Joseph Victor Alhadeff of New York New York a stockbroker formerly registered with National Securities Corporation has been barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity founded on findings that Alhadeff neglected to cooperate with FINRA during its investigation into Alhadeff’s supervision of a stockbroker who was associated with National Securities Corporation. Letter of Acceptance Waiver and Consent No. 2018057297101 (Nov. 20, 2020).
According to the AWC, in November of 2017, a stockbroker of National Securities Corporation who was under Alhadeff’s supervision had been investigated by the regulator for misconduct. FINRA indicated that Alhadeff’s supervision of the stockbroker’s activities had been a focal point in the investigation.
The AWC confirmed that on November 11, 2020, FINRA asked for Alhadeff’s documents and information. Alhadeff was required under FINRA Rule 8210 to comply with the request. The regulator indicated that it received an email from Alhadeff’s legal counsel two days later at which time it was made clear to FINRA that Alhadeff would not be providing any of the requested documents or information. Alhadeff’s refusal to cooperate with FINRA’s requests in this respect constituted the violation of FINRA Rules 2010 and 8210.
FINRA Public Disclosure confirms that a customer filed an investment related arbitration claim involving Alhadeff’s activities in which the customer requested $750,000.00 in damages supported by allegations of a breach of contract by National Securities Corporation concerning the customer’s investments in real estate securities and over-the-counter equities. The claim alleges that Alhadeff’s negligence caused the customer to experience losses on those investments. According to the claim, a fiduciary duty that was owed to the NSC customer had been breached. FINRA Arbitration No. 19-01773 (Aug. 27, 2019).
Alhadeff was registered with National Securities Corporation between November 20, 2012 and December 31, 2018.