National Securities Corporation (“National Securities Corp”) (CRD# 7569) has many different complaints filed by FINRA (Financial Industry Regulatory Authority), state regulatory organizations, and investors such as yourself. At the Law Offices of Robert Wayne Pearce, we have investigated National Securities Corp, its regulatory and customer complaints, and have also represented investors with claims of fraud, negligence, and breach of fiduciary duty against this organization and its financial advisors.
If you believe you have a claim against National Securities Corp, you should strongly consider hiring an investment fraud lawyer. You should not wait until it’s too late to file a claim. The Law Offices of Robert Wayne Pearce, P.A., offers free consultations. Give us a call at 800-732-2889. Let’s discuss your case and see what we can do to help you get the compensation you need and deserve.
Can I Sue National Securities Corp?
If you’ve lost money caused by National Securities Corp and/or its employees’ misconduct then the answer is, YES, you can sue National Securities Corp but the odds are you signed away your right to sue in court and agreed to resolve your dispute in a FINRA arbitration proceeding. Attorney Robert Wayne Pearce has over 40 years of personal experience in FINRA arbitration proceedings and knows very well how you can not only sue National Securities Corp in FINRA arbitration proceedings, but WIN that arbitration. The easiest way to know if you have a viable case against National Securities Corp is to call Attorney Pearce at our office at 800-732-2889.
What is National Securities Corp?
National Securities Corp (CRD# 7569) is a registered broker-dealer. It operates as a full-service independent broker-dealer, providing a range of financial products and services to individual investors and financial advisors.
As a registered broker-dealer, National Securities Corp is subject to regulations and oversight by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). It is required to comply with industry standards and regulations to ensure the protection of its clients’ interests.
A failure to comply with industry standards by either its brokers or the firm itself can result in disciplinary actions, fines, or other penalties imposed by regulatory authorities.
National Securities Corp Has Many Different Regulatory Problems
National Securities Corp’ rapid growth has not been without consequences. There have been approximately 82 state and self-regulatory body disclosure events; that is, final and formal proceedings initiated by a regulatory authority (e.g., a state or federal securities agency like the U.S. Securities and Exchange Commission (SEC) or self-regulatory body like the Financial Industry Regulatory Authority (FINRA) for a violation(s) of investment-related rules or regulations. In addition, there have been hundreds of customer complaints filed against National Securities Corp for misconduct by its securities sales and investment advisory representatives that are not reported by the firm on its Central Depository Record.
We have reported and written about these regulatory problems and customer complaints over many years. National Securities Corp is a repeat offender: there are over 82 FINRA-reported disciplinary proceedings citing the firm with one form of supervisory lapses or another.
A Brief Overview of Some of the Regulatory Problems National Securities Corp Has Faced Over the Years*
National Securities Corp has been repeatedly censured, warned, and fined multi-millions of dollars for its own misconduct and failure to supervise its army of financial advisors.* A few of the notable FINRA Sanctions for its Supervisory Failures are below:
National Securities Corporation Fined $125,000 for Failing to Report Customer Complaints and Supervise Offerings
Brief Overview: National Securities Corporation, a securities broker-dealer based in Boca Raton, Florida, has been censured and fined $125,000 by FINRA for several violations. The firm failed to timely report customer complaints and amendments to Forms U4 and U5, which related to customer disputes involving the broker-dealer or its stockbrokers. Additionally, National Securities Corporation did not comply with Rule 4530 regarding reporting the settlement of a customer-initiated investment-related claim. FINRA found 19 customer-initiated investment-related complaints that were not reported to them in a timely manner. The broker-dealer also had incomplete or inaccurate files relating to customer disputes, failing to disclose certain information to FINRA within the required time frame. Furthermore, the firm lacked adequate supervisory protocols for contingency offerings, where it generated a significant portion of its revenue, resulting in further violations of FINRA rules. This is not the first time National Securities Corporation has faced sanctions for underreporting important information about customer complaints or settlements.
FINRA Sanctions National Securities Corporation for Market Manipulation, Imposes $9 Million Penalty
Brief Overview: In a recent announcement, FINRA revealed that it has sanctioned National Securities Corporation (NSC) with a penalty of approximately $9 million. This includes disgorgement of $4.77 million in net profits earned by NSC for underwriting 10 public offerings where the firm attempted to artificially influence the market for the offered securities. The regulatory action highlights NSC’s involvement in market manipulation and serves as a significant penalty for the firm’s misconduct in the public offerings it underwrote.
