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The Serious Allegations Against Michael Barrows
Michael Barrows, a broker registered with Innovation Partners in Charlotte, North Carolina, is facing a FINRA suspension for failing to comply with an arbitration award. This stems from a customer dispute filed in August 2022 alleging:
- Unfair, unlawful, and fraudulent business practices related to bond investments
- Violations of state and federal securities laws
- Fraud
- Breach of fiduciary duty
- Negligence and gross negligence
The FINRA arbitration panel ultimately ordered Barrows to pay the customer $1,035,360.36 in damages. His failure to do so or respond to FINRA inquiries about compliance led to his suspension in all capacities.
What This Means for Investors
Barrows’ case highlights the serious consequences brokers can face for misconduct that harms clients. A seven-figure arbitration award paired with a FINRA suspension sends a strong message. However, according to a study by Bloomberg, investment fraud and bad advice from financial advisors cost Americans around $17 billion per year.
But what about the investors who suffered losses due to Barrows’ alleged actions? They had to go through the arduous process of filing a claim and seeing arbitration through to get justice. And there’s no guarantee Barrows will pay up, even with FINRA’s disciplinary measure.
This underscores the importance of thoroughly vetting your financial advisor. Don’t just look at years of experience – dig into their background for any red flags like past client complaints or regulatory actions. You work hard for your money and deserve an advisor you can trust to act in your best interests. Websites like Financial Advisor Complaints can be a valuable resource for researching potential issues with advisors.
Barrows’ Background and Response
According to FINRA’s BrokerCheck, Barrows entered the industry in 1997 with SunAmerica Securities. Over his 24-year career, he’s been associated with multiple firms including:
- National Planning Corporation
- Kingswood Capital
- M Stevens Securities
He joined Innovation Partners in July 2024.
In a “Broker Comment” on his record, Barrows asserted his former client was a “wealthy” individual convinced by a lawyer to “go after” him and that he was “clearly the wrong party” in the dispute. He claims the client stated on record that Barrows “did nothing wrong.” Barrows says he has filed a motion to vacate the award based on alleged arbitrator misclassification that resulted in an “unfair decision.”
The Bottom Line
Navigating the fallout of broker misconduct is never easy for wronged investors. But remember, you have rights and options. Consider filing a FINRA arbitration claim to pursue recovery of your losses.
As famed investor Warren Buffett once said: “Risk comes from not knowing what you’re doing.” Empower yourself by staying informed and don’t hesitate to take action if something seems amiss. Your financial wellbeing is worth fighting for.
Here’s a sobering statistic to put things in perspective: A recent study found that 1 in 8 financial advisors have a record of misconduct, causing billions in losses for everyday Americans.
If you believe you’ve been misled or defrauded by Michael Barrows or any other financial advisor, I encourage you to reach out to an experienced securities attorney. Many, like Haselkorn & Thibaut, offer free consultations to help determine if you have a case. You can view Barrows’ FINRA record here.
Together, through awareness and accountability, we can work toward a more transparent, trustworthy financial system. As always, I’m here to help break it all down along the way.
