Attention: Aegis Capital Investors

Financial Industry Regulatory Authority (FINRA) is currently investigating Aegis Capital[1] for costing investors billions of dollars in its role as the underwriter of stocks of small “low grade” companies that were about to be delisted or facing bankruptcy; purportedly, the only reason these companies were able to stay open was because the broker-dealer helped sell these “worthless stocks” to its customers, as well to customers of other brokerage firms.

According to a March 2024 article by SLCG Economic Consulting, who has been reviewing the activities of Aegis since 2010, Aegis was the “lone underwriter of 186 offerings totaling $1.9B for 111 issuers.” These self-directed underwritten offerings were allegedly re-traded in the broker-dealer’s retail brokerage clients’ accounts at substantial markups and markdowns without adequate disclosures to investors.  Aegis acted as both market maker for a lot of the underwritten stocks and as research analyst with reports containing strong buy recommendations with unrealistic price targets for essentially worthless companies.

Investors who have suffered losses are encouraged to contact us at 1(516) 526 3082 or daniel.dcosta@danieldcostaesq.com for consultation. At D’Costa Law, P.C. our attorneys and staff are experienced in representing investors who have suffered securities losses due to the mishandling of their accounts. Claims may be brought in securities arbitration before FINRA. Our consultations are free of charge and the firm is only compensated if you recover.

[1] https://brokercheck.finra.org/firm/summary/15007