National Securities Sanctioned for Alleged “Minimum Denomination” Sales of Puerto Rican Junk Bonds

Investment fraud attorneysThe Peiffer Rosca Wolf investment recovery lawyers are currently investigating the sale of junk bonds, issued by the Commonwealth of Puerto Rico by National Securities, of Seattle, Washington, to customers in amounts allegedly below the minimum denomination of the issue, according to SEC documents currently being reviewed by attorneys Joe Peiffer and Alan Rosca.

In March 2014, National Securities, a registered broker-dealer, violated Municipal Securities Rulemaking Board (MSRB) Rules by executing one sales transaction of Puerto Rican bonds to a customer in an amount below the $100,000 minimum denomination of the issue, according to the aforementioned SEC documents.

Per SEC rules, municipal bonds may only be sold in a minimum denomination of $100,000 per transaction to keep small players out, thus protecting those who may not be able to withstand large losses on risky offerings.

As a result, National Securities has been ordered to cease and desist from committing or causing any violations and any future violations of MSRB Rules, they have been censured, and must pay a civil penalty in the amount of $60,000 to the Securities and Exchange Commission, according to SEC documents currently under review by attorneys Joe Peiffer and Alan Rosca.

Investment Fraud Attorneys Recovery Lawyers Investigating

The Peiffer Rosca Wolf investment rights attorneys often represent investors who lose money as a result of investment misconduct. They are currently investigating the National Securities case, and the possibility of assisting any investors with the recovery of any losses they may have suffered. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.

Investors who believe they lost money as a result of National Securities alleged misconduct may contact the investment rights attorneys at Peiffer Rosca Wolf, Alan Rosca or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 888-998-0520.

Alan Rosca (1169 Posts)

Alan is a securities lawyer. He also teaches Securities Regulation at the Cleveland-Marshall College of Law. He focuses his legal practice on complex commercial and financial litigation and arbitration, particularly in the areas of securities and investment fraud. His office is in Cleveland, Ohio.


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