Articles Tagged with National Securities Corporation

shutterstock_112866430-300x199According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) broker Jay Shah (Shah) has been subject to five customer complaints.  Shah is currently registered with National Securities Corporation (National Securities).  In May 2017 a customer filed a complaint alleging a number of securities law violations including that the broker engaged in churning (excessive trading), material misrepresentations and omissions, and unsuitable recommendations, among other claims.  The claim alleged $213,085 in damages and is currently pending.

In August 2015 another customer complained that Shah rendered poor investment advice claiming $100,000 in damages.  The claim was closed.  In March 2012 another customer claimed that Shah engaged in unauthorized trading in the customer’s account  The claim was closed.

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shutterstock_128856874-300x200According to BrokerCheck records financial advisor Jonathan Iraggi (Iraggi), currently associated with National Securities Corporation (National Securities), has been subject to two customer complaints and one employment separation for cause.  According to records kept by The Financial Industry Regulatory Authority (FINRA) Iraggi has been accused by customers of unauthorized trading among other claims.

In July 2017, Iraggi was permitted to resign from Garden State Securities, Inc. (Garden State) after allegations were made that the broker engaged in unauthorized trading.  Also in July 2017 a customer filed a complaint against Iraggi stating damages of $22,000 caused by unauthorized trades.  The claim was denied by the firm.  In 2015 another customer filed a complaint also claiming unauthorized trading.

Advisors are not allowed to engage in unauthorized trading.  Such trading occurs when a broker sells securities without the prior authority from the investor. All brokers are under an obligation to first discuss trades with the investor before executing them under NYSE Rule 408(a) and FINRA Rules 2510(b).  These rules explicitly prohibit brokers from making discretionary trades in a customers’ non-discretionary accounts. The SEC has also found that unauthorized trading to be fraudulent nature because no disclosure could be more important to an investor than to be made aware that a trade will take place.

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shutterstock_176534375-300x198Our securities fraud attorneys are investigating customer complaints filed with The Financial Industry Regulatory Authority (FINRA) against Michael Siegel (Siegel) formerly associated with National Securities Corporation – d/b/a HudsonPoint Capital – alleging Siegel engaged in a number of securities law violations including that the broker made unsuitable investments, unauthorized trading, and churning (excessive trading) among other claims.  The claim filed in July 2016 seeks $2,016,064 in damages.

Thereafter, FINRA barred Siegel from the securities industry alleging that the broker failed to respond to the regulator’s requests for documents and information.

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Our securities fraud attorneys are investigating customer complaints filed with The Financial Industry Regulatory Authority (FINRA) against Christopher Bond (Bond) currently associated with National Securities Corporation alleging Bond engaged in a number of securities law violations including that the broker made unsuitable investments and unauthorized trading among other claims.  According to BrokerCheck, Bond currently has two customer complaints, three criminal matters, and one judgement / lien.

In October 2016, Bond was charged with criminal mischief in the third degree.  Prior to that, in September 2016 a customer complained that Bond provided unsuitable investment advice resulting in $546,735 in damages.  The claim is currently pending.

In March 2016, a tax lien was filed against Bond for $80,000.  A broker’s inability to handle their personal finances has also been found to be relevant in helping investors determine if they should allow the broker to handle their finances.

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shutterstock_157506896-300x300Our securities fraud attorneys are investigating customer complaints filed with The Financial Industry Regulatory Authority (FINRA) against Mark Gassoso (Gassoso) currently associated with National Securities Corporation alleging Gassoso engaged in a number of securities law violations including that the broker made unsuitable investments, unauthorized trading, and churning (excessive trading) among other claims.

The most recent complaint was filed in October 2016 alleging unsuitable investments, breach of fiduciary duty, and misrepresentations causing $150,000 in damages.  The complaint is currently pending.  In September 2013 another investor filed a complaint and alleged excessive trading.  The complaint was denied.

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shutterstock_143685652-300x300Our securities fraud attorneys are investigating customer complaints filed with The Financial Industry Regulatory Authority (FINRA) against Douglas Studer (Studer) formerly associated with Kovack Securities Inc. (Kovack) alleging unauthorized trading among other claims.  According to brokercheck records Studer has been subject to two customer complaints, one bankruptcy in 2010, and one regulatory sanction resulting in a permanent bar from the securities industry.

