On August 3, 2015 Aegis Capital Corp. was fined $950,000 by FINRA for selling unregistered penny stocks and failing to supervise its securities business. In addition, two Aegis Capital Corp compliance officers were fined and suspended. In a related FINRA proceeding the firm’s president and CEO was suspended and fined for failing to disclose certain financial matters
Over the course of nearly two years Aegis Capital Corp. sold nearly 4 billion shares of unregistered penny stocks into the market at the behest of a former broker who had been barred from the securities industry. FINRA found that the firm and its compliance officers maintained an ineffective supervisory system that failed to adequately investigate “red flags” that indicated securities law violations, including the sale of unregistered penny stocks.
The firm consented to the entry of FINRA’s findings without admitting or denying the allegations.
Aegis Capital Corp.’s licensing and disciplinary history
Aegis Capital Corp. is registered with the SEC, three regulatory agencies and in 53 states and territories.
Aegis Capital Corp has been the subject of 19 regulatory investigations.
The Law Office of David Liebrader practices exclusively in the field of investment loss recovery and our securities attorneys have successfully resolved over 1000 investment loss cases over the past 20 years. Recoveries for clients top $40 million. The types of claims we have successfully handled include those involving unsuitable investments (suitability claims), excessive trading or “churning”, misrepresentations and omissions, unauthorized trading, over-concentration of illiquid or overly risky investments, pump and dump scams involving “penny stocks”, direct participation programs (private placements) involving real estate investment trusts (REITS), oil and gas exploration programs, leasing equipment deals and receivable financing, promissory notes whether sold through a broker dealer or as part of the outside business activities of a registered representative, ponzi scheme losses, failure on the part of the broker dealer to perform due diligence, state securities law (blue sky) violations and failure to supervise.
Investment losses can be recovered through a process known as FINRA arbitration. FINRA regulates broker dealers that sell investments, and provides an arbitration forum to resolve investor disputes. Investors can pursue claims against their brokerage firms in the FINRA arbitration forum. Common claims in the forum are those for suitability, breach of fiduciary duty, misrepresentations and omissions, negligence, violation of FINRA rules, state and federal securities laws violations, elder abuse, breach of contract and failure to supervise. On average, the recovery process takes approximately a year, from start to finish.
FINRA’s rules require that all investment recommendations made by licensed financial advisors be suitable in light of a customer’s needs, objectives and risk tolerance. In addition, all registered representatives are required to be properly supervised, with periodic inspections and reviews by qualified supervisors, whose job it is to vigorously investigate suspicions of wrongdoing (red flags).
If you have suffered investment losses please call The Law Office of David Liebrader at (702) 380-3131 for a free, confidential consultation