Written by The White Law Group• February 3, 2023• 3:42 pm• Blog, Current Investigations

Nathaniel Clay Barred after Allegations of Excessive Trades

SEC Bars Ex-Laidlaw Broker, “Nate” Clay, after Allegations of Fraud

According to a press release on January 20, 2023, the Securities and Exchange Commission reportedly charged Nathaniel “Nate” Clay with making unsuitable recommendations that resulted in substantial losses to customers and hefty commissions for himself. He reportedly agreed to pay more than $324,000 to settle the charges.

The SEC’s complaint, filed in the U.S. District Court for the Southern District of New York, alleges that from December 2015 to December 2018, Clay and another broker recommended investments that involved frequent buying and selling of securities without a reasonable basis to believe their recommendations were suitable.

According to the SEC’s complaint, the allegedly frequent trading coupled with commissions and other fees, resulted in a high-cost strategy through which customers suffered losses, while generating significant profits for Clay and the other broker.

The complaint further alleged that Clay knew or recklessly disregarded that his recommendations, for which he had no reasonable basis, were not suitable for anyone; and that Clay made material misrepresentations and omissions to customers in connection with his recommendations.

According to an administrative release on February 2, 2023, the SEC barred Clay from working in the securities industry.

According to his FINRA Broker Report, Clay was reportedly affiliated with the following firms during his career,
11/04/2015 – 02/07/2019, LAIDLAW & COMPANY (UK) LTD. (CRD#:119037), NEW YORK, NY,

B, 07/31/2008 – 11/12/2015, NATIONAL SECURITIES CORPORATION (CRD#:7569), NEW YORK, NY

Clay’s broker report indicates that he has six customer complaints filed against him. Allegations include excessive trading, among others. The Financial Industry Regulatory Authority (FINRA) barred Clay in March 2020, after he reportedly failed to provide information in FINRA’s investigation.

Recovery of Investment Losses through FINRA Arbitration

The White Law Group is investigating potential securities claims involving Nathaniel Clay and the liability his employers may have for failure to supervise him. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.

The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Seattle, Washington. We represent investors in all 50 states including New York. Our attorneys have recovered millions of dollars from many brokerage firms in the past.