Articles Tagged with National Securities Corporation

shutterstock_164634200-300x200Advisor William Braun (Braun), currently employed by National Securities Corporation (National Securities), has been subject to at least eight customer complaints and regulatory action during the course of his career.  According to a BrokerCheck report some of the customer complaints concern private placements.  The attorneys at Gana Weinstein LLP have represented hundreds of investors who suffered losses caused by these types of high risk products.

In January 2020 a customer complained that Braun violated the securities laws by alleging that Braun engaged in sales practice violations related to breach of fiduciary duty, negligence, and unsuitable recommendations concerning investment(s) in private placements. The claim alleges $125,000 and is currently pending.

In November 2019 a customer complained that Braun violated the securities laws by alleging that Braun engaged in sales practice violations related to unsuitable recommendations concerning investment(s) in private placements. The claim alleges $200,000 and is currently pending.

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shutterstock_61848763-300x203According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) broker Andre Davis (Davis), currently associated with Paulson Investment Company LLC (Paulson Investment), has been subject to at least 15 customer complaints and two criminal matters during his career.  The majority of the customer complaints against Davis concern allegations of high frequency trading activity also referred to as churning.

In August 2019 a customer complained that Davis made unsuitable investment recommendations, excessive trading, and unauthorized trading. The claim alleges $350,000 in damages and is currently pending.

In June 2019 a customer complained that Davis churned their account and made unauthorized trades. The claim alleges $152,400 in damages and is currently pending.

In May 2019 a customer complained that Davis violated the securities laws by excessive trading, unauthorized trades, and unsuitable investments. The claim alleges $461,000 in damages and is currently pending.

In April 2019 a customer complained that Davis violated the securities laws by excessive trading and unauthorized trades. The claim alleges $300,000 in damages and is currently 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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shutterstock_1832895-300x199The law offices of Gana Weinstein LLP are currently investigating claims that advisor Rick Konecny (Konecny) engaged in violations of the securities laws.  Konecny, formerly registered with National Securities Corporation (National Securities) and J.P. Morgan Securities LLC (JP Morgan) out of Chicago, Illinois was barred from the financial industry according to a BrokerCheck report.  In addition, Konecny has been subject to at least eleven customer complaints, three regulatory actions, and one termination for cause during his career.  According to records kept by The Financial Industry Regulatory Authority (FINRA), many of the complaints against Konecny concern allegations of unsuitable investments.

In March 2016, Konecny was terminated J.P. Morgan Securities LLC over allegations of his failure to escalate client matters and failed to follow requirements with respect to execution of trades on a discretionary basis.

In April 2018, a customer alleged that from 2008 to 2013, Konecny’s recommendation of high-risk mining and metal equities was unsuitable to the customer’s investment needs. The customer requested $1,210,380 in damages.

In January 2018, a customer alleged that from July 2013 to October 2015, Konecny invested the account in an unsuitable and over concentrated manner causing $81,856.00 in damages.  The claim settled for $2,768.

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shutterstock_174858983-300x216According to BrokerCheck records financial advisor Mark Kolta (Kolta), currently employed by Worden Capital Management LLC (Worden Capital) has been subject to at least 14 customer complaints and one employment termination for cause.  According to records kept by The Financial Industry Regulatory Authority (FINRA), Kolta’s customer complaints allege that Kolta recommended unsuitable securities recommendations in a variety of products including alternative investments, equities, and annuities among other allegations of misconduct in the handling of customer accounts.

In April 2019 a customer filed a complaint alleging that Kolta violated the securities laws by, among other things, that Kolta made unsuitable investments, breach of fiduciary duty, and negligence causing $300,000 damages.  The claim is currently pending.

In March 2019 a customer filed a complaint alleging that Kolta violated the securities laws by, among other things, that Kolta made unsuitable investments, unauthorized trading, and misrepresentations causing $15,000 damages.  The claim is currently pending.

In February 2019 a customer filed a complaint alleging that Kolta violated the securities laws by, among other things, that Kolta made unsuitable investments, breach of fiduciary duty, breach of contract, and negligence concerning non-traded REITs and an annuity causing damages.  The claim is currently pending.

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shutterstock_128856874-300x200The securities attorneys at Gana Weinstein LLP are currently investigating previously registered broker Edward Mirabella (Mirabella). According to BrokerCheck records kept by the Financial Industry Regulatory Authority (FINRA), Mirabella has been subject to 5 customer disputes, 2 of which are still pending. Mirabella has also been subject to two tax liens. The majority of these disputes involve unsuitable investment recommendations, unauthorized trading, and breach of fiduciary duty.

Most recently, in November 2017, a customer alleged that Mirabella churned the customer account and engaged in unsuitable investment transactions. The customer has requested $879,584 in damages. This dispute is currently still pending.

In January 2014, a customer alleged that Mirabella was executing unauthorized trades in the customer account. The customer has requested $40,000 in damages. This complaint is currently still pending.

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.

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.

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.

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.

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.

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.

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.

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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