In September 2016 FINRA sanctioned Studer alleging that he consented to the entry of findings that he refused to appear for testimony concerning an investigation into whether he had violated his employing member firm’s policy by being named in an elderly customer’s estate documents to inherit the customer’s waterfront condominium.

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shutterstock_156972491Our investment attorneys are investigating customer complaints filed with The Financial Industry Regulatory Authority (FINRA) against financial advisor Wayde Walker (Walker) currently registered with National Securities Corporation (National Securities), alleging unsuitable investments, fraud, breach of fiduciary duty, churning, and unauthorized trading among other claims.  According to brokercheck records Walker has been subject to seven customer complaints and three tax liens.

In May 2016 Walker disclosed a tax lien of $42,132.72.  In September 2015 Walker disclosed a tax lien of $110,255.57.  Also in May 2015 Walker disclosed another tax lien of $39,257.39.  A broker’s inability to pay debts may also be an indicator that a broker may solicit funds and loans from his clients or otherwise engage in other misconduct to raise funds to satisfy personal obligations.

In December 2015 a customer filed a complaint involving Walker alleging that the broker made unauthorized trades and misrepresented securities among other claims.  The customer alleged $513,218.40 in damages.  The claim is current pending.

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shutterstock_20354401Our 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.

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shutterstock_145368937Investment attorneys at Gana LLP are investigating customer complaints filed with The Financial Industry Regulatory Authority (FINRA) against Joseph Thurnherr (Thurnherr) alleging unsuitable investments, fraud, churning, breach of fiduciary duty, and unauthorized trading among other claims.  According to brokercheck records Thurnherr has been subject to five customer complaints, and one judgment/lien.

In November 2014, Thurnherr received a tax lien in the amount of $27,663.  A broker’s inability to handle their personal finances has also been found to be relevant in helping investors determine if they should allow the broker to handle their finances.

In June 2016 a customer filed a complaint alleging that Thurnherr overconcentrated their account causing $93,624 in losses.  The claim is currently pending.

Brokers in the financial industry have the fundamental responsibility to treat investors fairly.  This obligation includes making only suitable investments for their client.  The suitable analysis has certain requirements that must be met before the recommendation is made.  First, there must be reasonable basis for the recommendation for the investment based upon the broker’s and the firm’s investigation and due diligence.  Common due diligence looks into the investment’s properties including its benefits, risks, tax consequences, the issuer, the likelihood of success or failure of the investment, and other relevant factors.  Second, if there is a reasonable basis to recommend the product to investors the broker then must match the investment as being appropriate for the customer’s specific investment needs and objectives.  These factors include the client’s age, investment experience, retirement status, long or short term goals, tax status, or any other relevant factor.

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shutterstock_113872627The securities fraud lawyers of Gana LLP are investigating customer complaints filed with The Financial Industry Regulatory Authority’s (FINRA) against broker Michael McMahon (McMahon). According to BrokerCheck records McMahon has been the subject of at least nine customer complaints since November 2007. The customer complaints against McMahon allege a number of securities law violations including that the broker made unsuitable investments, unauthorized trading, negligence, breach of fiduciary duty, and churning (excessive trading) among other claims.

The most recent customer complaint filed in July 2015 and alleged breach of fiduciary duty, negligence, and misrepresentations claiming $1 million in damages. The claim is still pending. Also in July 2015, another client filed a complaint alleging McMahon made unsuitable investments among other claims claiming $442,000 in damages. The dispute is currently pending. In a third complaint filed in June 2015, an investor claimed that McMahon engaged in excessive trading and made unauthorized trades among other claims resulting in over $250,000 in damages. The claim is still pending.

When brokers engage in excessive trading, sometimes referred to as churning, the broker will typical 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. This type of investment trading activity in the client’s account serves no reasonable purpose for the investor and is engaged in only to profit the broker through the generation of commissions created by the trades. Churning is considered a species 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.

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