{"id":10554,"date":"2022-04-15T10:10:42","date_gmt":"2022-04-15T14:10:42","guid":{"rendered":"https:\/\/www.silverlaw.com\/blog\/?p=10554"},"modified":"2022-04-15T10:10:42","modified_gmt":"2022-04-15T14:10:42","slug":"national-securities-faces-finra-penalty-of-663k-for-private-placements","status":"publish","type":"post","link":"https:\/\/www.silverlaw.com\/blog\/national-securities-faces-finra-penalty-of-663k-for-private-placements\/","title":{"rendered":"National Securities Faces FINRA Penalty Of $663K For Private Placements"},"content":{"rendered":"<p><img loading=\"lazy\" decoding=\"async\" class=\"alignleft wp-image-10205 size-full\" src=\"https:\/\/www.silverlaw.com\/blog\/wp-content\/uploads\/2021\/10\/FiverrLossesSmall.jpg\" alt=\"Boca Raton, FL-based National Securities Corporation has received a fine of $663,000 after FINRA found that it deceived investors from December 2017 through January 2018. At issue is the price of shares offered in a private placement. National Securities will pay $300,000 in fines and the rest in disgorgement, plus interest.  National Securities identified companies that were likely to become publicly traded in the future through its affiliated investment adviser, National Asset Management. By identifying companies that were the subject of discussion in the financial press and finding shareholders willing to sell their interests, they were able to make private placement offerings of these companies before their anticipated initial public offering (IPO). Once approved by National Securities, the firm\u2019s representatives would begin marketing and selling these interests to their customers.\u00a0  But in this case, National Securities claimed to have two sources for these shares, but only had one. The shares at the disclosed price were only available during the first offering. The firm continued to market and sell these shares for the second offering even though they had no shares at that price.  According to the complaint, the firm claimed that the interest would be in this private company and the shares would cost no more than $9.75 each. Unfortunately, the firm was unable to locate any shares for that price. Later, the firm purchased these shares at a price that was double what they listed in the offering, which \u201ccontravened Section 17(a)(3) of the Securities Act of 1933,\u201d and violated FINRA rule 2010.\" width=\"300\" height=\"200\" srcset=\"https:\/\/www.silverlaw.com\/blog\/wp-content\/uploads\/2021\/10\/FiverrLossesSmall.jpg 300w, https:\/\/www.silverlaw.com\/blog\/wp-content\/uploads\/2021\/10\/FiverrLossesSmall-180x120.jpg 180w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/>Boca Raton, FL-based National Securities Corporation has received a fine of $663,000 after FINRA found that it deceived investors from December 2017 through January 2018. At issue is the price of shares offered in a private placement. National Securities will pay $300,000 in fines and the rest in disgorgement, plus interest. <a href=\"https:\/\/www.silverlaw.com\/blog\/national-securities-faces-finra-penalty-of-663k-for-private-placements\/#more-10554\" class=\"more-link\">Continue reading \u203a<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Boca Raton, FL-based National Securities Corporation has received a fine of $663,000 after FINRA found that it deceived investors from December 2017 through January 2018. At issue is the price of shares offered in a private placement. National Securities will pay $300,000 in fines and the rest in disgorgement, plus interest. Continue reading \u203a<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[577,699],"tags":[],"class_list":["post-10554","post","type-post","status-publish","format-standard","hentry","category-finra-disciplinary-actions","category-private-placement"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>National Securities Faces Penalty Of $663K For Private Placements<\/title>\n<meta name=\"description\" content=\"Boca Raton, FL-based National Securities Corporation has received a fine of $663,000 after FINRA found that it deceived investors.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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