Hugh Ordway Barndollar III Suspended and Fined by FINRA

An AWC was issued in which Hugh Ordway Barndollar III (CRD #3027317) was suspended from association with any FINRA member in all capacities for two years. Barndollar was also assessed a deferred fine of $10,000.

While he did not admit or deny FINRA’s findings, Hugh Ordway Barndollar III consented to the entry of findings and to the sanction by FINRA. The findings state that Barndollar participated in unapproved private securities transactions totaling $1,418,108.

According to FINRA’s findings, “in addition to serving as a registered representative of his member firm, Barndollar also provided asset management services as an investment advisor representative. Barndollar’s firm placed him on heightened supervision due to customer arbitrations that were initiated involving alleged sales practice violations. The heightened supervision plan prohibited Barndollar from selling alternative investments through the firm. However, Barndollar participated in sales of $742,058 in alternative investments after the heightened supervision plan began through a registered investment advisory firm. A majority of the investors were firm customers.”

Furthermore, FINRA’s findings also include that Hugh Ordway Barndollar III “participated in the transactions by recommending and/or facilitating the investments, including by meeting with the investors to discuss the investments and assisting them with documentation. Barndollar’s advisory clients paid advisory fees to the advisory firm on the assets held in their advisory accounts, including the alternative investments that Barndollar recommended and/or facilitated. Barndollar disclosed his advisory firm as an outside business activity (OBA) to his firm, stating that he managed accounts on a fee-based platform that involved third-party money managers. While the firm approved of this OBA, Barndollar did not provide it with prior written notice of his participation in the sale of alternative investments through the advisory firm or obtain the firm’s written approval to sell those investments.”

Also stated by FINRA’s findings is that Barndollar allegedly “falsely certified on firm annual compliance questionnaires that he had not engaged in any private securities transactions that had not been previously disclosed and approved by the firm.”

The FINRA suspension of Hugh Ordway Barndollar III (CRD #3027317) is in effect from December 5, 2022-December 4, 2024.

(FINRA Case #2021071745801)