Jonathan Craig Rich of New York, New York, a stockbroker and investment banking principal formerly registered with National Securities Corporation, has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity supported by findings that Rich refused to testify in a FINRA investigation concerning solicitation of offerings and his supervision at National Securities Corporation. Letter of Acceptance Waiver and Consent No. 2019061652403 (June 22, 2022).
According to the AWC, on May 6, 2022, FINRA was notified about Rich’s termination from National Securities Corporation. The AWC states that National Securities Corporation permitted Rich to resign on April 8, 2022, based upon accusations of Rich violating Securities Exchange Act of 1934 Regulation M.
FINRA states that on May 26, 2022, Rich was sent a request from FINRA about testifying in the investigation. The regulator was focused on ten offerings that had been underwritten by the securities broker dealer, and on what transpired with aftermarket orders during a time that the offerings were in restricted periods. FINRA states that Rich was head of investment banking during the period that FINRA examined. He was investigated for his supervision of others at the firm who might have engaged in the solicitation of aftermarket orders in violation of federal securities laws, including Regulation M.
Rich’s lawyer told FINRA in a June 2, 2022 email that Rich would not testify in the investigation. FINRA determined that Rich violated Rules 2010 and 8210 for this reason.
FINRA Public Disclosure additionally shows that Rich is identified in a customer initiated investment related written complaint in which the customer sought $8,700.00 in damages founded on allegations of unauthorized trading by Rich when he was registered with First Colonial Securities Group Inc.