Update on Investigation: Jim Schwartz, Aegis Capital Corp., has 12 Customer Complaints
The White Law Group is continuing its investigation into former Aegis Capital Corp. advisor James Schwartz (CRD # 3043085) and the liability his employers may have for failure to supervise him.
The Financial Industry Regulatory Authority (FINRA) barred Schwartz on February 26, 2019 for allegedly churning and excessively trading the accounts of customers of his member firm. The complaint alleges that Schwartz’s trading was unsuitable and caused combined losses of more than $660,000 in these customers’ accounts.
FINRA alleges that Schwartz’s trading generated gross sales credits and commissions of approximately $277,705, of which he reportedly received more than $194,000. The complaint also alleges that Schwartz conducted fraudulent and deceptive trading by exercising de facto control over the customers’ accounts and engaging in unauthorized trading.
According to FINRA, Schwartz purportedly executed trades with a total principal value of approximately $10 million without his customers’ authorization, including alleged unauthorized trades he executed in a customer’s account after the customer had died.
Schwartz’s broker profile indicates has been registered with 14 brokerage firms in his 18 years working in the securities industry. He reportedly has 15 disclosures listed on his broker report, including 12 customer complaints, a bankruptcy filing in 2016, and one regulatory event. He was registered with Aegis Capital Corp. in Melville, NY from June 2013 to June 2016. More recently he was registered with First Standard Financial Company and Joseph Gunnar & Co., both in New York.
For FINRA’s full findings see FINRA case # 2016051704302.
Potential Lawsuits to Recover Financial Losses
Under FINRA rules and regulations, Broker-Dealers are responsible for supervising the actions of those advisors registered with their firm, and therefore may be held liable for the actions of their Broker(s).
If you are concerned about your investments with James Schwartz (Jim Schwartz) and Aegis Capital Corp., please call the securities fraud attorneys at The White Law Group at 888-637-5510 for a free consultation.
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.
For more information on The White Law Group, and its representation of investors, please visit www.WhiteSecuritiesLaw.com.