FINRA Fines National Securities $9M Over GPB Private Placement Sales
Broker-Dealer Ordered to Pay Customers More Than $625K in Restitution
The Financial Industry Regulatory Authority (FINRA) sanctioned National Securities Corporation for about $9M, including $4.77M disgorgement in net profits. The broker-dealer allegedly tried to artificially impact the market for GPB private placements involving several public offerings while serving as the underwriter. GPB Capital Holdings is accused of operating a more than $1.7B Ponzi scam that defrauded over 17,000 investors.
National Securities must pay over $625K in restitution for allegedly not disclosing certain material information to customers who bought GPB private placements. FINRA fined the firm $3.6M for alleged broker misconduct and other violations.