Aegis Capital Corp. (“Aegis Capital Corp”) (CRD# 15007) has many different complaints filed by FINRA (Financial Industry Regulatory Authority), state regulatory organizations, and investors such as yourself. At the Law Offices of Robert Wayne Pearce, we have investigated Aegis Capital Corp, its regulatory and customer complaints, and have also represented investors with claims of fraud, negligence, and breach of fiduciary duty against this organization and its financial advisors.
If you believe you have a claim against Aegis Capital Corp, you should strongly consider hiring an investment fraud lawyer. You should not wait until it’s too late to file a claim. The Law Offices of Robert Wayne Pearce, P.A., offers free consultations. Give us a call at 800-732-2889. Let’s discuss your case and see what we can do to help you get the compensation you need and deserve.
Can I Sue Aegis Capital Corp?
If you’ve lost money caused by Aegis Capital Corp and/or its employees’ misconduct then the answer is, YES, you can sue Aegis Capital Corp but the odds are you signed away your right to sue in court and agreed to resolve your dispute in a FINRA arbitration proceeding. Attorney Robert Wayne Pearce has over 40 years of personal experience in FINRA arbitration proceedings and knows very well how you can not only sue Aegis Capital Corp in FINRA arbitration proceedings, but WIN that arbitration. The easiest way to know if you have a viable case against Aegis Capital Corp is to call Attorney Pearce at our office at 800-732-2889.
What is Aegis Capital Corp?
Aegis Capital Corp (CRD# 15007) is a registered broker-dealer. It operates as a full-service independent broker-dealer, providing a range of financial products and services to individual investors and financial advisors.
As a registered broker-dealer, Aegis Capital Corp is subject to regulations and oversight by the Securities and Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA). It is required to comply with industry standards and regulations to ensure the protection of its clients’ interests.
A failure to comply with industry standards by either its brokers or the firm itself can result in disciplinary actions, fines, or other penalties imposed by regulatory authorities.
Aegis Capital Corp Has Many Different Regulatory Problems
Aegis Capital Corp’ rapid growth has not been without consequences. There have been approximately 37 state and self-regulatory body disclosure events; that is, final and formal proceedings initiated by a regulatory authority (e.g., a state or federal securities agency like the U.S. Securities and Exchange Commission (SEC) or self-regulatory body like the Financial Industry Regulatory Authority (FINRA) for a violation(s) of investment-related rules or regulations. In addition, there have been hundreds of customer complaints filed against Aegis Capital Corp for misconduct by its securities sales and investment advisory representatives that are not reported by the firm on its Central Depository Record.
We have reported and written about these regulatory problems and customer complaints over many years. Aegis Capital Corp is a repeat offender: there are over 37 FINRA-reported disciplinary proceedings citing the firm with one form of supervisory lapses or another.
A Brief Overview of Some of the Regulatory Problems Aegis Capital Corp Has Faced Over the Years*
Aegis Capital Corp has been repeatedly censured, warned, and fined multi-millions of dollars for its own misconduct and failure to supervise its army of financial advisors.* A few of the notable FINRA Sanctions for its Supervisory Failures are below:
Improper Reporting of Trades
Brief Overview: On March 6th, 2017, Aegis Capital agreed to pay $52,000 in financial restitution to customers who were affected by the firm’s improper reporting of trades. At least 14 different clients suffered financial losses due to the firm’s failure to follow proper procedures, specifically by failing to obtain the best available price on certain trades. FINRA determined that Aegis Capital improperly held up customer orders, resulting in detrimental outcomes. Obtaining the best available price is crucial, particularly for substantial trades. Aegis Capital consented to the sanctions without admitting or denying fault.
Trading Ahead of Customer Orders
Brief Overview: In July of 2016, regulators discovered significant issues with Aegis Capital’s Order Audit Trail System (OATS). One specific problem was the brokerage firm’s failure to provide the necessary trading ahead opt-in/opt-out disclosures before accepting orders from customers. Aegis Capital’s actions violated FINRA Rule 5320, which prohibits trading ahead of customer orders. This regulation specifically forbids broker-dealers from accepting a customer order for a particular security and then executing the same trade on their own account at a better price than what the customer received.
