National Planning Corporation
Investment Fraud Lawyers Reclaim Wrongful Losses
National Planning Corporation is one of the nation's largest broker-dealer
networks. A subsidiary of National Planning Holdings, Inc., the company
was founded in 1998 and is headquartered in Santa Monica, California.
National Planning Corporation provides access to products and advisory
services through independent investment professionals.
Misconduct, Negligence, and Lack of Supervision
Unfortunately, National Planning Corporation is not above violating the
rules of the Financial Industry Regulatory Authority (FINRA), and it has
been levied fines in two disciplinary actions in the last decade. In 2006,
National Planning representatives were not trained or supervised well
regarding the sale of Class A, B, and C shares. The vital difference between
these shares, in this case, is the sort of fees that they carry and their
For example, Class C shares have significantly larger fees for holding
them, so they are ideal for short-term investments. Representatives did
not sell these shares in the best interests of clients, sometimes trading
Class C shares to clients who were investing over $100,000 long-term (making
them ideal for Class A shares, with lower long-term percentage-based fees). National Planning Corporation was fined $315,000 for trading that favored the pockets of brokers, not clients.
Only a year prior, National Planning Corporation was part of a multi-firm
action that accused large firms of trading for the sake of the firm, not
for the sake of the investors. In this case, these firms, including National
provided higher commissions for the sale of certain stock, rewarding representatives for clearing certain investments over others.
This is a direct violation of FINRA laws because it encourages representatives
to behave in their own interests.
Because this is a crucial rule to ensure an honest, transparent financial
National Planning was fined $1.2 million, in addition to a $100,000 fee for other violations. The other firms were
fined in varying amounts, but National Planning was fined the second-largest
amount for their part in the arrangement. Massive fines are intended to
deter other firms from engaging in dishonest behavior, ideally creating
a healthier financial industry.
Investors Have the Right to File Claims
Because National Planning Corporation is licensed by FINRA,
they are subject to the laws that FINRA enforces. One crucial law is that National Planning is responsible for ensuring
that their brokers are trading ethically, transparently, and in the best
interest of their clients. They ideally accomplish this through careful
supervision and vigilance. If a representative from National Planning
loses your assets through negligence or fraud, it immediately puts National
Planning at fault for failing to supervise their broker.
FINRA law then dictates that you can hold the firm legally liable to recover
Contact Us Today for a Free Consultation
Because Meyer Wilson works exclusively in investment fraud law, all our
resources go toward taking on investment giants like National Planning
Corporation. Our track record speaks for itself –
we recovered $350 million for our clients. We help you recover your lost assets in the face of gigantic financial
institutions, so no matter how hopeless your situation seems, call us.
We have the experience and skill to fight on your behalf against the largest
firms in the United Stated, whether we face them in federal or state court,
or in arbitration through FINRA or the American Arbitration Association, or AAA.
Do not let firms like National Planning Corporation get away with losing
your money carelessly. To see if you have a case, contact our firm for a
free case evaluation.