Were you the victim of former National Securities Corporation broker James Mariani (CRD<# 2932631), who is accused of unsuitable investment recommendations? He was registered with Aegis Capital Corp. in Bayside, New York, from 2017 to 2021. Previously, he was registered with National Securities Corporation in Mineola, New York, from 2007 to 2017.
It is alleged that he recommended the following investments as low risk, despite being alternative investments and unsuitable for many investors:
- Aegis Special Situations Op
- Annaly Capital Management, Inc.
- American Strategic Investment Co.
- GPB Automotive Portfolio, L.P.
- GWG L Bonds (GWG Holdings, Inc.)
- Necessity Retail REIT
- New York City REIT
- NorthStar Financial Services (Bermuda)
In May 2005, NASD suspended and fined him $15,000, regarding his participation in mutual fund switching in a customers account. According to his CRD, “He effectuated purchases and sales of mutual funds. He recommended and effected securities transactions on margin in the account of a customer. He did not have reasonable grounds for believing that these transactions were suitable for the customer based on her financial situation, investment objectives and needs.”
James Mariani Customer Complaints
According to public records, a former client recently filed a FINRA arbitration claim on behalf of an elderly, retired couple against Aegis Capital Corp. and National Securities Corp.’s success B. Riley Wealth Mangement. The client is seeking $1.5 million related to accusations of unsuitable investment recommendations in private placements. Additionally, it is alleged that he artificially inflated his client’s financial statements so they could bypass firm policies to limit alternative investments based on a percentage of a client’s liquid net worth and instead invest a high amount in these unsuitable investments.
He has been the subject of 13 customer complaints between 2002 and 2021, one of which was denied, according to his CRD report. The most recent complaints are regarding:
June 2023. “Time frame: September 2017 – Present. Claimants allege unsuitable investments, omissions of material facts.” The customer is seeking $1 million in damages, and the complaint is currently pending.
June 2023. “Time frame: September 2017 – Present. Claimants allege unsuitable investments, omission of material facts.” The customer is seeking $500,000 in damages, and the complaint is currently pending.
April 2023. “Alleges investments in alternatives and REITS were unsuitable.” The customer is seeking $170,000 in damages, and the complaint is currently pending.
March 2022. “Time frame: 2017 to present. Claimants allege unsuitable, excessive and unauthorized trading; breach of fiduciary duty; negligence; misrepresentation and omissions of material facts.” The customer sought $95,000 in damages, and the case was settled for $50,000. The complaint was regarding common and preferred stocks, and it took place while he was registered with Aegis Capital Corp.
November 2021. “Attorney for the client alleges unsuitable recommendations.” The customer is seeking $291,100. The complaint was regarding real estate securities, and it took place while he was registered with National Securities Corporation.
October 2021. “Attorney for the customer claims unsuitable recommendations.” The customer is seeking $600,000 in damages. The complaint was regarding real estate securities, and it took place while he was registered with National Securities Corporation.
October 2021. “Son of deceased client upset the REIT is illiquid.” The case is currently pending. The complaint was regarding real estate securities, and it took place while he was registered with National Securities Corporation.
September 2021. “Attorney for clients claims investment strategy was not suitable.” The customer sought $500,000 in damages, and it was settled for $200,000. The complaint was regarding real estate securities and private placements (e.g. PIPES), and it took place while he was registered with National Securities Corporation.
July 2021. “Suitability.” The case is currently pending. The complaint was regarding private placements, and it took place while he was registered with National Securities Corporation.
December 2018. “Time frame: unspecified. Suitability and breach of fiduciary duty.” The customer sought $467,000, and it was settled for $67,500. This complaint was regarding real estate securities.
April 2018. “Unsuitability, breach of fiduciary duty, negligence.” The customer sought $432,020.69 in damages, and it case was settled for $135,000. This case was regarding an alternative investment.
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 James Mariani’s customers.
Erez Law represents investors in the United States for claims against brokers and brokerage firms for wrongdoing. If you 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.
"*" indicates required fields
