Szempruch was suspended based on allegations of unsuitable trading practices.
Douglas Edward Szempruch (CRD#: 4159318) was registered as a broker with Aegis Capital Corp. from 2011 until 2021. Previously, Szempruch was registered as a broker with Global Arena Capital Corp., who has since been expelled by FINRA, from 2010 until 2011.
Szempruch has four disclosures on his BrokerCheck report.
July 2021 Regulatory Judgment
- Status: Final
- Initiated By: FINRA
- Allegations: Without admitting or denying the findings, Szempruch consented to the sanctions and to the entry of findings that he engaged in quantitatively unsuitable trading in customer accounts. The findings stated that each customer had an investment objective of growth or balanced growth and a risk tolerance of moderate. Szempruch recommended the trading in the customer accounts and the customers routinely followed his recommendations. In addition, Szempruch exercised discretion when executing trades in these customers’ accounts and, as a result, exercised de facto control over their accounts. Szempruch’s trading in the accounts was excessive and unsuitable given the customers’ investment profiles. The customers paid $127,198 in commissions and suffered $157,605 in losses. The findings also stated that Szempruch exercised discretion to effect trades in customer accounts without the customers providing prior written authorization for him to exercise discretion and without his member firm accepting any of the accounts as discretionary accounts. The findings also included that Szempruch sent emails to prospective customers making misleading statements concerning investments in a company. Specifically, Szempruch inaccurately represented that he had visited the company’s production facility, met with and was in direct communication with the company’s management, was participating in weekly calls with the company’s management, and had first-hand information about the company. In fact, although Szempruch was invited to visit the company’s facilities, he did not attend and was instead briefed later by colleagues who did make the trip. Szempruch also did not directly communicate with the company’s management but instead closely followed the company. Although Szempruch understood that colleagues at the firm had begun conducting periodic status conferences with the company’s management, the company’s management ceased participating in the conferences shortly after executing an agreement with the firm. Szempruch thus did not have direct or first-hand information about the company, and misleadingly described his relationship and interactions with the company and its management.
- Resolution: Acceptance, Waiver & Consent (AWC)
- Sanctions: Restitution
- Amount: $99,720.87
- Sanctions: Suspension
- Registration Capacities Affected: All Capacities
- Duration: 12 Months
- Start Date: 7/19/2021
- End Date: 7/18/2022
- Sanctions: In light of Szempruch’s financial status, the sanctions do not include a monetary fine.
February 2018 Customer Dispute
- Status: Settled
- Allegations: Time frame: May 21, 2015 to October 21, 2016. Client alleges poor performance and unsuitable recommendations.
- Damage Amount Requested: $30,000.00
- Settlement Amount: $30,000.00
- Broker Comment: This matter was a result of an unfortunate miscommunication between myself and the client. The matter has been fully resolved. The client and I continue to have a good relationship and he continues to maintain multiple accounts with me.
September 2005 Criminal Judgment
- Status: Final Disposition
- Charges: Applicant was charged with one count of bribery, 200.00, which is a Class D felony and one count of criminal possession of stolen property, 165.40, which is a Class A misdemeanor. Applicant plead guilty to a reduced charge of 110-195.05, attempting to obstruct government administration, which is a Class B misdemeanor.
- Charge Type: Felony
- Disposition: Plead guilty to and was convicted of 110-195.05 attempting to obstruct government administration, which is a Class B misdemeanor. Received and paid a fine in the amount of $250.00 and received conditional discharge of one year.
- Broker Comment: Original pending charge has been reduced to a section 195.05 offense- (attempting to obstruct governmental administration in the second degree, which is classified as a Class “B” misdemeanor.
May 2004 Customer Dispute
- Status: Settled
- Allegations: Unauthorized trading
- Damage Amount Requested: $5,99435
- Settlement Amount: $250.00
- Broker Comment: Mr. Szempruch denies the allegations. The client apparently forgot that he discussed payment for his purchase with his broker, which was the sale of his positions that transferred in.
Contact Us Today
The Sonn Law Group is currently investigating allegations surrounding Douglas Edward Szempruch. We represent investors in claims against negligent brokers and brokerage firms. If you or your loved one experienced investment losses, we are here to help. For a free consultation, please call us now at 866-827-3202 or complete our contact form.