Gary Costello of Aegis Capital Corp and Trust Investment Services: Lawsuit Investigation
The White Law Group is investigating potential claims involving former financial advisor Gary Steven Costello (CRD#: 6117388) and the brokerage firms that employed him, including Aegis Capital Corp. and Truist Investment Services. Costello has been barred by both the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC) after numerous allegations of fraud and misconduct.
According to public records, Costello worked in the securities industry for seven years with five different firms, including Aegis Capital Corp., Truist Investment Services, Oppenheimer & Co., Morgan Stanley, and Park Avenue Securities.
SEC Findings Against Gary Costello
On July 16, 2025, the SEC issued a final order permanently barring Costello from the securities industry. Regulators alleged that from March to August 2023, Costello engaged in a fraudulent scheme by canceling losing trades in his personal account and rebilling them to clients’ accounts.
The SEC found that Costello improperly shifted nearly $1.3 million in losses to his customers. His conduct violated multiple provisions of federal securities laws, including the antifraud provisions of the Securities Act, Exchange Act, and Advisers Act.
Costello was ordered to cease and desist and to pay over $1.6 million in penalties, disgorgement, and fines.
FINRA Bar and Employment Terminations
Earlier in 2025, FINRA also barred Costello after he refused to cooperate with its investigation.
Costello’s most recent employers, Aegis Capital Corp. and Truist Investment Services, both reported terminations involving allegations of misconduct:
-
In March 2024, Aegis Capital permitted Costello to resign after numerous customer complaints.
-
In August 2023, Truist Investment Services discharged Costello after determining he had improperly transferred losing trades from his personal account to clients’ accounts.
Gary Costello: Customer Disputes and Settlements
FINRA’s BrokerCheck database lists at least nine customer disputes filed against Costello in 2023 and 2024. Allegations include:
-
Unauthorized trading
-
Unsuitable and over-concentrated investments
-
Breach of fiduciary duty
-
Fraud and negligence
Several claims involved substantial losses and were settled for large sums, including:
-
$1,200,000 (September 2023)
-
$1,023,816.60 (August 2023)
-
$808,930.69 (August 2023)
Many of these disputes occurred while Costello was a registered representative with Aegis Capital Corp. and Truist Investment Services.
Recovering Investment Losses with Aegis Capital or Truist
If you suffered investment losses while working with Gary Costello, you may be able to pursue recovery through claims against the firms that employed him, such as Aegis Capital Corp. and Truist Investment Services.
Brokerage firms have a duty to supervise their financial advisors. When they fail to do so, and clients suffer losses as a result, the firm can be held liable through FINRA arbitration.
The White Law Group has represented thousands of investors in FINRA arbitration claims against brokerage firms, like Aegis Capital Corp., Truist Investment Services, and other Wall Street broker-dealers.
Frequently Asked Questions (FAQs)
1. Why was Gary Costello barred from the securities industry?
He was barred by both the SEC and FINRA after allegedly rebilling losing trades from his personal account into client accounts, causing customers to suffer significant losses.
2. Can I bring a claim against Aegis Capital Corp. or Truist Investment Services?
Yes. Investors may pursue FINRA arbitration claims against these firms for failing to supervise Gary Costello’s conduct and for customer losses that occurred while he was registered with them.
3. How can The White Law Group help investors recover losses?
Our attorneys represent investors nationwide in FINRA arbitration claims. If you suffered losses with Costello while he was employed by Aegis Capital Corp. or Truist Investment Services, we can review your case and help determine if you may be entitled to recovery.
Contact Us
If you invested with Gary Costello, Aegis Capital Corp., or Truist Investment Services and suffered losses, call The White Law Group at (888) 637-5510 for a free consultation.
Last modified: September 11, 2025
