Articles Tagged with Aegis Capital

shutterstock_20354398-300x200The attorneys at Gana Weinstein LLP are currently investigating claims against broker Sergio Rovner (Rovner), currently associated with Aegis Capital Corp. (Aegis) out of New York, New York.  According to a BrokerCheck report, Rovner has been subject to at least six customer disputes and two regulatory actions during the course of his career.  According to records kept by The Financial Industry Regulatory Authority (FINRA), the customer complaints against Rovner concern allegations of unauthorized trading, unsuitable investments, and misrepresentations among other claims.

In February 2018 a customer filed a complaint alleging that Son executed unauthorized trades in the customer’s account and made unsuitable investment recommendations.  The customer requested $32,398 in damages.  The claim settled for $12,635.

In December 2005 FINRA found that Rovner violated NASD Rules 2110 and 2310 by engaging in excessive trading and unsuitable investments.  Without admitting or denying the allegations, Rovner consented to the described sanctions and to the entry of the findings.  Rovner was fined $10,000 and suspended for 30 days.

Advisors are not allowed to engage in unauthorized trading.  Such trading occurs when a broker sells securities without the prior authority from the investor. All brokers are under an obligation to first discuss trades with the investor before executing them under NYSE Rule 408(a) and FINRA Rules 2510(b).  These rules explicitly prohibit brokers from making discretionary trades in a customers non-discretionary accounts. The SEC has also found that unauthorized trading to be fraudulent nature because no disclosure could be more important to an investor than to be made aware that a trade will take place.

Continue Reading

shutterstock_25054879-300x200The law offices of Gana Weinstein LLP are currently investigating claims against broker Nick Son (Son), currently associated with Aegis Capital Corp. (Aegis) out of New York, New York.  According to a BrokerCheck report, Son has been subject to at least seven customer disputes during the course of his career.  According to records kept by The Financial Industry Regulatory Authority (FINRA), Son’s customer complaints concern allegations of unauthorized trading, unsuitable investments, and misrepresentations among other claims.

In February 2018 a customer filed a complaint alleging that Son violated the securities laws by making unauthorized trading and unsuitable investment recommendations.  The customer requested $224,968 in damages.  The dispute is currently pending.

In April 2016 a customer alleged that in March 2016, Son engaged in high pressure sales tactics and misrepresentations causing $65,984 in damages.  The claim was denied.

Advisors are not allowed to engage in unauthorized trading.  Such trading occurs when a broker sells securities without the prior authority from the investor. All brokers are under an obligation to first discuss trades with the investor before executing them under NYSE Rule 408(a) and FINRA Rules 2510(b).  These rules explicitly prohibit brokers from making discretionary trades in a customers non-discretionary accounts. The SEC has also found that unauthorized trading to be fraudulent nature because no disclosure could be more important to an investor than to be made aware that a trade will take place.

Continue Reading

shutterstock_174858983-300x216According to BrokerCheck records financial advisor Mark Kolta (Kolta), currently employed by Worden Capital Management LLC (Worden Capital) has been subject to at least 14 customer complaints and one employment termination for cause.  According to records kept by The Financial Industry Regulatory Authority (FINRA), Kolta’s customer complaints allege that Kolta recommended unsuitable securities recommendations in a variety of products including alternative investments, equities, and annuities among other allegations of misconduct in the handling of customer accounts.

In April 2019 a customer filed a complaint alleging that Kolta violated the securities laws by, among other things, that Kolta made unsuitable investments, breach of fiduciary duty, and negligence causing $300,000 damages.  The claim is currently pending.

In March 2019 a customer filed a complaint alleging that Kolta violated the securities laws by, among other things, that Kolta made unsuitable investments, unauthorized trading, and misrepresentations causing $15,000 damages.  The claim is currently pending.

In February 2019 a customer filed a complaint alleging that Kolta violated the securities laws by, among other things, that Kolta made unsuitable investments, breach of fiduciary duty, breach of contract, and negligence concerning non-traded REITs and an annuity causing damages.  The claim is currently pending.

