Advisor Alert: Our Attorneys Are Investigating Hugh Barndollar For Investment Fraud

Last Updated: November 2024 (Land O’ Lakes, FL)

National securities fraud lawyers at Patil Law P.C. are investigating former Crown Capital Securities broker Hugh Barndollar III (CRD #3027317) regarding multiple customer complaints alleging unsuitable investment recommendations and FINRA suspension for failing to comply with an arbitration award.

A concerning pattern of customer complaints and regulatory issues has emerged, with over $400,000 in recent settlements and current suspension from the securities industry.

Critical Insights About Land O’ Lakes Financial Advisor Hugh Barndollar III

• Advisor Name: Hugh O. Barndollar III
• CRD: 3027317
• Location: Land O’ Lakes, FL
• Last Employer: Crown Capital Securities, L.P. (2013-2021)
• Classification: Currently suspended by FINRA
• Previous Location: 2719 Letap Ct., #102, Land O’ Lakes, FL 34638
• Can Hugh Barndollar be sued in FINRA arbitration: Yes
• Customer Disputes: Ten settled complaints, three pending
• Regulatory Actions: FINRA suspension (September 2023)
• Settlements Total: Over $400,000 in recent years
• Previous Employers: Newport Coast Securities (2008-2013), J.P. Turner & Company (2007-2008)
• Professional Qualifications: Series 24, 7, 31, 65, 63 licenses
• Outside Business Activities: Insurance sales, rental property, restaurant business
• Current Status: Not currently registered with any firm

Details of Recent Actions

1. September 2023: FINRA suspended Barndollar indefinitely for failing to comply with an arbitration award
2. March 2024: $50,000 FINRA arbitration alleging breach of fiduciary duty
3. Recent settlements include:

• $21,000 (May 2024)
• $10,000 (October 2023)
• $190,000 (June 2024)
• $13,500 (July 2023)

Analysis of Alleged Misconduct

The pattern of complaints reveals serious concerns:

• Unsuitable alternative investment recommendations
• Overconcentration in illiquid investments
• Misrepresentation and omission of material facts
• Breaches of fiduciary duty
• Negligent supervision
• Failure to conduct proper due diligence
• Pattern of customer disputes

Regulatory Framework and Investor Protection

SEC Regulation Best Interest

Reg BI required Mr. Barndollar to:

• Make suitable recommendations
• Provide complete disclosure of risks
• Conduct thorough due diligence
• Consider reasonable alternatives
• Monitor investment concentration
• Document suitability determinations

FINRA Rules and Their Significance

FINRA Rule 2111 mandates:

• Reasonable-basis suitability
• Customer-specific suitability
• Quantitative suitability
• Documentation of recommendations

FINRA Rule 2010 requires:

• High standards of commercial honor
• Just and equitable principles of trade
• Ethical business practices

Professional Background

Notable aspects of Mr. Barndollar’s career include:

• Multiple firm transitions
• Significant number of customer disputes
• Current FINRA suspension
• History of alternative investment sales
• Pattern of settlements
• Multiple outside business activities

Red Flags for Investors

1. Current FINRA suspension
2. Multiple recent customer disputes
3. Significant settlement amounts
4. Pattern of unsuitable recommendations
5. Complex alternative investment focus
6. History of firm changes
7. Multiple business activities
8. Failure to comply with arbitration award

Implications for Current and Former Clients

Current and former clients should:

• Review all investment holdings
• Examine portfolio concentration
• Evaluate risk tolerance alignment
• Document all communications
• Review disclosure documents
• Calculate investment losses
• Consider independent portfolio review
• Understand their rights regarding unsuitable investments
• Review all alternative investments
• Verify authorization for trades

Patil Law P.C. Will Help You Recover Your Investment Losses

If you have suffered investment losses in an account handled by Mr. Barndollar or have concerns about alternative investments in your portfolio, please contact Attorney Patil online or call (800) 950-6553 for a free initial consultation. Our securities fraud attorneys work on a contingency fee basis, meaning we only get paid if we help you recover money.

Chetan Patil

Chetan Patil is the founder and Managing Partner of the Patil Law. He brings over 15 years of extensive experience in diverse complex disputes and transactions, across the country. Mr. Patil specializes in litigations, trials, arbitrations, and appeals of complex securities, FINRA, financial and business disputes, with an emphasis in securities, financial services, and financial regulatory law.