The White Law Group is investigating potential securities claims involving National Securities Corp. (CRD#: 7569, Boca Raton, FL).
National Securities Corp. is an independent broker-dealer based in Boca Raton, FL with 79 disclosures including 63 regulatory events, 1 pending civil event and 15 arbitrations, according to the Financial Industry Regulatory Authority.
All broker-dealers have a responsibility to adequately supervise its employees. They must ensure the necessary procedures and systems to detect misconduct. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.
When brokers violate securities laws, such as making unsuitable investments, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration.
Broker Misconduct and Customer Complaints
There have been several cases of registered representatives employed by National Securities who were allegedly involved in broker misconduct and fraudulent activities.
October 2020 – FINRA reportedly barred former National Securities Corp. advisor Jeffrey Broten from associating with any FINRA member at any time.
Broten allegedly refused to provide on-the-record testimony requested by FINRA in connection with its investigation into his potentially unsuitable and unauthorized trading while associated with National Securities Corp.
According to his broker profile, Broten was reportedly registered with National Securities Corp. in Titan Falls, NJ from 2009 until 2018. Broten reportedly has 6 customer complaints filed against him during his career in the securities industry, with one still pending from May 2020.
June 2019 – Former National Securities Corp. advisor Michael Alan Siegel was barred after allegations of theft, misrepresentation, churning, and unauthorized trades. He reportedly pled guilty last year to stealing more than $270,000 from an elderly couple, according to state records in New Jersey.
Siegel reportedly worked with the couple, first while registered with Concorde Asset Management and then as an agent with National Securities Corp., from around July 2013 through January 2016.
Siegel reportedly recommended that the couple should invest in an options program, allegedly instructing them to make the checks out to him rather than to his firm. Unfortunately for the investors, there was no options program and Siegel purportedly kept the money for himself.
November 2018 – FINRA reportedly barred former National Securities Corp. advisor Kyle Harrington after he allegedly converted customer funds.
The complaint further alleges that Harrington engaged in a series of private securities transactions with at least two individuals through which he sold over 300,000 shares of restricted stock he had purportedly received as compensation from a company for approximately $276,000.
According to his broker report, Harrington was a registered representative with National Securities Corp. in San Diego, California from July 2012 until November 2016.
FINRA Censures and Fines National Securities Corp.
National Securities Corp. has also reportedly had issues with regulators.
October 2020 – FINRA reportedly censured and fined broker-dealer National Securities Corporation $125,000 in connection with sales practices violations and supervisory issues.
FINRA allegedly found that between May 2015 and November 2018, National Securities reportedly filed four late Form U4 amendments, filed eight late Form U5 amendments, and failed to file five Form U4 amendments.
During this period, the firm also purportedly failed to report or reported late statistical and summary information for 19 written customer complaints, reported late a $30,000 settlement of a customer’s claim against one of its associated persons for sales practice violations, and submitted 34 inaccurate or incomplete filings required by FINRA.
December 2015 – National Securities Corporation was reportedly censured and fined $4,000 for allegedly engaging in dishonest and unethical business practices, by both employing an individual who engaged in cold-calling without being registered as an agent under Connecticut securities law, and employing one or more agents who used sales presentations to mislead potential customers. According to FINRA, the firm did not maintain accurate and current books and records, as well as failed to create and maintain a system to supervise employees.
April 2015 – The firm was censured and fined $20,000 for reportedly failing to disclose that it would receive selling compensation for a private placement that it had marketed to potential investors.
December 2014 – National Securities Corporation was reportedly censured and fined $35,000 for allegedly filing late paperwork with FINRA, as well as reclassifying customer complaints as sales practice violations. The firm purportedly failed to report settlements of customer FINRA dispute resolution claims for damages exceeding $15,000 within the required time period.
Free Consultation with a Securities Attorney
The foregoing information, which is all publicly available, is being provided by The White Law Group. The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois.
If you have concerns regarding investments you purchased through National Securities Corp. and would like to speak with a securities attorney, please call The White Law Group at 888-637-5510.
For more information on The White Law Group, visit www.whitesecuritieslaw.com.