National Securities Corporation Fined $663K by FINRA for Deceptive Private Placements
Brief Overview: National Securities Corporation, based in Boca Raton, FL, has been fined $663,000 by FINRA due to deceptive practices in private placements. The misconduct occurred between December 2017 and January 2018 and involved the price of shares offered in a private placement. National Securities identified companies likely to go public in the future through its affiliated investment adviser, National Asset Management. It made private placement offerings of these companies before their anticipated initial public offering (IPO), marketing and selling these interests to customers. However, the firm deceived investors by claiming to have two sources for these shares when it had only one. Moreover, it continued selling shares at a disclosed price for a second offering despite having no shares available at that price. As a result, National Securities will pay $300,000 in fines and the remainder in disgorgement, plus interest, for violating securities regulations and FINRA rules.
*Above are only some of the regulatory disciplinary actions filed against National Securities Corp by FINRA. NASSA and other state securities regulator investigations and enforcement actions account for another 82 BrokerCheck disclosures.
National Securities Corp Customer Complaints
There have been scores of customer complaints filed against National Securities Corp stockbrokers and investment advisors over the years. We have launched many investigations of current and former National Securities Corp advisors:
- Jarek Hansen of Cambria Capital, LLC
- Michael Boothe of International Assets Advisory, LLC
- Willard Pugh of National Securities Corporation
- Shaun Stein of National Securities Corporation
- Frank Avallone of National Securities Corporation
- Eric Rapczyk of National Securities Corporation
- Joseph Kelly of Spartan Capital Securities, LLC
- Samuel Lek of Lek Securities Corporation
- Rodrigue Lors of Wilmington Capital Securities, LLC
- Bruce Linger of Lincoln Financial Advisors Corporation
- Mark Trewitt of VFG Securities, Inc.
- Michael Lucia of Brokers International Financial Services, LLC
- Douglas Willmore of Western International Securities
- David Frankel of National Asset Management, Inc.
- Robert Harger of Harger And Company
- Jeffrey Broten of Newbridge Securities Corp.
- Russell Blum of International Assets Advisory, LLC
- Rick Davidson of Aegis Capital
- Alex Mathis of Western International Securities, Inc.
- Andrew Massaro of National Securities Corporation
- Avraham Ziv of Western International Securities, Inc.
- Bradley Mascho formerly with Western International Securities, Inc.
- Joseph Rozof of Revere Securities
- Ciro Sanclemente of National Securities
- Vincent Sharpe of PHX Financial
- Anthony Shelby of Spartan Capital Securities
- Sean Sullivan of National Securities
- Kyle Woods of Edward Jones
- Vanessa Xavier of Equitable Advisors
- Jeffrey Cohen of Moloney Securities Co., Inc
- Dawn Bennet of Western International Securities
- Timothy W. Augustin of Western International Securities
- Andre Davis of Paulson Investment Company, LLC
- David Bibo of Western International Securities, Inc
- Gabriel Block of First Standard Financial Company, LLC
- Jingbo Pan of Vestech Securities, Inc
- Kevin Wilson of Worden Capital Management LLC
- Steven Jennings of National Securities Corporation
- Brittney Sias formerly with Western International Securities, Inc.
- Johnny Guan of Aegis Capital
- Matthew Harris of National Securities
- David Hua of National Securities
- Seth Leishman of LPL Financial
- Vincent Villani of National Securities
- Pasquale Vitucci of United Planners’ Financial Services of America
- David Volpe of First Financial Equity
- Khary Miller of LPL Financial
- Gregory Patrick of Spartan Capital Securities
- Kendrick Patterson of Securian Financial Services
- Katherine Petrelli of LPL Financial
- Jesse Raines of Securian Financial Services
- Ray San Pedro of National Securities
- Stuart Godin Formerly With Western International Securities
- Bruce Golgowski Formerly With Founders Financial Securities
- Nick Son Of National Securities
- Peter Steege of Western International Securities
- John Horseman of LPL Financial
- Ryan Alvarez of Lion Street Financial
- Larry Boggs of International Assets Advisory
- Steven Case of LPL Financial
- Michael Charles of Craft Capital Management
- Margareta Childs Formerly With Western International Securities
- Doron Kochavi of Western International Securities
- Allen Ostrofe of LPL Financial
- Michael Farrell Formerly With Aegis Capital
- James Gibbs of Equitable Advisors
- Gregory Guemmer of Money Concepts Capital
- Michael Hanrahan of MML Investors Services
- David Dunfee of Key Investment Services
- Kevin Doyle of Aegis Capital
- James Helfinstine of LPL Financial
- Jason Hawke of D.H. Hill Securities
- John Labarca Formerly With National Securities
- Howard Leon of Newbridge Securities
- Michael Lisle of Brokers International Financial Services
- John Limpert Formerly With Brokers International Financial Services
- Robert Mann of National Securities
- Robert Macnamee formerly with Aegis Capital
- David Morgan of National Securities
- Barney Moore of Equitable Advisors
- Anthony Morris of International Assets Advisory
- Richard Murray formerly with Corinthian Partners
- Gregory Pease Formerly With International Assets Advisory
- Roderick Rodriguez of Infinex Investments
- Christopher Russo of National Securities
- Kurt Stein of Quint Capital
- Donald Pollard of Wright Investors’ Service Distributors
- Gerald Sharpe of Aegis Capital
- Barbra Shaffer of Cambridge Investment Research
- Thomas Reyes of Raymond James Financial Services
- Rushdi Zalatimo of National Securities
- Maximilian Bonsall of National Securities
- Christopher Bond of National Securities
- John Burnham of National Securities
- Jason Cagwin of National Securities
- Matthew Courchesne of Wilmington Capital Securities
- Bruce Godke of Mutual Securities, Inc.
