Oakes & Fosher is presently investigating the possible misconduct of former securities broker David Barber. According to his publicly available FINRA BrokerCheck report, David Barber has been the subject of multiple customer disputes.

David Barber was a California based securities broker. He worked in the securities industry for thirty-one years. During his career, he was registered with seven different securities firms. He is no longer working as a registered securities broker in any fashion.

His Registrations

  • Birr, Wilson Securities (1986-1987)
  • Sutro & Co. Incorporated (1987-1994, 1999-2002)
  • Crowell, Weedon & Co. (1994-1999)
  • RBC Dain Rauscher Inc. (2002-2007)
  • Raymond James and Associates (2007-2011)
  • First Midwest Securities (2011-2015)
  • Madison Avenue Securities (2015-2018)

The Allegations

  • In August 2001, a customer alleged that David Barber executed unauthorized trades in their account.
  • In August 2011, a customer alleged that David Barber misappropriated funds.
  • Due to his alleged actions in the above mentioned matter, David Barber became the subject of an internal investigation carried out by his member firm. The firm concluded that the Financial Advisor violated policy relating to outside business activities. Barber also allegedly failed to cooperate during the internal investigation. For these reasons, David Barber was discharged from his position at Raymond James & Associates in September 2011.
  • In February 2013, David Barber was sanctioned by FINRA. The findings in this matter state that Barber improperly received five loans from three customers at his member firm. The amount of funds received totaled $867,000. Barber had the funds wired from their brokerage accounts to an outside business entity that he himself owned. Barber had not disclosed this outside business dealing to his member firm. He then moved the funds to his own personal account and used the money to pay for personal expenses. Due to these alleged actions, David Barber was fined $25,000 and suspended by FINRA from acting as a securities broker in any fashion for a period of four months.
  • In May 2016, a customer alleged that David Barber traded their account excessively, executed unauthorized trades in their account, recommended unsuitable products, and breached his fiduciary duty. This case went to arbitration where the customer was awarded over $2 million in damages.
  • In September 2017, a customer alleged that David Barber executed trades in their account without authorization. This case was settled for $10,000 in damages.
  • David Barber was once again sanctioned by FINRA in March 2018. The findings in this matter state that he failed to comply with a FINRA investigation into allegations he engaged in unauthorized trading in the accounts of multiple customers at his member firm. Due to these alleged actions he was barred by FINRA from acting as a securities broker in any fashion.
  • In April 2018, a customer alleged that David Barber breached his fiduciary duty, engaged in fraud, handled their account negligently, and misappropriated their funds. This case was settled for $650,00 in damages.
  • In July 2018, customers alleged that they experienced losses due to David Barber’s recommendation to purchase  equity securities. This case was settled for $340,000 in damages.
  • Also in July 2018, a customer alleged unauthorized trading and excessive trading against David Barber. This case was settled for $22,500 in damages.

Unauthorized Trading

One of the most noteworthy allegations levied against David Barber was that of unauthorized trading. Securities brokers are obligated to always act in the best interests of their customers. Part of this means obtaining their authorization before executing any trades on their behalf. This is because investors are entitled to the opportunity to decide for themselves if they want to be invested in any given security.

There is a process known as discretion that can allow brokers to execute trades in a customer’s account without having to obtain approval for every trade. However, brokers must obtain express written permission from customers before beginning exercising discretion. Their member firms must also accept the account in question as acceptable for discretionary trading.

Despite this, many securities brokers continue to make trades in their customers accounts without their authorization. This is done for any number of reasons, but, more often than not, it is for their own financial benefit as opposed to their customer’s.

Oakes & Fosher Can Help

Many investors are unaware of the legal recourse available to them after losing money due to securities broker fraud and/or negligence. The truth is that investors who have lost money in this fashion may actually be entitled to damages. Oakes & Fosher dedicates its entire legal practice to helping investors across the nation. If you, or someone you know, have lost money investing with David Barber, please contact Oakes & Fosher for a free and private consultation. We work on a contingency basis, which means there are no fees charged unless we collect for you.