Another Day, Another Disciplinary Action Against Aegis Capital Corp.

**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.

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Another Day, Another Disciplinary Action Against Aegis Capital Corp.

The Financial Industry Regulatory Authority (“FINRA”) has suspended Aegis Capital Corp. financial advisor Corey Alexander Johnson from the securities industry for 30-calendar days. Mr. Alexander consented to the suspension after FINRA alleged that he engaged in discretionary trading without written authorization for five customers between April 2017 and April 2019, executing approximately 1,358 transactions. FINRA also fined Mr. Johnson $5,000.

Mr. Johnson is the fourth Aegis broker, or former broker, to be disciplined by FINRA this year. A fifth broker has received notice of a complaint filed by FINRA’s Department of Enforcement. Separately, earlier this month, the firm itself was sanctioned by FINRA and ordered to pay restitution to customers. What a start to the year for Aegis!

If you have suffered financial losses investing with Aegis Capital Corp, or suspect that Aegis Capital Corp. did not have your best interest in mind when recommending investments or making account transactions, contact New York securities arbitration law firm Iorio Altamirano LLP for a free and confidential review of your account or annuity contract.

Iorio Altamirano LLP represents investors that have disputes with their financial advisors or brokerage firms, such as Aegis Capital Corp.

FINRA Letter of Acceptance, Waiver, and Consent No. 2019061906301

FINRA and Mr. Johnson entered into a Letter of Acceptance, Waiver, and Consent No. 2019061906301 on March 23, 2021, after FINRA alleged that from April 2017 through April 2019, while associated with Aegis Capital, Mr. Johnson effected 1,358 trades in five customers’ accounts using discretion without the customers’ prior written authorization. None of the five customers provided written authorization for Johnson to exercise discretion in their accounts, and Aegis did not accept any of the five accounts as discretionary accounts.

Early 2021 Disciplinary Actions

Mr. Johnson worked out of the firm’s branch office in Melville, New York, just like Steven Luftschein, who was barred from the brokerage industry by FINRA in January 2021. Mr. Luftschein churned and excessively traded the accounts of three of his customers.

In January 2021, FINRA also suspended former Aegis Capital Corp. broker Anthony (Tony) Tricarico from the securities industry for six months for excessively and unsuitably trading three clients’ accounts registered with Aegis.

Earlier this month, FINRA suspended former Aegis Capital Corp. broker Edmund Zack for excessive trading and using discretion without prior authorization.

A fifth broker, Kishan (Sean) Parikh), received notice of a complaint filed by FINRA’s Department of Enforcement. The complaint alleges that Mr. Parikh engaged in both excessive and unauthorized trading.

Separately, the firm itself was sanctioned by FINRA and ordered to pay restitution to customers for a series of violations.

Date	Name	Allegations	Sanction
January 13, 2021	Steven Luftschein	Churning and Excessive Trading	Barred
January 22, 2021	Anthony (Tony) Tricarico	Excessive Trading	Suspended for 6 months
March 10, 2021	Aegis Capital Corp.	Best Execution Violations	Censured, Fined, Restitution
March 17, 2021	Kishan (Sean) Parikh	Excessive Trading and Unauthorized Trading	Complaint Filed
March 19, 2021	Edmund Zack	Excessive Trading and Exercising Discretion Without Authorization (Unauthorized Trading)	Suspended for 8 months
March 23, 2021	Corey Johnson	Exercising Discretion Without Authorization (Unauthorized Trading)	Suspended for 30 days

Unfortunately, this is not new. Aegis Capital Corp has a long history of allegations of wrongdoing.

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 reports.

The alleged conduct by the brokers that have been sanctioned this year, such as excessive trading, churning, and unauthorized trading, are common practices for “boiler room” broker-dealers.

Excessive trading occurs when a financial advisor makes many trades in a customer’s account, not to benefit the customer but to generate commissions for the broker.

Churning is a more egregious variation of excessive trading. Churning refers to a situation where the broker executed an excessive number of trades and did so with the intent to defraud or reckless disregard for the customer’s interest.

Unauthorized trading often occurs in non-discretionary accounts, where a customer retains discretion. In non-discretionary accounts, brokers must obtain a customer’s permission every time before placing a trade.

Excessive trading, churning, and unauthorized trading are unethical and illegal practices. They are all also violations of securities rules and regulations and can cause enormous harm to customers.

Aegis Capital Corp. – A Duty to Supervise

Financial institutions like Aegis Capital Corp. must properly supervise financial advisors and customer accounts. Brokerage firms must establish and maintain a reasonably designed system to oversee account activity, such as annuity switches, to ensure compliance with securities laws and industry regulations. When a brokerage firm fails to supervise its financial advisors or the investment account activity sufficiently, it may be liable for investment losses sustained by customers.

How to Recover Financial Losses or Obtain a Free Consultation

If you have suffered investment losses with Aegis Capital Corp. or suspect other inappropriate activity occurred in your investment or retirement account, contact New York securities arbitration attorney August Iorio of Iorio Altamirano LLP. August Iorio can be reached at august@ia-law.com or toll-free at (855) 430-4010 for a free and confidential review of your legal rights.

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