Articles Tagged with Aegis Capital

shutterstock_190371500-300x200According to records kept by The Financial Industry Regulatory Authority (FINRA) financial advisor Joseph Hain (Hain), currently employed by Noble Capital Markets, Inc. has been subject to at least two customer complaints during the course of his career.  Hain’s customer complaints alleges that Hain misrepresented private placement investments among other allegations of misconduct relating to the handling of their accounts.

At Gana Weinstein LLP, we often hear from investors who were recommended by their advisors to purchase high risk private placement investments and suffered substantial – often crushing losses as a result.  Our firm regularly represents these investors in disputes with the advisors and brokers who sold these products without adequate disclosure.  Brokers have a responsibility to conduct due diligence on all private placement offerings.  Due diligence includes an investigation into the investment’s properties including its benefits, risks, tax consequences, issuer, history, and other relevant factors.

In January 2020 a customer complained that Hain violated the securities laws by alleging that Hain made investments recommendations that were materially misrepresented concerning an investment in a private placement.  The claim alleges $500,000 in damages and is currently pending.

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shutterstock_88744093-297x300The attorneys at Gana Weinstein LLP are investigating BrokerCheck records reports that financial advisor Thomas Duggan (Duggan), currently employed by Aegis Capital Corp. (Aegis Capital) has been subject to at least three customer complaints during the course of his career.  According to records kept by The Financial Industry Regulatory Authority (FINRA), Duggan’s customer complaints alleges that Duggan recommended unsuitable investments in various investments and makes allegations including common law fraud, gross negligence, breach of contract, and elder abuse among other allegations of misconduct relating to the handling of their accounts.

In January 2020 a customer complained that Duggan violated the securities laws by alleging that Duggan made investments recommendations from June 2017 through August 2019 that were unsuitable and claimed common law fraud, gross negligence, breach of contract, and elder abuse. The claim alleges $1,079,155 in damages and is currently pending.

In January 2019 a customer complained that Duggan violated the securities laws by alleging that Duggan made investments recommendations from June 2017 through 2019 were in breach of his fiduciary duty, breach of contract, and misrepresentation.  The claim alleges $80,000 in damages and is currently pending.

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shutterstock_182053859-300x200According to BrokerCheck records kept by The Financial Industry Regulatory Authority (FINRA) broker Robert Buffington (Buffington), formerly associated with Aegis Capital Corp. (Aegis Capital), has been subject to at least four customer complaints during his career.  Several of those complaints against Buffington concern allegations of high frequency trading activity also referred to as churning or excessive trading among other securities laws violations.

In March 2020 a customer complained that Buffington violated the securities laws by alleging that Buffington engaged in sales practice violations related to unsuitability, breach of contract, and breach of fiduciary duty. The claim is currently pending and seeks $642,224 in damages.

In January 2020 a customer complained that Buffington violated the securities laws by alleging that Buffington engaged in sales practice violations related to unsuitability, churning, common law fraud, breach of contract, and breach of fiduciary duty. The claim is currently pending.

In January 2020 a customer complained that Buffington violated the securities laws by alleging that Buffington engaged in sales practice violations from November 2018 through the date of filing related to unsuitability, churning, common law fraud, breach of contract, and breach of fiduciary duty. The claim is currently pending.

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shutterstock_139932985-300x200The law offices of Gana Weinstein LLP are currently investigating claims that advisor Pratul Victor Agnihotri (Agnihotri) is under investigation for conversion of customer funds among other allegations.  According to BrokerCheck records, Agnihotri is currently registered with The Financial Industry Regulatory Authority (FINRA) member firm SW Financial.  In addition, Agnihotri disclosed three customer complaints and one civil judgment.  If you have been a victim of Agnihotri’s alleged misconduct our firm may be able to assist you in recovering funds.

In October 2019 FINRA initiated an investigation concerning Agnihotri conduct related to FINRA’s preliminary determination to recommend that disciplinary action be brought against Agnihotri for potential violations including conversion of investor funds, engaging in an outside business activity without providing prior written notice to his FINRA member employer firms.

In October 2019 a customer complained that Agnihotri violated the securities laws by alleging that Agnihotri engaged in sales practice violations related to unauthorized trading, selling away, breach of fiduciary duty, and negligence. The claim alleges $650,000 in damages and is currently pending.

Our law firm has significant experience bringing cases on behalf of defrauded victims when their advisors engage in receiving loans from clients or selling securities sales through OBAs.  The sale of unapproved investment products – is a practice known in the industry as “selling away” – a serious violation of the securities laws.  In the industry the term selling away refers to when a financial advisor solicits investments in companies, promissory notes, or other securities that are not pre-approved by the broker’s affiliated firm.  Sometimes those investments have some legitimacy but often times these types of investments can end up being Ponzi schemes or the advisor can be engaging in the conversion of funds.

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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.

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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.

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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.

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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.

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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.

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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.

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