SEC Fines Aegis Capital and Brings Action Against Two Representatives Over Variable Interest Rate Structured Products or VRSPs
BOCA RATON, FLORIDA
Did you lose money investing in variable interest rate structured products (VRSPs) through Aegis Capital Corp.? The securities and investment fraud law firm of Israels & Neuman is reviewing claims by the Securities and Exchange Commission SEC against Aegis Capital Corp. and two of its former representatives, Alan Appelbaum and Paul Gallivan.
According to the SEC’s complaint, Aegis Capital, Alan Appelbaum, and Paul Gallivan made unsuitable recommendations to invest in variable interest rate structured products to customers. The SEC alleged that Appelbaum and Gallivan made these recommendations despite the VRSPs’ risky nature, and also alleged that the VRSPs’ lengthy maturities did not match the investors’ time horizons.
As part of this investigation, Aegis Capital was ordered to disgorge $220,865 in commissions earned from the VRSP sales and also had to pay a $2.3 million penalty. Gallivan was ordered to pay $29,973 in disgorgement with interest and a $25,000 penalty. The action against Appelbaum is still pending.
Paul Gallivan was with Aegis Capital from August 2017 to September 2020 and worked in Boca Raton, Florida. Alan Z. Appelbaum was with Aegis Capital from July 2015 to May 2021, also in Boca Raton. Appelbaum has been the subject of 14 customer complaints and was “permitted to resign” by Aegis Capital in May 2021. Appelbaum has also been the subject of three prior regulatory actions.
Our investment fraud law firm represents investors in FINRA arbitration throughout the U.S., including investors in Florida. We have represented investors against numerous broker dealers in the past, including Aegis Capital Corp.
View Aegis Capital SEC Order 7.28.22
View Appelbaum, Alan BrokerCheck 7.29.22
View Appelbaum, Alan SEC Complaint
View Gallivan, Paul BrokerCheck 7.29.22