BARRY MICHAEL KORNFELD · 2020-06-20 · BARRY MICHAEL KORNFELD Section Title Report Summary ... B 07/1986 - 12/1987 THOMSON MCKINNON SECURITIES INC. 829 B 04/1986 - 07/1986 TRAVELERS

BrokerCheck Report

BARRY MICHAEL KORNFELD

Section Title

Report Summary

Broker Qualifications

Registration and Employment History

Disclosure Events

CRD# 1490377

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Page(s)

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BARRY M. KORNFELD

CRD# 1490377

This broker is not currently registered.

Report Summary for this Broker

This report summary provides an overview of the broker's professional background and conduct. Additionalinformation can be found in the detailed report.

Disclosure Events

This broker has been involved in one or moredisclosure events involving certain final criminalmatters, regulatory actions, civil judicial proceedings,or arbitrations or civil litigations.

Are there events disclosed about this broker? Yes

The following types of disclosures have beenreported:

Type Count

Regulatory Event 5

Civil Event 2

Customer Dispute 1

Investment Adviser RepresentativeInformation

https://www.adviserinfo.sec.gov

The information below represents the individual'srecord as a broker. For details on this individual'srecord as an investment adviser representative,visit the SEC's Investment Adviser PublicDisclosure website at



This broker has passed:

2 Principal/Supervisory Exams

2 General Industry/Product Exams

3 State Securities Law Exams

Registration History

This broker was previously registered with thefollowing securities firm(s):

BROOKSTREET SECURITIESCORPORATIONCRD# 14667CORAL SPRINGS, FL01/2004 - 06/2007

B

NATIONS FINANCIAL GROUP, INC.CRD# 44181CEDAR RAPIDS, IA12/2003 - 01/2004

B

ARCHER ALEXANDER SECURITIESCORPORATIONCRD# 41555KANSAS CITY, MO04/2003 - 12/2003

B

www.finra.org/brokercheck User Guidance

1�2020 FINRA. All rights reserved. Report about BARRY M. KORNFELD.


https://adviserinfo.sec.gov/individual/summary/1490377

http://www.finra.org/brokercheck

http://www.finra.org/brokercheck_reports



Registrations

This section provides the self-regulatory organizations (SROs), states and U.S. territories the broker is currently registered and licensed with, thecategory of each registration, and the date on which the registration became effective. This section also provides, for each firm with which thebroker is currently employed, the address of each branch where the broker works.








Industry Exams this Broker has Passed

This individual has passed 2 principal/supervisory exams, 2 general industry/product exams, and 3 state securities law exams.

This section includes all securities industry exams that the broker has passed. Under limited circumstances, a broker may attain a registrationafter receiving an exam waiver based on exams the broker has passed and/or qualifying work experience. Any exam waivers that the broker hasreceived are not included below.

Exam Category Date

Principal/Supervisory Exams

Registered Options Principal Examination 06/15/2006Series 4B

General Securities Principal Examination 12/22/2000Series 24B

Exam Category Date

General Industry/Product Exams

Futures Managed Funds Examination 08/04/1998Series 31B

General Securities Representative Examination 04/19/1986Series 7B

Exam Category Date

State Securities Law Exams

Uniform Combined State Law Examination 05/02/2006Series 66B IA

Uniform Investment Adviser Law Examination 07/20/1992Series 65IA

Uniform Securities Agent State Law Examination 05/28/1986Series 63B

Additional information about the above exams or other exams FINRA administers to brokers and other securities professionals can be found atwww.finra.org/brokerqualifications/registeredrep/.





www.finra.org/brokerqualifications/registeredrep/



Professional Designations

This section details that the representative has reported 0 professional designation(s).

No information reported.






Registration and Employment History

Registration History

Registration Dates Firm Name CRD# Branch Location

The broker previously was registered with the following securities firms:

B 01/2004 - 06/2007 BROOKSTREET SECURITIESCORPORATION

14667 CORAL SPRINGS, FL

B 12/2003 - 01/2004 NATIONS FINANCIAL GROUP, INC. 44181 CEDAR RAPIDS, IA

B 04/2003 - 12/2003 ARCHER ALEXANDER SECURITIESCORPORATION

41555 KANSAS CITY, MO

B 05/2002 - 04/2003 GUNNALLEN FINANCIAL, INC 17609 TAMPA, FL

B 07/2001 - 05/2002 KOVACK SECURITIES INC. 44848 FT. LAUDERDALE, FL

B 10/1999 - 07/2001 PACVEST ASSOCIATES, INC. 29583 WOODSTOCK, CT

B 01/1996 - 08/1999 LINSCO/PRIVATE LEDGER CORP. 6413 FORT MILL, SC

B 12/1992 - 01/1996 OPPENHEIMER & CO., INC. 630 NEW YORK, NY

B 12/1987 - 01/1993 MERRILL LYNCH, PIERCE, FENNER &SMITH INCORPORATED

7691 NEW YORK, NY

B 07/1986 - 12/1987 THOMSON MCKINNON SECURITIES INC. 829

B 04/1986 - 07/1986 TRAVELERS EQUITIES SALES, INC. 833

Employment History

Employment Employer Name Investment RelatedPosition Employer Location

This section provides up to 10 years of an individual broker's employment history as reported by the individual broker on the most recently filedForm U4.

Please note that the broker is required to provide this information only while registered with FINRA or a national securities exchangeand the information is not updated via Form U4 after the broker ceases to be registered. Therefore, an employment end date of"Present" may not reflect the broker's current employment status.

