National Securities Corporation (NSC) located in Seattle, Washington submitted a Letter of Acceptance, Waiver and Consent (AWC) to the Department of Enforcement of the Financial Industry Regulatory Authority (FINRA) for allegedly failing to disclose to investors the compensation they had received. NSC has been registered with FINRA since 1947 and provides retail brokerage, investment banking and investment advisory services. NSC is alleged by FINRA to have offered two private placements of its parent company National Holdings Corporation (National Holdings). Although NSC generally disclosed to investors that it would receive compensation in connection with private placement sales, FINRA determined that NSC did not disclose, in writing, the compensation it would receive for each private placement, thereby violating FINRA Rules 5122 and 2010.
Without admitting or denying the findings, NSC consented to the FINRA sanctions. FINRA claimed that NSC provided investors with the two offerings with the Registration Rights Agreement, SPA, non-disclosure agreement, and various other documents that did not include compensation it would receive in connection with each offering. The NSC sales escalated approximately $12 million for the two offerings. NSC received $212,291 and 100,090 restricted shares of National Holdings for the first offering and $158,750 for the second offering. FINRA Rule 5122 requires a member firm engaging in a private placement of its own securities to disclose, in writing, any paid compensation. Due to the alleged violations, National Securities Corporation was censured and fined $20,000.
Do You Need an Attorney for a Failure to Disclose Securities Matter?
Washington has thousands of stock brokerage firms and investment advisory offices. With so many stock brokerage firms and investment advisory offices, comes the potential for their stockbrokers, financial advisors, and other representatives to fail to disclose material facts making the statements made about the stock, bond and other securities false and misleading and other stockbroker misconduct which violates Federal and Washington securities laws and Financial Industry Regulatory Authority (FINRA) rules and stock brokerage firms policies and procedures.
Experienced Attorneys For Securities Failure to Disclose Claims In FINRA Arbitrations Throughout Washington and Nationwide.
Are you a Washington investor who has suffered significant losses in your stock brokerage and investment accounts? Did your Washington stockbroker or investment advisor fail to disclose important facts about an investment the stockbroker recommended and otherwise mismanage your investment account? If so, you will need to have representation by an experienced, highly-rated and nationally recognized FINRA arbitration securities lawyer — an attorney who knows how to handle these false and misleading statement cases as well as other complex legal issues.
By hiring a top rated securities attorney like Robert Wayne Pearce with over 40 years of experience with failure to disclose claims by practicing securities law on both sides of the table in FINRA arbitration proceedings, you will clearly see that Attorney Pearce doesn’t just handle cases—he aggressively represents investors and one of the best securities attorneys to recover your investment losses due to false and misleading statements in FINRA arbitration proceedings!
At The Law Offices of Robert Wayne Pearce, P.A., we represent investors with failure to disclose claims and all kinds of securities law and investment disputes in FINRA arbitration and mediation proceedings. We handle a wide range of practice areassuch asfraud and misrepresentation, breach of fiduciary duty, failure to supervise, and unsuitable recommendations. Attorney Pearce and his staff represent investors throughout Washington, and across the United States on a CONTINGENCY FEE basis, which means you pay nothing – NO FEES-NO COSTS – unless we put money in your pocket after receiving a settlement or FINRA arbitration award.
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The Law Offices of Robert Wayne Pearce, P.A. are highly experienced lawyers who successfully handle failure to disclose a/k/a false and misleading statement claims and other securities law matters and investment disputes, and who work tirelessly to secure the best possible result for you and your case. For dedicated representation by an attorney with over 40 years of experience and success in failure to disclose and all kinds of securities law and investment disputes serving Washington citizens, contact the firm by phone at 561-338-0037, toll free at 800-732-2889 or via e-mail.