Our investment attorneys are investigating customer complaints filed with The Financial Industry Regulatory Authority (FINRA) against Matthew Fleissner (Fleissner) currently associated with National Securities Corporation (National Securities) alleging unauthorized trading and excessive fees and commissions among other claims. According to brokercheck records Fleissner has been subject to two customer complaints and one criminal matter.
The type of claims being made against Fleissner are often associated with claims of excessive trading or churning. When brokers engage in excessive trading the broker will typically trade in and out of securities, sometimes even the same stock, many times over a short period of time. Often times the account will completely “turnover” every month with different securities. Many brokers who engage in churning will not take the time to explain to the investor the exact reasons for the transactions and will provide vague and general responses to requests for information such as this is the strategy we are pursuing.
Churning investment trading activity in a client’s account serves no reasonable purpose for the investor and is engaged in only to profit the broker through the generation of commissions. Churning is considered a type of securities fraud. The elements of the claim are excessive transactions of securities, broker control over the account, and intent to defraud the investor by obtaining unlawful commissions. A similar claim, excessive trading, under FINRA’s suitability rule involves just the first two elements. Certain commonly used measures and ratios used to determine churning help evaluate a churning claim. These ratios look at how frequently the account is turned over plus whether or not the expenses incurred in the account made it unreasonable that the investor could reasonably profit from the activity.
Fleissner entered the securities industry in 2010. From October 2010 through June 2011, Fleissner was registered with Garden State Securities, Inc. Since June 2011 Fleissner has been associated with National Securities out of the firm’s New York, New York office location.
According to a recent study conducted by the Securities Litigation and Consulting Group entitled “How Widespread and Predictable is Stock Broker Misconduct?” the incidents of investor harm at National Securities is extraordinarily high. The study ranked National Securities as the third worst brokerage firm finding that brokers at the firm had over a 31% misconduct rate. The study stated that investors should stay away from National Securities “Given their coworkers’ disclosure record as of 2014, 83.7% of the brokers at these six firms would be in the highest risk quintile as defined in the FINRA study and should be avoided by investors. The BrokerCheck reports for most of the brokers at these six firms should prominently display a skull and crossbones warning.”
Gana LLP’s securities fraud attorneys represent investors who have suffered securities losses due to the mishandling of their accounts due to claims of fraud and negligence. The majority of these claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.