The Sonn Law Group is currently investigating claims of misconduct pertaining to Aegis Capital Corp (CRD No. 15007). Recently, InvestmentNews.com reported that the New York-based broker-dealer is under a joint SEC, FINRA and FINCEN investigation. At the current time, there has been no public comment from any party involved explaining the reasons behind the inquiry.
Investors need to stay up to date on any breaking news regarding this brokerage firm. Additionally, if you have invested with Aegis Capital Corp, you should be aware of the fact that this firm has been subject to several complaints in recent years. Our experienced securities fraud attorneys are committed to informing investors and protecting their rights and interests.
Complaints Against Aegis Capital
Improper Reporting of Trades
On March 6th, 2017, Aegis Capital agreed to pay $52,000 in financial restitution to customers who were affected by the firm’s improper reporting of trades. Essentially, the firm’s failure to follow proper procedures cost at least 14 different clients money. The reason for this is that Aegis Capital failed to get its clients the best available price on certain trades. FINRA determined that the broker-dealer improperly held up some customer orders to their detriment. Getting the best available price, especially when customers are making sizeable trades, it extremely important. Without admitting or denying fault, Aegis Capital consented to the sanctions.
Trading Ahead of Customer Orders
In July of 2016, regulators found serious problems with Aegis Capital’s Order Audit Trail System (OATS). One specific issue was that the brokerage firm’s system failed to provide the trading
ahead opt-in/opt-out disclosures that were required before accepting orders from customers. The firm’s actions amounted to a violation of FINRA Rule 5320, which prohibits trading ahead of customer orders. More specifically, this regulation prevents broker-dealers from accepting a customer order for a certain security, but then making the same trade on their own account at a better price than they get for the own customer.
Penny Stock Fraud
In August of 2015, Aegis Capital agreed to pay a fine of $950,000 due to its illicit sale of unregistered penny stocks. According to the complaint from FINRA’s Department of Enforcement (Disciplinary Proceeding No. 2011026386001), the company liquidated nearly four billion shares of microcap stocks that were deposited into the accounts of several different customers. These penny stocks were not properly registered with the SEC. Collectively, these customers brought in more than $24 million of profit and Aegis Capital took in at least $1.1 million worth of commission payments. FINRA authorities determined that there was strong evidence that the sale of these unregistered microcap stocks was part of a ‘pump and dump’ fraud scheme.
Contact Our Securities Fraud Attorneys Today
At the Sonn Law Group, our FINRA attorneys have helped many victims recover fair compensation for their losses. If you have lost money investing with Aegis Capital Corp, please contact our firm today to schedule a free, no-obligation review of your case. We have offices in South Florida, Central Florida and Houston and we represent investors throughout the U.S. and around the world.