Sales of private placements in Provident Royalties has gotten yet another broker/dealer in hot water. This time, it’s National Securities Corp., with the broker/dealer facing disciplinary action by the Financial Industry Regulatory Authority (FINRA) over sales of private placements gone bad.
As reported Feb. 17 by Investment News, National Securities says it received a Well Notice from FINRA in January. Receipt of a Well Notice indicates enforcement action on the part of a regulator is likely imminent.
National Securities sold approximately $3.7 million of private placement issued by Provident Royalties. In July 2009, the Securities and Exchange Commission (SEC) sued Provident for fraud.
According to FINRA’s Broker Check Web site, National Securities received the Wells notice for violations of product suitability rules, e-mail supervision rules, and standards of commercial honor and principles-of-trade.
Earlier this month, another broker/dealer, Workman Securities Corp., also was in the news over private-placement sales involving Provident Royalties and Medical Capital Holdings. In a settlement with FINRA, Workman agreed to pay $700,000 for partial restitution to more than a dozen clients who had sued the firm over investments in the two companies.
Like Provident, Medical Capital was charged with fraud by the SEC in July 2009.
If you have suffered investment losses in and wish to discuss filing an individual arbitration claim with FINRA or have questions about these investments, pleasecontact us.