Investing with Aegis Capital Corp. can come with significant risks, as evidenced by numerous regulatory actions and disclosures. At Bakhtiari & Harrison, we are committed to helping investors protect their assets and seek justice for any misconduct.
Understanding the Risks with Aegis Capital
- Unsuitable and Excessive Trading Practices
- Regulatory Findings: Between 2014 and 2018, FINRA discovered that Aegis Capital representatives engaged in excessive and unsuitable trading in customer accounts. This resulted in over $2.9 million in trading costs for investors, with an average cost-to-equity ratio of 71.6%. The firm faced a $2.8 million sanction, including $1.7 million in restitution and a $1.1 million fine for supervisory failures. Supervisors ignored more than 900 exception reports and over 50 customer complaints regarding excessive or unauthorized trading (FINRA) (InvestmentNews).
- Improper Sales of Penny Stocks
- Violations and Penalties: Aegis Capital was fined nearly $1 million for the improper sale of billions of shares of unregistered penny stocks. These transactions generated significant profits for customers and substantial commissions for the firm. The firm’s inadequate supervision and failure to address red flags associated with these high-risk transactions led to substantial regulatory fines and penalties (InvestmentNews) (FINRA).
- Anti-Money Laundering and Supervision Failures
- Compliance Deficiencies: FINRA imposed a $550,000 fine on Aegis Capital for failing to implement adequate anti-money laundering (AML) and supervisory systems. The firm’s insufficient monitoring of suspicious trading activities, particularly in low-priced securities, exposed investors to significant risks. Despite alerts from their clearing firm, Aegis failed to investigate or act on numerous red flags (FINRA).
Detailed Disclosure Information
According to the FINRA BrokerCheck, Aegis Capital Corp. has a notable history of disclosures, reflecting various regulatory, civil, and criminal actions:
- Customer Complaints: Aegis Capital has numerous disclosures related to customer complaints. These complaints often involve allegations of unauthorized trading, excessive trading, and unsuitable investment recommendations.
- Regulatory Actions: The firm has faced multiple regulatory actions from FINRA and other regulatory bodies. These actions include fines and sanctions for failing to supervise their representatives properly, inadequate AML programs, and other compliance deficiencies.
- Arbitration Cases: Several arbitration cases have been filed against Aegis Capital by customers seeking restitution for losses incurred due to the firm’s alleged misconduct.
How Bakhtiari & Harrison Can Assist You
At Bakhtiari & Harrison, we focus on representing investors who have suffered losses due to the misconduct of brokerage firms like Aegis Capital. Our comprehensive legal services include:
- Personalized Legal Guidance: We understand the intricacies of securities law and provide tailored legal advice to help you understand your rights and options.
- Aggressive Representation: Whether through arbitration or litigation, we are committed to vigorously defending your interests and pursuing the maximum possible recovery for your losses.
- Expertise in Complex Cases: Our team has a proven track record of handling complex securities fraud cases. We leverage our deep knowledge and experience to build strong cases for our clients.
Take Action Today
If you have invested with Aegis Capital and believe your accounts have been mishandled, it’s crucial to take immediate action. Contact Bakhtiari & Harrison to discuss your case and explore your legal options. We are here to help you navigate these challenges and protect your investments.
Visit our website www.bhseclaw.com or call us to schedule a consultation.