Finra bars former Aegis broker for churning

James Schwartz made 256 unauthorized trades in accounts of four clients

Apr 17, 2019 @ 1:07 pm

By InvestmentNews

The Financial Industry Regulatory Authority Inc. has barred James Schwartz, a broker who worked at Aegis Capital during the time in question, for churning accounts of four clients.

(More:SEC wins churning case against 'cockroaching' broker)

Finra said that Mr. Schwartz — who was associated with Aegis from June 2013 through June 2016 and no longer works in the securities industry — engaged in 256 trades in the accounts of four clients without first obtaining authorization from these customers for the trades. In total, he made 535 trades in these customer accounts resulting in combined losses of more than $660,000. At the same time, he generated gross sales credits and commissions of approximately $277,705, of which Mr. Schwartz received more than $194,000.

Mr. Schwartz began his career in 1998 and worked at 12 firms in addition to Aegis, including one that was expelled from Finra.


What do you think?

View comments

Most watched


Finding innovation in your firm

Adam Holt of AssetMap explains how advisers understand they need to grow, but great innovation may be lurking right under your nose.


Finding your edge from Tony Robbins

Guru Tony Robbins has helped a lot of people, but armed with his psychology Financial Advisor Josh Nelson has helped his practice soar.

Latest news & opinion

LPL expanding platform to include employee brokers

The largest IBD in the country has agreed to buy a small broker-dealer in Florida to kick off the new effort.

Hopes high for bill to ease small-firm adviser regulations

High-ranking, bipartisan members of the House Financial Services Committee back the legislation.

Redtail CRM data breach exposes personal client data

The information exposed includes names, addresses, dates of birth and Social Security numbers.

This strategy can double your estate-tax exemption

'Portability' allows a surviving spouse to tack the decedent's exemption on to his or her own. Despite the higher threshold for paying estate taxes in the 2017 tax law, experts recommend filing for the benefit.

Couple in Morgan Stanley advisory account wins $519,000 arb case over unsuitable investments

Plaintiff's lawyer says junk bonds, futures contracts and derivatives were inappropriate for his clients.


Hi! Glad you're here and we hope you like all the great work we do here at InvestmentNews. But what we do is expensive and is funded in part by our sponsors. So won't you show our sponsors a little love by whitelisting It'll help us continue to serve you.

Yes, show me how to whitelist

Ad blocker detected. Please whitelist us or give premium a try.


Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print