Securities Lawyers Blog
The investment lawyers at Gana Weinstein LLP have experience helping investors determine whether their portfolio losses at investment firms, such as Aegis Capital Corp., were caused by broker misconduct. There are many different ways that your broker can impermissibly drain your accounts. Our attorneys can help you understand the cause of your investment losses, uncover misconduct, and apply the law to hold accountable those responsible.
Aegis Capital is a broker-dealer that is also registered as an investment adviser. The firm was formed in New York in 1984.
Aegis Capital Corp. – By the Numbers:
- CRD #: 15007
- Regulatory Events: 44
- Arbitration Events: 1
- Broker Employees: 207
Aegis Capital Corp. – Investment Advisors:
- SEC #: 71386
- Assets Under Management: $1,777,602,590
- ADV Form Employee: 260
Aegis Capital Corp. – In the News:
FINRA v. Aegis Capital Corp. (Case #2021073044801) – Between January 2021 and January 2025, in 90 instances, Aegis submitted untimely or incomplete restricted period notifications and trading notifications, or failed to submit such notifications, with FINRA in connection with its participation in security distributions that were subject to Regulation M of the Securities Exchange Act of 1934, in violation of FINRA Rules 5190 and 2010. In addition, between August 2019 and the present, Aegis failed to establish and maintain a supervisory system, including written supervisory procedures, reasonably designed to achieve compliance with FINRA Rule 5190, in violation of FINRA Rules 3110 and 2010. Finally, Aegis made inaccurate representations in a Corrective Action Statement it submitted to FINRA with a July 2019 AWC, in violation of FINRA Rule 2010. For these violations, Aegis is censured and fined $400,000, of which $185,000 shall be paid to FINRA. The firm must certify that it will enhance its supervisory procedures.
FINRA v. Aegis Capital Corp. (Case #2020066825601) – Between June 2017 and October 2021, Aegis did not establish, maintain, and enforce a supervisory system, including written supervisory procedures (WSPs), reasonably designed to prevent general solicitations of private placements. Accordingly, Aegis violated FINRA Rules 3110 and 2010. During that same period, Aegis sold 13 private placements claiming exemption from registration under Rule 506(b) of Regulation D, without having established a pre-existing, substantive relationship with all offerees, and therefore violated FINRA Rule 2010 for acting in contravention of Section 5 of the Securities Act of 1933. In some instances with such offerings, the firm also sent communications that violated the content standards of FINRA Rule 2210(d). Additionally, between August 2017 and May 2025, Aegis failed to provide prompt written notice that it had terminated research coverage of an issuer, in violation of FINRA Rules 2241(f) and 2010. For these violations, Aegis is censured and fined $375,000.
FINRA v. Aegis Capital Corp. (Case #2020068891501) – Since 2019, Aegis has paid several million dollars to its corporate parent and recorded those payments as expenses, rather than properly accounting for those payments in net capital computations and FOCUS filings as distributions. As a result, Aegis kept inaccurate books and records in violation of Securities Exchange Act of 1934 § 17(a) and Rules 17a-3 and 17a-5, and FINRA Rules 4511 and 2010. Aegis also failed to reasonably supervise the preparation of its books and records in violation of FINRA Rules 3110 and 2010.
FINRA v. Aegis Capital Corp. (Case #2016051704305) – From July 2014 through December 2018, Aegis failed to establish, maintain, and enforce a supervisory system, including written supervisory procedures (WSPs), reasonably designed to achieve compliance with the suitability requirements of FINRA Rule 2111 as it pertains to excessive trading. As a result, Aegis failed to identify trading in hundreds of customer accounts that was potentially excessive and unsuitable, including trading conducted by eight Aegis registered representatives in the firm’s Melville and Wall Street branches whose trading in the accounts of 31 firm customers resulted in an average annualized cost-to-equity ratio (or break-even point) of 71.6%, an average annualized turnover rate of 34.9, combined customer costs (including commissions, markups or markdowns, margin interest and fees) of more than $2.9 million, and cumulative losses of $4.6 million. Additionally, from July 2014 to June 2019, Aegis failed to establish, maintain, and enforce a supervisory system, including WSPs, reasonably designed to achieve compliance with the suitability requirements of FINRA Rule 2111 when selling leveraged, inverse, and inverse-leveraged Exchange-Traded Funds (Non-Traditional ETFs) to retail customers. As a result, Aegis failed to identify customers who purchased and held Non-Traditional ETFs for extended periods of time, or whose purchase was inconsistent with their recorded investment objective, risk tolerance or finances. By virtue of the foregoing, Aegis violated NASD Rule 3010 and FINRA Rules 3110 and 2010.
FINRA v. Aegis Capital Corp. (Case #2017054188601) – 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.
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