Aegis Capital Corp

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Aegis Capital Corp Review Summary

Aegis Capital Corp is a fraudulent professional and you should avoid such an unprofessional entity if you are in the market for a good financial advisor or firm. Their clients have reported and complained about serious financial damages and/or fraud. Aegis Capital Corp is also under FINRA’s radar. Previously FINRA has uncovered well-reputed firms and advisors to be guilty of shocking crimes, which include but are not limited to:

Misrepresentation

Fraud

Scam

Siphoning Of Client’s Funds

Embezzlement

Dereliction of Duty

Nefarious History Of Aegis Capital Corp

Aegis became a FINRA member in July 1984. Aegis is headquartered in New York,
New York, employs 325 registered representatives, and maintains 23 branches. The Firm
provides, among other things, services in connection with wealth management, retirement
planning, investment banking, and fixed income trading.

On September 20, 2017, FINRA accepted an AWC in which the Firm was censured,
fined $27,500 (comprising a $20,000 fine for violating FINRA Rules 5310 and 2010 for
failing to fully and promptly execute marketable customer orders, and a $7,500 fine for
the related supervisory violation), required to update its written supervisory procedures
(“WSPs”), and pay $620.30 of restitution for violations of FINRA Rule 5310, 3110, and
2010 that occurred between October 1, 2015 and December 31, 2015.
On March 6, 2017, FINRA accepted an AWC in which the Firm was censured, fined
$52,000 (of which $17,500 was for violating FINRA Rule 5310’s obligation to fully and
promptly execute marketable customer orders), and required to pay $615.87 of restitution
for violations of, among other things, FINRA Rules 5310 and 2010, that occurred
between July 1, 2014 and September 30, 2014.

On December 30, 2015, FINRA accepted an AWC in which the Firm was censured, fined
$17,500 (of which $12,500 was for violating FINRA Rule 5310’s obligation to fully and
promptly execute marketable customer orders), and required to pay $1,194.89 of
restitution for violations of, among other things, FINRA Rules 5310 and 2010, that
occurred between October 1, 2013 and December 31, 2013.
On June 5, 2015, FINRA accepted an AWC in which the Firm was censured, fined
$85,000 (of which $45,000 was for violating FINRA Rules 5310’s obligation to fully and
promptly execute marketable customer orders, Rule 5310’s predecessor rules, and 2010),
required to pay $2,537.22 of restitution, and required to update its WSPs for violations of,
among other things, FINRA Rules 5310 and 2010, that occurred between October 1, 2011
and December 31, 2011, April 1, 2012 and June 30, 2012, and January 1, 2013 and
March 31, 2013.