Penny Stock Fraud
Brief Overview: In August of 2015, Aegis Capital was fined $950,000 for engaging in the illicit sale of unregistered penny stocks. According to a complaint filed by FINRA’s Department of Enforcement (Disciplinary Proceeding No. 2011026386001), the company liquidated nearly four billion shares of microcap stocks that were deposited into the accounts of several customers. These penny stocks were not properly registered with the SEC. The customers collectively generated over $24 million in profits, while Aegis Capital received commission payments of at least $1.1 million. FINRA authorities found strong evidence suggesting that the sale of these unregistered microcap stocks was part of a ‘pump and dump’ fraud scheme.
*Above are only some of the regulatory disciplinary actions filed against Aegis Capital by FINRA. NASSA and other state securities regulator investigations and enforcement actions account for another 37 BrokerCheck disclosures.
Aegis Capital Customer Complaints
There have been scores of customer complaints filed against Aegis Capital stockbrokers and investment advisors over the years. We have launched many investigations of current and former Aegis Capital advisors:
- Alvery Bartlett of Aegis Capital Corp.
- Yann Faho of Aegis Capital Corp
- Gregory OBrien of PHX Financial, Inc
- Matthew Gaer of Aegis Capital Corp.
- Melvin Payne of PHX Financial, Inc.
- Thomas Duggan of Aegis Capital Corp.
- Indra Ramsahai of Joseph Stone Capital
- Harold Weber of Aegis Capital
- Alan Appelbaum of Aegis Capital
- Rick Davidson of Aegis Capital
- Anthony Pucci of Craft Capital Management LLC
- Anthony Diminno formerly with Aegis Capital Corp.
- Danny Sookram of Equitable Advisors
- Vincent Sharpe of PHX Financial
- Joseph Rozof of Revere Securities
- Joseph Valdini Formerly With Aegis Capital
- Robert Buffington of Aegis Capital Corp.
- Dennis Herrera of Aegis Capital
- Johnny Guan of Aegis Capital
- Michael Mosslih of Aegis Capital
- Angelo Vitale of Alexander Capital
- Angelo Vitale of Alexander Capital
- Serge Parakhnevich of PHX Financial
- Serge Parakhnevich of PHX Financial
- Christopher Norton formerly with I-Bankers Direct
- Nick Son Of National Securities
- Pratul Agnihotri Of SW Financial
- Cory Bataan formerly with Aegis Capital
- Larry Cohen of Aegis Capital
- Michael Charles of Craft Capital Management
- Keith Connolly Formerly With Aegis Capital
- Michael Farrell Formerly With Aegis Capital
- Kevin Doyle of Aegis Capital
- Ghazaleh Ebrahimi of Aegis Capital
- Brian Lombardi formerly with I-Bankers Direct
- Robert Macnamee formerly with Aegis Capital
- Tariq Sales of Spartan Capital Securities
- Brian Rockowitz of Madison Global Partners
- Gerald Sharpe of Aegis Capital
- Brendan Behan of Aegis Capital Corp.
- Christopher Barletta Formerly With National Securities
- Dennis Karjanis of Aegis Capital Corp.
- Elliot Sherer of Aegis Capital Corp.
- Jason Rossi of Aegis Capital Corp.
- Jerry Goldblum of Equitable Advisors, LLC
- Justin Deiter of Spartan Capital Securities, LLC
- Who is M.B. Schreiber formerly with Aegis Capital Corp.
- Mark Kolta formerly with Worden Capital Management LLC?
- Michael Venturino formerly with Spartan Capital Securities, LLC
- Michael Fasciglione of Aegis Capital Corp.
- Michael Vetere formerly with Aegis Capital Corp.
- Peter Fetherston formerly with Aegis Capital Corp.
- Robert Yasnis formerly with Aegis Capital Corp.
- Ryan Wroblewski of Morgan Stanley
- Scott Hananel formerly with Aegis Capital Corp.
