FINRA Reportedly Suspends Douglas Szempruch after Allegations of Unsuitable & Unauthorized Trades
According to public records from the Financial Industry Regulatory Authority (FINRA), the regulator has reportedly suspended financial advisor Douglas Szempruch (CRD # 4159318) of Melville, NY from the securities industry for one year.
According to FINRA’s findings, Szempruch allegedly engaged in quantitatively unsuitable trading in customer accounts. The findings stated that each customer allegedly had an investment objective of growth or balanced growth and a risk tolerance of moderate.
Szempruch’s alleged trading in the accounts was reportedly excessive and unsuitable given the customers’ investment profiles. The customers reportedly paid $127,198 in commissions and suffered $157,605 in losses.
The findings also stated that Szempruch purportedly exercised discretion to effect trades in customer accounts without the customers providing authorization, according to FINRA.
FINRA also found that Szempruch purportedly sent emails to prospective customers making allegedly misleading and false statements concerning investments in a company.
According to his FINRA broker profile, Szempruch reportedly has two customer complaints on his record. Allegations include unauthorized trades, poor performance and unsuitable recommendations, among others. He was reportedly affiliated with Aegis Capital Corp in Melville, NY from June 2011 until June 2021. He is reportedly not currently registered as a broker, according to FINRA.
Filing a Complaint against your Brokerage Firm
The White Law Group is investigating FINRA arbitration cases involving financial advisor Douglas Szempruch and the liability his employer Aegis Capital Corp. may have for failure to properly supervise him.
When brokers abuse client accounts and conduct transactions that violate securities laws, such as making unsuitable investment recommendations, the brokerage firm they are working with may be liable for investment losses. Brokerage firms that fail to monitor the business activities of their employees may be liable for investment losses due to negligent supervision for the misconduct of their employees.
If you suffered losses investing with Douglas Szempruch and Aegis Capital Corp., the securities attorneys at The White Law Group may be able to help you. Please call 888-637-5510 for a free consultation, or visit us on the web at www.whitesecuritieslaw.com.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois.