Ft. Lauderdale, Florida. – A retiree struggling financially, living alone, and relying on social security to pay her living expenses after substantial losses in her accounts, has filed a claim against National Securities Corporation (NSC), one of the largest independent broker-dealers and a wholly-owned subsidiary of National Holdings Corporation (NHLD).
In the claim filed with the Financial Industry Regulatory Authority (FINRA), Securities Fraud attorney Mark A. Tepper, a former New York Assistant Attorney General and Chief Trial Counsel at the Bureau of Investor Protection and Securities, alleges that NSC failed to supervise its broker.
The claim contends that NSC ignored “red flags” including: “multiple volatile, high risk option positions in the retiree’s account requiring daily vigilance, persistent large monthly losses, nearly $100,000 in commissions, annual commissions that averaged 3.86 % of her account value, and substantial losses suffered while the broker was on vacation in China and no one was monitoring his volatile, high risk positions.”
The claim contends that a current FINRA complaint makes the same allegations that, “NSC’s registered representative: (a) made unsuitable recommendations; (b) exposed customers to significant risk which he did not disclose and his customers did not understand; (c) recommended use of margin in customer accounts which was unsuitable; (d) improperly exercised discretionary authority, in customer accounts, without written authorization from his firm and his customer; and (e) caused his customers to suffer considerable losses to their retirement savings.”
“NSC’s approval, of Claimant’s individual account for margin and high risk option strategies, was clearly unsuitable because it was excessive risk for Claimant’s financial situation and needs. NSC’s registered representative recklessly exposed a trusting Claimant’s irreplaceable capital to significant risk which he did not disclose and Claimant did not understand,” the claim alleges.
About Mark A. Tepper, P.A. (www.MarkTepper.com)
Attorney Mark Tepper has earned the reputation of “Investor Advocate” while practicing law for over 35 years and representing investors in criminal and civil actions. A member of the Florida, New York and California Bars he is AV®-rated, the highest rating of lawyers in the Martindale-Hubbell Law Directory.
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Mark Hopkinson, NewsMark Public Relations
561-852-5767 mhopkinson@newsmarkpr.com