Soreide Law Group Files FINRA Arbitration Against NATIONAL SECURITIES CORPORATION

Soreide Law Group has filed a FINRA arbitration on behalf of our clients (Claimants) against NATIONAL SECURITIES CORPORATION (Respondent).
The Claimants, a married couple, have suffered losses due to the alleged mishandling the Claimants’ assets by the Respondent by failing to properly allocate and diversify the Claimants’ investment portfolios by over concentration their holdings into American Realty Capital NYC.
According to the lawsuit, the NATIONAL SECURITES CORPORATION and one of its former brokers, allegedly concentrated the Claimants’ portfolios in American Realty Capital NYC, a non-traded real estate investment trust (“REIT”). According to the lawsuit, the former broker sold this investment to many of his clients. Allegedly, the broker incorrectly described the investment as a short-term, one year to eighteen-month investment that would safely yield 12-18 percent depending on when the REIT went public. The lawsuit alleges National Securities Corporation failed to supervise their former broker to prevent his mishandling of the Claimants’ portfolios.
The FINRA arbitration against National Securities alleges that the Respondent over-concentrated Claimants’ portfolios in high-commission and risky Real Estate Investment Trust or REIT. The Respondent recommended in several purchases in the REIT totaling more than $600,000 combined for all Claimants.
Allegedly, due to the mishandling of the Claimants’ portfolio, and the Respondent’s misconduct, Claimants have suffered significant losses of at least $450,000 during a time when the financial markets have enjoyed record returns.
The causes of action alleged in the lawsuit by Claimants are breach of contract, fraud, misrepresentation, failure to supervise, breach of fiduciary duty, and violations of FINRA rules.
REITs are non-conventional investments and have the potential for customer harm or confusion, members are cautioned to ensure that their sales conduct procedures fully and accurately address any of the special circumstances presented by the sale of NCIs.
According to Bloomberg, “American Realty Capital New York City REIT, Inc. ("NYC REIT") seeks to provide its investors with a combination of current income and capital appreciation through strategic investments in high-quality commercial real estate located within the five boroughs of New York City, particularly Manhattan.” American Realty Capital had shareholder disputes, lackluster returns and scandals for the better part of three years. It was initially offered at $25 per share. The price has plummeted, income has stopped and no sign of it going public as investors had believed would happen quickly. As with other non-traded REITs, there is really no secondary market for the shares. Currently at the time of publication of this article it is believed that the REIT is no longer paying distributions.
If you have suffered losses due to the actions or recommendations of NATIONAL SECURITIES CORPORATION of New York, contact Soreide Law Group and speak to a securities lawyer regarding the possible recovery of your investment losses through a FINRA arbitration at no cost to you at:  888-760-6552.
Soreide Law Group represents clients nationwide before FINRA.  We operate on a contingency fee basis—no fee if no recovery.