Aegis Capital Corp. Churning Lawsuits Investigation

Aegis Capital was recently charged by the Financial Industry Regulatory Authority (FINRA) with failing to adequately supervise hundreds of customer accounts to guard against “excessive and unsuitable trading,” which resulted in high amounts of commission fees. Aegis submitted a letter of Acceptance, Waiver and Consent to settle those charges that it had violated FINRA rules.

Our firm is investigating claims on behalf of Aegis customers who believe their broker may have acted improperly through excessive trading or other practices. Our attorneys may be able to help you file a claim to recover your losses. Contact us for a free consultation.

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FINRA says Aegis “failed” to supervise accounts

On November 8, 2021, FINRA accepted Aegis’s Letter of Acceptance, Waiver and Consent (AWC) settling claims that it had allegedly violated rules on excessive trading in customer accounts.  This practice, commonly known as “churning” occurs when brokers make trades in customer accounts just to generate commissions.

FINRA specifically charged Aegis with failing “ to identify and address its representatives’ potentially excessive and unsuitable trading in customer accounts,” and failing to “act on more than 900 exception reports from its clearing firm that identified potentially unsuitable trading, and more than 50 complaints from customers alleging excessive, unsuitable or unauthorized trading in their accounts.”

In addition, the AWC stated over 10% of Aegis’s registered representatives have disclosures on record with FINRA for personal financial issues such as bankruptcies, outstanding liens and judgments.

How can investors win a FINRA arbitration claim for churning?

Disputes with registered brokers like Aegis must be brought in FINRA’s arbitration forum. Our award-winning attorneys can help you file a FINRA arbitration claim and recover your churning losses from Aegis.

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