Articles Tagged with National Securities

shutterstock_120556300-300x300According to BrokerCheck records financial advisor Thomas Kelly (Kelly), currently employed by Aegis Capital Corp. (Aegis) has been subject to an astonishing 19 customer complaints during his career.  According to records kept by The Financial Industry Regulatory Authority (FINRA), the complaints against Kelly concern allegations of unsuitable investments and allegations of unauthorized trading, misrepresentations and negligence mostly in equity products.

In November 2018 a customer complained that Kelly recommended investments that violated the securities laws by recommending unsuitable investments, unauthorized trading, breach of fiduciary duty, and negligence.  The customer alleges $500,000 in damages and the claim is currently pending.

In October 2018 a customer complained that Kelly recommended investments that violated the securities laws including misrepresentations, negligence, and breach of fiduciary duty. The customer claimed $230,000 in damages and is currently pending.

In August 2018 a customer complained that Kelly recommended investments that violated the securities laws including unsuitable investments, misrepresentations, negligence, and breach of fiduciary duty. The customer claimed $750,000 in damages and is currently pending.

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shutterstock_26813263-300x199According to BrokerCheck records former financial advisor Thomas Kelley (Kelley), currently employed by Aegis Capital Corp. (Aegis) has been subject to an astonishing 19 customer complaints in his career.  According to records kept by The Financial Industry Regulatory Authority (FINRA), many of the complaints against Kelley concern allegations of unsuitable investments.

In November 2018 a customer filed a complaint alleging that Kelley engaged in unsuitable investments, unauthorized trading, and breach of fiduciary duty causing $500,000 in damages.  The complaint is currently pending

In October 2018 a customer filed a complaint alleging that Kelley engaged in misrepresentations, negligence, and breach of fiduciary duty causing $230,000 in damages.  The complaint is currently pending.

In August 2018 a customer filed a complaint alleging that Kelley engaged in unsuitable recommendations, misrepresentations, and breach of fiduciary duty causing $750,000 in damages.  The complaint is currently pending.

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shutterstock_97819226The securities lawyers of Gana Weinstein LLP are investigating a customer complaint filed with The Financial Industry Regulatory Authority (FINRA) against broker Robert Rotunno (Rotunno).  According to BrokerCheck records Rotunno has been subject to at least six customer complaints.  The customer complaints against Rotunno allege securities law violations that including unsuitable investments, churning, and excessive trading among other claims.

The most recent complaint was filed in July 2016 alleging $80,000 in damage stemming from churning and unsuitable investments.  The complaint settled for $20,000.

Rotunno is currently associated with National Securities Corporation (National Securities), a firm recently featured in a study ranking brokerage firms by incidents of misconduct.  According to a 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.”

shutterstock_184430498The securities fraud lawyers of Gana Weinstein LLP are investigating customer complaints filed with The Financial Industry Regulatory Authority’s (FINRA) against broker Sean McCabe (McCabe).  According to BrokerCheck records McCabe has been the subject of at least four customer complaints.  The customer complaints against McCabe allege 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 March 2016 and alleged breach of fiduciary duty, negligence, misrepresentation, and negligence causing $550,000 in damages.  The complaint is currently pending.  Also in March 2016 another investor filed a similar complaint and alleged breach of fiduciary duty, negligence, misrepresentation, and negligence causing $150,000 in damages.  The complaint 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.

shutterstock_27597505The securities lawyers of Gana Weinstein LLP are investigating customer complaints filed with The Financial Industry Regulatory Authority’s (FINRA) against broker Matthew Silato (Silato).  According to BrokerCheck records there are at least six customer complaints, two financial disclosures, and one criminal matter involving Silato.  The most recent customer complaints against Silato allege a number of securities law violations including breach of fiduciary duty and suitability among other claims.  The most recent claim alleging $250,627 filed in June 2016 is currently pending.  In December 2015, a customer filed a complaint alleging unsuitable investments and claiming $522,941 in damages.  That case is currently pending.

Brokers have a responsibility treat investors fairly which includes obligations such as making only suitable investments for the client.  In order to make a suitable recommendation the broker must meet certain requirements.  First, there must be reasonable basis for the recommendation the product or security based upon the broker’s investigation and due diligence into the investment’s properties including its benefits, risks, tax consequences, and other relevant factors.  Second, the broker then must match the investment as being appropriate for the customer’s specific investment needs and objectives such as the client’s retirement status, long or short term goals, age, disability, income needs, or any other relevant factor.

