Financial Advisor Jim Schwartz, Aegis Capital Corp. in Melville, NY

James Schwartz Reportedly Barred after Allegations of Churning & Excessive Trading

According to public records on the Financial Industry Regulatory Authority (FINRA) website, the regulator reportedly barred James Schwartz (Jim Schwartz) after he allegedly churned and excessively traded the accounts of customers of his member firm. The complaint, filed in 2018, alleges that Schwartz’s trading was unsuitable and purportedly caused combined losses of more than $660,000 in these customers’ accounts. At the same time, Schwartz’s trading allegedly “generated gross sales credits and commissions of approximately $277,705, of which he received more than $194,000,” according to FINRA.

The complaint also alleges that Schwartz “conducted fraudulent and deceptive trading by exercising de facto control over the customers’ accounts” and purportedly engaging in unauthorized trading. Schwartz purportedly executed trades with a total principal value of approximately $10 million without his customers’ authorization, including unauthorized trades he allegedly executed in a customer’s account after the customer had died, according to FINRA.

According to his broker profile, Schwartz was reportedly registered with Aegis Capital Corp. in Melville, NY from 2013 until 2016. He has reportedly been affiliated with fourteen firms during his eighteen year career in the securities industry. His broker report indicates eleven (11) customer complaints have been filed against him, with three reportedly still pending. Allegations include unsuitability, breach of contract, excessive trading and churning, among others.

Investigating Potential Lawsuits

The White Law Group is investigating potential lawsuits regarding the liability that Schwartz’s former employers may have for failure to properly supervise him.

When brokers violate securities laws, such as churning accounts or making unauthorized trades or unsuitable investments, the brokerage firm they are working with may be liable for investment losses through FINRA Arbitration. 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 Franklin, Tennessee.

If you are concerned about your investments with James Schwartz, please call the securities fraud attorneys at The White Law Group at 888-637-5510 for a free consultation.

For more information on The White Law Group, and its representation of investors, please visit www.WhiteSecuritiesLaw.com. The White Law Group is a national securities fraud, securities arbitration, and investor protection law firm with offices in Chicago, Illinois and Franklin, Tennessee.