01/2004 - Present BROOKSTREET SECURITIESCORPORATION

BROKER Y IRVINE, CA, United States






Disclosure Events

What you should know about reported disclosure events:

1. Disclosure events in BrokerCheck reports come from different sources:• As mentioned at the beginning of this report, information contained in BrokerCheck comes from brokers, their employing firms, and

regulators. When more than one source reports information for the same disclosure event, all versions of the event will appear in theBrokerCheck report. The different versions are separated by a solid line with the reporting source labeled.

For your convenience, below is a matrix of the number and status of regulatory disclosure events involving this broker. Furtherinformation regarding these events can be found in the subsequent pages of this report. You also may wish to contact the broker toobtain further information regarding these events.

Final On Appeal

Regulatory Event 5 0

Civil Event 2 0

Customer Dispute 1 N/A






Disclosure Event Details

This report provides the information exactly as it was reported to CRD and therefore some of the specific data fields contained in the report maybe blank if the information was not provided to CRD.

Regulatory - Final

This type of disclosure event involves a final, formal proceeding initiated by a regulatory authority (e.g., a state securities agency, self-regulatoryorganization, federal regulator such as the Securities and Exchange Commission, foreign financial regulatory body) for a violation of investment-related rules or regulations.

Disclosure 1 of 5

Reporting Source: Regulator

Regulatory Action InitiatedBy:

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Sanction(s) Sought: Other: n/a

Date Initiated: 01/31/2019

Docket/Case Number: 3-18976

Employing firm when activityoccurred which led to theregulatory action:

FEK Enterprises, Inc., d/b/a First Financial Tax Group

Product Type: Promissory NoteOther: private placement securities

Allegations: SEC Admin Release 34-85010, January 31, 2019: The Securities and ExchangeCommission ("Commission") deems it appropriate and in the public interest thatpublic administrative proceedings be, and hereby are, instituted pursuant toSection 15(b) of the Securities Exchange Act of 1934 ("Exchange Act") againstBarry M. Kornfeld. On January 10, 2019, a final judgment was entered by consentagainst Kornfeld, permanently enjoining him from future violations of Sections 5(a)and 5(c) of the Securities Act and Sections 15(a)(1) and 15(b)(6)(B)(i) of theExchange Act, in the civil action entitled Securities and Exchange Commission v.Barry M. Kornfeld, Civil Action Number 18-cv-23369, in the United States DistrictCourt for the Southern District of Florida. The Commission's complaint alleged that,among other things, Kornfeld, through FEK Enterprises, Inc., d/b/a First FinancialTax Group ("First Financial"), offered and sold securities of Woodbridge Group ofCompanies, Inc. ("Woodbridge"). Neither First Financial, Kornfeld, nor Woodbridgewere Commission-registered broker dealers, nor were they associated withCommission-registered broker dealers, and none of Woodbridge's securitiesofferings were registered with the Commission. Kornfeld sold investors two primarytypes of securities, a twelve-to-eighteen month term promissory note bearing 5%-8% interest that Woodbridge described as First Position CommercialMortgages("FPCM"), and seven different private placement fund offerings with five-year terms ("Fund Offerings"). For the FPCMs, Kornfeld, through First Financial,received a transaction-based commission from Woodbridge equivalent to thedifference of the 9% wholesale annual interest rate Woodbridge offered to FirstFinancial and Kornfeld and the 5% to 8% annual interest First Financial andKornfeld offered to investors. For the Fund Offerings, Kornfeld, through FirstFinancial, received a 5% sales commission that Woodbridge purposefullymischaracterized as a "marketing bonus," to avoid the appearance of payingtransaction-based commissions. Kornfeld and his wife, through First Financial,received approximately $3.7 million in transaction-based commissions fromWoodbridge earned as a result of raising more than $60 million through the sale ofWoodbridge securities to almost 500 investors.






SEC Admin Release 34-85010, January 31, 2019: The Securities and ExchangeCommission ("Commission") deems it appropriate and in the public interest thatpublic administrative proceedings be, and hereby are, instituted pursuant toSection 15(b) of the Securities Exchange Act of 1934 ("Exchange Act") againstBarry M. Kornfeld. On January 10, 2019, a final judgment was entered by consentagainst Kornfeld, permanently enjoining him from future violations of Sections 5(a)and 5(c) of the Securities Act and Sections 15(a)(1) and 15(b)(6)(B)(i) of theExchange Act, in the civil action entitled Securities and Exchange Commission v.Barry M. Kornfeld, Civil Action Number 18-cv-23369, in the United States DistrictCourt for the Southern District of Florida. The Commission's complaint alleged that,among other things, Kornfeld, through FEK Enterprises, Inc., d/b/a First FinancialTax Group ("First Financial"), offered and sold securities of Woodbridge Group ofCompanies, Inc. ("Woodbridge"). Neither First Financial, Kornfeld, nor Woodbridgewere Commission-registered broker dealers, nor were they associated withCommission-registered broker dealers, and none of Woodbridge's securitiesofferings were registered with the Commission. Kornfeld sold investors two primarytypes of securities, a twelve-to-eighteen month term promissory note bearing 5%-8% interest that Woodbridge described as First Position CommercialMortgages("FPCM"), and seven different private placement fund offerings with five-year terms ("Fund Offerings"). For the FPCMs, Kornfeld, through First Financial,received a transaction-based commission from Woodbridge equivalent to thedifference of the 9% wholesale annual interest rate Woodbridge offered to FirstFinancial and Kornfeld and the 5% to 8% annual interest First Financial andKornfeld offered to investors. For the Fund Offerings, Kornfeld, through FirstFinancial, received a 5% sales commission that Woodbridge purposefullymischaracterized as a "marketing bonus," to avoid the appearance of payingtransaction-based commissions. Kornfeld and his wife, through First Financial,received approximately $3.7 million in transaction-based commissions fromWoodbridge earned as a result of raising more than $60 million through the sale ofWoodbridge securities to almost 500 investors.

