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National Securities Corporation: 70+ Customer and Regulatory Complaints

National Securities CorporationPublicly available records published by the Financial Industry Regulatory Authority (FINRA) and accessed on April 2, 2019 indicate that Washington-based broker-dealer firm National Securities Corporation has received more than 70 complaints from customers and regulatory authorities. Fitapelli Kurta is interested in hearing from investors who have complaints regarding National Securities Corporation (CRD# 7569).

Established in Washington in 1947, National Securities Corporation is headquartered in Seattle, Washington and registered with 53 US states and territories. According to its BrokerCheck report, it has received 62 regulatory sanctions and 15 customer complaints that evolved into arbitration.

In 2015 the Connecticut Banking Commissioner sanctioned National Securities Corporation in connection to allegations it participated in “dishonest or unethical” activities when it employed an unregistered individual who cold-called potential customers and asked qualifying questions, and that it employed “one or more agents who used sales presentation in a misleading manner.” The Commissioner’s complaint also included allegations that the firm did not maintain accurate and current books and records, and that it did not establish, maintain and enforce an adequately designed supervisory system. The firm was issued a fine of $4,000 and a cease-and-desist order.

In 2015 a customer alleged the firm breached its fiduciary duty, committed fraud, made misrepresentations and omissions of material facts, recommended unsuitable investments, failed in its supervisory duties, and acted negligently in connection to investments in common stock, private equities, and warrants and rights. The complaint resulted in an award to the customer of $155,000.

In 2015 FINRA sanctioned the firm in connection to allegations it executed transactions in a municipal security in an amount that was “lower than the minimum denomination of the issue” and that the transactions were not subject to any exception. The firm was censured and issued a fine of $25,000.

In 2015 FINRA sanctioned the firm in connection to allegations it provided potential customers it was soliciting for private placements with materials that did not disclose the selling compensation it would receive for selling the securities. The firm was censured and issued a fine of $20,000.

In 2015 a customer alleged the firm churned investments and executed unauthorized stock trades. The complaint resulted in an award to the customer of more than $504,400.

In 2015 a customer alleged the firm breached its fiduciary duty, committed fraud, made unsuitable investment recommendations, executed unauthorized transactions, breached contract, failed in its supervisory duties, and acted negligently. The complaint resulted in an award to the customer of $42,937.

In 2014 FINRA sanctioned National Securities Corporation in connection to allegations it “filed late amendments to Forms U4 and late amendments to Forms U5,” and additionally that it reclassified investor complaints as sales practice violations. The firm was censured and issued a fine of $35,000.

In 2013 FINRA sanctioned the firm in connection to allegations it conducted securities business while operating at a net capital deficiency. It was censured and issued a fine of $40,000.

In 2013 FINRA sanctioned the firm in connection to allegations it “sold or bought corporate bonds to of from customers” but did not execute the transactions at a fair price. It was censured and issued a fine of $18,000.

In 2013 a customer alleged National Securities Corporation churned investments, breached its fiduciary duty, made unsuitable investment recommendations, breached contract, failed in its supervisory duties, and acted negligently in connection to investments in mutual funds and certificates of deposits. The complaint resulted in an award to the customer of more than $219,000.

In 2012 FINRA sanctioned the firm in connection to allegations it failed to establish and implement reasonably designed anti-money laundering program policies and consequently “failed to identify or ignored red flags” suggesting multiple potentially suspicious transactions. The firm was censured and issued a fine of $65,000.

In 2010 FINRA sanctioned the firm in connection to allegations it failed to timely file amendments to Forms U4 and U5, filed inaccurate forms U4 and U5, and failed to file a report regarding a customer complaint. It was censured and issued a fine of $22,500.

In 2009 FINRA sanctioned the firm in connection to allegations it failed to timely transmit last sale reports regarding OTC equity securities to the OTCRF, and that it failed to mark the reports as late. The firm was censured and issued a fine of $105,500.

In 2009 FINRA sanctioned the firm in connection to allegations it failed to accurately complete a self-assessment of its breakpoint compliance. The firm was censured and issued a fine of $25,000.

