National investment fraud lawyers KlaymanToskes is investigating Aegis Capital Corp. broker Arkady Ginsburg (CRD# 5256747) after he caused investors nearly $700,000 in losses resulting in a six month suspension in all capacities and restitution charges to be paid in the sum of $113,591.
If you suffered investment losses due to the mismanagement of your accounts by Arkady Ginsburg, you are encouraged to contact attorney Lawrence L. Klayman, Esq., at (888) 997-9956 or lklayman@klaymantoskes.com to discuss your recovery options.
According to the letter of Acceptance, Waiver, and Consent (“AWC”) entered into by Ginsburg, FINRA’s Department of Enforcement suspended the broker for six months, from April to December 2022, due to alleged excessive and unsuitable trading in customer accounts.
The AWC’s findings revealed that Ginsburg’s trading generated high cost-to-equity ratios and turnover rates which resulted in significant trading costs and investor losses. Ginsburg earned a total of $113,591 in commissions while customers suffered a collective loss of $686,640.39.
Following the suspension and restitution charge, the state of Maryland initiated a separate case against Ginsburg in June, 2022, where he consented to sanctions that he engaged in excessive and unsuitable trading. This regulatory event resulted in an order whereby Ginsburg withdrew his registration from the state of Maryland and agreed to not reapply for registration as an agent or investment advisor representative.
It is a violation of securities rules and regulations for a brokerage firm and its financial advisors to excessively trade or “churn” a brokerage account. In a FINRA arbitration claim for excessive trading or “churning” in a brokerage account, investors may allege a breach of fiduciary duty and conflict of interest for recommended investment strategies whose sole purpose is to enrich the brokerage firm and/or its financial advisor through excessive commissions, fees or costs.
Investors may bring FINRA arbitration claims to recover their losses as a result of excessive trading or churning. To be successful, investors must provide two things to a FINRA arbitration panel:
KlaymanToskes can help you determine if you should bring a FINRA arbitration claim against your brokerage firm and/or financial advisors. Contact attorney Lawrence L. Klayman, Esq., at (888) 997-9956 or lklayman@klaymantoskes.com for a free consultation.
Our firm works on a contingency basis, meaning we do not collect attorney’s fees unless we obtain a financial recovery for you.
KlaymanToskes is a leading national securities law firm which practices exclusively in the field of securities arbitration and litigation on behalf of retail and institutional investors throughout the world in large and complex securities matters. The firm has recovered over $250 million in FINRA arbitrations and over $350 million in other securities litigation matters. KlaymanToskes has office locations in California, Florida, New York, and Puerto Rico.
KlaymanToskes, P.A.
Lawrence L. Klayman, Esq.
888-997-9956
lklayman@klaymantoskes.com
www.klaymantoskes.com