For complete details,view the Class Action Settlement Agreement and Release (Settlement Agreement), available in the. The integration of the two firms has appeared to be inevitable for some years. In 2018, B. Riley Financial announced that it was purchasing a large stake in National Holdings Corp., the parent of National Securities Corp., and in 2021 B. Riley said it was buying the rest of the company shares it didnt already own. NSC also has several affiliates or related businesses, including Osage Investments, Inc., VFinance Investments, Inc. and National Asset Management, Inc., National Holdings Corporation and Gilman Ciocia. My in-laws lost their retirement funds to a dishonest broker. If it can be determined that the financial advisor violated FINRA rules and the employers failed to adequately supervise him, these firms can be held responsible for any resulting losses in a FINRA arbitration claim.". A settlement has been proposed in a class action lawsuit against National Securities Corporation(Defendant) in regard to the Series D, Series D-1, and Series D-2 Beamreach Solar (f/k/a Solexel) (Beamreach) security offerings through Defendant. In March of 2003, a case with the same allegations resulted in the claimant being awarded more than $80,000. This means that you will not have to pay an hourly rate or pay out-of-pocket in advance for legal representation. If you win, the lawyers fee will come out of the money awarded to you. The White Law Group announces the filing of a FINRA arbitration claim against National Securities Corporation involving high-risk non-traded REITs. An official website of the United States government. FINRA investigators discovered that the NSC failed to properly protect the best interests of their clients because its financial advisors recommended a very high-risk private placement to investors who had no business being in such an investment. Reuters reported the results of a comprehensive investigative report in 2017 that focused on broker-dealers and investment firms that currently employ a high concentration of financial advisors and brokers who had red flags on their record with FINRA. Please disable your ad-blocker and refresh. On March 21st, 2001, a claimant was awarded more than $500,000 after alleging that National Securities Corporation employees had engaged in churning and unauthorized trading. In 2011, National Securities Corporation was ordered to pay $175,000 in restitution to affected investors for its misconduct relating to a failed private placement. In 2011, National Securities Corporation waspublicly censured and ordered to pay $175,000 in restitution to affected investorsfor its misconduct relating to a failed private placement. Mainly, FINRA sanctioned the securities broker, who worked for Joseph Stone Capital LLC. The formal announcement of the merger is expected next week, so there will be more details to come, the executives said. The lawsuit alleges that the Claimants have suffered significant losses during a time when the financial markets have enjoyed record returns of actual damages of no less than $80,000. To submit a report, please select the appropriate method from below: Report incidents as defined byNIST Special Publication 800-61 Rev 2, to include. (Case # 01-04480). National Securities Corporation has been the subject of several FINRA arbitration claims which have resulted in awards to claimants. The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois. According to the article, some of the Fortress companies promoted by National Securities brokers include: If you invested in any of these companies based on the recommendation of your National Securities Broker, you may have a legal claim. WebNational Securities Corp Sued By Investor For Negligence. It provides investors with an opportunity to attempt to recoup their investment losses and is an alternative to filing such claims in court. The lawsuit states that the Respondents actions have caused the Claimants alleged damages of approximately $1,000,000.00 The lawsuit allegations are as follows: negligence, breach of fiduciary duty, negligent supervision, breach of contract, fraud, and violation of Floridas Investor Protection Act 517. A lawsuit filed last week in U.S. District Court for the Southern District of New York by Kay Johnson claims she was fired for her research into insider trading by For more information about The White Law Group call our Chicago office at 312-238-9650 or visit us on the web at http://www.whitesecuritieslaw.com. According to the firms BrokerCheck report, National Securities, which is based in Boca Raton, Florida, and has 574 registered reps and advisers, filed its termination requested paperwork with the Financial Industry Regulatory Authority Inc. and has moved its advisers into B. Riley Wealth Management. In October 2017, Financial Advisor Magazine published Firm Does What FINRA Wont: Rates 30 Worst Brokerage Firms (10/24/17). She succeeds Don Plaus, who's retiring. Joe Peiffer, Responsible Attorney. In February of 2015, National Securities Corporations financial advisor John Joseph Labarca (CRD#: 2030473)was permanently barred from the securities industry for allegedly committing serious misconduct, including failing to produce requested documents and failing to cooperate with FINRA investigators and enforcement staff. Read this notice carefully. 