Aegis Capital Corp. has 36 Regulatory Actions for Allegations of Improper Reporting, Failure to Supervise, Penny Stock Fraud among others.
The White Law Group is investigating potential securities claims involving Aegis Capital Corp. (CRD #15007, New York, NY) a mid-sized broker-dealer based in New York City. The broker dealer apparently has 36 regulatory events on its broker record, according to the Financial Industry Regulatory Authority (FINRA).
Aegis Capital Corp. Censured and Fined and ordered to pay restitution for Corporate Bond Overcharges
According to FINRA today, the regulator has censured and fined Aegis Capital Corp. for allegedly failing to give favorable pricing to customers in connection with 26 corporate bond transactions.
Aegis reportedly also violated Municipal Securities Rulemaking Board Rules G-30 and G-17 by failing to purchase municipal securities for its own account from a customer, or sell municipal securities for its own account to a customer, at an aggregate price (including any mark-up or mark-down) that was fair and reasonable in connection with two municipal bond transactions.
Aegis was censured and fined $80,000 and ordered to pay restitution to customers in the total amount of $43,912.89 plus interest.
This is not the first time Aegis has been in trouble with regulators.
July 2019 – Failure to File Documents with Regulators
The Financial Industry Regulatory Authority (FINRA) censured and fined Aegis Capital Corp. $93,125 for its alleged failure to file certain documents specified with FINRA after it had filed such documents with the SEC. According to FINRA, these documents have yet to be filed with FINRA. In addition, the firm filed certain documents between four days and over two years late. In connection with two prospectuses, the firm purportedly failed to disclose a total of $14,000 in fees and compensation for the underwriter’s counsel, according to FINRA’s findings.
March 2018 – Failure to File Suspicious Activity Reports
According to the Securities and Exchange Commission, the regulator censured Aegis after it found that from at least late 2012 through early 2014, Aegis reportedly failed to file Suspicious Activity Reports (“SARs”) on hundreds of transactions when it knew, suspected, or had reason to suspect that the transactions involved the use of the broker-dealer to facilitate fraudulent activity or had no business or apparent lawful purpose. Many of the transactions involved red flags of potential market manipulation, including high trading volume in companies with little or no business activity during a time of simultaneous promotional activity. Aegis reportedly did not file SARs on these transactions even when it specifically identified AML red flags implicated by these transactions in its written supervisory procedures. The firm was fined $750,000 and ordered to cease and desist.
March 2018 – Supervisory Issues
The SEC fined $550,000 for supervisory issues related to penny stock transactions.
March 2017 – Improper Reporting of Trades
The firm was censured and fined $52,000 and ordered to pay $615.87, plus interest, in restitution to investors; and required to revise its WSPs. Apparently the order memoranda failed to document the correct information regarding orders and these tickets improperly indicated that the orders were “held” orders.
The findings also stated that in transactions for or with a customer, the firm reportedly failed to execute a customer order fully and promptly.
August 2015 – Penny Stock Fraud
According to a settlement with FINRA, the firm agreed to pay $950,000 over allegations of improper sales of billions of shares of unregistered penny stocks and anti-money- laundering supervisory lapses. Two former chief compliance officers at the firm also were suspended and fined over the charges.
Filing a Complaint against your Brokerage Firm
Broker dealers are required to inform clients of the risks associated with investment recommendations and to ensure that those recommendations are suitable for the investor in light of the investor’s age, risk tolerance, net worth, and investment experience. Firms that fail to do so, may be held responsible for any losses.
If you have concerns regarding investments you purchased through Aegis Capital Corp. and would like to speak with a securities attorney, please call The White Law Group at 888-637-5510.
The foregoing information, which is all publicly available, is being provided by The White Law Group. The White Law Group is a national securities arbitration, securities fraud, and investor protection law firm with offices in Chicago, Illinois.
For more information on The White Law Group, please visit www.whitesecuritieslaw.com.
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