Aegis Capital Corp Scam & Fraud Report

  1. FINRA Rule 5310(a)(1) requires members, in any transaction for or with a customer
    or a customer of another broker-dealer, to “use reasonable diligence to ascertain the
    best market for the subject security and buy or sell in such market so that the resultant
    price to the customer is as favorable as possible under prevailing market conditions.”
  2. FINRA Rule 2010 requires members, in the conduct of their business, to “observe
    high standards of commercial honor and just and equitable principles of trade.” A
    violation of FINRA Rule 5310 is also a violation of FINRA Rule 2010.
  3. During the First and Second Corporate Bonds Best Execution Review Periods, Aegis
    failed to use reasonable diligence to ascertain the best market for a subject security
    and buy or sell in such market so that the resultant price to the customer was as
    favorable as possible under prevailing market conditions in connection with 26
    corporate bond transactions. Specifically, Aegis sold and bought corporate bonds to
    and from its customers at prices that were not as favorable as possible under the
    prevailing market conditions, including up to more than 8 percent away from the
    relevant market.
  4. Therefore, Aegis violated FINRA Rules 5310 and 2010.
  5. MSRB Rule G-30(a) states that “[n]o broker, dealer or municipal securities dealer
    shall purchase municipal securities for its own account from a customer, or sell
    municipal securities for its own account to a customer, except at an aggregate price
    (including any mark-up or mark-down) that is fair and reasonable.”
  6. MSRB Rule G-17 requires dealers and municipal advisors to deal fairly with all
    persons and not to engage in any deceptive, dishonest, or unfair practice.
  7. During the Municipal Bonds Best Execution Review Period, Aegis failed to purchase
    municipal securities for its own account from a customer, or sell municipal securities
    for its own account to a customer, at an aggregate price (including any mark-up or
    mark-down) that was fair and reasonable in connection with two municipal bond
    transactions. Specifically, Aegis sold to its customers at prices that were
    approximately 40 percent away from the relevant market.
  8. Therefore, Aegis violated MSRB Rules G-30 and G-17.
  9. FINRA Rule 5310 (Supplementary Material .06) concerns a broker-dealer’s best execution obligations with respect to customer orders involving securities for which there is limited pricing information or quotations available. Supplementary Material
  10. .06 requires members to have written policies and procedures in place that address
  11. how the member will determine the best inter-dealer market for such a security in the
  12. absence of pricing information or multiple quotations and must document its
  13. compliance with those policies and procedures.
  1. MSRB Rule G-18 requires, in pertinent part, that a broker or dealer “must use
    reasonable diligence to ascertain the best market for the subject security and buy or
    sell in that market so that the resultant price to the customer is as favorable as
    possible under prevailing market conditions.” Supplementary Material .06 concerns
    customer transactions involving securities for which there is limited pricing
    information or quotations available and requires that each dealer have written policies
    and procedures in place that address how the dealer will make its best execution
    determinations with respect to such a security in the absence of pricing information or
    multiple quotations and must document its compliance with those policies and
    procedures.
  2. MSRB Rule G-18 (Supplementary Material .08) requires dealers to conduct, at a
    minimum, annual reviews of its policies and procedures for determining the best
    available market for the executions of its customers’ transactions. The periodic
    reviews “must assess whether its policies and procedures are reasonably designed to
    achieve best execution, taking into account the quality of the executions the dealer is
    obtaining under its current policies and procedures, changes in market structure, new
    entrants, the availability of additional pre-trade and post-trade data, and the
    availability of new technologies. . . .” A firm is required to make prompt
    modifications to its policies and procedures in light of such review.
  3. During all relevant review periods, the Firm failed to have written policies and
    procedures in place that address how to determine the best inter-dealer market for a
    security in the absence of pricing information or multiple quotations. Specifically,
    the Firm’s procedures restate the rule’s requirements, provide some limited guidance,
    and set forth relevant order handling procedures. The procedures, however, fail to
    describe specific order handling steps the Firm will take to address how it will
    determine the best inter-dealer market in the absence of pricing or multiple quotation
    information.
  4. During the Municipal Bonds Best Execution Review Period, the Firm also failed to
    perform reasonable periodic reviews of its policies and procedures in accordance with
    Supplementary Material .08. If it had performed a reasonable review of its order
    handling policies and procedures, it would have discovered that it never established
    the required order handling steps to determine the best inter-dealer market for a
    security in the absence of pricing information or multiple quotations.
  5. Therefore, the Firm violated FINRA Rules 5310 (Supplementary Material .06) and
    2010 and MSRB Rule G-18 (Supplementary Material .06 and .08)

Penalties, Punishments & Sanctions For The Crimes By Aegis Capital Corp

  1. A censure;
  2. A fine of $80,000 (comprising a $60,000 fine for violating FINRA Rules 5310, 5310
    (Supplementary Material .06) and 2010, and MSRB Rules G-30, G-18
    (Supplementary Materials .06 and .08), and G-17, ($20,000 of which pertains to
    violations of MSRB Rules G-30, G-18, and G-17) and a $20,000 fine for the
    violations of FINRA Rules 3110 and 2010, and MSRB Rule G-27 ($5,000 of which
    pertains to violations of MSRB Rule G-27));
  3. Restitution is ordered to be paid to the customers listed on Exhibits A-C to this AWC
    in the total amount of $43,912.89, plus interest at the rate set forth in Section
    6621(a)(2) of the Internal Revenue Code, 26 U.S.C. § 6621(a)(2), from the date of the
    relevant transactions, until the date this AWC is accepted by the National
    Adjudicatory Council (“NAC”).
    A registered principal on behalf of Respondent shall submit satisfactory proof of
    payment of restitution and prejudgment interest (separately specifying the date and
    amount of each paid to each of the customers associated with the transactions listed
    on Exhibits A-C) or of reasonable and documented efforts undertaken to effect
    restitution. Such proof shall be submitted by email to
    [email protected] from a work-related account of the registered
    principal of Respondent. The email must identify Respondent and the case number
    and include a copy of the check, money order, or other method of payment. This
    proof shall be provided by email to [email protected] no later than
    120 days after the date of the notice of acceptance of the AWC.
    If for any reason Respondent cannot locate any customer associated with the
    transactions identified in Exhibits A-C after reasonable and documented efforts
    within 120 days after the date of the notice of acceptance of the AWC, or such
    additional period agreed to by FINRA , Respondent shall forward any undistributed
    restitution and interest to the appropriate escheat, unclaimed property, or abandoned
    property fund for the state in which the customer is last known to have
    resided. Respondent shall provide satisfactory proof of such action to FINRA in the
    manner described above, within 14 calendar days of forwarding the undistributed
    restitution and interest to the appropriate state authority; and
  4. An undertaking to revise the Firm’s written policies and procedures with respect to
    the areas described above in paragraphs 12, 17, and 20. Within 30 business days of
    acceptance of this AWC by the NAC, a registered principal of the Firm shall submit
    to the COMPLIANCE ASSISTANT, MARKET REGULATION
    ENFORCEMENT, 15200 OMEGA DRIVE, ROCKVILLE, MD 20850, a signed,
    dated letter, or an e-mail from a work-related account of the registered principal to
    [email protected], providing the following information: (1) a
  5. reference to this matter; (2) a representation that the Firm has revised its written
  6. policies and procedures to address the deficiencies described above; and, (3) the date
  7. the revised procedures were implemented.