Current Status: Final

Resolution: Order

Resolution Date: 01/31/2019

Sanctions Ordered:

Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct?

No

Bar (Permanent)Other: Penny Stock Bar

If the regulator is the SEC,CFTC, or an SRO, did theaction result in a finding of awillful violation or failure tosupervise?

No

(1) willfully violated anyprovision of the SecuritiesAct of 1933, the SecuritiesExchange Act of 1934, theInvestment Advisers Act of1940, the InvestmentCompany Act of 1940, theCommodity Exchange Act, orany rule or regulation underany of such Acts, or any ofthe rules of the MunicipalSecurities Rulemaking Board,or to have been unable tocomply with any provision ofsuch Act, rule or regulation?







(2) willfully aided, abetted,counseled, commanded,induced, or procured theviolation by any person ofany provision of theSecurities Act of 1933, theSecurities Exchange Act of1934, the InvestmentAdvisers Act of 1940, theInvestment Company Act of1940, the CommodityExchange Act, or any rule orregulation under any of suchActs, or any of the rules ofthe Municipal SecuritiesRulemaking Board? or

(3) failed reasonably tosupervise another personsubject to your supervision,with a view to preventing theviolation by such person ofany provision of theSecurities Act of 1933, theSecurities Exchange Act of1934, the InvestmentAdvisers Act of 1940, theInvestment Company Act of1940, the CommodityExchange Act, or any rule orregulation under any suchActs, or any of the rules ofthe Municipal SecuritiesRulemaking Board?






Regulator Statement In anticipation of the institution of these proceedings, Kornfeld has submitted anOffer of Settlement (the "Offer") which the Commission has determined to accept.Accordingly, it is hereby ordered that Kornfeld be, and hereby is barred fromassociation with any broker, dealer, investment adviser, municipal securities dealer,municipal advisor, transfer agent, or nationally recognized statistical ratingorganization (NRSRO); and Kornfeld be, and hereby is barred from participating inany offering of a penny stock, including: acting as a promoter, finder, consultant,agent or other person who engages in activities with a broker, dealer or issuer forpurposes of the issuance or trading in any penny stock, or inducing or attemptingto induce the purchase or sale of any penny stock.


Capacities Affected: Participating in any offering of a penny stock

Duration: Indefinite

Start Date: 01/31/2019

End Date:

Sanction 1 of 2

Sanction Type: Bar (Permanent)

Capacities Affected: broker, dealer, investment adviser, municipal securities dealer, municipal advisor,transfer agent, or NRSRO



End Date:

Sanction 2 of 2







In anticipation of the institution of these proceedings, Kornfeld has submitted anOffer of Settlement (the "Offer") which the Commission has determined to accept.Accordingly, it is hereby ordered that Kornfeld be, and hereby is barred fromassociation with any broker, dealer, investment adviser, municipal securities dealer,municipal advisor, transfer agent, or nationally recognized statistical ratingorganization (NRSRO); and Kornfeld be, and hereby is barred from participating inany offering of a penny stock, including: acting as a promoter, finder, consultant,agent or other person who engages in activities with a broker, dealer or issuer forpurposes of the issuance or trading in any penny stock, or inducing or attemptingto induce the purchase or sale of any penny stock.

Disclosure 2 of 5

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Florida Office of Financial Regulation

Sanction(s) Sought: BarCease and DesistCivil and Administrative Penalty(ies)/Fine(s)


Docket/Case Number: 70496a-I

URL for Regulatory Action:


FEK Enterprises, Inc. d/b/a First Financial Tax Group

Product Type: Other: Unregistered securities

Allegations: Offer and sale of unregistered securities; sale of securities by unregistered dealer,associated person or issuer


Resolution: Order


Sanctions Ordered:


No

Bar (Permanent)Cease and Desist

Capacities Affected: All Capacities

Sanction 1 of 1







Regulator Statement On 9/16/2019, the Office of Financial Regulation entered a Final Order adoptingthe Stipulation and Consent Agreement in the matter of Barry M. Kornfeld. Mr.Kornfeld neither admitted nor denied the findings but consented to the entry offindings by the Office. The Office found that Barry M. Kornfeld sold unregisteredsecurities from offices in Florida without being registered with the Office as anissuer, dealer or associated person. Pursuant to the Final Order, Barry M.Kornfeld is permanently barred by the Office from engaging in investment advisoryor securities business in Florida; and from affiliating or seeking future registrationas an issuer, dealer, investment adviser, or associated person under the FloridaSecurities and Investor Protection Act, Chapter 517, Florida Statutes. The Officeagreed to forego administrative fines against Mr. Kornfeld in order to maximizerecoveries going to the bankruptcy estates and in light of the civil money penaltyimposed by the SEC.