15 disclosures reference arbitration matters. NATIONAL SECURITIES CORPORATION and their registered representative (Respondents). National Securities Corporation has been the subject of many regulatory matters. Of approximately 70 FINRA disclosures, at least 15 are customer initiated arbitrations against the firm. Silver Law is actively investigating several current and former National Securities advisors. Many of the dividend payments made by non-traded REITs do not actually represent distribution of earnings from the REIT, but instead either represent debt or a return of principal. B. Riley Wealth has focused for the most part on hiring employee brokers and financial advisers, while National Securities focused on independent contractor reps. (See: FINRA Case #2009019068201). In December 2013, a FINRA arbitration panel awarded a Colorado investormore than $219,000 in damagesfor losses related to a National Securities Corporations financial advisors recommendations that she put her money into unsuitable mutual funds. Contingent fee. FINRA investigators found that the firm failed to properly protect the best interests of its clients because its brokers recommended a very high-risk private placement to investors who had no business being in such an investment. You can sue National Securities Corporation for not abiding by FINRA rules. Anyone who invested with National Securities in encouraged to get a free (Case # 2013036454901). Between April 2018 and July 2018, negligently omitted to tell investors in two offerings related to GPB Capital about delays in the issuers required public filings, including audited financial statementsfor which FINRA has ordered the firm to pay restitution of more than $625,000 to those customers; Between January 2005 and April 2020, failed to obtain locates for over 33,000 short sale transactions as required by Rule 203(b)(1) of Regulation SHO under the Exchange Act; Between September 2013 and May 2017, failed to reasonably supervise one of its representatives by failing to respond to multiple red flags that he was falsifying information about customers assets and suitability information in order to avoid NSCs limits on concentration levels that applied to his non-traded real estate investment trust recommendations; and. See Table 1, Worst Firms by Firms Current Brokers Histories of Resolved Customer Complaints. The pending complaint alleges damages of $2.5 million. The Indiana Securities Division alleged the financial advisor was not yet properly registered in Indiana when he was opening accounts with clients residing in Indiana. National Securities Corporation Investor Fraud. Haselkorn & Thibaut (InvestmentFraudLawyers.com) is currently investigating National Securities Corporation for allegations of financial advisor malpractice. National Securities Corporations financial advisors allegedly made unsuitable recommendations. In November 2014, National Securities Corporation was censured and fined $60,000 by the Securities and Exchange Commission for executing a solicited sales transaction in Puerto Rican non-investment grade, or junk bonds, below the $100,000 minimum denomination of the issue established by the issuer, Puerto Rico. National Securities Corporation was predominately displayed on this list of broker-dears, with Reuters showing that 34.6 percent of the NSCs 714 brokers had at least one piece of negative information on their official record. Defendant denies all of the claims and says it did not doanythingwrong. As alleged, National Securities Corporation failed to conduct adequate due diligence of private placements offered and failed to establish, maintain and enforce a sufficient supervisory system designed to comply with rules in connection with the sale of private placements. While employed as a financial advisor at National Securities Corporation, Mr. Labarca was based in an office in Houston, Texas. C18-1773-RSM, United States District Court for the Western District of Washington. Peregrine Financial Group Customer Litigation, Failing to report statistical information regarding customer complaints to FINRA within the required time period, Selling non-investment grade junk bonds issued by the Commonwealth of Puerto Rico to customers below the minimum denomination (Minimum denominations are intended to limit sales of securities to retail investors for whom such bonds may not be suitable), Failing to identify or ignoring red flags involving numerous instances of potentially suspicious securities transactions, Allowing its representatives to sell certain private placement investments without having reasonable grounds to believe that they were suitable for any customers, Failure to adequately supervise brokers/ agents, Selling securities below the public offering price in what was alleged to be a fixed-price offering, Employing an unregistered agent and allowing that person to conduct securities transactions, Numerous and excessive securities transactions, Unsuitable use of margin considering the customers financial situation, investment objectives, and needs, Unsuitable investments/ unsuitable recommendations, Failure to disclose material facts/ material omissions. We are happy to discuss any questions related to our fees as well as different financial arrangements we can structure. GPB Capital Holdings, According to the allegations in the lawsuit, NATIONAL SECURITIES CORPORATION (NSC) failed to disclose the high fees and commissions earned for these illiquid investment recommendations. (See: FINRA Case #2009019068201). He was named to the Top 40 Under 40 by Daily Journal and a Rising Star in Class Actions by Law360. negligently omitted to tell investors in two offerings related to GPB Capital about delays in the issuers required public filings, including audited financial statements, If you invested in a GPB or another product through National. Less than a month after defeating one shareholder-led class action securities fraud lawsuit, another has begun. Notably, this was a penny stock. National Securities Corporation entered into a Letter of Acceptance, Waiver and Consent (AWC) with FINRA in which the firm was censured and ordered to pay restitution of $175,000 for failing to have reasonable grounds to believe that private placements offered by Provident Royalties, LLC and Medical Capital Holdings, Inc. were suitable for any customer. Less than a month after defeating one shareholder-led class action securities fraud lawsuit, another has begun. Lawsuit Filed Against National Securities Corporation for Investment Losses. On October 5th, 2001, another claimant was awarded more than $145,000 after alleging that National Securities Corporation employees had engaged in breach of fiduciary duties, fraud, misrepresentation, the omission of facts, recommending unsuitable investments and failure to supervise. As such, financial advisors and their firms must conduct proper due diligence before making any such recommendations. 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