According to FINRA, Keith Craig Baron has been barred from associating with any FINRA member firm and ordered to pay disgorgement of $284,890 plus prejudgment interest following a hearing panel decision.

Baron was found to have omitted material information and made misrepresentations to an elderly married couple regarding stock of a company purportedly in the business of acquiring oil and gas leases. Baron had entered into a consulting agreement with the company that paid him $10,000 per month, even though the company was not generating any revenue.

Baron represented to the elderly couple that the company stock was a guaranteed investment and that the price would double within three months. He failed to disclose his consulting agreement with the company. The couple purchased shares totaling $359,806 in four transactions, none of which were executed through Baron's member firm. Following these purchases, the company paid Baron $284,890 in compensation.

Baron also failed to disclose his consulting agreement as an outside business activity in annual compliance certifications and failed to disclose his participation in these private securities transactions to his firm. He made misrepresentations to both his firm and to FINRA about his involvement with the couple's investment.

What Investors Can Learn: This case illustrates several red flags investors should watch for: promises of guaranteed returns, claims that investments will double quickly, and investment opportunities offered outside normal brokerage channels. Always ask about any financial relationship your broker may have with companies they recommend.