According to FINRA, Armando Alejandro Barron has been fined $50,000 (deferred) and suspended from association with any FINRA member for 24 months for engaging in private securities transactions without proper disclosure.

Barron participated in private securities transactions by soliciting investors to enter into promissory notes with a limited liability company he owned and controlled. He personally solicited each noteholder and signed each note on behalf of the LLC, ultimately soliciting 14 investors into 30 promissory note transactions totaling $979,500.

While Barron partially disclosed this activity to his firm as an outside business activity, his disclosure was incomplete and inaccurate. He stated that promissory note funds were invested in a specific investment fund, but he actually used the money for other purposes including non-income generating activities.

Additionally, Barron's communications soliciting investors failed to comply with FINRA's content standards. His communications did not provide fair and balanced treatment of risks and benefits, failed to provide a sound basis for evaluating the notes, and contained unwarranted, promissory, or misleading statements.

Promissory notes sold by individuals can be high-risk investments. Investors should be cautious about promissory note investments offered outside normal brokerage channels and ensure they understand all risks before investing.