Jay Sheth: $2.5MM Complaint Against National Securities Rep

Jay Sheth (CRD# 4656009), a broker and investment adviser located in New York City, has received a pending customer complaint alleging damages exceeding $2 million. According to Financial Industry Regulatory Authority (FINRA) records, Sheth is currently registered with National Securities corporation.

Jay Sheth’s BrokerCheck report lists one pending investor complaint against him. Filed in 2020, the complaint alleges that as a representative of National Securities Corporation, Jay Sheth recommended an unsuitable private placement product. The pending complaint alleges damages of $2.5 million. (A “Broker Comment” on the complaint reads in part: “The losses claimed are false and registered representative intends to purse expungement relief at the earliest opportunity.”

According to its BrokerCheck report, Jay Sheth’s member firm, National Securities Corporation, has itself received 15 investor complaints that evolved into arbitration. A complaint filed in 2015, for instance, alleged that the firm breached its fiduciary duty to act in the investor’s best interests, committed fraud, made misrepresentations and omissions of material facts, recommended unsuitable investments, failed in its supervisory duties, and acted negligently with regard to investments in common stock, private equities, and warrants/rights; the complaint resolved with an award to the customer of $155,000. Another complaint filed in 2015 alleged that the firm churned investments and engaged in unauthorized trading, resolving with an award to the customer of $504,443.01. A third 2015 complaint alleged the firm breached its fiduciary duty, committed fraud, made unsuitable investment recommendations, executed unauthorized trades, breached contract, failed in its supervisory duties, and acted negligently; the complaint resolved with an award to the customer of $42,937.

A representative of National Securities Corporation’s New York, New York branch office since 2004, Jay Sheth has also been registered as an investment adviser with National Asset Management in New York City since 2008. His prior registrations include Continental Broker-Dealer Corporation in Carle Place, New York. He has passed four securities industry qualifying examinations: the Uniform Investment Adviser Law Examination, or Series 65; the Uniform Securities Agent State Law Examination, or Series 63; the Securities Industry Essentials Examination, or SIE; and the General Securities Representative Examination, or Series 7. He currently holds 34 state securities licenses. (Information current as of July 14, 2021.)