Aegis Capital Corp Review

During the periods of January 1, 2017 through June 30, 2017 (the “First Corporate Bonds
Best Execution Review Period”), and October 1, 2017 through June 30, 2018 (the
“Second Corporate Bonds Best Execution Review Period”), Aegis violated FINRA Rules
5310 and 2010 by failing to use reasonable diligence to ascertain the best market for a
subject security and buy or sell in such market so that the resultant price to the customer
was as favorable as possible under prevailing market conditions in connection with 26
corporate bond transactions.
During the period of October 1, 2017 through March 31, 2018 (the “Municipal Bonds
Best Execution Review Period”), Aegis violated Municipal Securities Rulemaking Board
(“MSRB”) Rules G-30 and G-17 by failing to purchase municipal securities for its own
account from a customer, or sell municipal securities for its own account to a customer, at
an aggregate price (including any mark-up or mark-down) that was fair and reasonable in
connection with two municipal bond transactions.
During all of the relevant review periods, Aegis violated FINRA Rules 5310
(Supplementary Material .06) and 2010 and MSRB Rule G-18 (Supplementary Material
.06) by failing to have written policies and procedures in place that address how to
determine the best inter-dealer market for securities in the absence of pricing information
or multiple quotations.
During the Municipal Bonds Best Execution Review Period, Aegis violated MSRB Rule
G-18 (Supplementary Material .08) by failing to conduct, at a minimum, reasonably
designed annual reviews of its policies and procedures for determining the best available
market for the executions of its customers’ transactions to assess whether its policies and
procedures were reasonably designed to achieve best execution.

During all of the relevant review periods, Aegis violated FINRA Rules 3110(a) and (b),
and 2010, and MSRB Rules G-27(b) and (c) by failing to establish and maintain a system, including WSPs, reasonably designed to achieve compliance with applicable
securities laws and regulations, and with applicable FINRA and MSRB rules

How To Spot A Fraud Finance Advisor (Infographic)

How To Spot A Fraud Finance Advisor (Infographic) Like Aegis Capital Corp
How To Spot A Fraud Finance Advisor (Infographic)

Help For Victims Of Aegis Capital Corp

If you have lost funds because of misrepresentation, unsuitable investment, or unsuitable investment strategy from Aegis Capital Corp. Then you can take legal action and get justice. Fraud, Malpractice & dereliction of duty should not be taken lightly, especially in this industry. We highly suggest that you notify authorities or seek legal action if your financial advisor or brokerage firm fails to abide by FINRA’s rules are regulations.

Financial advisors are regulatory & legally obligated to suggest (recommend) the most suitable investments/investment strategies to their clients. Their suggestions should have their client’s best interests and should be appropriate for their client’s goals and needs. Similarly, the brokerage firm which hires financial advisors also has a regulatory & legal obligation to keep a close watch and supervise their Financial Advisors’ practices & behavior. They need to make sure that the financial advisor is not being manipulative or having an unreasonable bias towards certain investments. If the financial advisor and/or the brokerage firm breaches these duties, then the client/customer may be entitled to a full or partial recovery of their losses.

Financial advisors need to have the interest of their clients when giving suggestions related to investments and investment strategies. Reasonable basis suitability requires the advisor to do their best to analyze & identify the risks and rewards associated with their suggested investment and/or investment strategy.

Questions & Answers

Is Aegis Capital Corp a safe professional?

No. FINRA has taken serious action against them which is strong evidence of incompetence and/or unprofessional behavior.

Why is this post online?

To warn potential victims of a dangerous individual/entity. Very often FINRA’s official warnings get buried under paid PR posts which misleads clients.

Who are you?

My father was defrauded by a financial scammer for thousands of dollars. We almost lost the house because of the sheer shock and financial loss. If he had known about the many FINRA disclosures about that fraud, this would’ve never happened. I just want to help people make a smart decision, that’s all.

Where did you get this information?

FINRA official website

This review (Aegis Capital Corp) was originally published at Gripeo. To read the full review, go to – https://www.gripeo.com/aegis-capital-corp/

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