The Financial Industry Regulatory Authority says it has ordered broker-dealer National Securities to pay around $9 million over alleged attempts to artificially influence the market and other violations.

The company allegedly acted as an underwriter for three initial public offerings and seven follow-on offerings between June 2016 and December 2018, according to a letter of acceptance, waiver and consent published by the industry’s self-regulator. During that period, NSC allegedly induced or tried to induce several customers to buy securities in the aftermarket of the offerings prior to their completion, in violation of the Securities Act, Finra says.

Moreover, between April 2018 and July 2018, NSC allegedly failed to inform investors in two offerings related to GPB Capital about delays in the issuer’s required public filings, according to the self-regulator.

And between January 2005 and April 2020, NSC allegedly didn’t obtain locates, or approvals, for more than 33,000 short sale trades as required by the Exchange Act, Finra says.

Also, between September 2013 and May 2017, NSC allegedly didn’t properly supervise one of its registered representatives, failing to act on several red flags indicating that he was falsifying asset and suitability information to skirt the firm’s limits on non-traded real estate investment trust recommendations, according to the letter of acceptance.

Finally, NSC also allegedly made inaccurate statements to Finra about the sales of stock warrants the firm obtained in connection with an October 2019 public offering, the self-regulator says.

NSC consented to a censure and to pay a $3.6 million fine, disgorgement of $4.77 million and restitution of $625,480 plus interest to certain customers who purchased GPB Capital securities without admitting or denying the findings, according to the the letter of acceptance.

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