In contrast to that somewhat nebulous characterization of the missing Settlement Agreement, consider that FINRA's online BrokerCheck as of February 12, 2019, asserts under the heading "Customer Dispute - Settled" that National Securities Corp. was served with FINRA Statement of Claim 11-00262 on January 31, 2011, which alleged "BREACH OF SUPERVISORY DUTY" and sought $3,859409.52 in damages. That FINRA Arbitration settled on August 11, 2011, for $1,150,000, and Goldwasser is reported to have not contributed to that settlement. Appended to the FINRA BrokerCheck disclosure is this statement from Claimant Goldwasser:The occurrence arises from FINRA Case #11-00262, served on 1/31/2011, and disposed of by settlement on 8/11/ 2011. Due to the age of the settlement, neither party in the instant matter were able to provide me with the Settlement Agreement or complaint for review. Both parties asserted that they had searched for the documents without success. The Arbitrator noted that the settlement was not conditioned on the customer not opposing the request for expungement. The Arbitrator also noted that Claimant did not contribute to the settlement amount.
I WAS SOLELY NAMED AS A RESPONDENT IN THIS MATTER DUE TO MY CAPACITY AS CEO OF THE FIRM. I HAD NO INVOLVEMENT AS EITHER A REGISTERED REPRESENTATIVE OR SUPERVISOR WITH RESPECT TO CLAIMANT'S ACCOUNTS. THE SUBJECT BROKERS WERE NOT NAMED AND NO LONGER AFFILIATED WITH THE FIRM WHEN THE CLAIM WAS FILED. THIS MATTER WAS SUBSEQUENTLY HANDLED AND RESOLVED THROUGH THE FIRM'S ERRORS AND OMISSIONS POLICY, AND I DID NOT CONTRIBUTE ANY FUNDS TO THE SETTLEMENT.
During the hearing Mr. Goldwasser testified credibly that he joined National Securities Corporation in 2000 as President and became CEO in 2002. He remained as such until his voluntary departure in 2016. His responsibilities involved building the business and dealing with the financial crises of 2008/2009. He dealt with the effects of 9/11 because the firm's offices were across from the World Trade Center.From late October 2010 until May 2011, Mr. Goldwasser was an absentee due to serious health problems.He had no personal clients and did not act as an individual broker. There were four levels of supervision of brokers below him. Immediately below was the Office of Chief Compliance Officer and General Counsel. The latter had authority to settle claims. He was not aware of the customer's claim at any time and only learned of this occurrence recently. Respondent did not contradict any of Mr. Goldwasser's testimony. . . .
responsibilities involved building the business and dealing with the financial crises of 2008/2009. He dealt with the effects of 9/11 because the firm's offices were across from the World Trade Center.From late October 2010 until May 2011, Mr. Goldwasser was an absentee due to serious health problems. . . .
requested that the arbitration panel direct Claimant to pay all forum fees and costs, including any member surcharges, incurred in this proceeding.
FINRA has fined National at least 25 times since 2000. As of earlier this year, 35 percent of National's 714 brokers had a history of regulatory run-ins, legal disputes or personal financial difficulties that FINRA requires brokers to disclose to investors, according to a Reuters analysis of FINRA data.. . .National is among 48 firms where at least 30 percent of brokers have such FINRA flags on their records, according to the Reuters analysis, which examined only the 12 most serious incidents among the 23 that FINRA requires brokers to disclose. That compares to 9 percent of brokers industry-wide who have at least one of those 12 FINRA flags on their record.Statement on Shareholder Proposals Seeking to Require Mandatory Arbitration Bylaw Provisions by SEC Chairman Jay Clayton (SEC Public Statement)SEC Division of Corporation Finance "Staff No-Action Letter" RE; Johnson & Johnson incoming letter dated December 11, 2018 (SEC No-Action Letter February 11, 2019 to Marc S. Gerber, Skadden Arps, Slate, Meagher & Flom, LLP.)Former National Securities Corp President/CEO Sues Firm In FINRA Expungement Case (BrokeAndBroker.com Blog)Former CEO Of Alaska-Based Fiber Optic Cable Company Pleads Guilty To Wire Fraud And Aggravated Identity Theft For Defrauding New York Investment Companies (DOJ Release)Stockbroker fined and suspended for real-estate management outside business activities In the Matter of John Kasel, Respondent (FINRA AWC)Stockbroker Wins Expungement of Customer Complaint Settled for $100,000 In the Matter of the Arbitration Between Dominic Fredo Galati, v. TD Ameritrade, Inc., Respondent (FINRA Arbitration Decision 18-03114)Two Defendants in SEC Enforcement Action Plead Guilty in Parallel Criminal Case to Charges of Securities Fraud and Lying to the SEC (SEC Release)