- Aaron Jasper of Mutual Securities, Inc.
- Alejandro Gonzalez of UBS Financial Services Inc.
- Christopher Barletta Formerly With National Securities
- Carter Mansbach of National Securities Corporation
- Christopher Ortiz of National Securities Corporation
- Clement Chichester formerly with Western International Securities, Inc.
- Damian Bell of International Assets Advisory, LLC
- David Givnish of LPL Financial LLC?
- Dennis Mehringer formerly with Western International Securities, Inc.
- Dennis Karjanis of Aegis Capital Corp.
- Derek Malone of Infinex Investments, Inc.
- Edward Simpson of Western International Securities, Inc.
- Edward Deicke of B. Riley Wealth Management
- Eric Felsenfeld of Kingswood Capital Partners, LLC
- Frank Barber formerly of National Planning Corporation
- Ghislain Gouraige, Jr. Of New Edge Wealth
- Gregory Jacobson of B. Riley Wealth Management
- Horacio Gomez-Rabago of Oppenheimer & Co. Inc.
- Ioan Grigor of Bankers Life Securities, Inc.
- James Greene formerly with B. Riley Wealth Management
- Jared Kaplan of NewEdge Securities, Inc.
- Javelin San Nicolas formerly with Edward Jones
- Jay Sheth of Arete Wealth Management, LLC
- Jessica Mansavage formerly with Ameriprise Financial Services, LLC
- John Koorey formerly with Western International Securities, Inc.
- John Naegele of Cambridge Investment Research, Inc.
- Jose Castillo of Western International Securities
- Joseph McLeod formerly of Intervest International Equities Corporation
- Keith Medeck of Arete Wealth Management, LLC
- Kunal Arora of Arete Wealth Management, LLC
- Leonard McAbee formerly with National Securities Corporation
- Lu Li of Transamerica Financial Advisors, Inc.
- Mark Potocsny of International Assets Advisory, LLC
- Mark Katz of Western International Securities, Inc.
- Marshall Isaacson formerly with Newbridge Securities Corporation
- Maximo Moreno of Insigneo International Financial Services LLC
- Michael Connors of TFS Securities, Inc.
- Michael Fasciglione of Aegis Capital Corp.
- Michael Haley of LPL Financial LLC
- Peter Hickman of Bankers Life Securities, Inc.
- Rick Konecny formerly with National Securities Corporation
- Robert D’Andria of International Assets Advisory, LLC
- Shane Falcon formerly with National Securities Corporation
- Steven Fairchild of LPL Financial LLC
- Thomas Swan of Western International Securities, Inc.
- Thomas Kelly, Jr. of Aegis Capital Corp.
- John Lowry of Spartan Capital Securities
- Steve Taton formerly with Brokers International Financial Services, LLC
- Troy Goldberg of B. Riley Wealth Management
- Vincent Mazza formerly with National Securities Corporation
- Viqas Akhtar of B. Riley Wealth Management
- William Braun of B. Riley Wealth Management
- William Conn of International Assets Advisory, LLC
- William Young of Kingswood Capital Partners, LLC
- William Wright, Jr. formerly with National Securities Corporation
- Williams Butcher of Independent Financial Group, LLC
- David Alvarado of PHX Financial, Inc.
- Daniel Beech of Innovation Partners LLC
- Mark Cline formerly with National Securities Corporation
- Patrick Egan of Western International Securities, Inc.
