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Investor Protection: The Case Against Aegis Capital


In the intricate and often opaque world of financial markets, brokerage firms wield significant power and influence over retail investors. These firms are expected to act in the best interests of their clients, adhering to regulatory standards and ethical practices. However, as recent investigations have shown, some firms may exploit their positions, causing substantial financial harm to investors. One such firm is Aegis Capital, a brokerage firm known for its high-risk underwriting activities that have left a trail of financial devastation for countless retail investors.

At Bakhtiari & Harrison, we are dedicated to protecting investors. Our firm has a long-standing commitment to holding brokerage firms accountable for their misconduct and advocating for the rights of investors. We specialize in representing investors who have been harmed or misled by their financial advisors, ensuring they have a voice and the opportunity to recover their losses.

Aegis Capital

Aegis Capital has garnered a reputation as one of the highest-risk brokerage firms in the country. Its business model relies heavily on underwriting high-risk, often failing nano-cap stocks, which are typically small companies with low market capitalizations. These stocks are notoriously volatile and prone to rapid declines in value, making them unsuitable investments for many retail investors. Despite this, Aegis has consistently pushed these risky securities onto its clients, resulting in substantial financial losses.

According to a detailed investigation by Craig McCann and Mike Yan, Aegis Capital’s underwriting practices have caused between $3 billion and $5 billion in investor losses in recent years. The firm’s activities have been described as “farm-to-table securities fraud,” highlighting the systematic nature of their misconduct. In their latest report, McCann and Yan provide evidence of Aegis’s ongoing harmful practices, further emphasizing the urgent need for action.

Prior Findings

A previous investigation into Aegis Capital found the firm to systematically underwrite failing nano-cap stocks, resulting in significant losses for investors. One notable example is Meten, where an unexplained one-day spike in stock price facilitated Aegis’s underwriting, leading to severe investor losses. Similarly, in the case of SeaChange International, Aegis’s manipulation of closing prices to facilitate underwriting was evident, resulting in a dramatic decline in stock value shortly after the offering.

The investigators also highlighted the practices employed by Aegis and the issuers they underwrite. These practices include marking the close to artificially inflate stock prices and gaming dilution disclosures about the true financial health of the companies. Such tactics may erode investor trust and may also contribute to substantial financial losses.

Ongoing Investor Harm in 2024

Despite the damning evidence from previous investigations, Aegis Capital has continued its practices unabated in 2024. Between mid-February and the end of May 2024, Aegis underwrote nine offerings totaling $95 million for eight issuers. As is typical with Aegis’s underwritten issuers, these companies were small, failing firms that posed significant risks to retail investors.

Among the recent offerings, six issuers had previously been underwritten by Aegis with disastrous results. The pattern of substantial stock price declines continued, with cumulative losses reaching as high as 99.99% for some issuers. The following sections detail the performance of specific companies underwritten by Aegis in 2024, illustrating the extent of investor harm.

Applied UV

Applied UV is a stark example of the devastating impact of Aegis’s underwriting activities. Over the past two years, Applied UV’s stock price has plummeted by 99.99% while Aegis was underwriting its securities offerings. Despite the significant decline in stock value, Aegis continued to underwrite additional offerings, leading to further investor losses.

BYND Cannasoft Enterprises

BYND Cannasoft Enterprises experienced a similar fate. Since Aegis began underwriting its securities, the stock price has dropped by 99.92%. The company’s financial health was already precarious before Aegis’s involvement, and the subsequent offerings only exacerbated the decline, causing substantial losses to investors.


The case of C3is highlights the rapid and severe impact of Aegis’s underwriting activities. Within a year, C3is’s stock price dropped by 99.92%, with substantial declines occurring after each underwriting by Aegis. The firm’s continuous involvement with such failing companies underscores the systemic nature of the problem.


Cemtrex’s stock price decline of 99.7% while underwritten by Aegis further illustrates the firm’s reckless underwriting practices. Despite the evident risks, Aegis continued to facilitate securities offerings for Cemtrex, leading to devastating losses for investors.


Cyngn’s stock price has fallen by 98.7% since Aegis began underwriting its offerings. The consistent decline in stock value reflects the high-risk nature of the companies Aegis chooses to underwrite and the consequent financial harm to investors.

Sunshine Biopharma

Sunshine Biopharma’s stock price has dropped by 99.99% while Aegis was underwriting its securities offerings. The repeated underwritings despite the company’s failing performance demonstrate Aegis’s disregard for investor protection.

Flora Growth

Flora Growth, a first-time issuer underwritten by Aegis in 2024, saw its stock price drop by 77.5% in the past two years. The rapid decline following Aegis’s involvement is consistent with the pattern observed in other underwritten issuers.

Serve Robotics

Serve Robotics experienced an 88.5% decline in stock price within three months of being underwritten by Aegis. The substantial loss underscores the high-risk nature of Aegis’s underwriting activities and their detrimental impact on investors.

How Bakhtiari & Harrison Can Help

At Bakhtiari & Harrison, we specialize in representing investors who have been defrauded or misled by their financial advisors. Our experienced team of attorneys is committed to holding brokerage firms accountable for their misconduct and ensuring that investors have the opportunity to recover their losses. Here’s how we can help:

  1. Case Evaluation and Consultation: We offer a thorough evaluation of your case to determine the extent of misconduct and the potential for recovery. Our team will review all relevant documents, including account statements, transaction records, and communications with your broker, to identify evidence of fraud or mismanagement.
  2. FINRA Arbitration: The Financial Industry Regulatory Authority (FINRA) provides a forum for resolving disputes between investors and brokerage firms. We have extensive experience representing clients in FINRA arbitration, from filing the initial claim to presenting evidence and arguing your case before the arbitrators. Our goal is to achieve the best possible outcome for our clients. If you need a dedicated FINRA securities attorney, Bakhtiari & Harrison is here to help.
  3. Litigation: In cases where arbitration is not an option or additional legal action is necessary, we are prepared to litigate on behalf of our clients. Our attorneys have a proven track record of success in court, fighting for the rights of investors and securing favorable outcomes.
  4. Expungement of U5 Language: For financial advisors who have been wrongfully terminated, we assist in expunging negative language from their U5 forms and changing the termination status to voluntary. This can help protect your professional reputation and future career prospects.
  5. Elder Abuse Claims: Many states, including California, have elder abuse statutes designed to protect senior citizens from financial exploitation. We are dedicated to representing senior investors who have been defrauded, seeking compensation for their losses and holding those responsible accountable.
  6. Investor Education: We believe in empowering investors with knowledge. Through our marketing blogs and other educational resources, we aim to inform the public about their rights and the steps they can take to protect themselves from unscrupulous brokers.


Aegis Capital’s underwriting of high-risk, failing nano-cap stocks has caused billions of dollars in losses for retail investors. Despite previous investigations and the clear pattern, Aegis continues its harmful practices unabated. The urgent need for regulatory intervention cannot be overstated. Without decisive action, Aegis may continue to cause further financial devastation.

At Bakhtiari & Harrison, we are committed to advocating for the rights of investors and holding brokerage firms accountable for their misconduct. Our firm has extensive experience in representing investors who have suffered losses due to the unethical practices of brokerage firms. We understand the complexities of these cases and are dedicated to securing justice for our clients. If you need a FINRA securities attorney to help recover your losses, we are here for you.

If you or someone you know has suffered financial losses due to the actions of Aegis Capital or any other brokerage firm, contact Bakhtiari & Harrison today. Our team of experienced attorneys is here to help you navigate the legal process and recover your losses. Together, we can hold these firms accountable and protect the rights of investors.

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