Former Melville, NJ Financial Advisor Has Been Named in Six Disputes
If you have suffered investment losses while working with ex-Aegis Capital stockbroker Scott Neil Hananel, contact Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) so that we can help you explore your legal options.
Hananel, who is no longer a registered financial advisor, has been named in six customer disputes over the years. A few of them are still pending. BrokerCheck notes the disputes on Hananel’s record:
- February 2021: This claimant is alleging unsuitable investments.
- January 2021: While also alleging unsuitability, this customer is accusing Hananel of breach of fiduciary duty and breach of contract.
- December 2020: Alleging unsuitability, churning, and unauthorized trading, this claimant is seeking $50K in damages.
- March 2016: This unsuitability claim, which accuses Hananel of overconcentration, unauthorized trading, unsuitable margin use, and breach of fiduciary duty, was settled for $46,500.
- March 2009: This investor fraud claim, which alleges misrepresentations, was settled by one of the firms where Hananel used to work for $150K.
- June 2002: Alleging unsuitability and unauthorized trading, this claimant received a $52K settlement.
Other broker-dealers where Scott Hananel used to be registered during his 21 years in the industry include GunnAllen Financial, Milestone Group Management, Salomon Grey Financial, and Royal Hutton Securities. The Financial Industry Regulatory Authority (FINRA) has since expelled Salomon Grey and Royal Hutton.
Aegis Capital Corp and Its Brokers Have Faced Allegations of Misconduct and Negligence
Former Aegis financial advisor Scott Hananel is not the only broker from the firm to come under scrutiny over the handling of customer accounts. A 2017 study commissioned by Columbia University School of Law and Reuters named Aegis Capital Corp one of almost 50 broker-dealers with a significant number of registered representatives with “red flags” on their public disclosures.
This included arbitration cases, customer disputes, civil actions, regulatory actions, firings, bankruptcies, and allegations of wrongdoing. That was the same year that Aegis Capital, in an audited financial statement, noted that it was under investigation by FINRA, the Securities and Exchange Commission (SEC), and the US Treasury Department’s Financial Crimes Enforcement Network (FinCEN).
Just two years before that, in 2015, the brokerage firm paid $950K to settle FINRA charges. The self-regulatory organization (SRO) accused Aegis of the improper sale of billions of penny stock shares that were unregistered, as well as purported supervisory lapses related to anti-money laundering.
In July, FINRA suspended ex-Aegis Capital broker Douglas Szempruch for a year following alleged unauthorized and excessive trading in several customer accounts. According to Financial Advisor, Szempruch was the sixth Aegis Capital registered representative to be disciplined this year over sales violations. He was ordered to pay $100K in restitution.
Earlier this year, FINRA sanctioned Aegis Capital, ordering the broker-dealer to pay over $43K in customer restitution for allegedly not giving favorable prices related to corporate bonds to customers.
Seasoned Broker Misconduct Lawyers
For over 30 years, SSEK Law Firm has fought for investors to recover the investment losses they sustained because of the misconduct or negligence of brokers and/or their firms. Please contact us today if you suffered significant losses while working with an Aegis Capital broker by calling us at (800) 259-9010.