Warning to Investors: Former National Securities Corporation Financial Advisor James Eichner Jr. Investment Losses
Posted on Monday, June 10th, 2019 at 1:42 pm
Were you the victim of former National Securities Corporation financial advisor James Eichner Jr. (CRD# 3221851)? Eichner was registered with Allied Millennial Partners, LLC in Garden CIty, New York from 2018 to 2019, when he was terminated regarding, “Representative’s registration was terminated for failure to adhere to requirements of heightened supervision plan regarding proper memorialization of utilizing time and price discretion for customer orders.”
Previously, Eichner was registered with National Securities Corporation in New York, New York from 2006 to 2018, when he was terminated regarding, “After an internal investigation, the Firm has reasonably concluded the Representative failed to truthfully disclose a reportable event on internal and regulatory questionnaires, violating the Firm’s Written Supervisory Procedures.”
In April 2019, FINRA suspended Eichner for 45 days and sanctioned him to a $10,000 civil and administrative penalty after he “consented to the sanctions and to the entry of findings that he exercised discretion in customers’ accounts without obtaining prior written authorization from the customers, and without his member firm having accepted the accounts for discretionary trading. The findings stated that Eichner exercised discretion in a deceased customer’s account by accepting, on a single occasion, trade instructions from an unauthorized third party. Neither the customer nor the customer’s estate had given written authorization allowing Eichner to exercise discretion by accepting instructions from a third party, and his firm had not approved the account for discretionary trading. The findings also stated that Eichner completed compliance questionnaires attesting that he did not exercise discretion in his customers’ accounts.”
Eichner has been the subject of six customer complaints between 2008 and 2018, according to his CRD report. Recent complaints are regarding:
March 2018. “Unauthorized Trading.” The case is currently pending. This case was regarding equity OTC.
April 2016. “Unauthorized trades.” The customer sought $143,932 in damages and the case was settled for $2,700. This case was regarding equity OTC.
June 2015. “Negligence, breach of fiduciary duty.” The customer sought $500,000 in damages and the case was settled for $125,000. This case was regarding exchange traded funds (ETFs).
April 2015. “Unauthorized trading,suitability, excessive trading, breach of fiduciary duty, misrepresentation, fraud & poor recommendation poor advice.” The customer sought $975,000 in damages and the case was settled for $30,000. This case was regarding equity OTC.
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 Eichner’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.