Duration:

Start Date:

End Date:

Disclosure 3 of 5

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Idaho Department of Finance

Sanction(s) Sought: Civil and Administrative Penalty(ies)/Fine(s)Restitution


Docket/Case Number: 2017-7-15-C

URL for Regulatory Action: https://www.finance.idaho.gov/Securities/Actions/Administrative/2018/4677-2017-7-15-C-Kornfeld-A&O.pdf


Product Type: Investment ContractPromissory Note

Allegations: Mr. Kornfeld, owner of First Financial Tax Group, Inc., was not registered to sellsecurities at the time he acted as an independent contractor to solicit and sellunregistered securities for Woodbridge Mortgage Investments Funds.

Current Status:12�2020 FINRA. All rights reserved. Report about BARRY M. KORNFELD.






Resolution: Agreement and Order


Sanctions Ordered:


No

Civil and Administrative Penalty(ies)/Fine(s)Restitution

Monetary Related Sanction: Restitution

Total Amount: $5,250.00

Portion Levied againstindividual:

$5,250.00

Date Paid by individual: 04/03/2018

Was any portion of penaltywaived?

No

Amount Waived:

Monetary Sanction 1 of 2

Payment Plan:

Is Payment Plan Current: Yes

Monetary Related Sanction: Civil and Administrative Penalty(ies)/Fine(s)

Total Amount: $500.00

Portion Levied againstindividual:

$500.00

Date Paid by individual: 04/03/2018

Was any portion of penaltywaived?

No


Payment Plan:

Is Payment Plan Current: Yes






Regulator Statement Mr. Kornfeld paid the monetary sanctions and agreed not to solicit or sell securitiesin Idaho unless registered.

Amount Waived:

Disclosure 4 of 5

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Sanction(s) Sought: Other: N/A


Docket/Case Number: 3-13960


Product Type: No Product

Allegations: SEC RELEASE 34-62466/IA RELEASE 40-3049/JULY 7, 2010: THE SECURITIESAND EXCHANGE COMMISSION ("COMMISSION") DEEMS IT APPROPRIATEAND IN THE PUBLIC INTEREST THAT PUBLIC ADMINISTRATIVEPROCEEDINGS BE, AND HEREBY ARE, INSTITUTED PURSUANT TOSECTION 15(B) OF THE SECURITIES EXCHANGE ACT OF 1934 ("EXCHANGEACT") AND SECTION 203(F) OF THE INVESTMENT ADVISERS ACT OF 1940("ADVISERS ACT") AGAINST BARRY M. KORNFELD ("KORNFELD" OR "RESPONDENT"). ON SEPTEMBER 9, 2009, A JUDGMENT WAS ENTERED BYCONSENT AGAINST KORNFELD, PERMANENTLY ENJOINING HIM FROMFUTURE VIOLATIONS OF SECTION 17(A) OF THE SECURITIES ACT OF 1933("SECURITIES ACT"), AND SECTION 10(B) OF THE EXCHANGE ACT ANDRULE 10B-5 THEREUNDER IN THE CIVIL ACTION ENTITLED SECURITIESAND EXCHANGE COMMISSION V. BARRY M. KORNFELD, ET AL., CIVILACTION NUMBER 9:09-CV-80803, IN THE UNITED STATES DISTRICT COURTFOR THE SOUTHERN DISTRICT OF FLORIDA.


Resolution: Order

Does the order constitute afinal order based onviolations of any laws orregulations that prohibitfraudulent, manipulative, ordeceptive conduct? 14�2020 FINRA. All rights reserved. Report about BARRY M. KORNFELD.






Sanctions Ordered:


No

Bar (Permanent)

If the regulator is the SEC,CFTC, or an SRO, did theaction result in a finding of awillful violation or failure tosupervise?

No








Regulator Statement IN ANTICIPATION OF THE INSTITUTION OF THESE PROCEEDINGS,RESPONDENT HAS SUBMITTED AN OFFER OF SETTLEMENT (THE "OFFER")WHICH THE COMMISSION HAS DETERMINED TO ACCEPT. SOLELY FOR THEPURPOSE OF THESE PROCEEDINGS AND ANY OTHER PROCEEDINGSBROUGHT BY OR ON BEHALF OF THE COMMISSION, OR TO WHICH THECOMMISSION IS A PARTY, AND WITHOUT ADMITTING OR DENYING THEFINDINGS HEREIN, EXCEPT AS TO THE COMMISSION'S JURISDICTIONOVER HIM AND THE SUBJECT MATTER OF THESE PROCEEDINGS, AND THEFINDINGS, WHICH ARE ADMITTED, RESPONDENT CONSENTS TO THEENTRY OF THIS ORDER INSTITUTING ADMINISTRATIVE PROCEEDINGSPURSUANT TO SECTION 15(B) OF THE SECURITIES EXCHANGE ACT OF1934 AND SECTION 203(F) OF THE INVESTMENT ADVISERS ACT OF 1940,MAKING FINDINGS, AND IMPOSING REMEDIAL SANCTIONS ("ORDER"). INVIEW OF THE FOREGOING, THE COMMISSION DEEMS IT APPROPRIATEAND IN THE PUBLIC INTEREST TO IMPOSE THE SANCTIONS AGREED TO INRESPONDENT KORNFELD'S OFFER. ACCORDINGLY, IT IS HEREBYORDERED: PURSUANT TO SECTION 15(B)(6) OF THE EXCHANGE ACT ANDSECTION 203(F) OF THE ADVISERS ACT, THAT RESPONDENT KORNFELDBE, AND HEREBY IS BARRED FROM ASSOCIATION WITH ANY BROKER,DEALER, OR INVESTMENT ADVISER. ANY REAPPLICATION FORASSOCIATION BY THE RESPONDENT WILL BE SUBJECT TO THEAPPLICABLE LAWS AND REGULATIONS GOVERNING THE REENTRYPROCESS, AND REENTRY MAY BE CONDITIONED UPON A NUMBER OFFACTORS, INCLUDING, BUT NOT LIMITED TO, THE SATISFACTION OF ANYOR ALL OF THE FOLLOWING: (A) ANY DISGORGEMENT ORDERED AGAINSTTHE RESPONDENT, WHETHER OR NOT THE COMMISSION HAS FULLY ORPARTIALLY WAIVED PAYMENT OF SUCH DISGORGEMENT; (B) ANYARBITRATION AWARD RELATED TO THE CONDUCT THAT SERVED AS THEBASIS FOR THE COMMISSION ORDER; (C) ANY SELF-REGULATORYORGANIZATION ARBITRATION AWARD TO A CUSTOMER, WHETHER OR NOTRELATED TO THE CONDUCT THAT SERVED AS THE BASIS FOR THECOMMISSION ORDER; AND (D) ANY RESTITUTION ORDER BY A SELF-REGULATORY ORGANIZATION, WHETHER OR NOT RELATED TO THECONDUCT THAT SERVED AS THE BASIS FOR THE COMMISSION ORDER.



