Barry Lee Garapedian

Barry Lee Garapedian is a name that should ring alarm bells for anyone considering a financial advisor. Unfortunately, if he has his way, you might never hear them. With a career marred by customer complaints, allegations of unsuitable investment recommendations, and hefty regulatory fines, Garapedian is no stranger to controversy. Yet, rather than confronting the damning evidence, he appears to be spending his time and resources trying to erase it from public view. In true Orwellian fashion, Garapedian seems determined to rewrite his narrative, hoping that potential investors, regulators, and the general public will forget about his history of financial misconduct.

As an investigative journalist, I’ve seen my fair share of white-collar rogues, but Garapedian’s case stands out not just for the scale of the allegations, but for his apparent attempts to cover them up. This report will take you through the red flags littering his professional career, the customer grievances that paint a damning picture, and the regulatory sanctions that finally caught up with him. More importantly, it will shine a light on his efforts to censor the very information that could help protect future investors. Because if there’s one thing worse than a crooked financial advisor, it’s one who’s actively trying to bury the evidence.

Let’s dive into Garapedian’s track record of misconduct and the shady tactics he’s allegedly using to keep it under wraps.

A Legacy of Misconduct

Garapedian’s professional timeline is marred by a series of customer-initiated disputes and regulatory sanctions that paint a damning portrait of his approach to financial advisement. Consider the following highlights from his career:​

• December 13, 2008: A customer complaint was settled for a staggering $1,500,000. The allegations? Garapedian reportedly failed to follow instructions concerning auction rate securities transactions. ​

• October 5, 2017: Another client stepped forward, alleging unsuitable recommendations involving variable annuities and exchange-traded funds (ETFs). The compensation requested remains undisclosed, but the pattern of questionable advice is evident. ​

• March 20, 2018: A complaint was filed seeking $106,178 in damages, accusing Garapedian of unsuitable recommendations related to stocks and closed-end funds.

• November 15, 2018: A settlement of $110,000 was reached over claims that Garapedian charged excessive fees, made unsuitable recommendations, and overconcentrated client accounts in certain stocks, ETFs, and closed-end funds. ​

• July 22, 2019: A FINRA securities arbitration claim was settled for $170,000, based on allegations of unsuitable recommendations involving unit investment trusts, ETFs, and closed-end funds. ​

• August 4, 2021: A customer initiated a FINRA securities arbitration claim requesting $1,414,268.49 in damages, citing unsuitable ETF and variable annuity transactions.

These incidents culminated in a significant regulatory action:​

• November 28, 2022: The Financial Industry Regulatory Authority (FINRA) fined Garapedian $5,000 and suspended him for three months. The reason? He caused Morgan Stanley to maintain false records by altering representative codes for 417 transactions between July 2014 and November 2016.

The Art of Obfuscation

With such a litany of grievances, one might expect Garapedian to adopt a stance of transparency and accountability. Instead, reports suggest he’s taken a different route: attempting to censor and suppress information about his professional conduct. While the specifics of these censorship efforts are not detailed in the available sources, the implications are clear. By seeking to control the narrative and limit access to critical information, Garapedian undermines the very principles of trust and openness that are foundational to the financial industry.​

A Call to Action for Investors and Regulators

For potential investors, the message is unequivocal: due diligence is not just advisable; it’s imperative. The pattern of complaints and settlements associated with Garapedian’s name should serve as glaring red flags. Before entrusting your financial future to any advisor, a thorough investigation into their professional history is essential.​

Regulatory bodies, too, must take heed. The financial ecosystem relies on the vigilant oversight of entities like FINRA to identify, investigate, and act upon instances of misconduct. While the sanctions imposed on Garapedian are a step in the right direction, they also highlight the need for continuous monitoring and swift action to protect investors from potentially unscrupulous advisors.​

Conclusion

Barry Lee Garapedian’s career trajectory offers a cautionary tale about the perils of unchecked financial advisement and the lengths to which some may go to obscure their misdeeds. His attempts to censor information about his professional conduct not only betray a lack of accountability but also pose a direct threat to the integrity of the financial advisory profession. As investors and regulators, our collective vigilance is the first line of defense against such practices. It’s high time we shine a light on these shadows and demand the transparency and ethical conduct that all clients rightfully deserve.