(CRD #1030462, Garrison, New York)

March 21, 2025 – An AWC was issued in which Barth was suspended from association with any FINRA member in all capacities for 16 months. In light of Barth’s financial status, no monetary sanctions have been imposed. Without admitting or denying the findings, Barth consented to the sanction and to the entry of findings that he acted in contravention of Sections 17(a)(2) and (3) of the Securities Act of 1933 (the Securities Act) by making material misrepresentations and omissions in connection with marketing private placement offerings to other selling representatives at his member firm and recommending those offerings to his own customers. The findings stated that the offerings’ sole purpose was to raise capital for an investment in a real estate investment trust (REIT). Barth recommended two offerings to prospective investors and encouraged other representatives at his firm to recommend the offerings to their customers. Among other things, Barth reviewed and disseminated offering documents, including private placement memoranda and subscription agreements. The offering documents disclosed that the selling representative and firm would receive a five percent sales commission on any investment in the offerings, and that the firm would receive a three percent dealer-manager fee. Separately, Barth was associated with an affiliate of the REIT’s management company and was entitled to receive additional selling compensation directly from the affiliate. The offering documents did not disclose Barth’s entitlement to this additional compensation. In connection with his work on these two offerings, Barth omitted material information when marketing and soliciting investments in the offerings. In addition, Barth knew or was negligent in not knowing, but failed to disclose to prospective investors and other selling representatives at the firm, that the REIT’s management company had been unsuccessfully pursuing a public listing for the REIT for several years, and that the management company was experiencing negative cashflow. Ultimately, Barth’s firm sold the offerings to 21 investors. The total principal amount of the investments was approximately $1.6 million. Among these investors were two of Barth’s customers, who invested a total of $55,000 in the offerings based on Barth’s recommendations. Barth received more than $30,000 in connection with marketing and recommending the offerings, of which more than $23,000 was undisclosed compensation paid by the affiliate. The findings also stated that Barth made reckless misrepresentations of material facts and omitted material information in communications with the New York State Department of Labor (NYDOL) in connection with applying for, and receiving, Pandemic Unemployment Assistance (PUA). Barth submitted 70 certifications claiming PUA benefits. In each certification, Barth represented that he did not work and did not receive compensation exceeding $504 during the prior week, which was the maximum amount he could earn in a week and still receive full unemployment benefits for that week. In fact, throughout this period, Barth worked for his firm and his OBA, and he received income that exceeded the $504 weekly threshold 34 out of 70 times. In total, while receiving PUA benefits, Barth earned approximately $50,000 in income. As a result of Barth’s reckless misrepresentations and omissions, the NYDOL provided him with approximately $37,000 in PUA benefits to which he was not entitled. The suspension is in effect from April 21, 2025, through August 20, 2026. (FINRA Case #2020066757803)