- Heath Goldstein of Western International Securities, Inc.
- John Holly, Sr. of B. Riley Wealth Management
- Foti Kanos of Northwestern Mutual Investment Services, LLC
- Robert Kully of Western International Securities, Inc.
- Roberto Leslie of Infinex Investments, Inc.
- Alan Au of J.P. Morgan Securities LLC
- Alex Mathis of Western International Securities, Inc.
- Brandon Barile of International Assets Advisory, LLC
- Craig Johnson of Western International Securities, Inc.
- Kerry Hoffman of B. Riley Wealth Management
- Antoine Nader of Western International Securities, Inc.
- Michaela Rauscher of Western International Securities, Inc.
- Sean Hosein of PHX Financial, Inc.
- Michael Shonsey of Brokers International Financial Services, LLC
- Matthew Stratman of Western International Securities, Inc.
- Thomas Swan of Western International Securities
- Michael Blueweiss of Arete Wealth Management, LLC
- Darien Bonney formerly with MML Investors Services, LLC
If you have lost money investing with any of these National Securities Corp advisors or others within this brokerage firm, it’s important that you reach out to an investment loss attorney quickly because the statutes of limitations can bar your claims. Call us at 800-732-2889.
Why Does National Securities Corp Have So Many Regulatory Problems And Customer Complaints?
Independent broker-dealers are notorious for their lax supervisory practices and procedures. The business model of these franchise type operations is to open many offices nationwide for steady growth of fixed monthly revenues without the costs attendant to a full-service branch office with on-site manager, compliance officer and operation personnel. The registered representatives of these independent broker-dealers generally operate as separately incorporated businesses. They are not employees of the broker-dealer and therefore not controlled in the same manner as full-service brokerage firm representatives. The registered representatives control their structure and costs to maximize profits and often leave the protection of investors’ rights and interests as their lowest priority.
The typical supervisory organization of independent broker-dealer operations is to have other independent contractors operate Offices of Supervisory Jurisdiction (OSJs) to monitor the registered representatives from geographically remote offices and then report to the main franchisor’s compliance office at national headquarters. The supervisors at the OSJs are not employees of the franchisor and often run their own brokerage, insurance and other businesses. They are not devoted full-time supervisors of the smaller branch offices. Consequently, OSJ managers cannot and do not supervise the day-to-day operations of the registered representatives of these Independent broker-dealers.
Generally, there is no immediate review of new accounts opened, securities transactions, business records, cash or securities receipts and deliveries, correspondence and business activities unrelated to the securities brokerage operation at these independent brokerage firms. The lax supervision leaves investors who have transferred their accounts to the smaller independent broker-dealer vulnerable to sales of securities that have not been reviewed or authorized by anyone other than the sales representative earning a commission. There may be no one onsite to detect forgeries of clients’ signatures on documents, the placement of inaccurate information about a client’s investment objectives and financial condition to document the suitability of a particular investment recommendation. Oftentimes there is no daily review of sales literature and client correspondence to protect against misrepresentations and misleading statements being made to investors. In fact, it is not unusual for there to be only one compliance audit visit per year at many of these offices.
These Independent brokerage business operations are worrisome to the North American Securities Administrators Association (NASAA), which has documented more instances of sales abuse and consequently investor losses at these firms than the traditional brokerage firms with branch offices with on-site managers and compliance personnel.
Did National Securities Corp Advisor Misconduct Cause You Investment Losses?
When financial advisor misconduct has caused you to lose substantial value to your investment accounts, you have the right to seek reimbursement from the responsible parties. National Securities Corp is responsible like any employer for its financial advisors acts and omissions. In addition, it has an independent duty to supervise its stockbrokers and investment advisors. These cases can be extremely complex, and so having the support of a reputable attorney who is experienced in recovering investment losses for investors is key to your success. Many customers make the mistake of contacting National Securities Corp without representation with an attorney about their complaints and have their complaints denied.
Related Read: Can You Sue Your Brokerage Firm?
Consult With An Attorney Who Recovers Investment Losses Caused By National Securities Corp Today!
The investment loss attorneys at The Law Offices of Robert Wayne Pearce, P.A., have helped countless investors over the last 40 years recover the losses from their investment accounts that were caused by broker negligence or misconduct. The firm has extensive experience with National Securities Corp cases, and Attorney Pearce is committed to seeing that those responsible for the losses you have suffered are held fully accountable.
Give us a call at 800-732-2889. Let’s discuss your case and see what we can do to help you get the compensation you need and deserve.