National Securities Corp Whistleblower

National Securities Corp Whistleblower | Alleged Insider Trading of TG Therapeutics

Frank Briseno Lawsuit

The securities attorneys at Peiffer Wolf Carr & Kane represent investors in their claims against brokerage firms (broker-dealers), such as National Securities Corp, and their individual brokers. Peiffer Wolf Carr & Kane represent investors who have suffered financial losses as a result of insider trading, investment fraud, inappropriate investment strategies, Ponzi schemes, broker misconduct, unsuitable investment recommendations, failure to supervise, and abusive practices by financial institutions.

Based on our experience and recent allegations, we believe there are investors who have suffered losses as a result of National Securities Corp’s alleged practices. If you held or currently hold accounts with National Securities Corp, you should contact Peiffer Wolf Carr & Kane immediately for a FREE Consultation.

Peiffer Wolf Carr & Kane has helped thousands of investors who have suffered substantial losses. Contact Us today by calling 585-310-5140 or by filling out an online Contact Form.

WHISTLEBLOWER COMPLAINT – INSIDER TRADING ALLEGATIONS – TG THERAPEUTICS

According to a recently-filed whistleblower complaint, Michael Mullen of National Securities Corporation allegedly engaged in insider trading of stocks of TG Therapeutics, Inc. TG Therapeutics is a subsidiary of National Securities Corporation’s parent company Fortress Biotech, Inc. The complaint goes on to allege that Mullen was purchasing options, effectively betting against the company (betting that the company’s stock will go down in value), on TG Therapeutics on September 12, 2018, roughly two weeks before the stock dropped by about 44%.  On September 25, 2018, immediately after the 44% drop, Mullen sold his options, realizing a profit of more than 200% in just two weeks.

According to the complaint filed on behalf of the former National Securities Corp compliance officer:

In September 2018, [CEO and Chairman of National Holdings Corporation Michael Mullen] engaged in insider trading of Fortress subsidiary TG Therapeutics Inc. (“TG Therapeutics’)–managed and directed by Defendants Michael Weiss, Daniel Hume, and Neil Herskowitz, among others–before it announced disappointing clinical results. When TG Therapeutics announced those results on September 25, 2018, its stock dropped 44%. But on a day that TG Therapeutics lost nearly half its value, Defendant Mullen sold put options he had purchased twelve days earlier–and more than doubled his money. Several of National’s directors and officers facilitated and attempted to cover up Mullen’s insider trading.

To make matters worse, National Securities Corp allegedly continued to sell its investors shares of TG Therapeutics (TGTX) in the weeks leading up to the announcement that the clinical trial for U2 – a potential treatment for chronic lymphocyte leukemia – was not moving forward.

The complaint further states:

[U]pon information and belief, at Fortress’s direction, National had aggressively marketed and sold TGTX to NSC’s own customers.” Mullen was the managing director of Opus National Private Client Group (“Opus Private”) … Between September 13 and 24, Opus Private accounts sold another 152,545 shares of TGTX, including 100,000 shares from a single account on September 17.

Prior to the internal investigation into Michael Mullen’s alleged insider trading, he considered Kay Johnson – a chief compliance officer – to be invaluable to National Holdings Corp. Months earlier, Mullen’s performed Kay Johnson’s performance review. Notably, he stated “I told Kay I have a two-year plan. She needs to train her heir apparent to replace her as CCO and I will move her upstairs … I envision Kay as president, chief operating roles and even beyond.”

According to InvestmentNews, “The goodwill between National Holdings and Ms. Johnson likely started to unravel in September 2018, when a clearing firm alerted Ms. Johnson to suspicious trading activity related to TG Therapeutics, a company whose CEO is on the board of Fortress Biotech, which owned National Holdings until February of this year.”

According to a Reuters,  “Owning National [Securities] gives Fortress an in-house underwriter and a private sales force of about 700 brokers – nearly a third of whom have been flagged by regulators – to help it raise money for its stable of nine ventures that are developing new drugs or treatments.”

The article goes on to provide examples of specific instances where Natioanal Securities Corp was recommending stocks from biotech companies owned by their parent company, Fortress. National Securities Corp has recommended stocks from companies like Mustang Bio, Inc (MBIO.O), Avenue Therapeutics, Inc (ATXLO), and Checkpoint Therapeutics Inc (CKPT.O). Unfortunately for their clients, these stocks ended up underperforming, sometimes significantly.

For outside investors, Fortress’s ventures not only carry the typical risks of a long-shot biotech bet; they also come with unique conditions that can put outsiders at a disadvantage relative to the parent company.

NATIONAL SECURITIES CORPORATION – BY THE NUMBERS:

  • CRD# 7569
  • SEC# 8-164
  • 79 Disclosures:
  • 62 Regulatory Events
  • 2 Civil Events
  • 15 Arbitrations

FREE CONSULTATION | 585-310-5140

If you believe you were a victim of predatory lending, investment fraud, or broker misconduct, it is imperative to take action. Peiffer Wolf Carr & Kane has represented thousands of victims, and we remain committed to fighting on behalf of investors. We focus on identifying parties that are not only liable but have the financial ability to compensate victimized investors. Our goal is to put money back into our clients’ pockets.

Contact Peiffer Wolf Carr & Kane today by filling out a Contact Form on our website or by calling 585-310-5140 to schedule a FREE Case Evaluation.

securities fraud in the news

PEIFFER WOLF – CORONAVIRUS CRASH TO SEE LARGE-SCALE ABUSES OF INVESTORS SEEKING BETTER RETURNS

Something Else Troubling Is Going Around: Dubious Investments

Something Weird Is Happening on Wall Street, and Not Just the Stock Sell-Off

FAQ

Yes. Please use our contact form to request a free case evaluation. Tell us your story, and one of our lawyers will respond to tell you if we think we can help.

We work almost all of our cases under contingent fee arrangements. If we take your case under a contingent fee arrangement, you won’t owe our firm any legal fees unless we are able to recover money for you.

Our contingent fee is either based on a percentage of the amount we recover for our client (which generally ranges from one-third of the recovery up to 40%) or the amount of work we perform on your case, multiplied by our current hourly rates. The percentage we will charge in your case depends on the type of case, when your case resolves, and whether you request us to advance litigation costs (including filing fees, postage, expert witness fees, etc.). Generally, the percentage is higher if we are advancing litigation costs and your case does not resolve early.

In most litigation matters, it is extremely difficult – practically impossible – to predict how long or how many hours will it take to resolve a particular case. Every case is different in terms of the complexity. For instance, a simple breach of contract matter is likely to get resolved significantly faster than a complicated lawsuit involving multiple parties, numerous claims, complex issues of law, and extensive discovery. The other parties’ cooperation, the attorneys’ schedules, as well as the number of other cases on the court’s docket are also the factors.

DO YOU HAVE ANY QUESTIONS?

We handle cases that change lives. Contact us today for a FREE consultation.

Practice Chairs
joe peiffer
Joseph C. Peiffer
Managing Shareholder
JASON KANE
Jason J. Kane
Shareholder