Broker Spotlight: Customers File Complaints Against Aegis Capital Broker Nicholas Tsikitas

shutterstock_12144202The securities lawyers of Gana LLP are investigating customer complaints against broker Nicholas Tsikitas (Tsikitas).  According to BrokerCheck records Tsikitas has been subject to at least five customer complaints and three regulatory sanctions. The customer complaints against Tsikitas allege securities law violations that including unsuitable investments, churning, overconcentration of investments, negligence, and failure to supervise among other claims.

The most recent complaint was filed in October 2014, and alleged $851,988 in damages due to claims that the broker, from 2008 through 2010 made unsuitable investments and recommendations to the client.

In 2011 the State of Connecticut censured Nicholas Tsikitas following allegations he caused the filing of certain documents “that were materially false or misleading.”

Brokers have a responsibility treat investors fairly which includes obligations such as making only suitable investments for the client.  In order to make a suitable recommendation the broker must meet certain requirements.  First, there must be reasonable basis for the recommendation the product or security based upon the broker’s investigation and due diligence into the investment’s properties including its benefits, risks, tax consequences, and other relevant factors.  Second, the broker then must match the investment as being appropriate for the customer’s specific investment needs and objectives such as the client’s retirement status, long or short term goals, age, disability, income needs, or any other relevant factor.

Tsikitas is currently registered with, Aegis Capital Corp. (Aegis), a brokerage firm that has been identified as employing troublesome brokers.  According to a recent study conducted by the Securities Litigation and Consulting Group entitled “How Widespread and Predictable is Stock Broker Misconduct?” the incidents of investor harm at Aegis is extraordinarily high.  The study ranked Aegis as the worst brokerage firm finding that brokers at the firm had over a 35% misconduct rate.  The study stated that investors should stay away from Aegis “Given their coworkers’ disclosure record as of 2014, 83.7% of the brokers at these six firms would be in the highest risk quintile as defined in the FINRA study and should be avoided by investors. The BrokerCheck reports for most of the brokers at these six firms should prominently display a skull and crossbones warning.”

The number of customer complaints against Tsikitas is high relative to his peers.  According to InvestmentNews, only about 12% of financial advisors have any type of disclosure event on their records.  Brokers must publicly disclose certain types of reportable events on their CRD including but not limited to customer complaints.  In addition to disclosing client disputes brokers must divulge IRS tax liens, judgments, and criminal matters.

Tsikitas entered the securities industry in 1997. From February 2007 until July 2015, Tsikitas was associated with J.D. Nicholas & Associates, Inc.  Since November 2014, Tsikitas has been registered with Aegis Capital Corp. out of the firm’s Melville, New York branch office location.

The investment lawyers at Gana LLP represent investors who have suffered investment losses due to allegations of wrongdoing. The majority of these claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.