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Ex-Aegis FA Barred Over Alleged Churning

By Alex Padalka April 22, 2019

Self-regulator Finra has barred a broker who had been registered with 13 firms over an 18-year career for alleged churning while he was at Aegis Capital Corp., the industry organization says.

James Bradley Schwartz allegedly made 535 trades in the accounts of just four customers from August 2014 through May 2016, according to an order accepting offer of settlement document published by Finra.

The trades, which the regulator says were unsuitable, allegedly cost the clients losses of more than $660,000 in total while earning Schwartz more than $194,000 in commissions, Finra says. Of those, 261 trades were allegedly made without client authorization — including in the account of one client after he had died, according to the regulator.

Schwartz was associated with Aegis as a general securities representative from June 2013 through June 2016, Finra says. Aegis is not named as a defendant in the complaint against Schwartz, who accepted Finra’s bar without admitting or denying the regulator’s allegations, according to the settlement document.

Schwartz first became registered in the financial services industry in 1998 and was affiliated with 10 different firms before coming to Aegis in 2013, according to his BrokerCheck profile.

Finra

After leaving Aegis in 2016, Schwartz spent less than a year each at First Standard Financial Company and Joseph Gunnar & Co., according to BrokerCheck.

He has a total of 12 disclosures on his record, including nine customer disputes dating back to 2012, a tax lien from 2016, a stayed bankruptcy proceeding from 2017 and the Finra complaint alleging the churning.