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.

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.

Gibbs Law Group's Financial Fraud Experience

Gibbs Law Group’s financial fraud and securities lawyers have more than two decades of experience prosecuting fraud. Our attorneys have successfully litigated against some of the largest companies in the United States, and we have recovered more than a billion dollars on our clients’ behalf.

We have fought some of the most complex cases brought under federal and state laws nationwide, and our attorneys have been recognized with numerous awards and honors for their accomplishments, including Top 100 Super Lawyers in Northern California, Top Plaintiff Lawyers in California, The Best Lawyers in America, and rated AV Preeminent (among the highest class of attorneys for professional ethics and legal skills).

Our Securities Arbitration Team

Scott Silver

Scott focuses his law practice on securities arbitration and litigation and plaintiff-side class action litigation, representing individual investors and institutions in claims against brokerage firms, investment advisors, commodities firms, hedge funds and others.

Michael Schrag

Michael has over 20 years of experience representing individual and small business plaintiffs against the world’s large financial institutions, including Visa, Mastercard, and Chase.

Eileen Epstein Carney

Eileen works closely with investors in securities cases and has over a decade of experience in the legal world. She received her law degree from American University in 2005.

Dave Stein

David’s advocacy has generated major recoveries for consumers impacted by financial fraud. He was named to the Top 40 Under 40 by Daily Journal and a “Rising Star in Class Actions” by Law360.

Amanda Karl

Amanda is a member of the legal team in a securities lawsuit against NantHealth alleging false statements to investors about the success of its key product.