Continue Reading

shutterstock_66745735-300x200According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) broker Jean-Matthieu Josse (Josse) has been subject to at least two customer complaints during his career.  Josse is currently employed by A.G.P. / Alliance Global Partners (Alliance Global).  The customer complaints against Josse concern allegations of high frequency trading activity also referred to as churning and unsuitable investments.

In October 2018 a customer filed a complaint alleging that Josse violated the securities laws by engaging in churning and unauthorized trading.  The claim alleged $45,000 in damages.  The claim settled for $14,990.

When brokers engage in excessive trading, sometimes referred to as churning, the broker will typical trade in and out of securities, sometimes even the same stock, many times over a short period of time.  Often times the account will completely “turnover” every month with different securities.  This type of investment trading activity in the client’s account serves no reasonable purpose for the investor and is engaged in only to profit the broker through the generation of commissions created by the trades.  Churning is considered a species of securities fraud.  The elements of the claim are excessive transactions of securities, broker control over the account, and intent to defraud the investor by obtaining unlawful commissions.  A similar claim, excessive trading, under FINRA’s suitability rule involves just the first two elements.  Certain commonly used measures and ratios used to determine churning help evaluate a churning claim.  These ratios look at how frequently the account is turned over plus whether or not the expenses incurred in the account made it unreasonable that the investor could reasonably profit from the activity.

Continue Reading

shutterstock_94127350-300x205According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) broker James Schwartz (Schwartz) has been subject to nine customer complaints, one tax lien, and one bankruptcy during his career.  Schwartz is currently not registered but was previously employed by Joseph Gannar & Co. LLC (Joseph Gunnar).  Many of the the customer complaints against Schwartz concern allegations of high frequency trading activity also referred to as churning and unsuitable investments.

In October 2018 a customer filed a complaint alleging that Schwartz violated the securities laws by engaging in breach of fiduciary duty, unsuitable investments, and negligence causing $32,871.30 in damages.  The claim is currently pending.

In May 2018 a customer filed a complaint alleging that Schwartz violated the securities laws by engaging in churning, unsuitable investments, unauthorized trading, and breach of fiduciary duty causing $150,000 in damages. The claim is currently pending.

In February 2018 a customer filed a complaint alleging that Schwartz violated the securities laws by engaging in unsuitable investments and unauthorized trading causing $1,694,099 in damages. The claim is currently pending.

In addition, Schwartz has one financial disclosure concerning a tax lien for $15,667 and declared bankruptcy in June 2017.  This information has been found to be material for investors to have because an advisor who cannot manage his own finances is a relevant factor for investors to consider.  In addition, a broker in financial distress may be influenced to recommend high commission products or strategies.

Continue Reading

shutterstock_120556300-300x300According to BrokerCheck records financial advisor Thomas Kelly (Kelly), currently employed by Aegis Capital Corp. (Aegis) has been subject to an astonishing 19 customer complaints during his career.  According to records kept by The Financial Industry Regulatory Authority (FINRA), the complaints against Kelly concern allegations of unsuitable investments and allegations of unauthorized trading, misrepresentations and negligence mostly in equity products.

In November 2018 a customer complained that Kelly recommended investments that violated the securities laws by recommending unsuitable investments, unauthorized trading, breach of fiduciary duty, and negligence.  The customer alleges $500,000 in damages and the claim is currently pending.

In October 2018 a customer complained that Kelly recommended investments that violated the securities laws including misrepresentations, negligence, and breach of fiduciary duty. The customer claimed $230,000 in damages and is currently pending.

In August 2018 a customer complained that Kelly recommended investments that violated the securities laws including unsuitable investments, misrepresentations, negligence, and breach of fiduciary duty. The customer claimed $750,000 in damages and is currently pending.

