Nathaniel Royce Clay (also known as Nate Clay), of New York, New York, a stockbroker registered with Laidlaw Company (UK) Ltd., has been permanently barred from acting as a stockbroker or in any other capacity in the securities industry by Securities and Exchange Commission (SEC). This sanction follows allegations that Clay made unsuitable invesytment recommendations, leading to customer losses. In the Matter of Nathaniel R. Clay, Order Instituting Administrative Proceedings, File No. 23-CV-00276 (February 2, 2023).
On January 24, 2023, a final judgment entered against Clay permanently enjoined him from future violations of Securities Act of 1933 Section 17(a) and Securities Exchange Act of 1934 Section 10(b), along with SEC Rule 10b-5.
According to SEC’s Complaint, between December of 2015 and December of 2018, Clay recommended a pattern of costly in-and-out trading to at least eight customers without any reasonable belief that these recommendations were suitable for them. These actions led to losses for his customers while Clay profited. The SEC further alleged that Clay disregarded the unsuitability of his recommendations and made material misrepresentations and omissions to his customers in connection with his actions.
Also, on June 22, 2020, Clay was barred from associating with any Financial Industry Regulatory Authority (FINRA) member in any capacity because Clay failed to respond to a FINRA request for information. Case No. 2020065912101.
FINRA Public Disclosure additionally shows that on April 17, 2009, a customer initiated investment related FINRA securities arbitration claim involving Clay’s conduct was settled for $42,000.00 in damages based upon alleged excessive trading in over-the-counter equities when Clay was associated with Casimir Capital L.P. FINRA Arbitration No. 08-01947. The claim also alleged improper use of margin.
Clay was also referenced in a customer initiated investment related complaint filed on May 11, 2010, in which the customer requested $28,208.00 in damages based upon alleged excessive trading, churning, and misrepresentations of material fact in connection with the sale of over-the-counter equities during the time that Clay was associated with National Securities Corporation. The complaint was closed without a resolution.
On May 13, 2010, another customer filed an investment related complaint involving Clay’s conduct in which the customer requested damages based upon alleged excessive trading in equities when Clay was associated with National Securities Corporation. The complaint was closed with no further action taken by the customer.
Clay was associated with Laidlaw Company (UK) Ltd. in New York, New York from November 4, 2015, to February 7, 2019.
