Aegis Capital Corp. Advisor Arkady Ginsburg Suspended Six Months by FINRA

NEW YORK, NY

The investment fraud and securities arbitration law firm is reviewing allegations made by FINRA (the Financial Industry Regulatory Authority) against Arkady Ginsburg, with Aegis Capital Corp. in New York, NY. Ginsburg, who had been with Aegis Capital Corp. from July 2014 to March 2022, was alleged to have excessively traded or churned customer accounts.

Ginsburg excessively traded or churned three customer accounts, according to FINRA’s regulatory action. The customers had cost-to-equity ratios of between 30.82% and 48.68%. A customer with a cost-to-equity ratio of 10% means that the customer’s account will have to earn a 10% profit just to break even from the costs of trading. FINRA deemed this trading to be excessive. To settle these allegations, Arkady Ginsburg agreed to a six-month suspension from the securities brokerage industry, and also agreed to pay partial restitution of $113,591.

Financial advisors like Arkady Ginsburg have a duty to make suitable investment recommendations to their customers. One of those suitability obligations is a duty to ensure that the trades have “quantitative” suitability – meaning that the advisor must have a reasonable basis for believing that a series of transactions (even if suitable when viewed in isolation) are not excessive or unsuitable.

Israels & Neuman PLC has offices in Denver, Seattle, Phoenix, Ann Arbor, and Vancouver but represents investors in all states. We have recovered millions of dollars for investors in the past, including investors who have sued Aegis Capital Corp.

Click to view: Ginsburg, Arkady FINRA AWC

Click to view: Ginsburg, Arkady BrokerCheck 3.28.22

If you lost money with Arkady Ginsburg or Aegis Capital Corp., contact the law firm of ISRAELS & NEUMAN at (720) 599-3505 or (206) 795-5798 for a Free evaluation of your case.