Securities Arbitration Lawyer Blog
FINRA has sanctioned National Securities Corporation for numerous violations, including failing to comply with reporting obligations and failing to enforce written supervisory procedures related to its reporting obligations between May 2015 and November 2018. National Securities Corporation was also sanctioned for failing to establish, maintain, and enforce written supervisory procedures relating to contingency offers from July 2015 through March 2017. FINRA’s most recent sanction is the third time National Securities Corporation has been censured and fined by FINRA since 2011. National Securities Corporation has also been the subject of customer complaints.
If you have lost money with National Securities Corporation, contact Iorio Altamirano LLP for a free and confidential evaluation of your investment or retirement accounts.
Iorio Altamirano LLP represents investors that have disputes with their financial advisors or brokerage firms, such as National Securities Corporation.
About National Securities Corporation
National Securities Corporation (“National Securities”) is a full-service brokerage firm, primarily operated through independent registered representatives. National Securities is headquartered in Boca Raton, Florida, and has approximately 660 stockbrokers nationwide and 130 branch offices, including:
- Largo, Florida.
- Westbury, New York.
- Hillsborough, New Jersey.
- Melville, New York.
- Honolulu, Hawaii.
- New York, New York.
- Livingston, New Jersey.
- Eatontown, New Jersey.
- Dallas, Texas.
- Lake Ronkonkoma, New York.
- Santa Fe, New Mexico.
- El Segundo, California.
- Poughkeepsie, New York.
- Oakbrook Terrace, Illinois.
- Nutley, New Jersey.
- East Hampton, New York.
- Chicago, Illinois.
National Securities Corporation touts that it offers a full range of traditional and new investment products, as well as an assortment of retirement plans including IRAs, SEP IRAs, SARSEP IRAs, Simple IRAs, Roth IRAs, 401(k) plans, pension plans, profit-sharing plans, and variable annuities.
National Securities Corporation – Disciplinary History: Repeat Offender
National Securities Corporation has been sanctioned by FINRA four times since 2002 for reporting and supervisory-related violations, including three times since 2011 for similar conduct:
- On October 27, 2020, National Securities was censured and fined $125,000 for the following violations:
- Between May 2015 and November 2018, National Securities failed to timely file amendments to Uniform Applications for Securities Industry Registration or Transfer (Forms U4) and Uniform Termination Notices for Securities Industry Registration (Forms U5).
- Between May 2015 and November 2018, National Securities failed to timely report a $30,000 settlement of a customer’s claim for damages arising from sales practice violations.
- Between May 2015 and November 2018, National Securities failed to report, or failed to timely report, statistical and summary information to FINRA regarding 19 written customer complaints.
- Between May 2015 and November 2018, National Securities failed to enforce supervisory producers regarding the firm’s obligations to collect and report information to FINRA.
- From July 2015 through March 2017, National Securities failed to establish, maintain, and enforce proper written supervisory procedures relating to contingency offerings.
- On December 4, 2014, National Securities was censured and fined$35,000 for (i) failing to timely file amendments to Forms U4 and Forms U5; (ii) failing to comply with filing requirements reporting statistical and summary information regarding complaints and settlements; and (iii) failing to enforce its written supervisory compliance with these obligations.
- On February 1, 2011, National Securities was censured and fined $22,500 for (i) failing to file amendments to Forms U4; (ii) failing to timely file and filing inaccurate amendments to Forms U4 and U5; and (iii) failing to comply with filing requirements for reporting statistical and summary information regarding complaints.
- On December 17, 2002, National Securities was censured and fined $32,500 for, among other things, failing to file amendments to Forms U4 and U5 and failing to supervise its timely reporting of customer complaints and settlements on Forms U4 and U5.
National Securities Corporation – FINRA Arbitrations: Numerous Customer Complaints
National Securities has been the subject of a number of customer complaints that have resulted in awards for investors:
- In September 2018, National Securities was determined to be jointly and severally liable for $14,000 arising out of its recommendation to purchase a municipal bond fund (FINRA Case No. 18-00160). The claimant alleged the following causes of action: breach of fiduciary duty; elder financial abuse; misrepresentation/non-disclosures; omission of facts; suitability; breach of contract; failure to supervise; negligence; and mark-ups.
- In July 2016, a customer was awarded $353,143 in compensatory damages after the investor alleged that his financial advisor purchased and sold an excessive number of speculative stocks in his accounts without his authorization (FNRA Case No. 15-00737). The claim alleged unauthorized trading, negligence, failure to supervise, breach of fiduciary duty, breach of contract, and unjust enrichment. The arbitration panel also awarded the customer interest, attorneys’ fees, and litigation costs.
- In January 2016, National Securities was determined to be jointly and severally liable for $37,401 in compensatory damages. The investor alleged that National Securities recommended the purchase of reverse convertible products and alleged the following causes of actions: breach of fiduciary duty; breach of conduct; negligence, negligent supervision; fraud: unauthorized trading, respondent superior; failure to supervise; wrongful conduct; and failure to diversify.
- In November 2015, a claimant was awarded $49,950 in compensatory damages arising out of allegations that a reverse convertible note was unsuitable (FINRA No. 15-00979). Claimant asserted the following causes of action: unsuitability, breach of fiduciary duty, negligence, negligent supervision, breach of contract, fraud, respondeat superior, failure to supervise, and wrongful conduct.
If you have lost money with National Securities Corporation, contact securities arbitration attorney August Iorio of Iorio Altamirano LLP. August Iorio can be reached at august@ia-law.com or toll-free at (855) 430-4010 for a free and confidential evaluation of your account.
Iorio Altamirano LLP is a securities arbitration law firm based in New York, NY. Iorio Altamirano LLP pursues FINRA claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by stockbrokers and brokerage firms.