Nationwide Planning Associates, a FINRA member firm since 1993 headquartered in Paramus, NJ, conducts general securities business via its 25 registered branch offices and employment of 69 registered representatives. The Firm, in proposing settlement of rule violations alleged by FINRA without admitting or denying the findings, consented to a FINRA censure and fine of $55,000 in connection with allegations that the Firm made exaggerated, misleading, and unbalanced statements in the issuance of advertisement material, along with failing to adequately enforce a supervisory system pertaining to reviews of e-mail communications – violating NASD Conduct Rules 2210(d)(1)(A), 2210(d)(1)(B), 3010(a), 3010(c), 3010(d)(2), 3110(a) and 2110, and FINRA Rules 4511 and 2010 and Securities Exchange Act of 1934 Rule 17a-4. Letter of Acceptance, Waiver and Consent No. 2012030679601 (Aug. 3rd, 2015).
The FINRA Acceptance, Waiver and Consent
According to the Acceptance, Waiver and Consent (“AWC”), from March of 2010 through May of 2012, the sales literature and sales advertisements issued by the Firm contained exaggerated, misleading, and unbalanced statements. The AWC noted that in one occasion, a Nationwide rep transmitted a total of 323 memoranda to the Firm’s customers outlining projections of annual returns and profit estimations based on referencing customers’ existing account transactions that had garnered positive results while omitting the other transactions that had not performed as well. The AWC stated that Nationwide additionally failed to contain the fees, charges, tax implications, and other costs applicable to investors in the projections.
The AWC additionally cited Nationwide for failing to supervise retail business e-mails that were being sent to and/or from registered representatives. The AWC noted that the Firm failed to establish and enforce an adequate system to supervise the review of the reps’ e-mail. Further, the AWC states that despite the Firm’s pledge to review all ingoing and outgoing correspondence, FINRA found the Firm only reviewed 500 emails of the 30,000 emails that the reps were collectively sending and receiving monthly.
Guiliano Law Group
Investors suffering losses or damages caused by National Planning Associates in connection with this aforementioned conduct may be able to recover their investment losses. Our practice is limited to the representation of investors in claims, for fraud in connection with the sale of securities, the sale or recommendation of excessively risky or unsuitable securities, breach of fiduciary duty, and the failure to supervise. We accept representation on a contingent fee basis, meaning there is no cost to you unless we make a recovery for you, and there is never any charge for a consultation or an evaluation of your claim. For more information contact us at (877) SEC-ATTY.
