Steven Luftschein, formerly with Aegis Capital Corp., Barred by FINRA
Have you lost money with financial advisor Steven Luftschein from Melville, New York? We are continuing to look into allegations made by FINRA (the Financial Industry Regulatory Authority) against Steven Luftschein. In May 2020, FINRA filed a complaint against Luftschein regarding allegations while he was affiliated with Aegis Capital Corp. In January 2021, FINRA barred him from the securities industry regarding these allegations.
Luftschein was being investigated regarding allegations that he engaged in unsuitable and excessive trading (churning) in customers’ accounts. FINRA alleged that Luftschein’s customers had accounts with a cost-to-equity ratios of 35% to 123% while at Aegis Capital Corp. To put this in perspective, if an account had a cost equity ratio of 50%, that means the trading in the account would have to make a 50% profit annually just to break even from the costs of trading.
Steven Luftschein was a registered representative and financial advisor with Aegis Capital Corp. from June 2013 to October 2016. He also worked with Joseph Stone Capital from May 2017 to May 2018. He worked out of a branch office in Melville, New York. Luftschein has also been the subject of at least seventeen customer complaints.
Broker-dealers like Aegis Capital Corp. have a responsibility to adequately supervise all representatives who are registered through their firm, including investments sold by their registered representatives. Broker-dealers also must take steps to ensure that their financial advisors follow all securities rules and regulations. When broker-dealers fail to adequately supervise their registered representatives, they may be liable for investment losses sustained by customers.
Israels & Neuman PLC is a securities and investment fraud law firm with offices in Denver, Colorado; Seattle, Washington; Phoenix, Arizona; and Ann Arbor, Michigan. We represent investors in FINRA arbitration proceedings in all 50 states, including investors in New York. Our attorneys have represented over one thousand investors against many brokerage firms in the past, including against Aegis Capital Corp.