FINRA Fines National Securities $663,000 Over Private Placement Offering

Posted on April 14th, 2022 at 1:15 PM
FINRA Fines National Securities $663,000 Over Private Placement Offering

rom the Desk of Jim Eccleston at Eccleston Law:

The Financial Industry Regulatory Authority (FINRA) has imposed a $663,000 fine on National Securities for allegedly deceiving investors about the price of shares included in a private placement offering.


National Securities, which is based in Boca Raton, Florida, has agreed to pay a $300,000 fine and $363,000 in disgorgement. Between December 2017 and January 2018, National Securities marketed a “pre-IPO” private placement offering overseen by its associated investment advisor. According to FINRA, National Securities deceived investors by selling interests in a private company at a price not to exceed $9.75 per share, despite the firm’s failing to locate shares available at that price.


The offering subsequently purchased shares in the private company at nearly double the maximum price outlined in the offering documents, which violated industry rules, according to FINRA. National Securities failed to reasonably supervise its private share business and also failed to enforce written policies pertaining to the offering of “pre-IPO” shares, according to FINRA.


Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

 
 

Tags: eccleston law, finra, national securities

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