Aegis Capital Fined and Censured by FINRA

**Update: November 11, 2021** On November 8, 2021, Aegis Capital Corp agreed to pay nearly $2.7 million in sanctions for supervisory failures related to excessive and unsuitable trading by its brokers from July 2014 through December 2018. Click on the following link to read more: Aegis Capital Corp. Ordered to Pay Nearly $2.7 Million for Supervisory Failures Related to Rampant Excessive and Unsuitable Trading

Customers of Aegis Capital, including customers that have been notified that they may be receiving restitution, should consult with a securities arbitration law firm. If you or a loved one were a customer of Aegis Capital, contact New York securities arbitration law firm Iorio Altamirano LLP for a free and confidential consultation and review of your legal rights.

Original Post:

Aegis Capital Fined and Censured by FINRA

Aegis Capital (“Aegis”) was fined $80,000 and censured by FINRA over multiple FINRA and MSRB Rules violations. The firm was also ordered to pay restitution of $43,912 to customers.

The firm has a long history of sanctions. In 2017, Aegis was included in a Reuters study that analyzed FINRA data and identified 48 firms whose brokers have been flagged for serious incidents. The Reuters’ analysis showed that Aegis Capital had 39% of its brokers with at least one of the most serious red flags, per the study, on their public disclosure.

In August 2015, FINRA fined Aegis $950,000 for improperly selling unregistered penny stocks and for related supervisory failures and for failing to implement anti-money laundering (AML) policies and procedures.

If you invested with Aegis Capital, contact New York securities arbitration lawyers Iorio Altamirano LLP for a free and confidential evaluation of your account.

Former Aegis Capital Broker Edmund Zack Suspended by FINRA – New York, NY

Steven Robert Luftschein, Formerly with Aegis Capital Corp, Barred by FINRA

Financial Advisor Anthony Tricarico Suspended by FINRA for Excessive Trading While Employed at Aegis Capital Corp. – New York, NY

FINRA Letter of Acceptance, Waiver, and Consent (“AWC”)

Aegis and FINRA entered into a Letter of Acceptance, Waiver, and Consent on March 10, 2021, over allegations that the firm violated FINRA and MSRB Rules:

From January 1, 2017, through June 30, 2017, and from October 1, 2017, through June 30, 2018, Aegis violated FINRA Rules by failing to use reasonable diligence to ascertain the best market for a subject security and buy or sell in such market so that the resultant price to the customer was as favorable as possible under prevailing market conditions in connection with 26 corporate bond transactions. Specifically, Aegis sold and bought corporate bonds to and from its customers at prices that were not as favorable as possible under the prevailing market conditions, including up to more than 8 percent away from the relevant market.
From October 1, 2017, through March 31, 2018, Aegis violated MSRB Rules by failing to purchase municipal securities for its own account from a customer or sell municipal securities for its own account to a customer, at an aggregate price (including any mark-up or mark-down) that was fair and reasonable in connection with two municipal bond transactions. Specifically, Aegis sold to its customers at prices that were approximately 40 percent away from the relevant market.
Aegis failed to have written policies and procedures in place that address how to determine the best inter-dealer market for securities in the absence of pricing information or multiple quotations.
From October 1, 2017, through March 31, 2018, Aegis failed to conduct, at a minimum, reasonably designed annual reviews of its policies and procedures for determining the best available market for the executions of its customers’ transactions to assess whether its policies and procedures were reasonably designed to achieve best execution.
Aegis failed to establish and maintain a system, including written supervisory procedures (WSPs), reasonably designed to achieve compliance with applicable securities laws and regulations and with applicable FINRA and MSRB rules.

Disciplinary History

Aegis has been fined and censured multiple times for failing to fully and promptly execute marketable customer orders and for related supervisory violations.

In June 2015, Aegis was censured and fined $85,000. The firm was also ordered to pay restitution of $2,537.22.
In December 2015, Aegis was censured and fined $17,500. The firm was also ordered to pay restitution of $1,194.89.
In March 2017, Aegis was censured and fined $52,000. The firm was also ordered to pay restitution of $615.87.
In September 2017, Aegis was censured and fined $27,500. The firm was also ordered to pay restitution of $620.30.

How to Recover Losses or Obtain a Free Consultation

Aegis Capital is headquartered in New York, NY, and became a FINRA member in July 1984. The firm employs 325 registered representatives and has 23 branch offices. Aegis provides services in connection with wealth management, fixed income trading, retirement planning, and investment banking.

If you invested with Aegis, contact New York securities arbitration lawyer Jorge Altamirano of Iorio Altamirano LLP at jorge@ia-law.com or toll-free at (855) 430-4010 for a free and confidential evaluation of your account.

Iorio Altamirano LLP is a securities arbitration law firm based in New York, NY. We pursue FINRA arbitration claims nationwide on behalf of investors to recover financial losses arising out of wrongful conduct by financial advisors and brokerage firms.