FINRA Serves National Securities with Wells Notice
National Securities Corporation has been served with a Wells notice with regard to their sales of private placements that went bad, according to the Investment News. A Wells notice indicates that the regulator intends to bring an enforcement action against the firm or an individual with the firm. The bankruptcy filings of Provident Royalties, LLC, one of the private placement offerings, revealed that the representatives of National Securities sold about $3.7 million of the notes. Some of the violations alleged were product suitability, email supervision rules and standards of commercial honor and principles of trade rules.
This is the latest broker-dealer to face disciplinary action from FINRA over the sale of soured private placements. Recently, Workman Securities reached a settlement of $700,000 with FINRA for partial restitution to investors who had sued the firm over investments in Medical Capital Holdings, Inc. and Provident Royalties, LLC.
If you have suffered losses in Regulation D private placement offerings, please contact our securities law firm for a confidential, no obligation consultation at 1-800-259-9010.