Aegis Capital Corp. Fined $2.8M – Regulator Alleges Excessive Trading by Brokers

Aegis Capital Corp. Fined $2.8M – Regulator Alleges Excessive Trading by Brokers

Aegis Capital Corp. Fined $2.8M – Regulator Alleges Excessive Trading by Brokers 150 150 Robert Rex, Esq.

Aegis Capital Corp. Investigation

November 2021

Aegis Capital was fined nearly $3 million dollars by FINRA for allegedly excessive trading in customer accounts. According to the Letter of Acceptance, Waiver and Consent FINRA alleges that from 7/2014-12/2018, Aegis failed to establish and enforce a supervisory system designed to detect over trading accounts. As a result certain accounts had annualized turnover rates of over 34 time, resulting in losses in those accounts of $4.6 million.

The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.

According to their FINRA record, Aegis Capital Corp. discloses 37 prior regulatory events on their FINRA records, including the following:

  • March 2021-$80,000 fine and censure by FINRA for issues related to the best execution rule.
  • March 2018-The US Securities and Exchange Commission  (SEC) instituted  cease and desist proceedings against Aegis for alleged failures in their supervisory procedures related to detection of suspicious activities and violations of Exchange Act rules. Aegis as assessed a $750,000 fine.
  • March 2018-Aegis was assessed a fine of $550,000 by the SEC for supervisory failures related to penny stock transactions.

Aegis Capital Corp. was formed in 1984 and is headquartered in New York. They are licensed to sell securities in 53 States and Territories. While most of their 23 branch offices are located on the East Coast in Connecticut, Florida, New Jersey and New York, they also have offices in other locations, including Dallas, Texas, and Portland, OR.

If you have questions about an account with Aegis Capital Corp. call for a no charge consultation to discuss your options.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

Nationwide Representation

Rex Securities Law

TollFree: 877-224-3199

Florida-561 391 1900 


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