Martin Barth: FINRA Suspends Ex-SW Financial Advisor

Former Melville, New YOrk financial advisor Martin Barth (CRD# 1030462) was recently sanctioned and suspended in connection with allegations that he misrepresented private placement offerings. Financial Industry Regulatory Authority records show that he is registered as a broker and an investment advisor with NI Advisors, having previously been registered with SW Financial.

A Letter of Acceptance, Waiver, and Consent (No. 2020066757803) describes FINRA’s disciplinary action against Mr. Barth. Filed in March 2025, it states that as a representative of SW Financial, he made misrepresentations and omissions in connection with the marketing of private placement offerings. As FINRA found, between 2018 and 2019 he recommended investments in funds that were raising capital for an investment in a real estate investment trust. When disseminating offering materials to prospective investors, he allegedly did not disclose that he “was associated with an affiliate of the REIT’s management company and was entitled to receive additional selling compensation directly from the affiliate.” He also allegedly omitted that there was not an arm’s length relationship between the offering’s issuer and the REIT it planned to invest in, because the REIT’s management company “had formed and controlled the funds.”

In addition to the above, FINRA alleged that Mr. Barth failed to disclose to prospective investors “that the REIT’s management company had been unsuccessfully pursuing a public listing for the REIT for several years.” FINRA found further that he omitted “that the management company was experiencing negative cashflow.” Ultimately, according to the AWC Letter, his firm sold investments in these offerings to a total of 21 investors, totaling $1.6 million in principal investors. These 21 investors included two of Mr. Barth’s customers, “who invested a total of $55,000 in the offerings based on Barth’s recommendations.” Accordingly, he received $30,000 in compensation related to the marketing and recommendation of the offerings, “of which more than $23,000 was undisclosed compensation paid by the affiliate.”

FINRA found that his conduct violated FINRA Rule 2010, which requires brokers to uphold high standards of commercial honor and just and equitable principles of trade. As a result of these and other findings, FINRA issued Mr. Barth a 16-month suspension from associating with any member firm in all capacities.

According to the Financial Industry Regulatory Authority, Martin Barth holds 26 years of securities industry experience. Registered with his firm’s office in Milpitas, California, he has been registered with NI Advisors since 2022. His past registrations include SW Financial, Joseph Stone Capital, Windsor Street Capital, Trident Partners, Meyers Associates, AXA Advisors, Capitol Securities Management, Wells Fargo Advisors, and Merrill Lynch. His credentials include the passage of three securities industry qualifying exams: the Uniform Combined State Law Examination, or Series 66; the Securities Industry Essentials Examination, or SIE; and the General Securities Representative Examination, or Series 7. He is licensed in Colorado, New York, and Florida. (Information current as of March 24, 2025.)

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