202121 Jul

Former Aegis Capital Broker Douglas Szempruch Under KlaymanToskes Investigation | KlaymanToskes

Summary

National investor fraud law firm, KlaymanToskes (“KT”), has commenced an investigation into former Aegis Capital broker Douglas Szempruch in light of his recent suspension by FINRA. Former Aegis Capital Broker Douglas Szempruch and the FINRA AWC Summary Between August 2014 and June 2017, Douglas Szempruch violated FINRA Rules by engaging in the following conduct: • Recommending and effecting excessive trading as well as unsuitable trading in six customer accounts • Exercising discretionary authority without prior written authorization to effect trades in seven customer accounts, and • Sending email communications containing misleading statements about an investment opportunity from his firm-approved email account According to the Financial Industry Regulatory Authority (FINRA), brokerage firms and its financial advisors that excessively traded or “churn” a brokerage account are in violation securities industry rules and regulations. No single test defines excessive activity, but factors such as the turnover rate, the cost-equity ratio, and the use of in-and-out trading in a customer’s account may provide a basis for a finding that a member or associated person has violated the quantitative suitability obligation. According to the FINRA AWC, between August 2014 and September 2016, Szempruch engaged in unsuitable trading in six customer accounts. The firm represents high net‐worth, ultra‐high‐net‐worth, and institutional investors, such as non‐profit organizations, unions, public and multi‐employer pension funds.

Source: Klaymantoskes Full Article

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