Articles Tagged with National Securities Corporation

Chicago-based Stoltmann Law Offices, P.C. represents GPB investors in claims against brokerage firms and financial advisors who solicited investments in the GPB Capital Funds.  GPB was named in a criminal indictment by the U.S. Department of Justice on February 4. GPB’s top executives were charged with fraud and running a Ponzi scheme. The government charged three GPB executives — David Gentile, Jeffrey Schneider and Jeffrey Lash — with securities fraud, wire fraud and conspiracy.

According to Investment News, “GPB raised $1.8 billion from investors starting in 2013 through sales of private partnerships, but it has not paid investors steady returns, called distributions, since 2018. More than 60 broker-dealers partnered with GPB to sell the private placements and charged customers charged clients commissions of up to 8%.” Stoltmann Law Offices pursues those brokerage firms for their investor-clients to recover GPB losses.

Gentile, the owner and CEO of GPB Capital, and Schneider, owner of GPB Capital’s agent Ascendant Capital, are charged with lying to investors about the source of money used to make 8% annualized investor payments, according to the SEC’s complaint. Using the marketing broker-dealer Ascendant Alternative Strategies, GPB told investors that the unusually high payments were paid exclusively with monies generated by GPB Capital’s portfolio companies, the SEC alleged. At first glance, the distributions were highly appealing to investors, since ultra-safe U.S. Treasury Notes are yielding around 1%.

Stoltmann Law Offices is investigating Vito James Balsamo, a former registered representative with National Securities Corporation. Allegedly, Balsamo solicited securities to three investors, who were also his clients. The securities involved ownership interests in V.W. Industries. The Financial Industry Regulatory Authority (FINRA) alleged that the securities offerings were outside the scope of National Securities Corporation, but that the company wanted Balsamo to sell interests in the company by promising him ownership interests. Balsamo was able to secure $475,000 from the three investors without the knowledge or approval of his firm. This is known as selling away, and is when a broker solicits a client to purchase securities not held or offered by the brokerage firm he is associated with. This activity is a violation of securities regulations.

Mr. Balsamo was registered with D.H. Blair & Co., Thomas James Associates, Barington Capital Group, Joseph Stevens & Company, LCP Capital Corp., and National Securities Corporation. He has four customer disputes against him, one of which is pending. He is not currently associated with any FINRA member firm, nor is he licensed to act as a broker or investment advisor.

If you invested money with Vito James Balsamo, his former firm, National Securities Corporation, can be sued for investment losses. They had a duty to reasonably supervise him while he was employed there, and since they did not, they can be held liable for monetary losses. Please call our securities law firm in Chicago at 312–332–4200 to speak to an attorney.

Stoltmann Law Offices is investigating Robert Child, a National Securities Corporation broker and investment adviser. He is alleged to have not made suitable recommendations, being negligent, breaching fiduciary duty and misrepresenting. The customers who brought claims against him are requesting over $2.7 million in damages. If you or someone you know lost money with Robert Child, you may have a possible claim against National Securities Corporation. We sue firms such as these in the Financial Industry Regulatory Authority (FINRA) arbitration forum to recover money for investors on a contingency fee basis. The call is free with no obligation so please call today. 312-332-4200.

According to his online FINRA BrokerCheck report, Child was registered with JB Hanauer & Co., Smith Barney, Harris Upham & Co., EF Hutton & Co., Shearson Lehman Hutton Inc., Prudential Securities Inc., UBS Painewebber, and VFinance Investments in Boca Raton, Florida from August 2001 until December 2012. He is currently registered with National Securities Corp in Boca Raton and has been since November 2012. He has 13 customer disputes against him, three of which are currently pending.

According to a press release last week, a North Dakota farmer brought a claim against National Securities Corporation, alleging that brokers at the firm engaged in churning in his account, recommended unsuitable high risk securities and used boiler room tactics to convince him to invest in the unsuitable securities. Boiler room tactics can be classified by brokers selling stock (typically micro-cap stock) and using false or misleading statements to sell it, because of their overwhelming desire to sell the stock and claim large commissions for themselves. Often, the stocks that are touted trade on the Pink Sheets (or the system on which companies trade do not need to meet minimum requirements or file with the SEC), because this exchange requires very little in terms of disclosure and regulation.

