{"id":3074,"date":"2014-12-03T00:00:00","date_gmt":"2014-12-03T05:00:00","guid":{"rendered":"http:\/\/silverlaw.lawblogger.net\/blog\/silver-law-group-is-investigating-nsm-securities-inc\/"},"modified":"2018-10-08T12:39:56","modified_gmt":"2018-10-08T16:39:56","slug":"silver-law-group-is-investigating-nsm-securities-inc","status":"publish","type":"post","link":"https:\/\/www.silverlaw.com\/blog\/silver-law-group-is-investigating-nsm-securities-inc\/","title":{"rendered":"Silver Law Group is Investigating NSM Securities, Inc."},"content":{"rendered":"<\/p>\n<p><strong>NSM Securities, Inc. (<a href=\"https:\/\/brokercheck.finra.org\/Firm\/Summary\/134357\" target=\"_blank\">CRD #134357<\/a>, West Palm Beach, Florida) and Niyukt Raghu Bhasin (<a href=\"https:\/\/brokercheck.finra.org\/Individual\/Summary\/2282048\" target=\"_blank\">CRD #2282048<\/a>, Wellington, Florida) <\/strong>submitted an Offer of Settlement to FINRA in which NSM Securities (\u201cNSM\u201d) was expelled from FINRA membership. Bhasin was barred from association with any FINRA member in any capacity. NSM and Bhasin consented to the FINRA sanctions and that the firm, acting through and at the direction of its founder, owner, President and Chief Executive Officer (CEO) Bhasin, derived most of its revenue from actively and aggressively trading stocks in the commission-based accounts of its retail customers. This practice is frequently referred to as <a title=\"Excessive Trading or \u201cChurning\u201d\" href=\"https:\/\/www.silverlaw.com\/excessive-trading-churning.html\" target=\"_blank\">churning<\/a>.\u00a0 Bhasin allegedly put his firm\u2019s profits over the duties owed to its customers and chose not to enforce a <a title=\"Failure to Supervise\" href=\"https:\/\/www.silverlaw.com\/failure-to-supervise.html\" target=\"_blank\">supervisory system<\/a> effective for the firm\u2019s business. NSM, through Bhasin, failed to establish, maintain and enforce a system, including written supervisory procedures (WSPs), to supervise its core activity, an active and aggressive investment strategy. The firm, through Bhasin, failed to monitor for, detect and prevent churning, excessive trading, related violations of Regulation T, and <a title=\"Unsuitable Investment Advice\" href=\"https:\/\/www.silverlaw.com\/securities-arbitration\/finra-sales-practice-violations\/unsuitable-investment-advice\/\" target=\"_blank\">unsuitable investment recommendations<\/a>, and failed to adequately review e-mail, adequately handle customer complaints or place questionable brokers who were the subjects of multiple FINRA arbitrations or customer complaints and arbitrations on heightened supervision.<\/p>\n<p>FINRA also stated that in implementing Bhasin\u2019s active and aggressive trading strategy, and in order to generate commissions, the firm committed multiple margin violations and the related FINRA rules governing the extension of credit or margin. Specifically, the firm, acting through its brokers, made a practice of allowing customers to buy securities in cash accounts where the cost to buy the securities was met by the sale of the same securities, known as free-riding.\u00a0 All of these actions ultimately led to an environment which allowed brokers to churn customer accounts to make a profit for the firm.\u00a0 NSM specifically targeted Indian investors preying on sharing cultural similarities.\u00a0 This is frequently referred to as affinity fraud.<\/p>\n<p>FINRA also found that the firm, through Bhasin, failed to institute adequate procedures for cold-calling prospective customers. As a result, the firm, through its brokers and other representatives, initiated telephone solicitations to persons whose numbers were on the firm\u2019s do-not-call list and\/or the national do-not-call list. (<a href=\"http:\/\/disciplinaryactions.finra.org\/Search\/ViewDocument\/38485\" target=\"_blank\"><strong>FINRA Case #2011027667402<\/strong><\/a>)<\/p>\n<div class=\"read_more_link\"><a href=\"https:\/\/www.silverlaw.com\/blog\/silver-law-group-is-investigating-nsm-securities-inc\/\"  title=\"Continue Reading Silver Law Group is Investigating NSM Securities, Inc.