Did you lose money investing with former FSC Securities Corporation financial advisor Barry Hartman (CRD# 1361232)? Hartman was registered with FSC Securities Corporation in Missoula, Montana from 2002 to 2015, when he was terminated regarding, “Registered representative terminated for violation of firm policies, to include, Mr. Hartman’s participation in an undisclosed outside business activity and an undisclosed private securities transaction.”
In August 2015, FINRA barred Hartman after he consented to the sanction and to the entry of findings that while associated with his member firm he served on the board of directors of an unaffiliated privately-held company without providing written notice to the FSC Securities Corporation in the form required by the firm. The findings stated that Hartman also participated in private securities transactions by personally investing approximately $450,000 in the undisclosed outside business and by recommending that some of the firm’s customers invest in the outside business and referring them directly to the outside business to complete their investments.
In March 2004, Harman was suspended for two weeks and sanctioned to a monetary fine of $2,000 after it was found that Hartman violated NASD Conduct Rule 2110 when he placed a telephone call to an insurance company regarding a variable annuity policy it had issued to a customer. In that telephone conversation, without the individuals’ knowledge or authorization, respondent Hartman falsely identified himself as that individual.
Hartman has been the subject of 21 customer complaints between 2002 and 2017, one of which was denied, according to his CRD report. Recent complaints include:
- July 2017. “Client alleges violation of federal securities laws, violation of the securities act of Montana, violation of Montana unfair trade practices and consumer protection act, breach of contract, misrepresentation, breach of fiduciary duty, negligence, and gross negligence.” The customer is seeking $100,001 in damages and the case is currently pending.
- July 2017. “Client alleges violation of federal securities laws; violation of the Securities Act of Montana; violation of Montana unfair trade practices and consumer protection act; breach of contract; misrepresentation; breach of fiduciary duty; negligence and gross negligence.” The customer is seeking $161,227.80 in damages and the case is currently pending.
- January 2017. “Alleged violation of duties owed; suitability claim for purchase of stock.” The customer is seeking $184,750 in damages and the case is currently pending.
- December 2016. “Alleged violation of duties owed to client in REIT investment.” The case is currently pending.
- February 2016. “Violations of the securities Act of Montana; Breach of Fiduciary Duty; Common Law Fraud and misrepresentation. Violation of FINRA Rule 2010 and 2020; Violation of FINRA Rules 2111 and 2310; Negligence.” The customer sought $150,059 in damages and the case was settled for $70,000.
- November 2015. “Violations of the securities act of Montana; breach of fiduciary duty; common law fraud and misrepresentation; violation of FINRA Rule 2010, 2020, 2111, 2310, 3010; negligence and negligent supervision.” The customer sought $145,847.89 in damages and the case was settled for $57,500.
- October 2015. “Unsuitability and unauthorized transactions.” The customer sought $45,000 and the case was settled for $10,000.
- October 2015. “violation of common law fraud; breach of fiduciary duty; negligence.” The customer sought $50,000 in damages and the case was settled for $65,000.
- August 2015. “Negligence.” The customer sought $160,000 in damages and the case was settled for $52,500.
- August 2015. “Breach of Fiduciary Duty; Negligence; Fraud.” The customer sought $107,000 in damages and the case was settled for $2,917.
- July 2015. “Breach of fiduciary duty; negligence; fraud.” The customer sought $75,000 in damages and the case was settled for $12,000.
- July 2015. “Unsuitable recommendations in violation of NASD rule 2310. Unauthorized trading in violation of FINRA rule and section 10(b) and rule 10b-5 of the exchange act of 1934. Violation of FINRA rule 2210; material misrepresentation and negligence in violation of FINRA Rule 2010.” The customer sought $99,999 in damages and the case was settled for $10,000.
- May 2015. “Breach of fiduciary duty, negligence; fraud.” The customer sought $80,000 in damages and the case was settled for $17,500.
- May 2015. “Alleged that representative made unsuitable recommendations in the accounts of two customers.” The customer sought $718,000 in damages and the case was settled for $135,000.
- April 2015. “Breach of fiduciary duty; negligence; fraud.” The customer sought $150,000 in damages and the case was settled for $27,500.
- April 2015. “Breach of fiduciary duty, negligence, and fraud.” The customer sought $200,000 in damages and the case was settled for $80,000.
- March 2015. “Breach of fiduciary duty; negligence; fraud.” The customer sought $250,000 in damages and the case was settled for $31,000.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, FSC Securities Corporation may be liable for investment or other losses suffered by Hartman’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.
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