In 2007 the NASD sanctioned the firm in connection to allegations it overlooked red flags indicating that one of its representative was “circumventing” a heightened supervision plan. It was censured and issued a fine of $20,000.

In 2007 a customer alleged the firm breached its fiduciary duty, churned investments, made margin calls, and acted negligently. The complaint resulted in an award to the customer of more than $159,100.

In 2004 FINRA sanctioned the firm over allegations it “facilitated deceptive practices” in connection to market timing by institutional clients. The firm was censured and issued a fine of $300,000.

In 2003 a customer alleged National Securities Corporation breached contract, failed in its supervisory duties, acted negligently, and made erroneous charges. The complaint resulted in an award to the customer of more than $81,400.

In 2003 the Florida Office of Financial Regulation sanctioned the firm in connection to allegations it failed to preserve electronic communications and other records concerning customer complaints. The firm was issued a fine of $15,000 and ordered to update its written supervisory procedures.

In 2002 the NASD sanctioned the firm in connection to allegations it “willfully failed to disclose” complaints on its registered representatives’ disclosure forms. It was censured and issued a fine of $32,500.

In 2001 the NASD sanctioned the firm in connection to allegations it failed to report applicable options positions, failed to update quotes to reflect clients’ limit orders, incorrectly reported short positions to the NASD, and failed to have supervisory procedures adequately designed to achieve compliance with securities laws and regulations regarding purchases of mutual fund B shares. The firm was censured and issued a fine of $35,000.

In 2001 the State of Florida sanctioned the firm in connection to allegation sit had not properly registered a branch office in the state. It was issued a fine of $5,000.

In 2001 a customer alleged National Securities Corporation breached its fiduciary duty, made unsuitable investment recommendations, executed unauthorized trades, and failed in its supervisory duties. The complaint resulted in an award to the customer of $600,000.

In 2001 a customer alleged National Securities Corporation misrepresented and omitted material facts, failed in its supervisory duties, and breached its fiduciary duty. The complaint resulted in an award to the customer of more than $147,300.

In 1999 the NASD sanctioned the firm in connection to allegations it violated conduct rules by selling securities “below the public offering price in what was alleged to be a fixed price offering.” The firm was censured and issued a fine of $51,000.

In 1998 the State of Missouri sanctioned the firm following allegations it accepted a mass transfer of agents who had been the subject of a cease-and-desist order. The firm’s registration was summarily suspended.

In 1998 the Connecticut Department of Banking sanctioned the firm in connection to allegations involving businesses expenses that “were not paid directly by the firm” and consequently not carried on its books, and also that certain agents at one of its locations used unreviewed sales presentations which were “materially false and misleading.” The firm was issued a fine of $72,500.

In 1994 the State of Virginia sanctioned the firm in connection to allegations it transacted business without registration and employed an unregistered agent. The firm was issued a fine of $25,000.

In 1993 the State of Idaho sanctioned the firm in connection to allegations it failed to supervise and had inadequate compliance procedures. The firm was issued a fine of $3,000.

In 1992 a customer alleged the firm breached its fiduciary duty, breached contract, omitted material facts, and acted negligently. The complaint resulted in an award to the customer of more than $60,000.

In 1991 a customer alleged the firm misrepresented material facts, breached its fiduciary duty, executed unauthorized transactions, and made unsuitable investment recommendations. The complaint resulted in an award to the customer of $10,658.

In 1999 a customer alleged the firm breached its fiduciary duty, misrepresented material facts, breached contract, and acted negligently. The complaint resulted in an award to the customer of $15,750.

In 1987 the State of Iowa sanctioned the firm in connection to allegations it failed in its supervisory duties and transacted business without registration. The firm was ordered to pay a penalty of $7,500.

In 1980 the SEC sanctioned the firm in connection to allegations it charged excessive mark-ups and commissions. It was censured and ordered to improve its supervisory procedures.

If you or someone you know has a complaint regarding National Securities Corporation, call Fitapelli Kurta at 877-238-4175 for a free consultation. You may be able to recover lost funds. Fitapelli Kurta accepts all cases on contingency: we only get paid if and when you collect money. You may have a limited window to file your complaint, so we encourage you to avoid delay. Call 877-238-4175 now to speak to an attorney for free.

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