The law firm of Oakes & Fosher is presently investigating the alleged misconduct of former securities broker Kevin Barbalace. According to his publicly available FINRA BrokerCheck report, Kevin Barbalace has been the subject of multiple customer disputes.

Kevin Barbalace was a New Jersey-based securities broker. He worked in the securities industry for fourteen years. During his career, he was registered with eight different securities firms. He is no longer working as a registered securities broker in any fashion.

His Registrations

  • IDS Life Insurance Company (2001-2002)
  • American Express Financial Advisors (2001-2002)
  • The Lincoln National Life Insurance Company (2002-2005)
  • Lincoln Financial Advisors Corporation (2002-2005)
  • LPL Financial Corporation (2005-2010)
  • SII Investments, Inc. (2010-2011)
  • Dawson James Securities (2011-2015)
  • Corinthian Partners (2015-2016)

The Allegations

  • In October 2015, a customer alleged that Kevin Barbalace made misrepresentations concerning the risks associated with an investment she should never have been offered.
  • In November 2016, Kevin Barbalace was officially sanctioned by FINRA. The findings in this matter state that he made unsuitable investment recommendations to a customer. He allegedly exposed the customer to risks that were inconsistent with both their financial needs and investment objectives. Due to these alleged actions, he was fined $5,000 and suspended from acting as a securities broker in any fashion for a period of three months.
  • In July 2019, customers alleged that Kevin Barbalace misrepresented the risks associated with a high-risk private placement. This case is currently pending. The customers are seeking $200,000 in damages.
  • In January 2020, a customer alleged that Kevin Barbalace made material misstatements and omissions and made unsuitable investment recommendations. This case is currently pending. The customer is seeking $100,000 in damages.

What Are Private Placements?

Private placements are privately traded securities that are not registered with the Securities and Exchange Commission. These products are unsuitable for most investors for multiple reasons. This is because they are incredibly risky, illiquid, and are accompanied by excessively high fees that drastically lower investor principals. Despite this, many less than scrupulous securities brokers misrepresent these investments as safe and lucrative. This is because brokers can receive a whopping 10 percent of the investor’s principal investment as their commission for brokering the trade. These excessively high commissions create significant conflicts of interest that lead to unsuited investors purchasing these products.

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 Kevin Barbalace, please contact Oakes & Fosher for a free and private consultation. Oakes & Fosher handles cases on a contingency basis, which means there are no fees charged unless we collect for you.