National Investment Fraud Lawyers KlaymanToskes Commences Aegis Capital Excessive Trading Investigation
NEW YORK, NY – National investment fraud lawyers KlaymanToskes (“KT”) is investigating Aegis Capital in light of the firm’s recent settlement with the Financial Industry Regulatory Authority (“FINRA”) concerning the firm’s negligence resulting from a failure to supervise potentially excessive and unsuitable trading conducted by brokers in its Melville, NY and Wall Street branches.
According to FINRA, from July 2014 to December 2018, Aegis Capital allegedly failed, through a breach of fiduciary duty, to take reasonable steps to investigate numerous red flags of potentially excessive and unsuitable trading occurring in hundreds of customer accounts, which caused millions in investment losses.
Excessive trading, or churning, occurs when a broker recommends a high number of trades that, in the aggregate, do not align with the customer’s investment goals and financial circumstances. Aegis Capital’s supervisory failure occurred despite the firm generating thousands of exception reports and receiving dozens of customer complaints relating to the alleged trading misconduct. FINRA also fined and suspended two Aegis Capital supervisors, Joseph Giordano and Roberto Birardi, for their role in the matter.
According to securities attorney Lawrence L. Klayman, Esq. “Brokerage firms like Aegis Capital have a duty to investigate and act upon red flags that suggest excessive and unsuitable trading practices in customer accounts. Aegis Capital’s failure to supervise may be a cause of action in a FINRA securities arbitration claim.”
The sole purpose of this release is to investigate Aegis Capital’s supervisory practices concerning excessive and unsuitable trading in its Melville, NY and Wall Street branches for potential FINRA violations, including a failure to supervise. Former and current customers at Aegis Capital’s Melville, NY and Wall Street branches with losses in excess of $250,000, and those who have information relating to the manner in which Aegis Capital managed and supervised customer accounts, are encouraged to contact Lawrence L. Klayman, Esq., at (561) 542-5131, and download our Special Investor Report.
Destination: https://klaymantoskes.com/finra-sanctions-aegis-capital-for-supervisory-violations-costing-investors-millions/
About Us
KT is a leading national securities law firm which practices exclusively in the field of securities arbitration, including investment fraud loss recovery, on behalf of retail and institutional investors throughout the world in large and complex securities matters. KT has recovered more than $225 million for investors in FINRA arbitrations. KT has office locations in California, Florida, New York, and Puerto Rico.
Contact:
Lawrence L. Klayman
KlaymanToskes
+1 561-542-5131
lklayman@klaymantoskes.com
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