Securities Arbitration Lawyers BlogAEGIS Capital Corp, Shadi T. Barakat
Shadi T Barakat
CRD#5031281
Silver Law Group is investigating former New York, New York-based AEGIS Capital Corp broker Shadi T. Barakat after multiple clients filed FINRA complaints alleging excessive trading and churning. This complaint was settled in 2015 for $360,000.
According to FINRA’s BrokerCheck report on Barakat, another FINRA complaint alleging churning and unsuitable recommendations was filed in June of 2013 The complainant alleged damages of $500,000.
A more recent complaint against Barakat was filed in April of 2017, also alleging churning and unsuitable recommendations. This complaint alleged damages of $652,346.
Barakat was previously employed by Gunnallen Financial also in NY, NY.
Excessive trading and churning are both serious forms of broker misconduct. A broker’s employing firm is responsible for overseeing the broker to prevent such misconduct. Failure to supervise is a claim made against a brokerage firm in these situations.
Often, unauthorized trading is accompanied by churning. Churning occurs when the account frequently trades for no apparent reason but to generate fees and commissions.
Among other basic tenets, brokers are required to recommend suitable investments to their customers. This requires that the broker: Investigates and conducts due diligence into the investment’s attributes including its benefits, risks, tax consequences, and other relevant factors to form a reasonable basis for the recommendation of the product; and appropriately matches the investment with the customer’s specific investment needs and objectives, such as the customer’s retirement status, long or short-term goals, age, disability, income needs, or any other relevant factors.
When a broker or brokerage firm fails to recommend investments to its customers along those guidelines, there has to be accountability. If you have lost money on an investment that did not fit your investment profile, you may be able to recover some or all of your lost money.
FINRA arbitration is a fast, efficient way to recover your lost investment funds due to unsuitable recommendations. The Silver Law Group works on a contingency fee basis, meaning you pay us nothing unless we recover money for you.
If you invested with Shadi T Barakat and Aegis Capital and have lost money doing so, you may be able to recover some or all of your losses. We are experienced in recovering investor losses due to broker/brokerage firm misconduct and mismanagement through FINRA arbitration.
Silver Law Group represents the interests of investors who have been the victims of investment fraud. If you have questions about your legal rights, please contact Scott Silver of the Silver Law Group for a free consultation at ssilver@silverlaw.com or toll-free at (800) 975-4345.