Aegis Capital Fined Nearly $1 Million over Improper Sales and Supervisory Lapses

Posted on August 12th, 2015 at 3:29 PM
Aegis Capital Fined Nearly $1 Million over Improper Sales and Supervisory Lapses

From the Desk of Jim Eccleston at Eccleston Law LLC: 

New York-based Aegis Capital Corporation has been fined $950,000 by the Financial Industry Regulatory Authority over allegations of improper sales of unregistered penny stock and anti-money laundering supervisory lapses.

FINRA asserts that, from April 2009 to June 2011, Aegis liquated 3.9 billion shares of penny stocks which were not registered with the SEC. Through those improper sales, Aegis netted $24.5 million in profits for its customers and $1.1 million in firm commissions. In addition, FINRA alleges that Aegis’ supervisory lapses allowed a broker barred from the industry to control activity in several of the accounts.

Brad Bennett, FINRA’s chief of enforcement, commented on the fine by stating, “Firms who open their doors to penny stock liquidators must have robust [supervisory] systems and procedures to ensure strict adherence to the registration.”

The attorneys of Eccleston Law LLC represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services.


Related Attorneys: James J. Eccleston

Tags: Eccleston Law, James Eccleston, FINRA, Aegis Capital Corporation

Return to Archive



Fantastic news!!!!  Your professionalism, support and expertise were greatly appreciated.  You made a difficult situation much more bearable.

Marci M.


October 20, 2021
5 First-of-Their-Kind SEC Enforcement Actions Announced

Securities and Exchange Commission (SEC) Enforcement Director Gurbir Grewal recently discussed notable first-of-their-kind enforcement actions that his division has pursued.

October 19, 2021
FINRA Targets SPACs in Most Recent Exam Sweep

The Financial Industry Regulatory Authority (FINRA) has begun an examination sweep of advisors’ involvement with special purpose acquisition companies (SPACs).

October 18, 2021
SEC’s Statement on Complex Exchange-Traded Products

The Securities and Exchange Commission (SEC) recently voted to approve a pair of rule changes proposed by Cboe BZX Exchange, Inc. to list and trade shares of new exchange traded-products: the 2x Long VIX Futures ETC and the -1x Short VIX Futures ETF.