Nathan Clay Barred by SEC Following Civil Suit

Nathan Clay (CRD #: 4525541), a broker formerly registered with Laidlaw & Company, has been barred by the SEC and FINRA, according to his BrokerCheck record, accessed on March 28, 2023. Read on if you have questions about his alleged conduct as a broker.

SEC Bar

On February 2, 2023, the Securities and Exchange Commission entered administrative proceedings against Nathan Clay following a civil judgment entered against him on January 24, 2023, which permanently enjoined him from future violations of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.

Starting on February 2, 2023, SEC permanently barred Nathan Clay from associating with the following:

• Brokers
• Dealers
• Investment advisers
• Municipal securities dealers
• Municipal advisors
• Transfer agents
• Nationally recognized statistical rating organizations (NRSROs)

The SEC also barred him from participating in penny stock offerings, starting from the same date.

Securities Act of 1933

Section 17(a) of the Securities Act of 1933 prohibits the use of deceptive and fraudulent practices in the securities business. It also specifically bans the making of false statements and the omission of material facts relating to securities.

Securities Exchange Act of 1934 

Section 10(b) of the Securities Exchange Act of 1934 bans the use of manipulative or deceptive devices in relation to the purchase or sale of securities. Rule 10b-5 specifically prohibits fraudulent schemes, untrue statements, and omissions of fact.

SEC Civil Suit

On January 12, 2023, the Securities and Exchange Commission filed a civil complaint against Nathan Clay and Terrance Reagan alleging that they violated antifraud provisions of federal securities laws by making unsuitable trade recommendations and material misrepresentations and omissions related to these recommendations from November 2015 to January 2019.

The SEC alleged that Nathan Clay and Terrance Reagan recommended a pattern of high-cost, in-and-out trading to at least eight clients without having a reasonable basis to believe these recommendations would be suitable for any investor.

Their clients allegedly experienced more than $739,000 in losses, with commissions and trading fees making up more than $690,000 of these losses. Nathan Clay and Terrance Reagan allegedly each received approximately $150,898 in commissions. The SEC alleged that Nathan Clay and Terrance Reagan either understood or recklessly disregarded the unsuitability of their recommendations.

The SEC alleged that Nathan Clay and Terrance Reagan violated Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.

Sanctions

Judgment rendered against the defendants made them subject to the following sanctions:

• Undisclosed civil penalties/fines
• Disgorgement of $150,898
• Additional monetary penalty
• Injunction against future violations of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934

FINRA Bar

On March 18, 2020, FINRA permanently barred Nathan Clay for allegedly failing to respond to requests for information. His bar went into effect on June 22, 2020.

FINRA Rule 9552

FINRA Rule 9552 states that members who fail to provide documents, information, or testimony requested by FINRA will be suspended. Members who fail to request an end to their suspension within three months become permanently barred.

FINRA Suspension

On August 28, 2019, Nathan Clay was indefinitely suspended by FINRA for allegedly failing to comply with an arbitration award/settlement agreement or to sufficiently respond to a FINRA request for information regarding his compliance.

According to a dispute filed on August 28, 2019, Nathan Clay was named in a dispute alleging that he breached his contract. An arbitration agreement made him liable for $14,574.86 in damages with 12% interest, $86,986.23 in attorneys’ fees, and additional fees. You can read a copy of the arbitration agreement here.

FINRA Rule 9554

FINRA Rule 9554 penalizes brokers who fail to comply with arbitration awards or settlements by suspending or canceling their registration. Brokers have 21 days to request a hearing before their suspension or cancellation becomes final.

Civil Lien

On March 28, 2017, Nathan Clay was subject to a $16,174.94 civil lien.

Resignation from National Securities Corporation

On November 4, 2015, Nathan Clay was permitted to resign from National Securities Corporation in advance of an internal review relating to Regulation S-P that allegedly determined that he misappropriated non-public client information.

Regulation S-P

Regulation S-P requires firms to safeguard their clients’ personal information, including by providing disclosures before sharing private information with unaffiliated third parties.

Background Information

Nathan Clay has passed the following exams:

• Series 63 – Uniform Securities Agent State Law Examination
• SIE – Securities Industry Essentials Examination
• Series 7 – General Securities Representative Examination

In the past, he worked for the following firms:

• Laidlaw & Company (UK) (CRD#:119037)
• National Securities Corporation (CRD#:7569)
• Casimir Capital (CRD#:105061)
• Kuhns Brothers Securities Corporation (CRD#:47331)

Kurta Law Can Help

If you worked with Nathan Clay and you have concerns about your investments, please contact us today at 877-600-0098 or info@kurtalawfirm.com for a free consultation.

For over 20 years, Kurta Law has advocated on behalf of investors who want to recover their investment losses from brokers and brokerage firms. Kurta Law is a nationally recognized law firm and exclusively represents investors against brokers and brokerage firms on a contingency basis. This means that the firm only earns a fee if our securities attorneys recover money on your behalf.