James B. Schwartz-Former Aegis Capital Broker-Barred for Churning Customer Accounts-New York

April 2019-Garden City, New York

The FINRA records of James B. Schwartz ,  a  former stock broker  who worked for Aegis Capital from 8/2013-6/2016 and was last employed  by Joseph Gunnar & Co.  , disclose  that he was recently barred from the securities industry, 2 pending customer disputes, 7  prior final customer disputes and a currently outstanding judgement/lien.

The Financial Industry Regulatory Authority (FINRA) is the agency that licenses and regulates stockbrokers and brokerage firms. FINRA requires brokers and brokerage firms to report customer complaints and disputes as well as regulatory sanctions. In addition brokers are required to disclose certain financial matters such as personal bankruptcies, judgments and liens.

In 4/2019 Schwartz was permanently barred from the securities industry by FINRA. FINRA alleged that Schwartz churned and excessively traded the accounts of his customers causing combined losses of $660,000 while generating commissions for Schwartz and his employer of over $194,000. According to FINRA Schwartz made unauthorized trades of $10 million, including unauthorized trades in a customers account after the customer had died. FINRA Disciplinary Proceeding 2016051704302. 

The currently pending disputes include:

  • A customer of Aegis Capital who resides in Maine filed FINRA case 18-03717 alleging that from 2013-2016 Schwartz was negligent and made unsuitable recommendations and is seeking damages of over $32,000.
  • In 1/2018 a customer of Aegis Capital residing in New York file FINRA case 18-0408 alleging that Schwartz made unauthorized and unsuitable trades and is seeking damages of $1.8 million.

The previously resolved customer disputes include:

  • FINRA Case 17-1932 -a customer of Paulson Investment Company alleged excessive trading and unauthorized trading was paid a settlement of $800,000.
  • In June 2016 a customer of Schwartz’s prior employer, Aegis Capital Corp. alleged damages of $2,000,000 for unsuitable recommendations and mishandling their account from June 2013-January 2016. This case was settled for $782,000.
  • In pending FINRA Case #15-3428, another Aegis Capital customer alleged damages in excess of $287,000 for excessive trading, negligence, breach of fiduciary duty and unsuitable recommendations. That case was settled for $180,000.
  • In pending FINRA Case #15-2901, another Aegis Capital customer alleged damages of $289,163 for for unauthorized trading, negligence, breach of fiduciary duty and misrepresentation. This case was settled for $95,000.

Schwartz discloses a tax lien to  New York State  in the amount of $15,667.

Schwartz most recent employment was with Joseph Gunnar from 12/2016-2/2017. Before that he was  employed by First Standard Financial Co. from 6/2016-12/2016 .  Prior to that he was employed by Aegis Capital Corp from 6/2013-6/2016 and before that John Thomas Financial (expelled by FINRA 10/2013.

If you have losses in an account handled by James Schwartz, call for a no charge consultation to learn how you may be able to recover damages.

Rex Securities Law , with offices in Boca Raton, FL,  and  Austin, TX,   provides representation to  investors  nationwide who are seeking recovery of investment losses due to the negligence or fraud of stockbrokers and broker dealers. If you have questions about how your account has been handled, call to speak with an experienced securities attorney.

Most cases handled on a contingent fee basis meaning that you do not pay legal fees unless we are successful.

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