strong>CRD #3027317<\/strong><\/a>, aka <em>\u201cHobby Barndollar\u201d<\/em>) is a former registered broker and currently registered investment advisor last employed by Crown Capital Securities, L.P. (CRD#: 6312) of Land O\u2019Lakes, FL. Barndollar was employed with Crown Capital until he voluntarily resigned on December 31, 2021. <a href=\"https:\/\/www.silverlaw.com\/blog\/client-alleges-unsuitability-in-alternative-investments-from-broker-hugh-barndollar\/#more-9067\" class=\"more-link\">Continue reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Hugh Barndollar (Hugh Ordway Barndollar III,\u00a0CRD #3027317, aka \u201cHobby Barndollar\u201d) is a former registered broker and currently registered investment advisor last employed by Crown Capital Securities, L.P. (CRD#: 6312) of Land O\u2019Lakes, FL. Barndollar was employed with Crown Capital until he voluntarily resigned on December 31, 2021. Continue reading \u203a<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[598,580],"tags":[],"class_list":["post-9067","post","type-post","status-publish","format-standard","hentry","category-alternate-investments","category-stockbroker-misconduct"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>FINRA Suspends Broker Hugh Barndollar For Two Years<\/title>\n<meta name=\"description\" content=\"Hugh Barndollar is a registered broker and investment advisor currently employed by Crown Capital Securities of Land O\u2019Lakes, FL.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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Barndollar is a registered broker and investment advisor currently employed by Crown Capital Securities of Land O\u2019Lakes, FL.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.silverlaw.com\/blog\/client-alleges-unsuitability-in-alternative-investments-from-broker-hugh-barndollar\/","twitter_card":"summary_large_image","twitter_title":"FINRA Suspends Broker Hugh Barndollar For Two Years","twitter_description":"Hugh Barndollar is a registered broker and investment advisor currently employed by Crown Capital Securities of Land O\u2019Lakes, FL.","twitter_image":"https:\/\/www.silverlaw.com\/blog\/wp-content\/uploads\/2021\/10\/FiverrLossesSmall.jpg","twitter_misc":{"Written by":"Silver Law Group","Est. reading time":"5 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