Capacities Affected: ASSOCIATION WITH ANY BROKER, DEALER, OR INVESTMENT ADVISER



End Date:

Sanction 1 of 1







Regulator Statement IN ANTICIPATION OF THE INSTITUTION OF THESE PROCEEDINGS,RESPONDENT HAS SUBMITTED AN OFFER OF SETTLEMENT (THE "OFFER")WHICH THE COMMISSION HAS DETERMINED TO ACCEPT. SOLELY FOR THEPURPOSE OF THESE PROCEEDINGS AND ANY OTHER PROCEEDINGSBROUGHT BY OR ON BEHALF OF THE COMMISSION, OR TO WHICH THECOMMISSION IS A PARTY, AND WITHOUT ADMITTING OR DENYING THEFINDINGS HEREIN, EXCEPT AS TO THE COMMISSION'S JURISDICTIONOVER HIM AND THE SUBJECT MATTER OF THESE PROCEEDINGS, AND THEFINDINGS, WHICH ARE ADMITTED, RESPONDENT CONSENTS TO THEENTRY OF THIS ORDER INSTITUTING ADMINISTRATIVE PROCEEDINGSPURSUANT TO SECTION 15(B) OF THE SECURITIES EXCHANGE ACT OF1934 AND SECTION 203(F) OF THE INVESTMENT ADVISERS ACT OF 1940,MAKING FINDINGS, AND IMPOSING REMEDIAL SANCTIONS ("ORDER"). INVIEW OF THE FOREGOING, THE COMMISSION DEEMS IT APPROPRIATEAND IN THE PUBLIC INTEREST TO IMPOSE THE SANCTIONS AGREED TO INRESPONDENT KORNFELD'S OFFER. ACCORDINGLY, IT IS HEREBYORDERED: PURSUANT TO SECTION 15(B)(6) OF THE EXCHANGE ACT ANDSECTION 203(F) OF THE ADVISERS ACT, THAT RESPONDENT KORNFELDBE, AND HEREBY IS BARRED FROM ASSOCIATION WITH ANY BROKER,DEALER, OR INVESTMENT ADVISER. ANY REAPPLICATION FORASSOCIATION BY THE RESPONDENT WILL BE SUBJECT TO THEAPPLICABLE LAWS AND REGULATIONS GOVERNING THE REENTRYPROCESS, AND REENTRY MAY BE CONDITIONED UPON A NUMBER OFFACTORS, INCLUDING, BUT NOT LIMITED TO, THE SATISFACTION OF ANYOR ALL OF THE FOLLOWING: (A) ANY DISGORGEMENT ORDERED AGAINSTTHE RESPONDENT, WHETHER OR NOT THE COMMISSION HAS FULLY ORPARTIALLY WAIVED PAYMENT OF SUCH DISGORGEMENT; (B) ANYARBITRATION AWARD RELATED TO THE CONDUCT THAT SERVED AS THEBASIS FOR THE COMMISSION ORDER; (C) ANY SELF-REGULATORYORGANIZATION ARBITRATION AWARD TO A CUSTOMER, WHETHER OR NOTRELATED TO THE CONDUCT THAT SERVED AS THE BASIS FOR THECOMMISSION ORDER; AND (D) ANY RESTITUTION ORDER BY A SELF-REGULATORY ORGANIZATION, WHETHER OR NOT RELATED TO THECONDUCT THAT SERVED AS THE BASIS FOR THE COMMISSION ORDER.

Disclosure 5 of 5

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FINRA

Sanction(s) Sought:

Other Sanction(s) Sought:

Date Initiated:17�2020 FINRA. All rights reserved. Report about BARRY M. KORNFELD.






Docket/Case Number: 2007009594001


BROOKSTREET SECURITIES CORPORATION

Product Type: No Product

Other Product Type(s):

Allegations: NASD RULES 2110 AND 8210: RESPONDENT FAILED TO APPEAR TO GIVESWORN TESTIMONY IN CONNECTION WITH A FINRA INVESTIGATION.


