Despite Rule Change, FINRA’s BrokerCheck Tags No ‘Restricted’ Firms?
Nine months after FINRA began ...
20 June, 2024 No comment
National Securities Corporation is a brokerage firm recently acquired by B. Riley Financial. According to their FINRA BrokerWatch’s profile, they have 82 Disclosures (66 Regulatory Events and 16 Arbitrations). On June 3, 2022, investors received a letter informing them that on July 22 “all direct business carrier relationships will be updated to replace National Securities Corporation (“National”) as the broker-dealer of record with B. Riley Wealth Management as the broker-dealer of record.”
Then, on June 23, FINRA announced that it had sanctioned “National Securities Corporation (NSC) approximately $9 million, including disgorgement of $4.77 million in net profits the firm received for underwriting 10 public offerings in which NSC attempted to artificially influence the market for the offered securities.”
If you are/were a client of a broker registered with National Securities Corporation, Contact Us Today by calling 585-310-5140 or by filling out an online contact form for a FREE Consultation.
National Securities Corporation | Unsuitable Investments Recommendation
Peiffer Wolf has begun an investigation into the brokers at National Securities Corporation. Several of them have allegedly recommended NYC REIT, Phillips Edison REIT, AFIN REIT, GWG’s L Bonds, Franklin Income Fund, GPB, and potentially other alternative investments to investors.
Brokers who recommended one or more of these products to their clients include:
- Bob Pearlman
- Michael Faciglione
- Mark Cline
- Ali Mahlooji
- George Karapistolis
If you invested with any of these brokers or any other broker registered with National Securities Corporation, you should Contact Peiffer Wolf Today.
National Securities Corporation | FINRA Problems
According to the New Release published by FINRA on June 23, 2022, “between June 2016 and December 2018, NSC, while acting as an underwriter for three initial public offerings and seven follow-on offerings, violated Rule 101 of Regulation M under the Securities Exchange Act of 1934 by unlawfully inducing or attempting to induce certain customers to purchase stock in the aftermarket of the offerings prior to their completion.”
Other charges against NSC included in the $9 million sanction imposed by FINRA include:
- Between April 2018 and July 2018, negligently omitted to tell investors in two offerings related to GPB Capital about delays in the issuer’s required public filings, including audited financial statements—for 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 NSC’s limits on concentration levels that applied to his non-traded real estate investment trust recommendations; and
- Made inaccurate representations to FINRA concerning the sales of stock warrants it received in connection with an October 2019 public offering.
Based on our experience, we believe more investors have been the victims of National Securities Corporation’s alleged broker misconduct and investment fraud. If you invested with brokers at National Securities Corporation, Contact Peiffer Wolf immediately for a FREE Consultation.
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Peiffer Wolf has represented thousands of victims, and we remain committed to fighting on behalf of investors. If you are/were a client of a broker registered with National Securities Corporation, Contact Us Today by calling 585-310-5140 or by filling out an online contact form for a FREE Consultation.