\" class=\"more-link\">Continue reading \u203a<\/a><\/div>\n","protected":false},"excerpt":{"rendered":"<p>NSM Securities, Inc. (CRD #134357, West Palm Beach, Florida) and Niyukt Raghu Bhasin (CRD #2282048, Wellington, Florida) submitted an Offer of Settlement to FINRA in which NSM Securities (\u201cNSM\u201d) was expelled from FINRA membership. Bhasin was barred from association with any FINRA member in any capacity. NSM and Bhasin consented to the FINRA sanctions and [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[589,607,576],"tags":[],"class_list":["post-3074","post","type-post","status-publish","format-standard","hentry","category-churning-2","category-failure-to-supervise","category-unsuitable-investment-advice"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Silver Law Group is Investigating NSM Securities, Inc. &#8212; Securities Arbitration Lawyers Blog &#8212; December 3, 2014<\/title>\n<meta name=\"description\" content=\"NSM Securities, Inc. (CRD #134357, West Palm Beach, Florida) and Niyukt Raghu Bhasin (CRD #2282048, Wellington, Florida) submitted an Offer of Settlement &#8212; December 3, 2014\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.silverlaw.com\/blog\/silver-law-group-is-investigating-nsm-securities-inc\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Silver Law Group is Investigating NSM Securities, Inc. &#8212; Securities Arbitration Lawyers Blog &#8212; December 3, 2014\" \/>\n<meta name=\"twitter:description\" content=\"NSM Securities, Inc. (CRD #134357, West Palm Beach, Florida) and Niyukt Raghu Bhasin (CRD #2282048, Wellington, Florida) submitted an Offer of Settlement &#8212; December 3, 2014\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Silver Law Group\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Silver Law Group is Investigating NSM Securities, Inc. &#8212; Securities Arbitration Lawyers Blog &#8212; December 3, 2014","description":"NSM Securities, Inc. (CRD #134357, West Palm Beach, Florida) and Niyukt Raghu Bhasin (CRD #2282048, Wellington, Florida) submitted an Offer of Settlement &#8212; December 3, 2014","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.silverlaw.com\/blog\/silver-law-group-is-investigating-nsm-securities-inc\/","twitter_card":"summary_large_image","twitter_title":"Silver Law Group is Investigating NSM Securities, Inc. &#8212; Securities Arbitration Lawyers Blog &#8212; December 3, 2014","twitter_description":"NSM Securities, Inc. (CRD #134357, West Palm Beach, Florida) and Niyukt Raghu Bhasin (CRD #2282048, Wellington, Florida) submitted an Offer of Settlement &#8212; December 3, 2014","twitter_misc":{"Written by":"Silver Law Group","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.silverlaw.com\/blog\/silver-law-group-is-investigating-nsm-securities-inc\/#article","isPartOf":{"@id":"https:\/\/www.silverlaw.com\/blog\/silver-law-group-is-investigating-nsm-securities-inc\/"},"author":{"name":"Silver Law Group","@id":"https:\/\/www.silverlaw.com\/blog\/#\/schema\/person\/de64d999508b1ad10d608a99f0d2e752"},"headline":"Silver Law Group is Investigating NSM Securities, Inc.","datePublished":"2014-12-03T05:00:00+00:00","dateModified":"2018-10-08T16:39:56+00:00","mainEntityOfPage":{"@id":"https:\/\/www.silverlaw.com\/blog\/silver-law-group-is-investigating-nsm-securities-inc\/"},"wordCount":457,"articleSection":["Churning","Failure to Supervise","Unsuitable Investment Advice"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.silverlaw.com\/blog\/silver-law-group-is-investigating-nsm-securities-inc\/","url":"https:\/\/www.silverlaw.com\/blog\/silver-law-group-is-investigating-nsm-securities-inc\/","name":"Silver Law Group is Investigating NSM Securities, Inc. &#8212; Securities Arbitration Lawyers Blog &#8212; December 3, 2014","isPartOf":{"@id":"https:\/\/www.silverlaw.com\/blog\/#website"},"datePublished":"2014-12-03T05:00:00+00:00","dateModified":"2018-10-08T16:39:56+00:00","author":{"@id":"https:\/\/www.silverlaw.com\/blog\/#\/schema\/person\/de64d999508b1ad10d608a99f0d2e752"},"description":"NSM Securities, Inc. 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