Mineola Broker Made Wild $800K Bets With Customers Money: U.S. SEC

MINEOLA, NY — The U.S. Securities and Exchange Commission obtained a final judgment against a broker-dealer last week for defrauding retail customers of $800,000, according to the independent agency.

Ross Barish, a Mineola man, has to pay back a total of over $358,000 in disgorgement, or profits made illegally ($171.150.63), in prejudgment interest ($16,683.20), in civil penalties ($171.150.63), according to the SEC.

Barish consented to the final judgment, which enjoins him from violations of the antifraud provisions of Section 17(a), which provides liability for the fraudulent sales of securities, and Section 10(b) the Securities Exchange Act of 1934 that governs securities transactions, said the SEC.

Barish is also enjoined to SEC Rule 10b-5, which says it is illegal to defraud someone or misrepresent material, according to the agency.

A complaint was issued against the Mineola man on Aug. 13, 2020, alleging that Barish engaged in a high-cost, in–and-out trading strategy in customer accounts without conducting reasonable due diligence to determine whether the trading strategy could deliver even a minimal profit for his customers, the agency said.

Barish also engaged in widespread unauthorized trading in customer accounts, which is what led to the $800,000 in losses, but netted him and his firm over $400,000 in commissions, as alleged in a complaint.

The SEC’s Office of Compliance Inspections and Examinations' Risk Analysis Examination Team led the investigation into the case, according to the agency.