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Broker Complaints: National Securities Corp. (CRD# 7569)

National Securities Corp. has a history of customer and regulatory complaints. National Securities Corp. is a licensed broker-dealer registered with FINRA, or the Financial Industry Regulatory Authority. National Securities Corp. has been a FINRA member since 1947. National Securities Corporation has over 775 registered representatives in more than 80 branches nationwide.

Customer complaints against National Securities Corp. are governed by FINRA. As a FINRA member firm, National Securities Corp. is required to arbitrate all customer related complaints before FINRA. We exclusively handle FINRA complaint on behalf of investors and are investigating customer complaints against National Securities Corp. We are interested in speaking to investors who may have lost money through the firm’s misconduct.

According to FINRA, National Securities Corporation has no less than 57 reported regulatory complaints. These complaints include investigations, fines and disciplinary actions by FINRA, the Securities and Exchange Commission and individual state securities regulators.

In 2004, National Securities Corp. had the unfortunate distinction of being the first FINRA (then called NASD) member ever prohibited from opening mutual fund accounts for new clients for 30 days in response to deceptive market timing practices. The firm was also fined $300,000 in what was described as an unprecedented fine. The fine and suspension arose from complaints concerning National Securities assistance to various hedge funds that were unlawfully using deceptive trading practice known as “market timing.”

In 2011, National Securities Corp. was fined $175,000 and order to pay restitution in connection with the sale of high risk private placements issued by Provident Royalties and Medical Capital Holdings, Inc. Both investments ultimately failed, costing investors their entire principal investment. In addition to the fine and restitution, National Securities Corporation’s director of alternative invests was suspended for six months and personally fined $10,000 in connection with this complaint.

In July 2009, National Securities Corp. was fined $105,500 by FINRA for trade reporting violations as well as for having inadequate supervisory systems in place. These supervisory systems are critically important to protect the financial well-being of National Securities Corp.’s customers and to protect against broker misconduct.

In July 2013, National Securities Corp. was fined $40,000 by FINRA for failing to maintain accurate books and records. Specifically, FINRA alleged that National Securities Corp.’s inaccurate books and records caused the company to become net capital deficient, which means that it had less than the minimum level of capital required by FINRA and the SEC to operate safely. “Net capital requirements are designed to help ensure the financial stability of broker-dealer firms, and accurate financial reporting is a cornerstone of the process,” said Barry Goldsmith, NASD Executive Vice President and Head of Enforcement.

Fitapelli Kurta works exclusively for investors who have lost money at firms such as National Securities Corp. We prosecute our cases on a contingency basis and we will not get paid unless our clients recover money. If you or someone you know suffered losses with National Securities Corp. please contact us today. Our attorneys will evaluate your complaint against National Securities Corp. for free and will let you know if you have a viable claim against the firm.