FINRA Broker Check reports that a complaint, dated 26 February 2019, was filed against James Bradley Schwartz (“Schwartz”) (Disciplinary Proceeding. 201605170430), while associated with Aegis Capital Corp. (“Aegis” or the “Firm”). The Complaint by FINRA’s Division of Enforcement alleges that Schwartz and Aegis (a FINRA-regulated broker-dealer), churned and excessively traded the accounts of four customers from August 2014 through May 2016.
During that period, Schwartz purportedly executed approximately 535 trades in the customer accounts – resulting in annualized turnover rates ranging from 19.9 to 54.7, and annualized cost-to-equity ratios (or break-even points) ranging from 87% to 120%.
The FINRA Complaint further alleges that Schwartz’s churning and excessive trading was unsuitable, unauthorized and caused combined losses of more than $660,000 in these four customers’ accounts. At the same time, Schwartz’s trading generated gross sales credits and commissions of approximately $277,705, of which Schwartz received more than $194,000.