Complaints Against JAMES SCHWARTZ of Aegis Capital for Churning Accounts
Have you lost money with financial advisor James Schwartz of Aegis Capital Corp.?
We are investigating allegations made about James Bradley Schwartz of Melville, New York. FINRA (the Financial Industry Regulatory Authority) seeks to bar Schwartz from the securities industry. FINRA was investigating James Schwartz, a broker who previously worked with Aegis Capital Corp., regarding allegations that Schwartz engaged in excessive trading or churning between August 2014 and May 2016. FINRA alleged that a few of Schwartz’ customers had cost-to-equity ratios of 87% to 120%. To put this in perspective, if an account had a cost equity ratio of 87%, that means the trading in the account would have to make a 87% profit just to break even from the costs of trading.
Moreover, the customers’ account had an annual turnovers between 19.9 to 54.7. Generally, authority has held that accounts that have a turnover of 6 or higher are considered to be a “conclusion” of churning. Schwartz alleged made $194,000 of his commissions from trading these customer’s accounts.
James Schwartz was a financial advisor and registered representative of Aegis Capital Corp. from June 2013 to June 2016. Schwartz was also affiliated with Joseph Gunnar & Co. and First Standard Financial Company. He worked in branch offices in Melville, New York and New York City. Schwartz has been the subject of nine customer complaints, many alleging excessive trading or churning.
Brokerage firms like Aegis Capital Corp. have a responsibility to adequately supervise all representatives who are registered through their firm. Brokerage firms also must take steps to ensure that their financial advisors follow all securities rules and regulations, as well as internal firm policies. When brokerage firms fail to adequately supervise their registered representatives, they may be liable for investment losses sustained by customers.
Israels & Neuman PLC is a securities and investment fraud law firm with offices in Denver, Colorado; Seattle, Washington; and Ann Arbor, Michigan. We represent investors in FINRA arbitration proceedings in all 50 states, including New York. Our attorneys have recovered millions of dollars for investors against many brokerage firms in the past, including Aegis Capital Corp.
Click to view: James Schwartz BrokerCheck
Click to view: James Schwartz Complaint
If you lost money with James Schwartz or Aegis Capital Corp., please CONTACT US at 720-599-3505 for a free evaluation of your case.
Israels & Neuman, PLC is a private law firm and is not affiliated with any government or law enforcement agency. Any investigation referenced in this blog is independent in nature and is being conducted by our law firm privately, not in conjunction with any government or law enforcement agency. All information contained in this blog should be deemed statements of opinion derived from the author’s review of public records, not statements of fact. This blog is advertising material and does not create an attorney client relationship, nor does it constitute legal advice. Everyone’s situation is different and the question of whether or not you have a claim will vary on a case-by-case basis. In contingent representation, clients may still be liable for costs.