According to the press release, brokers at National Securities Corp recommended the client purchase a small amount of stock in an agricultural security. Subsequently, the brokers then recommended the client invest most of the remaining balance of his account in a single high-risk security called the First Hand Technology Value. This concentrated approximately half of the client’s net worth into a single security. A broker must take into account the client’s age, net worth, investment objectives and portfolio sophistication before recommending or selling a security. If he does not, his brokerage firm may be responsible for investment losses because it is the firm’s responsibility to reasonably supervise their brokers.

Up until that point, the client’s investment experience had been limited to self-directed trades in a relatively small online account, and conservative trades in his IRA. According to the allegations in a claim filed with the Financial Industry Regulatory Authority (FINRA), the brokers failed to discuss with the customer his investment experience, and also failed to discuss the risky and speculative nature of the securities they were purchasing for them. The brokers continued to aggressively buy and sell stocks in the customer’s account, sometimes using margin debt. The client was not aware what margin was, nor was he aware that he was accumulating significant interest obligations. When the client attempted to close his account in 2014, the brokers met with the client in person, convincing him to leave the account in their hands and convincing him to give them more money. The customer then gave them the rest of his savings, which the brokers subsequently put half into a single illiquid, high-fee investment. These tactics resulted in the client losing more than half a million dollars, not including his losses sustained in a private real estate investment trust (REIT).

Stoltmann Law Offices is investigating customer complaints filed with the Financial Industry Regulatory Authority (FINRA) against former National Securities Corporation broker John Labarca. According to FINRA BrokerCheck records, Labarca was barred from the securities industry in February 2016. He was being investigated for breaching securities rules and regulations which include making unsuitable investment recommendations, making unauthorized trades and breaching fiduciary duty, among other claims. Labarca was registered with Oppenheimer & Co. in New York, New York from October 1991 until July 1997, Gruntal & Co. in New York from July 1997 until May 2002, Ryan Beck & Co. in New York from April 2002 until June 2006, Wells Fargo Advisors in New York from June 2006 until February 2010 and National Securities Corp in Edison, New Jersey from February 2010 until February 2016. He has three customer disputes against him, one of which is currently pending. He has one criminal disposition against him. Call us today if you believe you have a claim against John Labarca. We may be able to help you sue his former firm, National Securities Corporation, for failing to reasonably supervise Labarca. The call to us is free.

John-Labarca-FINRA-AWC

Stoltmann Law Offices is investigating Zachary Bader, who was permanently barred from the industry by the Financial Industry Regulatory Authority (FINRA). Bader was the subject of two regulatory sanctions and five pending customer complaints. According to the customer complaints, Bader executed excessive trades with “reckless disregard” for his clients’ interests, recommended unsuitable investments, failed to conduct adequate due diligence, breached fiduciary duty, and churned accounts, among other transgressions. Churning is a violation of securities laws and is used to generate large commissions for the broker. Bader was registered with Brookstone Securities in Uniondale, New York from March 2011 until February 2012, Craig Scott Capital in Uniondale from February 2012 until August 2013 and National Securities Corporation in Melville, New York from August 2013 until August 2014. He has five customer disputes against him. He is not licensed and has been permanently barred from the industry. If you invested money with Zachary Bader, his former firm, National Securities Corp, can be sued in the FINRA arbitration forum to recover your investment losses. The call is free with no obligation. We take cases on a contingency fee basis only.

Zachary-Bader-FINRA-AWC

Stoltmann Law Offices is investigating Brian Nicholas Folland, a National Securities broker in California who is not currently licensed to act as a broker or investment adviser. According to his BrokerCheck report, Folland has thirty customer complaints against him. He has been accused of misrepresenting and omitting material facts related to an investment that was unsuitable, breaching fiduciary duty, negligently misrepresenting material facts related to an investment, and common law fraud.

Folland was registered with Merrill Lynch in New York, New York, from May 1995 until May 1999, Prudential Securities Inc. in New York from June 1999 until January 2003, First Montauk Securities Corp in Fresno, California from April 2003 until August 2007 and National Securities Corporation in Fesno from July 2007 until May 2013. He has 30 customer disputes against him, seven of which are currently pending. He is not licensed within the industry. If you invested money with Brian Nicholas Folland, please call our securities law office in Chicago at 312-332-4200. You may have a claim to bring against Folland in the FINRA arbitration forum. His former firm, National Securities, may be liable for investment losses as they had a duty to reasonably supervise him while he was employed there.

Stoltmann Law Offices is investigating Mark Thomas McCloskey, who has customer complaints against him. McCloskey was most recently registered with FSIC in Seattle, Washington. Before that, he was registered with Pacific West Securities in Renton, Washington from 2002 until 2012, Crosse International Securities in Seattle, Washington from 2001 until 2002, National Securities Corporation in Seattle from 1995 until 1999, G.R. Stuart & Co. in Maynard, Massachusetts from 1993 until 1995, Tucker Anthony Inc. in Boston from 1990 until 1993, Painewebber Inc. in Weehawken, New Jersey from 1988 until 1990 and other firms since 1972.

In 2014, the state of Washington sanctioned Mark Thomas McCloskey, alleging he failed to enforce an adequate supervisory system for the sale of tenant-in-common (TIC) investments. For this, he was fined $5,000. TIC investments can be risky and illiquid ones, and may not be suitable for all investors. Brokers have a duty to do their due diligence to ensure that the investments they recommend are suitable for investors. If they do not, they can be held liable for investment losses and can be sued in the Financial Industry Regulatory Authority (FINRA) forum to recover those losses.

Other complaints allege that he breached fiduciary duty, misrepresented and omitted material facts related to an investment, and engaged in negligence and fraud connected to the purchase of two TIC investments. Some of the complaints against him are still pending. If you lost money with Mark Thomas McCloskey, please call our securities law firm in Chicago, Illinois to speak with one of our securities attorneys. We may be able to help you recover investment losses by suing McCloskey’s former firm, Pacific West Securities, in the FINRA arbitration forum. The call is free with no obligation. Time is of the essence so please do not delay.

Stoltmann Law Offices is investigating William Francis Gillis, most currently registered with National Securities Corporation. He is accused of recommending unsuitable investments, according to his Financial Industry Regulatory Authority (FINRA) BrokerCheck report. Gillis was registered with E.F. Hutton & Co. in July 1986 until February 1988, CIBC World Markets Corp in New York, New York from January 1988 until February 2001, Wachovia Securities in Seattle, Washington from February 2001 until August 2008, and National Securities Corporation in Seatlle from August 2008 until June 2015. He has 11 customer disputes against him, three of which are currently pending. He is not licensed within the industry. If you invested money with Gillis, please call our securities law office based in Chicago, Illinois to speak with an attorney. The call is free and with no obligation. 312-332-4200.

The Financial Industry Regulatory Authority (FINRA) fined National Securities Corporation for allegedly acting as the placement agent for two private placements of its parent company, National Holdings Corporation. A private placement is a funding round of securities, which are not sold through a public offering, but rather through a private offering, mostly to a small number of chosen investors. Because they are unregistered securities, a member firm must disclose the selling compensation to be paid to the member in connection with the offering to the investors. You can sue National Securities Corporation for not abiding by FINRA rules. If you invested money in this Corporation, you may be able to hold them liable for money losses by calling us at 312-332-4200. We are securities attorneys based in Chicago, Illinois.

CNBC
FOX Business
The Wall Street Journal
Bloomberg
CBS
FOX News Channel
USA Today
abc NEWS
DATELINE
npr
Contact Information