Continue Reading

shutterstock_188269637-300x200Biotech company Akers Bioscience (AKER) went public in 2014 using Aegis Financial as its investment underwriter. The company’s IPO price was $5 but has subsequently fallen to only $.25.  According to SeekingAlpha not only did Aegis underwrite the security but it also promoted it to investors and potentially the firm’s own brokerage clients buy maintaining a buy rating on the stock.  Akers was given an $11.00 price target in June 2014.

The company has also been subject to a recent class action complaint.  The complaint alleges that the company made materially false and misleading statements regarding the Akers’ business, operational and compliance policies.

According to the company’s website, Akers Biosciences, Inc. (aka Akers Bio) was founded in 1989, with the objective of developing proprietary, in vitro diagnostic technologies that accelerate the rate at which clinicians, and in some cases consumers, can obtain health information. The tests are designed to provide the same level of accuracy as traditional laboratory testing methods but at a fraction of the cost and turn-around time.

Continue Reading

shutterstock_26813263-300x199According to BrokerCheck records former financial advisor Thomas Kelley (Kelley), currently employed by Aegis Capital Corp. (Aegis) has been subject to an astonishing 19 customer complaints in his career.  According to records kept by The Financial Industry Regulatory Authority (FINRA), many of the complaints against Kelley concern allegations of unsuitable investments.

In November 2018 a customer filed a complaint alleging that Kelley engaged in unsuitable investments, unauthorized trading, and breach of fiduciary duty causing $500,000 in damages.  The complaint is currently pending

In October 2018 a customer filed a complaint alleging that Kelley engaged in misrepresentations, negligence, and breach of fiduciary duty causing $230,000 in damages.  The complaint is currently pending.

In August 2018 a customer filed a complaint alleging that Kelley engaged in unsuitable recommendations, misrepresentations, and breach of fiduciary duty causing $750,000 in damages.  The complaint is currently pending.

Continue Reading

shutterstock_173509961-300x200According to records kept by The Financial Industry Regulatory Authority (FINRA), former Capitol Securities Management (Capitol Securities) employee Teryl Trenchard (Trenchard) in under investigation for fraud.  In March 2017 FINRA initiated its investigation into Trenchard for fraud.  On the same day Capitol Securities terminated Trenchard for the same reason.  Thereafter, in July 2017 a customer filed a complaint alleging breach of fiduciary duty, conversion, and unsuitable investments causing $700,000 in damages.  The claim is currently pending.

Thereafter, in September 2017 another customer alleged that from 2005 to March 15, 2017 Trenchard engaged in misappropriation, forgery, fraud, and unauthorized trading in unsuitable transactions.  The customer alleged $1,800,00 in damages.  The claim is currently pending.

At this time it is unclear the extent and scope of Trenchard’s securities violations and the exact details of the fraud under investigation.  Trenchard’s CRD lists a business called Market Technician’s Association and no other businesses.

shutterstock_113872627-300x300According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) advisor Ahmed Gheith (Gheith), in August 2017, was terminated by his employer Paulson Investment Company, LLC (Paulson Investment) after the firm alleged that Gheith was terminated subsequent to discovery of violations of firm supervisory procedures, failure to provide honest answers on annual questionnaires, violations of FINRA Rule 3280, and due to initiation of customer arbitration alleging fraud, negligence, and unjust enrichment.  The firm referenced that the product involved was a promissory note.  Thereafter, in April 2018 FINRA Suspended Gheith.

FINRA alleged that two registered representatives informed Gheith about a private offering related to a real estate development in Belize. The investment was described as a short-term note meant to raise money for the development of an airport and Gheith thereafter referred several customers to invest.  FINRA found that Gheith’s communications with four customers included a description of the Private Offering and leading the customers to invest a total of $3.5 million in the offering. FINRA alleged that Gheith was paid $93,165 for his role in soliciting and referring the customer.

FINRA’s allegations concerning promissory notes, a private securities transaction, –is known in the industry as “selling away”.