UNITED STATES SECURITIES AND EXCHANGE COMMISSION

The Securities and Exchange Commission ("Commission") deems it appropriate and in the public interest that public administrative proceedings be, and hereby are, instituted pursuant to Section 15(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Section 203(f) of the Investment Advisers Act of 1940 ("Advisers Act") against Barry F. Connell ("Connell" or "Respondent"). The Commission finds that Connell was employed by Financial Institution A as an investment adviser representative and registered representative in New York and New Jersey from May 2008 until he was terminated in November 2016 in connection with conduct described herein. Financial Institution A is an investment adviser and broker dealer registered with the Commission. On December 30, 2020, a final judgment was entered by consent against Connell, permanently enjoining him from future violations of Sections 206(1) and 206(2) of the Advisers Act, in the civil action entitled Securities and Exchange Commission v. Barry F. Connell, et al., Civil Action Number 17-cv-00831-LGS, in the United States District Court for the Southern District of New York. The Commission's complaint alleged that Connell misappropriated approximately $5 million from investment advisory clients from approximately December 2015 through November 2016. The complaint alleged that Connell carried out his scheme primarily by moving funds between certain client accounts and issuing wire transfers and checks from the accounts to third parties for his benefit in more than 100 unauthorized transactions. On December 27, 2018, Connell pleaded guilty to Investment Adviser Fraud (15 U.S.C. §§ 80b-6 and 80b-17) as well as Embezzlement, Wire Fraud, Bank Fraud, and Aggravated Identity Theft (18 U.S.C §§ 2, 656, 1028A, 1343, 1344, and 1349) before the United States District Court for the Southern District of New York, in United States v. Barry F. Connell, Crim. No. 17- cr-00116. On January 31, 2020, a judgment in the criminal case was entered against Connell, and on September 14, 2020 an order of restitution in the criminal case was entered against him. He was sentenced to a prison term of time served of approximately 36 months followed by three years of supervised release and ordered to make restitution in the amount of $5,278,699.19. The counts of the indictment to which Connell pleaded guilty alleged, inter alia, that Connell, in his capacity as financial advisor, managed money for several members of a family in multiple accounts, and effected numerous unauthorized transactions from those accounts and as a result defrauded the family of at least approximately $5 million dollars.

Order

Bar (Permanent)

Association with a broker, dealer, investment adviser, municipal securities dealer, municipal advisor, transfer agent, or NRSRO.

Indefinite

1/5/2021

Participating in any offering of a penny stock, including: acting as a promoter, finder, consultant, or agent.

Indefinite

1/5/2021

FINRA

Respondent Connell failed to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.

letter

Suspension

All capacities

Indefinite

Continues until required payment is made or discharged.

6/25/2018

Pursuant to Article VI, Section 3 of FINRA By-Laws, and FINRA Rule 9554, Respondent Connell is suspended on June 25, 2018, for failure to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.

FINRA

Respondent Connell failed to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.

letter

Suspension

All capacities

Indefinite

Continues until required payment is made or discharged.

3/15/2018

Pursuant to Article VI, Section 3 of FINRA By-Laws, and FINRA Rule 9554, Respondent Connell is suspended on March 15, 2018, for failure to comply with an arbitration award or settlement agreement or to satisfactorily respond to a FINRA request to provide information concerning the status of compliance.

Claimant alleged, inter alia, Misappropriation with respect to funds in her accounts - 2009 to 2014.

$2,193,015.00

$1,350,000.00

CLIENT'S SON ALLEGES, INTER ALIA, THAT THE INVESTMENTS SELECTED FOR HIS MOTHER'S MANAGED ACCOUNTS WERE UNSUITABLE. DAMAGES UNSPECIFIED. 2008-2017

CLIENT ALLEGES BREACH OF FIDUCIARY DUTY AND THAT HER ACCOUNTS WERE NOT MANAGED IN HER BEST INTEREST. ALLEGED DAMAGES UNSPECIFIED 2015 - 2016

CLIENT ALLEGES BREACH OF FIDUCIARY DUTY AND THAT HER ACCOUNT WAS NOT MANAGED IN HER BEST INTEREST. ALLEGED DAMAGES UNSPECIFIED 2015 - 2016

$740.00

CLIENT'S ATTORNEY ALLEGED, INTER ALIA, THAT THE CLIENT'S SIGNATURES ON VARIOUS CHECKS AND ACCOUNT DOCUMENTS WERE FORGED BY HER HUSBAND WHO WAS THE FA ON THE ACCOUNT. 2010-2016

$3,779,889.80

$725,000.00

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

The Securities and Exchange Commission today charged a Connecticut-based investment advisory business and its owner with stealing money from investors to settle a private lawsuit among other misuses. This case involves the misappropriation of approximately $5 million from investment advisory clients by Respondent Barry Connell, a financial advisor at a large financial institution registered with the Commission as an investment adviser and broker-dealer ("Financial Institution A"). From approximately December 2015 through November 2016, Connell carried out his scheme primarily by moving funds between certain client accounts and issuing wire transfers and checks from the accounts to third parties for his benefit. Over the course of approximately 11 months, Connell made more than 100 unauthorized transactions through the creation of internal forms falsely representing that he had received verbal client authorizations for the transactions. By virtue of the conduct alleged herein, Connell, directly or indirectly, singly or in concert, engaged in transactions, acts, practices and courses of business that constitute violations of Section 206(1) and Section 206(2) of the Investment Advisers Act of 1940.

Judgment Rendered

Disgorgement

$5,148,651.43

Injunction

FINRA

Respondent Connell failed to respond to FINRA request for information.

Letter

Bar (Permanent)

All Capacities

Indefinite

4/21/2017

Pursuant to FINRA Rule 9552(h) and in accordance with FINRA's Notice of Suspension and Suspension from Association letters dated January 18, 2017, and February 13, 2017, respectively, on April 21, 2017, Connell is barred from association with any FINRA member in any capacity. Respondent failed to request termination of his suspension within three months of the date of the Notice of Suspension; therefore, he is automatically barred from association with any FINRA member in any capacity.

CLAIMANT ALLEGED INTER ALIA, THAT INVESTMENTS PURCHASED IN HER ACCOUNT WERE UNSUITABLE. 08/01/2015 -12/08/2016.

$161,549.00

$45,000.00

Morgan Stanley Wealth Management

Discharged

Allegations regarding unauthorized withdrawals and transfers of funds from client's household accounts to third-party payees, which appear to be for the benefit of the former registered representative.

Claimants alleged that between December 2015 and November 2016, the FA removed and/or transferred funds from their accounts without their authorization.

$2,531,691.81

Claimants alleged that between December 2015 and November 2016, the FA removed and/or transferred funds from their accounts without their authorization.

$3,468,308.19

IT IS CLAIMED THAT FINANCIAL ADVISOR ALLEGEDLY EXECUTED TRADES WITHOUT AUTHORIZATION IN CLIENT'S ACCOUNTS. NO SPECIFIC TIMELINE PROVIDED.

$700,000.00

$55,000.00

CLAIMANT ALLEGES, INTER ALIA, THAT FROM SEPTEMBER 25, 2008 THROUGH JANUARY 15, 2009, THE FINANCIAL ADVISOR FAILED TO FOLLOW INSTRUCTIONS TO SELL WACHOVIA STOCK IN A TIMELY MANNER.

$29,274.00

$20,000.00