Resolution: Acceptance, Waiver & Consent(AWC)


Sanctions Ordered:

Other Sanctions Ordered:

Sanction Details: WITHOUT ADMITTING OR DENYING THE FINDINGS, RESPONDENTCONSENTED TO THE DESCRIBED SANCTION AND TO THE ENTRY OFFINDINGS; THEREFORE, HE IS BARRED FROM ASSOCIATION WITH ANYFINRA MEMBER IN ALL CAPACITIES.


No

Bar





https://www.finra.org/rules-guidance/oversight-enforcement/finra-disciplinary-actions?search=2007009594001


Civil - Final

This type of disclosure event involves an injunction issued by a court in connection with investment-related activity or a finding by a court of aviolation of any investment-related statute or regulation.

Disclosure 1 of 2


Initiated By: UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Relief Sought: Civil and Administrative Penalty(ies)/Fine(s)DisgorgementInjunctionMonetary Penalty other than Fines

Date Court Action Filed: 08/20/2018

Product Type: Other: unregistered securitie; ponzi scheme

Employing firm when activityoccurred which led to theaction:

Woodbridge Group of Companies LLC

The Securities and Exchange Commission ("Commission") alleges that from atleast April 2013 through December 2017, the Defendants in this action served asunregistered brokers on behalf of Woodbridge Group of Companies LLC and itsaffiliates ("Woodbridge"), raising almost $100 million from the offer and sale ofunregistered securities to over 1,100 retail investors located throughout the UnitedStates. The Defendants, all based in Florida, collectively earned more than $5.8million in transaction-based sales commissions. The Defendants utilized severalmarketing techniques, including advertising on television, radio, newspapers,email, social media, and pitching investors at in-person meetings and investmentseminars, routinely touting Woodbridge's securities as "safe and secure."Unbeknownst to the Defendants' customers, many of whom had invested theirretirement savings in response to the Defendants' marketing techniques,Woodbridge was actually operating a massive Ponzi scheme, raising more than$1.2 billion before collapsing in December 2017 and filing for bankruptcy. OnceWoodbridge filed for bankruptcy, investors stopped receiving their monthly interestpayments, and have not received a return of their investment principal. At allrelevant times, the Defendants held no securities licenses, were not registered withthe Commission, and were not associated with registered broker-dealers, nor didthey qualify for an exemption. The Defendants were thus not permitted to sellsecurities. In addition, Defendant Barry M. Kornfeld was subject to a Commissionorder barring him from associating with a broker. By engaging in this conduct theDefendants each violated Sections 5(a) and 5(c) of the Securities Act of 1933("Securities Act"), and Section 15(a)(1) of the Securities Exchange Act of 1934("Exchange Act"). Defendant Barry M. Kornfeld also violated Section 15(b)(6)(B)(i)of the Exchange Act.

Allegations:

Type of Court: Federal Court

Name of Court: United States District Court for the Southern District of Florida

Location of Court: Southern District of Florida

Docket/Case #: 1:18-cv-23369






The Securities and Exchange Commission ("Commission") alleges that from atleast April 2013 through December 2017, the Defendants in this action served asunregistered brokers on behalf of Woodbridge Group of Companies LLC and itsaffiliates ("Woodbridge"), raising almost $100 million from the offer and sale ofunregistered securities to over 1,100 retail investors located throughout the UnitedStates. The Defendants, all based in Florida, collectively earned more than $5.8million in transaction-based sales commissions. The Defendants utilized severalmarketing techniques, including advertising on television, radio, newspapers,email, social media, and pitching investors at in-person meetings and investmentseminars, routinely touting Woodbridge's securities as "safe and secure."Unbeknownst to the Defendants' customers, many of whom had invested theirretirement savings in response to the Defendants' marketing techniques,Woodbridge was actually operating a massive Ponzi scheme, raising more than$1.2 billion before collapsing in December 2017 and filing for bankruptcy. OnceWoodbridge filed for bankruptcy, investors stopped receiving their monthly interestpayments, and have not received a return of their investment principal. At allrelevant times, the Defendants held no securities licenses, were not registered withthe Commission, and were not associated with registered broker-dealers, nor didthey qualify for an exemption. The Defendants were thus not permitted to sellsecurities. In addition, Defendant Barry M. Kornfeld was subject to a Commissionorder barring him from associating with a broker. By engaging in this conduct theDefendants each violated Sections 5(a) and 5(c) of the Securities Act of 1933("Securities Act"), and Section 15(a)(1) of the Securities Exchange Act of 1934("Exchange Act"). Defendant Barry M. Kornfeld also violated Section 15(b)(6)(B)(i)of the Exchange Act.


Resolution: Judgment Rendered


Sanctions Ordered or ReliefGranted:

Civil and Administrative Penalty(ies)/Fine(s)DisgorgementInjunctionMonetary Penalty other than FinesOther: Prohibition

Capacities Affected: N/A

Duration: Permanent


End Date:

Capacities 1 of 1

Monetary Sanction: Disgorgement

Total Amount: $3,693,359.00

Portion against individual: 3693359

Date Paid:

Portion Waived: No

Amount Waived:


Monetary Sanction: Monetary Fine


Portion against individual: 500000

Date Paid:

Portion Waived: No







Regulator Statement On January 10, 2019, a judgement as to Barry M. Kornfeld was filed. Kornfeld ispermanently restrained and enjoined from violating Section 5 of the Securities Actof 1933 (Securities Act). Kornfeld is permanently restrained and enjoined fromviolating, directly or indirectly, Sections 15(a)(1) and 15(b)(6)(B)(i) of the SecuritiesExchange Act of 1934 (Exchange Act). Kornfeld is prohibited from, directly orindirectly, including through any entity he owns or controls, participating in theissuance, offer, purchase or sale of any securities except for transactions involvinghis own personal brokerage account and participating in the management,administration, supervision of, or otherwise exercising any control over, anycommercial enterprise or project that issues, purchases or sells securities.Kornfeld is required to comply with the provisions of the Commission's Order,permanently barring him from association with any broker, dealer, or investmentadviser. Kornfeld is liable for disgorgement of $3,693,359, together withprejudgment interest thereon in the amount of $690,497.48, jointly and severallywith Ferne Kornfeld and FEK Enterprises, Inc., d/b/a First Financial Tax Group("First Financial"); and a civil penalty in the amount of $500,000.

Portion Waived: No

Amount Waived:

Monetary Sanction: prejudgement interest; joint and several


Portion against individual: 690497.48

Date Paid:

Portion Waived: No

Amount Waived:


Disclosure 2 of 2

i


Initiated By: UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Relief Sought: Civil and Administrative Penalty(ies)/Fine(s)DisgorgementInjunctionMonetary Penalty other than Fines

Date Court Action Filed: 05/28/2009

Product Type: Other: COLLATERALIZED MORTGAGE OBLIGATIONS (CMOS)

Federal Court21�2020 FINRA. All rights reserved. Report about BARRY M. KORNFELD.





Employing firm when activityoccurred which led to theaction:

BROOKSTREET SECURITIES CORP.

SEC LITIGATION RELEASE 21061, MAY 28, 2009: SECTION 17(A) OF THESECURITIES ACT AND SECTION 10(B) OF THE EXCHANGE ACT AND RULE10B-5 THEREUNDER - THE SECURITIES AND EXCHANGE COMMISSIONCHARGED TEN BROKERS WITH FRAUD RELATED TO MORTGAGE BACKEDSECURITIES KNOWN AS COLLATERALIZED MORTGAGE OBLIGATIONS("CMOS"). THE TEN BROKERS HAD ALL WORKED FOR A NOW DEFUNCTBROKER-DEALER. THE BROKERS ALLEGEDLY REPRESENTED TO THEIRCUSTOMERS THAT THE SECURITIES WERE SAFE AND SUITABLE FORRETIREES AND CONSERVATIVE INVESTORS, WHEN IN FACT THEY WERENOT. THE COMMISSION ALLEGES THAT BARRY M. KORNFELD AND OTHERSDEFRAUDED OVER 750 CUSTOMERS BY SELLING THEM RISKY TYPES OFCMOS BETWEEN 2004 AND 2007.ACCORDING TO THE COMMISSION'S COMPLAINT, THE DEFENDANTS TOLDTHEIR CUSTOMERS THAT THE CMOS IN WHICH THEY WOULD INVESTWERE SAFE, SECURE, LIQUID INVESTMENTS THAT WERE SUITABLE FORRETIREES AND INVESTORS WITH CONSERVATIVE INVESTMENT GOALS.THE COMPLAINT ALLEGES THAT CONTRARY TO THESEREPRESENTATIONS, THE DEFENDANTS INVESTED IN RISKY TYPES OFCMOS THAT: (1) WERE NOT ALL GUARANTEED BY THE UNITED STATESGOVERNMENT; (2) JEOPARDIZED CUSTOMERS' YIELD AND PRINCIPAL; (3)WERE LARGELY ILLIQUID; AND (4) WERE ONLY SUITABLE FORSOPHISTICATED INVESTORS WITH A HIGH-RISK INVESTMENT PROFILE.THE COMPLAINT ALLEGES THAT THE DEFENDANTS RECEIVED $18 MILLIONIN COMMISSIONS AND SALARIES RELATED TO CMO INVESTMENTS. THECOMPLAINT ALSO ALLEGES THAT SOME DEFENDANTS TOLD CUSTOMERSTHAT THEY WOULD USE MARGIN, OR THE ABILITY TO BORROW MONEY TOPURCHASE CMOS, ONLY SPARINGLY, WHEN IN FACT THEY HEAVILYMARGINED CUSTOMERS' ACCOUNTS, RESULTING IN LOSSES OF OVER $36MILLION.

Allegations:


Resolution: Judgment Rendered



InjunctionOther: PERMANENTLY RESTRAINED

Type of Court: Federal Court

Name of Court: U.S. DISTRICT COURT FOR THE SOUTHERN DISTRICT OF FLORIDA

Location of Court: WEST PALM BEACH, FLORIDA

Docket/Case #: CIVIL ACTION NO. 09-80803-CIV







Regulator Statement JUDGMENT OF PERMANENT INJUNCTION RENDERED SEPTEMBER 11, 2009BY THE U.S. DISTRICT COURT FOR THE SOUTHERN DISTRICT OF FLORIDA:BARRY M. KORNFELD CONSENTED TO ENTRY OF FINAL JUDGMENTWITHOUT ADMITTING OR DENYING THE ALLEGATIONS IN THE COMPLAINT;IT IS HEREBY ORDERED, ADJUDGED, AND DECREED THAT DEFENDANTKORNFELD IS PERMANENTLY RESTRAINED AND ENJOINED FROMVIOLATING SECTION 17(A) OF THE SECURITIES ACT OF 1933, 15 U.S.C. 77Q(A), IN THE OFFER OR SALE OF ANY SECURITY; IS PERMANENTLYRESTRAINED AND ENJOINED FROM VIOLATING, DIRECTLY OR INDIRECTLY,SECTION 10(B) OF THE SECURITIES EXCHANGE ACT OF 1934, 15 U.S.C. 78J(B), AND RULE 10B-5 THEREUNDER, 17 C.F.R. 240.10B-5; KORNFELD SHALLPAY DISGORGEMENT OF ILL-GOTTEN GAINS, PREJUDGMENT INTERESTTHEREON, AND A CIVIL PENALTY; THE COURT SHALL DETERMINE THEAMOUNTS OF THE DISGORGEMENT AND CIVIL PENALTY UPON MOTION OFTHE COMMISSION. THE CONSENT IS INCORPORATED WITH THE SAMEFORCE AND EFFECT AS IF FULLY SET FORTH HEREIN AND KORNFELDSHALL COMPLY WITH ALL OF THE UNDERTAKINGS AND AGREEMENTS. IT ISFURTHER ORDERED, ADJUDGED, AND DECREED THAT THIS COURT SHALLRETAIN JURISDICTION OF THIS MATTER FOR THE PURPOSES OFENFORCING THE TERMS OF THIS JUDGMENT.

InjunctionOther: PERMANENTLY RESTRAINED

Capacities Affected: N/A

Duration: PERMANENTLY


End Date:

Capacities 1 of 1






Customer Dispute - Award / Judgment

This type of disclosure event involves a final, consumer-initiated, investment-related arbitration or civil suit containing allegations of sales practiceviolations against the named broker that resulted in an arbitration award or civil judgment for the customer.

Disclosure 1 of 1


Employing firm whenactivities occurred which ledto the complaint:

Allegations:

MERRILL LYNCH, PIERCE, FENNER & SMITH

MISREPRESENTATION; UNAUTHORIZED TRADING;ACCOUNT RELATED-NEGLIGENCE; OTHER

Product Type: Other

Other Product Type(s): UNKNOWN TYPE OF SECURITIES

Alleged Damages: $1,935.00

Arbitration/Reparation Claimfiled with and Docket/CaseNo.:

NASD - CASE #91-01678

Date Notice/Process Served: 06/05/1991

Arbitration Pending? No

Disposition: Award

Disposition Date: 12/18/1991

Disposition Detail: RESPONDENTS ARE JOINTLY AND SEVERALLY LIABLE TO THE CLAIMANTSAND SHALL PAY TO THE CLAIMANTS COMPENSATORY DAMAGES IN THEAMOUNT OF $835.44, INTEREST IS AWARDED ON THIS AMOUNT AT A RATEOF 8% SIMPLE INTEREST PER ANNUM FROM JULY 17, 1990 UNTIL THEDATE THIS AWARD IS PAID. CLAIMANT'S REQUEST FOR PUNITIVEDAMAGES IS DENIED IN ITS ENTIRETY.

Arbitration Information

iReporting Source: Firm


Allegations:


CUSTOMERS CLAIM MISREPRESENTATION ANDUNSUITABILITY IN CONNECTION WITH AN INVESTMENT. CUSTOMERSSOUGHT $1,935.44 IN COMPENSATORY DAMAGES AND $60,000 INPUNITIVE DAMAGES. 24�2020 FINRA. All rights reserved. Report about BARRY M. KORNFELD.




https://www.finra.org/arbitration-mediation/arbitration-awards-online?search=91-01678


CUSTOMERS CLAIM MISREPRESENTATION ANDUNSUITABILITY IN CONNECTION WITH AN INVESTMENT. CUSTOMERSSOUGHT $1,935.44 IN COMPENSATORY DAMAGES AND $60,000 INPUNITIVE DAMAGES.

Product Type:


Date Complaint Received:

Complaint Pending? No

Status:

Status Date:

Settlement Amount:

Individual ContributionAmount:


National Association of Securities Dealers, Inc.; 91-01678



Disposition: Award to Customer


Monetary CompensationAmount:

$835.44

Firm Statement CLAIMANTS WERE AWARDED $835.44 PLUS INTEREST ATARBITRATION.DESPITE THE ARBITRATION AWARD, MERRILL LYNCHBELIEVES THE INVESTMENT WAS SUITABLE.

Customer Complaint Information



Arbitration/Reparation

iReporting Source: Broker


Allegations:








Allegations: ALLEGED: MISREPRESENTATION; UNAUTHORIZEDTRADING; ACCOUNT RELATED- NEGLIGENCE ON COMMON STOCK;MUTUALFUNDS-ALLEGED DAMAGES: $1,935.00

Product Type: Mutual Fund(s)


Date Complaint Received: 06/05/1991

Complaint Pending? No

Status:

Status Date: 12/18/1991

Settlement Amount:



NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC.; 91-01678



Disposition: Award to Customer


Monetary CompensationAmount:

$835.44

Broker Statement ACTUAL/COMPENSATORY DAMAGES, RELIEF HAS BEENAWARED IN THE AWARD AMOUNT OF $835.44 JOINTLY AND SEVERALLY.NOT PROVIDED

Customer Complaint Information



Arbitration/Reparation







End of Report

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BARRY MICHAEL KORNFELD · 2020-06-20 · BARRY MICHAEL KORNFELD Section Title Report Summary ... B 07/1986 - 12/1987 THOMSON MCKINNON SECURITIES INC. 829 B 04/1986 - 07/1986 TRAVELERS