Erez Law is currently investigating National Securities Corporation broker Christopher Ortiz (CRD# 2858626) regarding the suitability of private placements. Ortiz has been registered with National Securities Corporation in Melville, New York since 2004.
Private placements are stocks, bonds, or securities that are commonly sold to pre-selected investors and institutions rather than available on the open market to the general public. Private placements are alternative to an initial public offering (IPO) for a company seeking to raise capital for expansion. The advantage for the offerer of private placements is there are few regulatory requirements, no need for an annual disclosure, and they are not registered with the Securities and Exchange Commission (SEC). Instead of a prospectus, private placements are sold using a private placement memorandum (PPM). The advantage for the investor is a higher rate of interest that can be earned than on a traditionally publicly-offered security; however, because they are unregulated, they are inherently riskier investments.
Ortiz has been the subject of one customer complaint in 2020, according to his CRD report:
February 2020. “Suitability.” The customer is seeking $265,000 in damages and the case is currently pending. The case is regarding private placements.
Pursuant to FINRA Rules, member firms are responsible for supervising a broker’s activities during the time the broker is registered with the firm. Therefore, National Securities Corporation may be liable for investment or other losses suffered by Ortiz’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If and have experienced investment losses, please call us at 888-840-1571 or complete our contact form for a free consultation. Erez Law is a nationally recognized law firm representing individuals, trusts, corporations and institutions in claims against brokerage firms, banks and insurance companies on a contingency fee basis.