February 11, 2016
On November 13, 2015, former National Securities Corporation stockbroker Zachary Bader (CRD# 5902742) of Melville, New York entered into a Letter of Acceptance, Waiver and Consent to resolve allegations FINRA made against him regarding violations of securities industry rules.
Bader consented, without admitting or denying the allegations made against him by FINRA, to a permanent bar from associating with any FINRA member firm in any capacity in resolution of FINRA Disciplinary Proceeding No. 20130363873-01. FINRA alleged that “[f]rom February 2012 through July 2013, Bader engaged in excessive trading in three customer accounts with a reckless disregard for the interests of those customers, in violation of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, NASD Conduct Rule 2310 (for conduct before July 9, 2012), FINRA Rule 211 (for conduct on and after July 9, 2012), and FINRA Rules 2020 and 2010. From March 2012 through January 2013, Bader made unsuitable recommendations of a complex Exchange Traded Note (“ETN”) to 21 customers without a reasonable basis to believe that the ETN was suitable for at least some investors, in violation of NASD Conduct Rule 2310 (for conduct before July 9, 2012), FINRA Rule 211 (for conduct on and after July 9, 2012), and FINRA Rules 2020 and 2010.”
A review of Bader’s FINRA BrokerCheck Report reveals that he has been the subject of 5 customer disputes and was discharged from Craig Scott Capital, LLC on August 16, 2013. Upon discharging Bader, Craig Scott Capital noted on his Form U5 that the reasons for discharge included, “soliciting firm’s clients away from firm while registered with the firm. Soliciting other RRs [registered representatives] awa from the firm while registered with the firm. Removal of customer data from frim. Various complaints of RR [Bader] bouncing checks and not honoring debts. Prescription drugs no bearing the RR’s [Bader’s] name were found in RR’s desk at the firm. In addition, the firm has recently become aware that Mr. Bader was evicted from his apartment for failure to pay his rent; Bader did not provide the firm with his current address. Also, Mr. Bader was, in recent days, convicted of driving while intoxicated and is awaiting sentencing. He also recently attempted to have certain members of the firm’s support staff provide him with customer statements and other relevant information of client accounts that were not assigned to him.”