The securities fraud attorneys at Gana LLP have recently filed a complaint with The Financial Industry Regulatory Authority (FINRA) on behalf of clients alleging that Erryn Barkett (Barkett) engaged in securities fraud by selling unapproved investments and inappropriate and costly alternative investments and private placements to the clients. The claim was brought against brokerage firm Next Financial Group, Inc. (Next Financial) alleging that the firm failed to supervise Barkett’s misconduct. Barkett is currently associated with LPL Financial LLC (LPL).
According to Barkett’s brokercheck records Barkett has been subject to one regulatory complaint, four customer complaints, and has six financial disclosures. The regulatory complaint involves allegations that Barkett solicited multiple investors to invest in an unapproved security called Voyager Financial Group, LLC.
Barkett has disclosed at least 11 outside business activities. These activities include Barkett’s d/b/a Barkett Allen Capital LLC. In addition, Barkett disclosed his involvement with SkyPix, LLC, BAS, LLC, Flagship Properties, LLC, Sunnyside Ranch, LLC, Produce Insight Panel, and Wheelman, LLC. The providing of loans or selling of notes and other investments outside of a brokerage firm constitutes impermissible private securities transactions – a practice known in the industry as “selling away”. Often times brokers who engage in this practice use outside businesses in order to market their securities. In this case the claimants alleged that Barkett solicited them to invest in several business ventures including SkyPix and a land deal.