- Steven Luftschein formerly with Joseph Stone Capital L.L.C.
- Thomas Kelly, Jr. of Aegis Capital Corp.
- Todd Ellentuck formerly with Aegis Capital Corp.
- Andrew Brookman of Aegis Capital Corp
- Keith Dagostino of Aegis Capital Corp
- Sean Sullivan of Sovereign Global Advisors LLC
- Surage Perera formerly with Aegis Capital Corp.
- Christopher Knutson of Aegis Capital Corp.
- James Mariani of Aegis Capital Corp
If you have lost money investing with any of these Aegis Capital advisors or others within this brokerage firm, it’s important that you reach out to an investment loss attorney quickly because the statutes of limitations can bar your claims. Call us at 800-732-2889.
Why Does Aegis Capital Corp Have So Many Regulatory Problems And Customer Complaints?
Independent broker-dealers are notorious for their lax supervisory practices and procedures. The business model of these franchise type operations is to open many offices nationwide for steady growth of fixed monthly revenues without the costs attendant to a full-service branch office with on-site manager, compliance officer and operation personnel. The registered representatives of these independent broker-dealers generally operate as separately incorporated businesses. They are not employees of the broker-dealer and therefore not controlled in the same manner as full-service brokerage firm representatives. The registered representatives control their structure and costs to maximize profits and often leave the protection of investors’ rights and interests as their lowest priority.
The typical supervisory organization of independent broker-dealer operations is to have other independent contractors operate Offices of Supervisory Jurisdiction (OSJs) to monitor the registered representatives from geographically remote offices and then report to the main franchisor’s compliance office at national headquarters. The supervisors at the OSJs are not employees of the franchisor and often run their own brokerage, insurance and other businesses. They are not devoted full-time supervisors of the smaller branch offices. Consequently, OSJ managers cannot and do not supervise the day-to-day operations of the registered representatives of these Independent broker-dealers.
Generally, there is no immediate review of new accounts opened, securities transactions, business records, cash or securities receipts and deliveries, correspondence and business activities unrelated to the securities brokerage operation at these independent brokerage firms. The lax supervision leaves investors who have transferred their accounts to the smaller independent broker-dealer vulnerable to sales of securities that have not been reviewed or authorized by anyone other than the sales representative earning a commission. There may be no one onsite to detect forgeries of clients’ signatures on documents, the placement of inaccurate information about a client’s investment objectives and financial condition to document the suitability of a particular investment recommendation. Oftentimes there is no daily review of sales literature and client correspondence to protect against misrepresentations and misleading statements being made to investors. In fact, it is not unusual for there to be only one compliance audit visit per year at many of these offices.
These Independent brokerage business operations are worrisome to the North American Securities Administrators Association (NASAA), which has documented more instances of sales abuse and consequently investor losses at these firms than the traditional brokerage firms with branch offices with on-site managers and compliance personnel.
Did Aegis Capital Corp Advisor Misconduct Cause You Investment Losses?
When financial advisor misconduct has caused you to lose substantial value to your investment accounts, you have the right to seek reimbursement from the responsible parties. Aegis Capital Corp is responsible like any employer for its financial advisors acts and omissions. In addition, it has an independent duty to supervise its stockbrokers and investment advisors. These cases can be extremely complex, and so having the support of a reputable attorney who is experienced in recovering investment losses for investors is key to your success. Many customers make the mistake of contacting Aegis Capital Corp without representation with an attorney about their complaints and have their complaints denied.
Related Read: Can You Sue Your Brokerage Firm?
Consult With An Attorney Who Recovers Investment Losses Caused By Aegis Capital Corp Today!
The investment loss attorneys at The Law Offices of Robert Wayne Pearce, P.A., have helped countless investors over the last 40 years recover the losses from their investment accounts that were caused by broker negligence or misconduct. The firm has extensive experience with Aegis Capital Corp cases, and Attorney Pearce is committed to seeing that those responsible for the losses you have suffered are held fully accountable.
Give us a call at 800-732-2889. Let’s discuss your case and see what we can do to help you get the compensation you need and deserve.