Broker Misconduct Lawyers

Shepherd Smith Edwards and Kantas Broker Misconduct Lawyers Are Investigating Aegis Capital Following Allegations of A  $5B Securities Fraud

Broker-Dealer Is Rated Poorly Based On Number Of Retail Investor Lawsuits and Underwritten Offerings

If you have suffered serious investment losses while working with Aegis Capital, contact Shepherd Smith Edwards and Kantas (investorlawyers.com) today. The broker-dealer was recently ranked by SLCG Economic Consulting LLC as number 2 on its list of the “worst” brokerage firms based on investor complaints. The financial economic consulting firm cautioned that investors should stay away from Aegis Capital “at all costs.”

Our broker misconduct lawyers have been investigating Aegis for some time over other allegations, including those involving its sale of GWG L bonds and roles as underwriter and seller of the YayYo IPO. Now, we are also looking into Aegis Capital’s purported multiple roles as underwriter, retail broker-dealer, research analyst, and market maker on stock offerings from nano companies. SLCG contends that this set up a “farm-to-table securities fraud supply chain,” and Aegis customers and other investors allegedly sustained at least $3B in losses as a result.

SLCG’s analysis found that Aegis Capital has received substantial compensation since 2020 as the sole underwriter on 186 offerings, worth $1.9B, from 111 issuers. These nano stock offerings could have gone bankrupt or become delisted were it not for Aegis continuing to sell them to its own retail customers and other brokerage firm’s clients.

You can find the list of Aegis sole underwritten offerings in this article written by SLCG.

Also, SLGC is reporting that Aegis, as the market maker for a lot of the stocks it was underwriter on, was able to get bid-ask spread revenue, which was a purported incentive for Aegis Capital brokers to recommend these stocks. The firm also allegedly offered “inflated research analyst coverage” and “aggressive buy recommendations with stratospheric price targets” even as some of the stocks it underwrote plunged in price to nearly $0. Not only that, but the Aegis-underwritten offerings purportedly purchased into its retail customers’ accounts and then re-traded in the accounts at substantial markups and markdowns.

If Aegis Capital unsuitably recommended any of these nano stocks it was making a profit on to its own retail customers and made misrepresentations and omissions about how the nano companies were faring—and investors suffered huge losses as a result—then the brokerage firm could be liable for investors’ losses. Retail investors tend to be inexperienced investors and conservative investors who place their trust in their broker-dealer to make sound recommendations and keep their money safe and/or help them grow their funds. When a broker-dealer breaches their fiduciary duty to its customers, including disregarding their best interests to make a profit, clients who were harmed may be able to sue for damages.

At Shepherd Smith Edwards and Kantas, we can help you determine whether you have grounds for a broker fraud lawsuit against Aegis or another broker-dealer. If we decide to work together, you can count on receiving quality securities law representation and personalized attention.

Led by seasoned securities attorneys—many of us are former brokers who left that industry because of so much of the bad behavior we witnessed that harmed investors—our securities law firm has the resources, experience, and knowledge to fight for you.

How To Contact Our Broker Misconduct Lawyers:

Call (800) 259-9010 or fill out our online contact form.