The number of customer complaints against Silato is high relative to his peers.  According to InvestmentNews, only about 12% of financial advisors have any type of disclosure event on their records.  Brokers must publicly disclose certain types of reportable events on their CRD including but not limited to customer complaints.  In addition to disclosing client disputes brokers must divulge IRS tax liens, judgments, and criminal matters.  However, FINRA’s records are not always complete according to a Wall Street Journal story that checked with 26 state regulators and found that at least 38,400 brokers had regulatory or financial red flags such as a personal bankruptcy that showed up in state records but not on BrokerCheck.  More disturbing is the fact that 19,000 out of those 38,400 brokers had spotless BrokerCheck records.

shutterstock_140321293The securities lawyers of Gana Weinstein LLP are investigating a customer complaint filed with The Financial Industry Regulatory Authority (FINRA) against broker Nathaniel Clay (Clay).  According to BrokerCheck records Clay has been subject to at least six customer complaint and one employment termination for cause.  The customer complaints against Clay allege securities law violations that including unsuitable investments, churning, excessive trading, and unauthorized trading among other claims.

The most recent complaint was filed in December 2015 alleging $513,218 in damage stemming from unauthorized trading, negligence, breach of fiduciary duty, and misrepresentations.  The complaint is still pending.

Clay’s former brokerage firm National Securities Corporation (National Securities) was recently featured in a study ranking brokerage firms by incidents of misconduct.  According to a 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.”

shutterstock_101394817The securities lawyers of Gana Weinstein LLP are investigating customer complaints filed with The Financial Industry Regulatory Authority (FINRA) against former National Securities Corporation (National Securities) broker John Labarca (Labarca).  According to BrokerCheck records Labarca was barred from the securities industry in February 2016 after he refused to provide information and documents requested by FINRA in connection with its investigation of allegations made against Labarca in a statement of claim filed by a customer.

Labarca has been subject to at least three customer complaints and one financial disclosure that was a bankruptcy filing.  Such disclosures on a broker’s record can reveal a financial incentive for the broker to recommend high commission products or services.  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.  The customer complaints against Labarca allege securities law violations that including unsuitable investments, unauthorized trading, and breach of fiduciary duty among other claims.

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.”

shutterstock_183525503The securities lawyers of Gana Weinstein LLP are investigating customer complaints filed with The Financial Industry Regulatory Authority (FINRA) against National Securities Corporation (National Securities) broker Daniel Alcide (Alcide).  According to BrokerCheck records Alcide has been subject to at least three customer complaints and two financial disclosures including a bankruptcy.  The customer complaints against Alcide alleges securities law violations that including unsuitable investments, unauthorized trading, and fraud among other claims.

In December 2015 a customer filed a complaint alleging $150,000 in damage stemming from a fraudulent private placement.  The complaint was denied.  In addition, in 2011 Alcide filed for bankruptcy.  Such disclosures on a broker’s record can reveal a financial incentive for the broker to recommend high commission products or services.  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.

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.”

shutterstock_155271245The securities lawyers of Gana Weinstein LLP are investigating a customer complaint filed with The Financial Industry Regulatory Authority (FINRA) against National Securities Corporation (National Securities) broker Jason Wilk (Wilk).  According to BrokerCheck records Wilk has been subject to at least one customer complaint.  The customer complaints against Wilk alleges securities law violations that including unsuitable investments, unauthorized trading, and breach of fiduciary duty among other claims.

In January 2016 a customer filed a complaint alleging $53,532 in damage stemming from unsuitable investment.  The complaint settled.

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.”

shutterstock_115937266According to the BrokerCheck records kept by Financial Industry Regulatory Authority (FINRA) broker Salvatore Pizzimenti (Pizzimenti) has been the subject of at least 4 customer complaints. Customers have filed complaints against Pizzimenti alleging securities law violations including claims of churning and excessive trading, unsuitable investments, excessive commissions, unauthorized trading, breach of fiduciary duty, and fraud among other claims. In 2013, a customer complained that Pizzimenti churned their account causing $500,000 in damages. In August 2012, another customer also complained that Pizzimenti recommended a high risk private placement and also charged excessive fees causing $1,000,000 in damages.

Pizzimenti entered the securities industry in 2004. From January 2007, until January 2009, Pizzimenti was registered with Pointe Capital, Inc. From January 2009, until February 2010, Pizzimenti was associated with National Securities Corporation. From February 2010, until August 2011, Pizzimenti was a registered representative of J.P. Turner & Company, L.L.C. Since August 2011, Pizzimenti has been associated with Legend Securities, Inc. out of the firm’s New York, New York office location.

All advisers have a fundamental responsibility to deal fairly with investors including making suitable investment recommendations. In order to make suitable recommendations the broker must have a reasonable basis for recommending the product or security based upon the broker’s investigation of the investments properties including its benefits, risks, tax consequences, and other relevant factors. In addition, the broker must also understand the customer’s specific investment objectives to determine whether or not the specific product or security being recommended is appropriate for the customer based upon their needs.